Top 5 Benefits Of A Good Reputation

The benefits of a good online reputation include higher trust, better talent, less risk, and more profit. But the advantages of a good corporate reputation extend beyond that. Companies with good reputations tend to be treated better online - given a second chance.

Reputation is something that can be molded over time. By dedicating time and effort to maintain or improve your reputation, you can expect to see quantifiable results that will improve your business. We all know that a good online reputation is important. There are countless benefits to maintaining yours, but here are the ones we find most important.

1. Higher trust

Brands with a good online reputation are trusted more because people depend on the opinions of others. If people appear to trust a company or person, others are likely to follow suit with the same sentiment. If you can't even get people to trust your brand, you're going to have a difficult time selling your products. In fact, research shows that 83% of people trust brand recommendations from friends, and nearly 70% trust consumer opinions more than paid advertisements.

2. Increased profits

Building on the importance of your online reviews, companies with good online reviews tend to attract more business. Now it's more important than ever before to have lots of new, relevant reviews for your business online. In fact, every additional one-star Yelp rating causes an increase in the business’s revenue as high as 9%, according to a Harvard Business School Working Paper. The benefits of online reputation management can translate into extra income for growth.

3.Attract better employees

Reviews are equally as important for attracting employees as they are for attracting customers. So much so that only 1 in 5 job seekers would consider working for a company with a 1-star rating! People want to work at a good company that is "going places." They want to work at a company that shares the same core values and beliefs as them, one that they can trust. And they trust the opinions of current and past employees. Along with workplace reviews, positive content online shows that your company has a favorable culture. Companies with better reputations tend to attract more, and therefore better, talent.

4.Lower reputation risk

Companies with bad online reputations tend to earn worse reputations. This may be because of systemic problems within the company, but it may also be the reputation management version of the "broken window theory." The theory states (basically) that a warehouse with broken windows tends to attract more vandals. Improving a tarnished reputation may sound like a daunting task, but there are steps that can save a damaged reputation and reduce reputation risk down the road

5.Reputation directly impacts sales and revenue

In today’s highly competitive business environment, the way people perceive a brand has a direct impact on its sales and revenue numbers.

The rise of social media and the shift from conventional advertising means modern-day businesses need to actively engage consumers and focus on building a strong online reputation.

6.Additional benefits of a good reputation

A strong and well-managed online reputation ensures that businesses have a great first impression on their prospects. It focuses on building a positive brand image by identifying the key customer touch points and using them to build positive first impressions.

7.Google is the new business card online

When it comes to reputation management on the web, Google’s first page is the new business card. Most people never make it past the first page. Customers and prospects judge brands based on what Google’s search results say about them.

In fact, a recent study showed that more than 45% of consumers discovered information via a Google search that changed their minds about doing business with a company.

It is, therefore, crucial for every business to have an online reputation management strategy that highlights its strengths and makes it look good on Google’s first page.