According to Warren Buffet, “it takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that you’ll do things differently”. A company’s reputation is one of those intangible things that people tend to overlook till it’s too late. It’s better to manage your reputation than to try to recover from a damaging hit. When it comes to reputation, your focus should be on your customers, employees and other stakeholders.
Your reputation will ultimately be the deciding factor when a customer is faced with two products offering the same value, price and quality. Studies show that word of mouth recommendations and referrals are often more trusted than marketing activities. Social media has become an important tool many people use to get back at companies they feel have not treated them right….and many listen without ever having a direct contact with the said brand.
A good reputation with your suppliers, the government, the media and general business community helps them trust you and offer more favorable terms. Your ability to overcome a crisis situation without compromising your relationship with any of these stakeholders is a skill many companies will need to muster. A good reputation can make authorities deal with you more leniently and get you better terms of trade.
Attracting the best talent
Having a good corporate reputation helps you attract the best talents on the market. Potential employees want to work for a company that treats staff well, has opportunities for growth and where they can feel secure enough to contribute to your business’ growth. The inability to handle an embittered employee could spiral into a high turnover and put off the most talented people from working with your organisation.
Although the money value of a good reputation isn’t easily calculated, a bad reputation can significantly reduce your earnings. Consistently building a great relationship with all stakeholders whilst quickly and efficiently resolving issues has great rewards in the long run for any company.