The Importance of Reputation in PR
Companies of all shapes and sizes face increasing pressure from stakeholders and consumers to be responsive to everyone’s interests and needs. Additionally, the same companies also face the fact that market changes create the need to provide a bigger return on investment (ROI) to shareholders. Both of those elements end up causing a lot of conflict inside companies regarding the value of their reputation.
On one hand, plenty of people are in agreement that building, developing, and maintaining a positive reputation is essential for every business in existence. On the other hand, there are still some people that believe the only reason why businesses exist is to increase the wealth of their investors, while the reputation is largely irrelevant to those efforts.
With information being able to spread at unimaginable rates these days, thanks to digitalization, it’s ended up making brands a lot more accessible, which can sometimes result in harm. Between negative reviews and low-quality content, these days it’s incredibly easy to sink a business if it is not paying attention to its reputation.
Additionally, PR companies have to pay attention to everything that’s happening in terms of a company’s reputation, because it can be ruined at the click of a button. It can take years for a PR agency to help a company recover from poor reputation management, if it even ends up happening at all. There’s also no set time for when a PR crisis will happen to a business, which is why it’s important to constantly keep track of a company’s reputation.
One of the most common mistakes that companies make is ignoring any negative reviews they receive from customers because they simply assume the reviews won’t be seen by many people. However, sometimes, all it takes is a single negative review for a company’s reputation to start crumbling. Since everyone can make mistakes in terms of communication, one of the first steps towards reputation management is to acknowledge that fact, and then to take the right steps towards correcting any miscommunication from the business. When a company is able to admit to its mistakes, it makes itself a lot more human.
Aside from the fact that having a positive reputation with consumers is going to make a company appear more friendly, a positive reputation can also be an important benefit to a company’s finances . Businesses that have a positive reputation with consumers are more likely to get more sales, as well as attract more consumers in the process. While a positive reputation can sometimes be seen as an intangible asset, when it increases the company’s bottom line and provides an increased ROI, it becomes another essential company asset.