Why does a significantly large number of pre-selling happen for a top company’s products? It is because of their corporate reputation. Corporate reputation is an estimation of how a company is performing, its prospects, and its achievements.
Corporate reputation is an intangible entity. Hence, many budding companies don’t care about it. However, for small businesses, creating a good business reputation is key to their growth.
Corporate reputation management is a way to manage consumer perception of the brand. It helps in holding the goodwill of the company and its expansion. The importance of a good reputation is evident from the following fact by BrightLocal: 49% of the consumers need at least a four-star brand rating before buying a product.
Why Corporate Reputation Management Matters
Increased Search Rankings
Corporate reputation is a direct result of the customer rankings on various sites. As the rating of your product increases, the SEO tools will rank it higher. Managing the rating is an art at which you should excel. It helps you better your corporate reputation management. According to reputationX, consumers read 7 reviews on average before buying a product.
Good ratings are just one facet of rating management. You must also reply to the low rating of products. Listen to customers’ grievances, and solve problems for them. This behavior will increase your credibility and customer engagement, which, in turn, gives a boost to your SEO ranking. According to BrightLocal, 20% of consumers expect a reply within a day of writing a review.
Better Employees
Corporate reputation management establishes trust in the consumers and stakeholders. But apart from this, corporate reputation management also sets morale among the employees. Nobody wants to work in a company with a bad reputation. According to a fact by Allegis Group Services, 69% of the job seekers will not accept a job offer from a poorly reputed company.
This can lead to the entry of incompetent employees that can worsen the situation. Managing corporate reputation will put your company in a stronger position. This will attract high-quality employees, which can add value to the company.
Extended Support from Stakeholders
Company stakeholders are a priority for any company. With stakeholders ready to invest and support the company, it can go miles ahead of the competition. But why would stakeholders support you? Stakeholders support those companies that have the potential to grow. Improving corporate reputation can help in increased support from the stakeholders.
According to StatusLab, 84% of marketers believe that binding trust is vital for the future boom in the company. As you can see that, stakeholding is all about managing trust. A sound corporate reputation management system will help you withstand any hiccup with your stakeholders.
Increased Market Value
An excellent reputation is directly proportional to the market value of the company. A company with a good reputation acquires higher value than its lower reputed counterpart. Better reputation creates a positive buzz about the company in the market.
As a result of this positive buzz, more people want to buy the company’s product, hence increasing the value of the company. According to the World Economic Forum, on average, more than 25% of a company’s market value is due to its reputation. This stat is enough to stress the need for corporate reputation management for a company.
Higher Revenues
Corporate reputation increases not only the market value but also the actual revenues of the company. As a positive reputation creates a buzz in the market, more first-time users will come to your company. If your products are good enough, the revenue of your company will increase exponentially. According to Streetfight, a 0.1-star increase in a store’s average rating increases its revenue conversion rate by 25%.
Every owner wants to increase revenues, and managing corporate reputation is a surefire way to do it. Also, in this digital age, both your poor and good performances spread like wildfire.
Conclusion
Now that you understand corporate reputation management and its importance, it is time you implement it in your business model. You may hire a reputation management services company to boost your corporate reputation ASAP.
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