Reputation Risk Management
Reasonably Good number of people thinks that Reputation Management is Disaster Management Tool for Brand Name but Risks to reputation are not anymore part of the emerging risks; in fact, they have been on the risk management radar for over a decade now.
Reputation covers all aspect of Perception of Customers, Employees, Stakeholders about company or brand or product offerings or associated services or communication mechanism. Reputation directly impact purchase decision of prospect customer and mental phenomena of team; in other words; productivity of Sales Team & HR team
Basic Understanding of SubjectReputation
The beliefs or opinions that are generally held about someone or something
The belief or opinions that are generally held about someone or something and shared .....over Internet in form of appreciation or frustration
Enjoying a good reputation yields many rewards: not least the continuing trust and confidence of customers, investors, suppliers, regulators, employees and other stakeholders, the ability to differentiate the business and create competitive advantage. A bad reputation, conversely, can result in a loss of customers, unmotivated employees, shareholder dissatisfaction and ultimately the demise of the business itself.
Reputation Risk Attributes
Reputation Management should be taken care from very starting because Reputation Maintenance require limited resources (small investment and team dedication) while Reputation re-engineering requires comparatively very high amount of monetary (higher marketing and promotional investment) and non monetary (time, distaste management, process re-engineering) investment.
Generally, people set it into priority when they are actually experience it or HIT by sales droop and then thinks
- Differentiation: how to stand out from competition? What are the other possible competitive edges?
- Vision: How team convinces consumers and employees of the high-minded values imbedded in the “BRAND”? Are they trained and motivated?
- Positioning: Why do consumers and employees need “BRAND” in their lives?
- Personality: How is the particular message communicated to employees and consumers? Is it conveyed in satisfied manner through a consultation process
- Added value: What do the consumers and the employees get that they could not with another “BRAND”
Reputation Risk Monitoring
Reputation is actually the result of difference between
EXPERIENCE & EXPECTATION
It is also true that Reputation of a Brand is inversely proportionate to customer bank. As soon as, company get business / customers, chance of getting Reputation Breakdown increases because of higher expectation of customers, employees, stakeholders and indirect pressure of per unit profitability as overheads drastically increases
Standard Process to Identify and Count Reputation Risk
Maintaining a good reputation therefore requires continuing identification and management of emerging gaps between experience and expectations and between claims and reality using a risk oriented approach.
If you don’t have Negative sentiments with your brand name search over internet; does not mean, you are blessed with healthy Brand Reputation while Neutral Sentiments represent lack of experience in industry and lesser customer base.
Reputation may Impact
- Stockholder's decisions to hold onto their shares
- Customer's desire to buy products and services
- Supplier's desire to establish partnerships
- Competitor's confidence
- Media coverage
- Regulatory authority attitudes
- Unit selling Cost of product / services
- Recruitment of high potential individuals
- Motivation of current workforce
Reputation is a critical business differentiator. As Alan Greenspan (former US Federal Reserve Chairman) said - “In today’s world, where ideas are increasingly displacing the physical in the production of economic value, competition for reputation becomes a significant driving force propelling our economy forward. Manufactured goods often can be evaluated before the completion of a transaction. Service providers, on the other hand, usually can offer only their reputations.”
Perhaps the greatest benefit of a ‘good’ reputation is its capacity to provide a reserve of goodwill that can help the business withstand future shocks and crises. Such Brand Capital, which underpins all possible trust and confidence, can also act as a buffer when crisis comes.
Recommendation – BrainShakers Interactive is a leading Online Reputation Management company for assured results, Online Brand Awareness and Internet Visibility Management.