Successful organizations are aware of the importance of reputation. A positive reputation brings trust, confidence, and sales, which are ultimately reflected in revenue growth and profitability. A bad reputation can lead to a decrease in consumer confidence, and, in turn, a reduction in revenue and profits.
In this day and age, erroneous rumors, malicious gossip, unfair opinions and other bad news spread fast! The internet has compounded the speed and the geographic distribution of this information. By the time negative news gets out it is often too late and the damage irrevocable.
Online Reputation
Before the development of the web, news was slow moving and organizations could take their time to develop structured responses to problems. Currently, rapid developments in consumer generated media sites mean that the general public can quickly air their views. These views can make or break a brand. Consumers trust these published opinions and base their buying decisions on them. For example, eBay’s success has been based on their system of feedback ratings, which provides consumer opinions of sellers. Any information available to your potential clients affects your reputation and their buying decisions.
Similarly, ex-employees, and brand activists can easily get their personal viewpoints out there. Competitors who can also spread malicious rumors and lies about your company and brand in the hopes of stealing your market share.
These types of unsubstantiated reporting can affect your corporate image. Sites containing these kinds of information are being indexed by search engines and appearing in search results for your brand names. The information can spread to the traditional media, compounding the damage.
A client estimated they were losing $2.5 million in sales annually brought about by reputation attacks on CGM sites and the wrongful use of their trademark in paid advertising.
Online Reputation is Important
Consumers use search engines to gather information. When they undertake a search for your company name or brand, your hope is that your own website is high up on the search results list.
Undertake a search on your favorite search engine for your company name and look at the results. Hopefully, your company web site is at the top of the list. But what about the other results in the top 10? What do they say about your brand?
People searching for your company name will often look at all of these results – not just those pointing to your homepage. When their eyes skim down the list, what stands out about your company? Is it all good, relevant, up-to-date information? Are there any negative listings saying bad things about your brand or your company? Are there sites with outdated information about your brand in the list? What are people saying about you on industry forums and blogs? People looking for your company in the search engine results will scan all this information.
People from all walks of life use search engines to research, and gather information so that they can make informative decisions. If the information they come across during a search relating to your brand is adverse, it can affect the decisions they make. Negative information can ultimately lead to problems in many areas including sales, investor relations, recruitment, financials, image, and reputation. In other words – damage to your brand.