Also known as an e-reputations, online reputations relate to the way that people, businesses and other organisations are portrayed on digital platforms and the wider internet. Online reputations are particularly important in business and can be made or broken not only by content published by the business itself but also by the actions of other web users.
This article will look at corporate reputation management, outlining the importance of companies adopting a proactive stance to managing their reputations.
For big businesses, online reputation is particularly important, since trust is the foundation of an organisation’s reputation. A good reputation can help boost brand loyalty, attracting new customers and driving up revenue. Conversely, negative comments posted online can have a catastrophic impact on a business.
Not only can negative online content drive away customers and affect sales, but one LinkedIn study suggests that companies with a poor reputation suffer from 28% higher staff turnover rates on average, with hiring costs effectively doubled.
In some instances, online reputational damage may arise from a disgruntled former employee or an unsatisfied customer. In others, it may be posted by a competitor with the deliberate intent of causing harm to the business. Defamation is a catch-all legal term used to describe false statements made with the intention of inflicting harm to a person or business’s reputation.
In order to protect themselves from the significant risks associated with a poor online reputation, it is crucial for companies to adopt a proactive stance in terms of reputation management, monitoring what is said about them online and taking control of the online conversation.
Social media is an increasingly important customer communication conduit today. It enables businesses to connect with current and potential customers, building engagement while widening their audience. To gain the trust of consumers, businesses need to build an active presence on platforms like Twitter and Facebook, demonstrating professionalism and transparency in all posts – particularly those that respond to negative comments.
Investing in corporate social responsibility (CSR) is an effective means of enhancing a company’s reputation, simultaneously providing the opportunity for the business and its people to champion the causes they care about most. Pursuing a robust CSR strategy increases brand loyalty by demonstrating a business’s efforts towards achieving positive change in the world.
As Director of ReputationDefender EMEA, Tony McChrystal works with a variety of different client types, from family offices and high profile individuals to multinational organisations and Fortune 500 companies. Advocating a proactive stance in terms of reputation management, Tony McChrystal helps clients to take control of the online conversation that surrounds them, as well as providing crisis management strategies for those who find themselves in the eye of the storm.