Corporate reputation’ can be defined as how others perceive a company. It can be closely associated with brand image. However, it differs from the latter and cannot be built through clever advertising and positive marketing. But it can be moulded with factors like your leaders’ search engine results, blog posts, positive reviews, and public actions.
Corporate reputation is a distinguishing factor as it is difficult for competitors to replicate or leave behind and, thus, has a massive impact on the company.
Why is it important?
Just like others love a person with a positive reputation, a firm with a good reputation in the marketplace also attracts better people. A strong reputation opens doors to more and better business opportunities by attracting loyal customers who provide cost-free brand advertising, increasing sales and revenue. A good corporate reputation attracts high-quality and prospective employees, which helps build good relationships with clients.
This can lead to lowering marketing costs and increasing the company’s value. It can be a salient factor in distinguishing a company from its competitors. On the other hand, a damaged reputation does not just deprive an organisation of the mentioned privileges and has adverse effects on the business’s survival in the market. It increases liquidity risk that impacts stock prices.
It is a no-brainer that a tainted reputation shrinks sales and results in the loss of customers. Unsatisfied customers can lead to boycott campaigns that are uneasy to tackle. It can curtail employee retention, and recruiting new talent only increases staff costs.
What reputation-building strategies can businesses incorporate?
Underestimating the significance of an excellent corporate reputation can be detrimental. Therefore, it is a priority to leverage a good reputation through corporate management strategy rather than trying to fix a broken one after the ship has sailed. The company’s reputation can be maintained by checking the following aspects:
- Services offered
It is impossible to build a good brand reputation without quality offerings. A business is associated with its customers primarily through its services, and there is no room for error here.
- Employee satisfaction
An organisation that implements strategies for customer satisfaction but does nothing for employees is only opening doors to criticism. Unsatisfied employees can do more damage than unsatisfied customers.
- Leader’s brand
About 60% of a company’s reputation depends on leadership. They are seen as the face of the organisation, and their actions can shape the audience’s perception.
- Social impact
Another way of upgrading your corporate reputation is having a brand story and aligning it with a social cause. Its impact can play a key role in the perception of your brand.
