The importance of business reputation can’t be underestimated. It is the overall estimate in which a company is held by its external and internal stakeholders based on its current and past activities as well as the prediction of its future behavior.
Many companies put the importance of a reputation management to the back of their heads while they attend day-to-day urgent tasks. That is a mistake, as good reputation is one of the greatest assets to have, especially when it comes to knowledge-based organizations providing professional services such as healthcare, legal, finance advice and consulting. Their reputation is the ‘bank of goodwill’ that brings them repeat customers.
The main ways in which reputation affects your results include:
- Profits: Reputation defines your ability to charge a premium for services and products
- Support: Good organizations will get support from stakeholders in dire times
- Financial value: Reputation affects the value of stocks, shares, etc. for a company in a marketplace
- Revenue: Customers prefer buying from companies with a good reputation, and such companies have an edge over competing products and services that are available at similar quality and cost
- Competitive advantage: Organizations with good reputations perform better financially, attract talent at a low cost, and have lower capital costs. They also gain support easily from government and other organizations in economic crisis.
Some businesses think that reputation shouldn’t matter or doesn’t matter, and that every organization should focus on doing its best, and let others hold what opinion they want. While not manipulating others just for the sake of reputation is the right way to go, the practical importance of a good corporate reputation cheats them of many opportunities they may otherwise gain benefits from. All industries need positive role models, and having a good corporate reputation can put you in that chair.
How to ensure or build good reputation
In all things, it’s more challenging to build a reputation than to repair a damaged one. The first step for companies is to gain more control over their marketing and social media activities, as word about a company can spread fast in the digital space. Some service provider analysts can help companies build a good reputation with publishers, aggregators, affiliates, etc.
Cane Bay Partners Facebook page explains the importance of having strong relationships with online content promoters. It enables clients to improve positioning with these parties, cost savings, and ultimately profitability. By utilizing cutting edge online methodologies, finance companies can improve their reputation and work towards acquiring new customers and retaining existing ones.
Finance businesses can adopt a do-it-yourself approach, or they can take advantage of professional companies with years of experience. Ideally, companies that pay its employee a healthy sum and have reviews are considered more competent in building reputation via online methodologies. Companies can see reviews of Cane Bay Partners and other consulting companies on Glassdoor; such sites provide an insight on the work environment and inner culture of the company, helping businesses make better decisions about who to choose when it comes to developing their reputation.
At the end of the day, remember that business reputation is fragile and requires constant development. Consistency is the key because even 1 percent of reputation damage can tarnish your company’s profitability, especially in the finance industry.