Importance of Reputation for Companies

In today’s era, it’s essential for a company to have a positive brand reputation to be able to attract more customers and generate sales. The opinions of the market, customers, and any other stakeholders of a company form the foundation of any branding strategy. Companies can utilize all of that information to improve their brands according to the needs and pain points of their customers by creating business, sales, marketing, and public relations efforts that will be based on the reactions and thoughts of the target audience.

Reputation

The way that the public sees and perceives a company is called brand reputation. With a strong brand reputation, the confidence of the customers is reflected in the brand, as well as their willingness to do business with that company. These days it’s easier than ever for audiences to talk about all of the companies that are at their disposal on social media platforms, discussion forums, or review platforms. Even the personal experiences of the customers with a company can be used by others in the target market when they are trying to make purchasing decisions for themselves. This process tends to occur before, during, and even after a potential customer has made a purchasing decision. In fact, some customers tend to take the after-sales care into consideration a lot more when they are making a purchasing decision.

Trust

Consumers can make any sort of purchasing decision, which is why they hold all the power in the market. In fact, consumers also have the opportunity to visit and use social media platforms, review platforms, and online discussion wars where they can share their opinions and thoughts about companies and their solutions. Any company that generates a lot of positive reviews from customers tends to get a lot of attention from other potential customers. That’s because happy customers tend to generate a lot more trust with other potential customers, which helps the company develop a strong brand reputation.

Sales

When a customer starts to trust a company, they tend to cause a chain reaction. That’s because one happy customer that leaves a positive review tends to fuel the rest of the market’s desire to connect with that company and make their own purchasing decisions with that company. That generates a lot more sales and profits for that business. That’s why it’s important for companies to encourage their customers to leave positive reviews on third-party review platforms and social media channels to have a direct impact on the company’s sales and trust with its audience.

Loyalty

The last reason why a company’s reputation is so important is that companies that have a strong reputation and a trusting relationship with the target audience tend to have a lot more loyal customers. Other customers are going to be a lot more likely to purchase from companies they tend to see on a regular basis, which is why plenty of businesses tend to invest a lot of time and effort into promoting their sales figures over a specific period of time and highlighting the positive experiences of other past customers. As a result of the loyalty of the customers, a company’s reputation can continue to grow and improve, even when competitor brands start offering big promotions and discounts to the same target audience.

Ronn Torossian founded 5WPR, and is a best-selling author.

Ronn Torossian

Ronn Torossian is the founder and Chairman of 5WPR, one of the largest independently-owned PR firms in the United States. With over 25 years of experience crafting and executing powerful narratives, Torossian is one of America’s most prolific and well-respected Public Relations professionals. Since founding 5WPR in 2003, he has led the company’s growth, overseeing more than 275 professionals in the company’s headquarters in midtown Manhattan. With clients spanning corporate, technology, consumer and crisis, in addition to digital marketing and public affairs capabilities, 5WPR is regularly recognized as an industry leader and has been named “PR Agency of the Year” by the American Business Awards on multiple occasions. Throughout his career, Torossian has worked with some of the world’s most visible companies, brands and organizations. His strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards 2020 Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, Metropolitan Magazine’s Most Influential New Yorker, a 2020 Top Crisis Communications Professional by Business Insider, and a recipient of Crain’s New York 2021 Most Notable in Marketing & PR. Torossian is known as one of the country’s foremost experts on crisis communications, and is called on to counsel blue chip companies, top business executives and entrepreneurs both in the United States and worldwide. Torossian has lectured on crisis PR at Harvard Business School, appears regularly on CNN & CNBC, is a contributing columnist for Forbes and the New York Observer, and has authored two editions of his book, “For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations,” which is an industry best-seller. A NYC native, Torossian lives in Manhattan with his children. He is a member of Young Presidents Organization (YPO), and active in numerous charities.

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