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Reputation management can benefit all types and sizes of businesses, not just the ones with a bad rep.
“It takes twenty years to build a reputation and five minutes to ruin it,” American business magnate Warren Buffet once said. “If you think about that, you’ll do things differently.”
This perfectly describes how fragile a business’ reputation is. It’s particularly true in today’s age, when consumers make purchase decisions based on reputation, more so than on traditional advertising and sales messages.
What is reputation management?
Ideally set as a single, holistic process, reputation management involves a combination of tactics and strategies used to shape the consumer perception of your brand. Apart from media and public relations, reputation management can also involve:
- Reputation measurement and reputation marketing
- Search engine optimization
- Online review management
- Social listening and social media marketing
- Customer experience management
- Employer branding
If you’re just getting started with managing your business reputation, here are some stats to inspire your efforts and reassure you of the value of reputation management.
Online reputation management statistics
Statistics about online reputation
The importance of search. According to an Edelman report, when researching on a business or searching for news or information about companies, 64 percent of consumers trust search engine results the most. What people see online about your business will definitely shape your reputation.
Reviews matter to your reputation. According to the Online Reviews Survey, 53 percent of consumers expect brands to respond to reviews. But 63 percent say that a business has never responded to their review.
Furthermore, negative reviews drive away customers, with 94 percent saying that an online review has convinced them to avoid a business. Customers don’t particularly trust businesses with lower than 4-star ratings. 80 percent of consumers say the star ratings they trust the most are 4.0, 4.5, and 5 stars.
The power of social media. According to IBM, 81 percent of consumers receive advice about an upcoming purchase from other customers via a social media site or app, and 74 percent admit that the information eventually influenced their purchase decision.
Statistics about reputation management and online reviews
Investing in reviews. According to TripAdvisor, as much as 93 percent of executives consider the improvement and management of their online reviews as the most important factor to the future of their business.
Survey results also show that, as an investment area, a review and reputation management strategy has become a higher priority for hospitality organizations than marketing and advertising, traffic acquisition, and staff training.
Responding to reviews leads to improved sales and revenue. It also leads to higher ratings. According to a Cornell study, responding to reviews, particularly negative reviews, is positively related to the consumer’s view of a business, as measured by increases in rating scores.
Furthermore, 78 percent of consumers say that seeing management respond to online reviews makes them believe that the business cares more about them.
Statistics about online reputation management and business performance
Linking ratings to revenue. A one-star increase in a restaurant’s Yelp rating can result in as much as a 9 percent increase in revenue, according to a Harvard Business School study.
In general, businesses that stay engaged on online review sites attract consumers that have 30 to 40 percent more interaction with revenue-driving products. Also, small businesses with free Yelp business accounts see an average of $8,000 in annual revenue from the site.
Trust factors. Content found in consumer-written online reviews (46 percent) ranks ahead of posts by companies or brands on social networks like Facebook and Twitter (15 percent) in terms of trustworthiness. Consumers also trust online reviews over natural search engine results.
Statistics about employer brand reputation
Managing employer brand should be a priority. A compilation of employer brand stats show that 94 percent of candidates are likely to apply to a job if a company actively manages its employer brand.
When making a decision on where to apply for a job, 84 percent of job seekers say the reputation of a company as an employer is important. And 93 percent say it’s important to be thoughtful and informed about all aspects of a company prior to accepting a job offer.
An industry survey also found that 50 percent of workers said they wouldn’t work for a company with a bad reputation, even with a pay increase.
Meanwhile, companies with positive employer brands get twice as many applications as companies with negative brands, and they spend less money on employees.