A positive brand reputation can lead to increased customer loyalty and trust, while a negative reputation can have the complete opposite effect.
Your brand's reputation is based on factors such as the quality of products or services, customer service, and the brand's overall image and values.
Brand equity, intellectual capital, and goodwill represent a significant portion of a company's market value - sometimes as much as 70% to 80%, Harvard Business Review highlights. This means that the reputation of an organization is crucial to its success.
Do you recognize your brand’s values in your customer’s reviews? Are you aware of their needs? Are you happy with how your company is perceived online? Are your customers loyal to your products and services? Is your media strategy representative of your brand? Are you monitoring your social channels?
As a brand owner in 2023, you need to have a clear understanding on how people view your products, your services and your company. Public perception and evaluation is directly linked to revenue and longevity of a brand, a reputation crisis could cause a catastrophe.
We know keeping an eye on it is hard to do all alone, so If you’re not investing in protecting your brand to maintain and improve your reputation, this is your sign to start.
At this point, we all can think of at least one brand’s downfall. It’s scary. One bad step can lead to many negative consequences. It’s important to be ready, to be informed, and to know how to manage a catastrophe. But first of all, let’s learn from the two examples of how not to do things.
Brand reputation specialists agree on Balenciaga’s scandal being the biggest of 2022. Nonetheless, this year already started on a bad note for Morphe. The bankruptcy file of the former makeup giant caught everyone by surprise, especially their employees who weren’t aware of the stores shutting down and their videos demanding answers on TikTok became viral.
These two companies might not have a lot in common, one being a fashion house and the other being a makeup store, but there much under the surface that these two different industries share when it comes to online scandals and social media crisis.
These two strategies work most of the time, but when it comes to brand reputation, these marketing tools can be as successful as catastrophic:
1. Influencer Marketing: Morphe was one of the pioneers of this marketing technique. The efforts of the founders to create meaningful relationships with online content creators was the fuel of so much success. The biggest names of the industry were pushing Morphe’s products to their audiences. And it worked, for years, until those the brand collaborated with were “canceled” by their followers, taking the bestseller company to the ground.
2. Celebrities’ endorsement: Balenciaga’s rise happened as quick as their downfall. We witnessed how the luxury brand was gaining popularity in social media as one of the quickest companies to do so. The once old fashion house became trendy and all the “A-listers” were wearing their clothes. Kim Kardashian, Alexa Demie, Kanye West -just to name a few- were visible faces of the brand. Everyone wanted the Balenciaga bags and shoes their favorite stars were wearing and promoting but soon enough, social media users would turn their backs against the fashion house.
Both of these companies were relying heavily on huge social media personalities to advertise their products. Counting on your online networks to generate reach and get visibility is great as long as you are willing to navigate trends, social issues and mistakes while making it look effortless. If your company becomes trendy, you must keep in mind that if your followers are done with your brand, your brand is done for good. To help you, here’s our survival guide to gain and maintain your reputation online.
“It takes many good deeds to build a good reputation, and only one bad one to lose it.”— Benjamin Franklin
There are several strategies that companies can use to fight negative brand reputation, here are our recommendations:
The key is investing in reputation management strategies, such as building strong relationships with the media and actively engaging with customers. It's also important to have a crisis management plan in place to quickly and effectively respond to any negative events that may occur.
It's important to note that rebuilding a damaged reputation takes time and effort, but by implementing these strategies, a company can begin to repair and improve their visibility. Each brand has a personality, don’t be afraid to let yours shine.
Companies must recognize the value of their reputation and take steps to protect it. At Smart Protection we are committed to safeguard our clients and partners brands. It is our priority to protect the online reputation of those who trust our software. Don’t hesitate to contact us, no matter how big or small your company might be, we have a solution for you.
In conclusion, in today's economy where intangible assets play a major role in a company's market value, the reputation of an organization is more important than ever. It's crucial for companies to recognize this and take steps to protect and enhance their reputations before it’s too late.