Read the new ReputationUP guide and find out what corporate reputation is, how to manage it and what the benefits are for businesses [GUIDE].
What is corporate reputation?
It is the image that a company projects, and the public interested in the brand, perceives.
This concept is an intangible, which can be managed to avoid a reputational crisis and achieve business success.
The reputational status of a company causes a customer leaning towards it, or, on the contrary, going to the competition.
In fact, if a business has more than four negative reviews on Google searches, 67,7% of customers will not buy from it.
And therefore, they will choose to, ultimately, go to the competitor.
Online corporate reputation
Its focus is on the perceptual feeling of a customer, in the digital realm.
The online reputation of a company is measured on search engines, social media, digital platforms, forums, reviews, etc.
Elements of corporate reputation
Made up of:
- Training, selection and progress of staff;
- social elements and integration;
- environmental elements;
- pricing policy;
- institutional communication.
What is the corporate reputation of a company
The sum of the internal and external factors of the company generates an image to its public.
And, that perception or expectation is the corporate reputation of the company.
This concept may vary, depending on the actions the company takes over time.
Difference between corporate image and corporate reputation
The corporate image of a business is the first impression a customer gets from a brand.
For example, the perception generated by a new project or product. On the other hand, the corporate reputation is the whole feeling of the company.
However both concepts are related to the company and its reputation.
Corporate reputation management
The reputation management of your company is multidimensional and depends on fixed variables, which affect all types of companies:
- Business economic balance;
- Ethics and corporate social responsibility (CSR);
- Internal reputation;
- Innovations and information technology;
- Commercial quality;
- Geographical boundaries of the company.
Equally, the actions and values of the company have an effect on it.
Our guide about Online Reputation Management proposes the following tips to get started on online reputation management:
- Implement the SEO strategy on your website;
- Respond to negative criticism immediately;
- Provide efficient customer service.
ReputationUP is responsible for managing the online reputation of companies, professionals, public and private figures.
Handles and executes all phases of management: cleaning, monitoring, protection and reputation improvement.
Corporate reputation analysis
Its analysis allows us to know the feeling a company causes at a specific moment.
As we have previously mentioned, reputation is a concept which can vary in time, depending on the actions of the company.
Monitoring is one of the most important phases.
This strategic action is important to analyse the business trend, and clean up its online reputation through the removal of harmful links.
Many companies use Google Alerts, because this platform searches for keywords that interest the brand and Google notifies them with an email when it detects a new mention.
ReputationUP uses proprietary tools to scan the Web, looking for information about your company or your competition.
RepUP Monitoring Tool analyses, in real time, what is being said about a brand, calculates the feeling in conversations and intercepts any reputational crisis.
Corporate reputation indicators
The analysis or monitoring of corporate reputation is carried out based on some indicators.
Every company uses Key Performance Indicators (KPIs).
In the following list, we name some of them:
- Financial compliance: abide by financial compliance regulations;
- Customer sentiment and perception;
- Financial reputation: protection of the company against a public scandal, related to illicit operations;
- Having a good position in reputation rankings;
- Media coverage.
ReputationUP software takes the following indicators to measure it:
- Virality map;
- Results and mentions about the brand;
- Analysis of feeling;
- Content analysis;
- Hashtag and tag analysis;
- Social listening;
- Risk analysis;
- Customer, competition and influencers analysis.
The previous indicators are studied on search engines, media, blogs, forums, social networks, review sites, etc.
Cases of corporate reputation
In the following section, we exemplify the cases of two companies, which with different behaviours generated a good and a bad reputation.
A plane from Lufthansa’s low-cost subsidiary, crashed in 2015 due to the suicide of the pilot.
In this accident, more than 150 people died. Faced with this reputational crisis, Lufthansa built a communication plan, characterized by its transparency and speed.
The company took the blame and paid compensation to the affected families.
Spanish journalist Samanta Villar, received numerous criticisms about her book Madre no hay más que una, in which she wrote about the negative side of motherhood.
The baby food brand Hero Baby, joined the opinions and published the following post on Twitter:
“To Samanta Villar, wealthy and famous, her children are a loss of quality of life. Cheer up, Samanta, your children will love you the same”.
The journalist, who was already experiencing her own reputational crisis, responded to the brand:
“Hello Hero Baby. Why do you put palm oil in your products, with low nutrition quality and the environmental damage it causes? Thank you”.
This discussion led to a bad corporate reputation for the brand.
To overcome this reputational crisis, Hero Baby had to apologize.
First, they apologized to the journalist, via Twitter.
In a press release, they explained the use of palm oil in their products.
The latest ranking, conducted by Statista, gives a score of over 100 to the companies with the highest reputation value.
In 2021, LEGO Group, Rolex y Ferrari are ranked in the top three, followed by Bosch, Harley-Davidson, Canon, Adidas, The Walt Disney Company, Microsoft y Sony.
To know of more cases, ReputationUP has compiled a list with five cases of reputation in businesses.
Benefits of corporate reputation
Its benefits are diverse. The following list shows some of them:
- Conversion of negative reviews;
- SEO optimization;
- Image and brand reassessment;
- Customer loyalty.
Importance of corporate reputation
It is the most important business value.
In fact, 97% of entrepreneurs believe that reputation management is the key to their business success.
Managing corporate reputation can save companies from facing a reputational crisis.
Why is it important?
- Forms a strategic digital identity, according to your brand;
- SEO indexing;
- Manages the image and reputation of the company, before they have a hard impact on it;
- It faces the problems affecting the business areas;
- Handles the haters, with speed, kindness and online presence.
It is important due to two factors: internal and external.
On the one hand, a good management prevents reputational crises, which generate economic losses.
On the other hand, it is ahead of the competition. A good corporate reputation makes the difference with other companies.
It is the image that a company projects, and the public perceives.
Through this guide, we have learned how to manage it and what the benefits are for companies.
From this article we can draw the following conclusions:
- With a good management, companies can achieve success and avoid reputational crises;
- The reputational status influences the decision of customers, between a company and its competition;
- The reputation management of your business is multidimensional and depends on fixed variables;
- Its analysis allows us to know what feeling a company causes at a specific moment.
With more than 20 years of experience, ReputationUP manages numerous companies.
We perform all phases of corporate reputation management: cleaning, monitoring, protection and improvement.