by Corporate reputation is defined in business dictionary as “The collective assessment of corporations past actions and the ability of the company to deliver improving business results to multiple stockholders over time.”
There are agencies who after careful observation and considerations, attribute a company as “most admired” by virtue of the social, economic and environmental impact it has over a sustained period over time. The reputation of a company also depends on these factors and is instrumental in creating favourable or unfavourable impressions in the observer or assessor’s eyes.
It is essential for a business to have good reputation in the market in order to service competition. Word of mouth definitely is a bonus, however it is also important how the company handles crisis or responds to controversies. This apparently is a cyclic process. A strong reputation helps a business overcome crisis, on the other hand effectively managing crisis or controversy promotes a strong reputation.
This allows a company to differentiate its product from similar competitive ones and over sell it at a higher price. Businesses are now concentrating more on reacting eco-friendly products, biodegradable products, organic products and so on. Research finds that customers don’t mind paying a premium price for products that has a strong brand reputation.
Organisation can actively promote a good reputation by being sensitive to the following factors:
- Creating trust amongst its vendors, suppliers etc., by paying off their timely dues. Deliver to customer what is promised. Provide timely service and maintain quality etc.
- Maintain transparency and honesty in communication with customers. This also includes timely reply to queries, respond to emails, promptly address issues and grievances etc.
- Taking ownership of problems that may crop up from time to time instead of pushing it back to the customer. With so much of options and varieties available these days, customers are very less likely to stick to any particular brand for long if it continues to dissatisfy them.
For example: a dissatisfied Airtel customer may switch to any other service provider if his grievances are not addresses, its billing details, network problem, data connection and so on. Almost all the business thus has a customer care service department that is reachable through a toll free number.
A customer may budge a telephonic complaint and the customer service department may escalate the issue to concerned authorities and try to sort out the problem to immediate effect and thus retain its customer.
- Many companies offer free services and latter to the preferences of the legal customers. Offering high level value and services help sustaining the existing customer base also create a good reputation in the market.
- Having a strong online presence in terms of a polished and updated website is always essential for letting the customer know about new or improved product or services.
Transparency of information and effective communication through mailers, messages etc., are also vital for survival of any business irrespective of the type or size.
- Availability of company name on the first page of Google or other search engines also create a big impact. This indirectly says that the brand is an esteemed one. Presence and visibility in networking sites such as twitter, feedback, LinkedIn also gives the flavour of a premium brand. This all add up to the reputation of the company and its products.
The biggest advantages of a favourable reputation are:
- More and more customers are willing to buy the product or services of a particular company whereas there are other companies offering the same identical quality in competitive price.
- To be able to sustain stakeholders support in adverse times.
- To be able to maintain good quote in the stock market.
- To be able to charge premium price for the product or services.
Essentials of Corporate Reputation
- Ethical with stable workplace
- Financial performance
- Leadership and Management
- Social responsibility
- Customer focus
- Quality and Reliability
- Emotional Appeal
