Introduction
The new age has ushered businesses into an era where audiences look beyond just the functional attributes of a product, service or entity. People care about who you are and what you stand for. Whether on the internet or traditional media platforms like radio and television, on podcasts, or in person, people are always having conversations about brands they experience in their daily lives. Whether or not they have positive or negative things to say about your brand depends on the available information and the accompanying narratives that influence their perception of your brand. As such, modern businesses must recognize the value of brand reputation management and take the necessary steps to ensure that audiences have the desired perceptions about the brand.
What is brand reputation?
Brand reputation represents perceptions audiences have about your brand. This includes all the meanings that are associated with your brand. These meanings stem from people’s experiences with your product, services, values, and the available information about your business. These perceptions translate into two main aspects of brand reputation – Good brand reputation and bad brand reputation.
Good and Bad Brand Reputation
A brand has a good brand reputation when audiences make positive and favourable associations with the brand. These associations are strong when the audience can relate to them. This ensures audiences feel good about the brand and are likely to patronize it. An example of an organization with a good brand reputation in Ghana is Kasapreko’s Verna mineral water. The company donates 1% percent of the price of every Verna mineral water bottle that is sold to charity. The marketing strategy is one that quickly garnered positive brand traction for Verna Mineral water and boosted sales to become one of Ghana’s topmost-selling mineral water bottles. The lesson here is that a good reputation is good for the bottom-line
A brand has a bad reputation when audiences make negative associations with the brand. This usually stems from a bad experience with a product, service, people related to the brand and a social or political stance. Audiences with bad experiences with a brand are less likely to patronize it and more likely to recommend others to reject the brand. An example of an organization with a bad brand reputation is the Infamous H&M fashion brand. The organization faced heavy social media backlash after posting a picture of a black child model wearing an H&M shirt with the caption “coolest monkey in the jungle” on it. The subsequent fallout saw H&M lose more than 50% of its worth in the ensuing month and an overall decline in sales. A bad brand reputation is bad for Bottom-line.
Reasons to Manage your Brand Reputation.
Firstly, managing brand reputation can lead to brand loyalty. Businesses with a positive brand reputation are likely to see high customer loyalty. Customers who feel like they share a connection with your brand are likely to be returning customers. There is also a high chance that these customers will not be returning alone. Loyal customers are likely to be Brand Advocates. Customers who are satisfied with their experiences with your brand are likely to recommend it to others. This adds to a growing customer base that directly translates to an increase in profits
A second reason to manage your brand reputation is to increase profits. Companies with good brand reputations often see this translate into sustained and increased profit levels. When companies align themselves with values that audiences can relate to, they are more likely to patronize the brand. It is no coincidence that the FORTUNE World’s most admired companies in the world are also some of the highest profit-making companies in the world.
Additionally, managing brand reputation gives the brand a competitive edge over its competitors. Every business sector is saturated with a list of alternatives for people to choose from. What makes a difference in such saturated markets is the reputation of the brand. A brand already known for desirable qualities such as quality, reliability, and affordability and for supporting the right causes can set itself apart from its competitors. The key here is to find your key target audience and communicate messages that they can relate to. This will set you apart in the minds of your target audience.
Also, brand reputation is essential to crisis management. The best way to manage a crisis is to be proactive. Managing brand reputation allows you to shape the narratives and carefully create brand perceptions that are in touch with trends and developments to keep the organization on the cutting edge. In times of crisis, managing the brand reputation allows you to keep track of the narratives and respond to them immediately. The rise of social media has made it easy to respond to and manage public perception of brands. In times of crisis, brands must be able to communicate with their audiences and assure them that the necessary steps are being taken to solve the crisis.
Lastly, a positive brand reputation makes it easy for organizations to attract and retain top talent. Companies that are desirable to audiences are also desirable to prospective employees. When the public has a positive perception of your organization employees feel proud to be working for you and are more likely to stay longer at your organization.
Conclusion
The digital era has transformed how brand reputation is managed. In this modern era, it’s easier for your brand to be under scrutiny. Information travels faster and people have direct access to businesses which can easily cause them problems. Thus, managing the perception audiences have of your brand is essential to the success of a business.