Why is Reputation Management Important?
Reputation can be described as the belief system and opinion people have of a business, organization, or institution. It is a concept that focuses on your brand’s internal and external perspectives. In this article, we will explain why it is important for brands to have their audience and stakeholders provide positive feedback about their services. To manage a brand’s reputation effectively, the brand must look beyond what it thinks of itself alone and pay attention to how its external stakeholders think also.
Issues and crises are common causes of reputational damage. Basically, anything that can lead to negative reactions from a brand’s stakeholders. In instances where there is an operational or legal problem, communications alone cannot solve such problems. In this scenario, we can use communications to admit the issue to the audience and also stay accountable to the public when it is resolved. Communications alone cannot wing it. The problem has to be resolved while messaging is used to inform and influence people’s interests in the brand.
Let us start off by clearly defining both terms and how they can affect a brand’s reputation. An issue is a matter of concern in a business or organisation which can result from a mismanaged incident and affects the people, environment or assets of the organization. On the other hand, a crisis is an unplanned event with potentials to negatively affect a brand’s reputation, their license to operate from regulatory bodies and attract negative feedback from stakeholders. You can find out more about the difference between issues management and crisis management here.
A brand’s reputation embodies their performance, behaviour and how they communicate with their audience. As a result, when crafting a narrative/message for the brand, communications professionals should be open to feedback and perceptions of the brand from both an internal and external point of view. Many business leaders and communications professionals make the mistake of paying attention to only one perspective which can either be that of senior leaders within the organization or the clients alone, ignoring valuable perspectives of employees. To achieve a more holistic view of a brand’s reputation, the communications practitioners need to engage with different stakeholder groups rather than those who are only known for providing positive comments. You will find this post on stakeholder engagement useful.
To learn about the value of proactive reputation management, this video resource will provide you with helpful insights.
4 Reasons Why Reputation Management Matters
- Reputation helps in building long-term capital.
- Once a brand begins to attract negative opinions about its services and products, its reason for being becomes threatened.
- Reputation has an apparent connection with the business. This means that it is directly linked to market outcomes and sales. For instance, in Fast-Moving Consumer Goods (FMCG) where low-cost and high-demand products are sold, if a brand has a poor reputation among its consumers, it is likely to affect their ability to sell and meet business goals as consumers may lose interest in their products.
- It is essential to have a positive reputation as it can also attract high talents that increases the brand’s revenue
You can now enroll for our on-demand courses which are accessible globally, This is a flexible learning model for professionals worldwide who need to learn at their own pace and access personalized feedbacks. Sign up here.
Click here to check out our online courses
Download our 2025 Training brochure here
………………………
Sola Abulu & Associates is a strategy and communications consulting and training firm committed to enabling businesses, brands and organizations to achieve their objectives through strategic communications, organizational effectiveness and reputation risk management
Chat with us for more information on our courses.