Business Online Reputation Management and what is important to know

Reputation plays an important role in the modern world of business and personal relationships, and has a significant impact on stability, growth and prospects. A competent reputation management strategy is an urgent task for companies in modern realities. In the article we will analyze current theses, key practices and principles of company image management.

What is reputation today?

Reputation is the overall impression and opinion about a person, community, company or organization. It is based on experience, interaction and information available to other people. A positive image offers better business opportunities and community support, while a negative reputation leads to a drop in profitability and sales, causing fears and doubts among the target audience and partners.

Build a reputation and it will work for you.

Why manage reputation?

Reputation management requires a proactive approach to creating a positive growth in the company's image.

In a saturated market, with an abundance of the same type or identical offers, in the same price category or with similar characteristics, it is difficult for the Client to decide on the choice of Seller or Contractor.

The client is forced to make a decision in favor of one offer, focusing on indirect signs of a profitable deal that do not relate to the direct characteristics of the selected product or service - the Seller’s reputation becomes a key signal for a positive decision.

At the selection stage, it is important that the seller’s reputation is accessible, confirmed by a variety of trusted sources, and exceeds the competitive environment.

Case study:

Client's task:
The client plans to use the services of a car service in a city where he does not have trusted Contractors. The consumer understands the risks of poor-quality services, the results of which will be forced to correct on their own.

Goals:
Receive quality service at the best cost.

Search process:
The client is looking for a suitable Contractor using Internet search services: search engines, maps, specialized directories and others. He receives many similar offers with different price categories, assurances and often monotonous descriptions.

Client problems and questions:

• The number of proposals exceeds the Client's needs and all potential contractors have a suitable description.
• Why is the price different (or not different)?
• Which offer would be best for him?
• Which contractor will provide him with reliable guarantees and quality service?

Stages of decision making:

• Evaluate the recommendations of the search service at the Client’s request - modern services immediately offer a reliable contractor based on reviews from other consumers.
• Select offers in the appropriate price category.
• Study reviews in detail on the target topic of the Client's needs.

Conclusions:

1. The decision-making model comes down to the choice of a Contractor subject to the condition of a predicted quality result.  
2. Reputation is a key sign of assessing the quality of service for the Client and a factor in choosing a Contractor.

Main tasks of reputation:

1. Formation of a loyal image and confirmation of expertise. A good reputation helps to retain customers and attract new ones.
2. Risk optimization. A properly managed reputation can help minimize the negative consequences of crises and conflict situations.
3. Justification of added value for goods or services. Due to the predictable result and reliable guarantees, the Client is ready to pay the additional cost for optimizing his own risks.
4. Expanding the business capabilities of the enterprise. It is easier for a company with a positive reputation to find reliable partners and attract the necessary investments.

Conclusions from successful reputation-conscious companies:

1. If your business strategy is aimed at long-term prospects , it is necessary to solve image problems in advance. 
2. With every negative, the company loses part of its potential profit.
3. Absent reputation = negative reputation - they simply don’t know about the quality of service and USP.
4. Negative reviews appear faster and in greater volume than positive ones due to the passivity of customers.
5. Business is losing its competitive position. At the same time, “colleagues in the shop” solve image problems more actively.
6. The anchor of a negative reputation is more difficult to move. Forming a positive image in a negative environment is much more difficult.

A positive reputation is the result of active work for the following reasons:

1. Clients are passive when receiving quality service , as this is the norm of modern business culture. Customers do not leave positive reviews or are reluctant to do so.
2. Customers will actively report and share negative experiences with others. Getting feedback about service shortcomings is simple and often does not require effort.
3. The effect of positive and negative reviews is not equal. For one negative review, you need a dozen positive ones.
4. Forming a positive image is a VERY long process that should accompany a business throughout its life.
5. Reputation is a key factor in making a positive decision in a saturated and highly competitive market.
6. Customers are increasingly drawing conclusions from reviews. The business community is growing, competition is getting stronger, there are more offers, the competition has moved to the level of similar or identical offers. As a result, the Client is forced to choose a seller based on characteristics related to the product.
7. Negative information goes viral. Negative reviews spread faster (especially on social networks), and major scandals remain on the Internet forever. At the same time, people tend to pay more attention to negative mentions about the brand.
8. Negativity can attract “unnecessary attention.” 
   If a company is constantly mentioned in a negative way, sooner or later it will be noticed not only by ordinary users, but also by influencers - major bloggers, media, human rights activists. The consequences can be unpredictable - from a scandal to the closure of a business.
9. Frequent negative mentions affect search engine rankings. If there is too much negative information about a business, it begins to influence not only customers, but also search engine algorithms.
10. Working with reviews improves the quality of service. By receiving feedback from customers, the company understands its strengths and can focus on them. 
    What’s even more important is that the company takes into account negative reviews and makes the right decisions in a timely manner in favor of the needs of the target audience.

Which business primarily needs to manage its reputation:

1. Local businesses 
   Often these are small companies that collect most of the traffic from cards. If the rating of such a company is less than three stars, it may not be taken seriously.
2. Businesses from the service sector 
   Beauty salons, repairmen, photo studios, travel agencies, medical clinics - their reputation is mainly based on reviews of people on the Internet.
3. Online business
   Online schools, digital agencies, online stores - they are all focused on online sales, and this is where their reputation is formed.

We also recommend paying attention to reputation management for companies that are not particularly connected to the online world. Positive reviews, mention of participation in events and interviews, promotion of the personal brand of the manager or the company’s opinion leader can greatly influence a loyal attitude in the search for partners and expansion of business horizons.

World trends

Surely, you have already heard about the social credit system in China. It was created with the aim of monitoring and managing the behavior of citizens and companies in the country.
According to its algorithms, each person and organization is assigned a score based on their “behavior.” The level of the score is influenced by various factors: compliance with laws, execution of court decisions, financial responsibility, honesty in business and other parameters.

It is difficult to ignore this “official statement” about the beginning of the influence of the digitized opinions of other people and even systems on personal or corporate success.
Reputation management strategy is becoming increasingly popular in the offline and online environment.