What is Reputation Management and Why Does It Matter?

Some brands offer great products and services at affordable prices. However, just because of a few bad reviews on their website and social media pages, they never really take off and reach their potential.

According to reports, 95% of people read online reviews about a business before buying its products. Online reviews are significantly more important for local businesses, as 97% of their potential customers first read what other people think about their products.

So, in my opinion, it becomes extremely important for businesses, be it a large corporation or a small venture, to create and maintain a good reputation among customers.

Below, starting from explaining what reputation management is, I’ll explain why it matters and share a few ways businesses can improve their online reputation across different platforms.

So, let’s get started!

What is Reputation Management?

It wouldn’t be an overstatement to say that social media sites have become the key marketing platforms for businesses. Today, brands are selling products, engaging with customers, and resolving their queries via social media platforms.

While such a strategy can be highly beneficial for a business’s growth, I consider it a double-edged sword. It’s because dissatisfied customers can leave negative remarks on any platform. And, it can significantly impact the perception of the brand for potential customers.

Having said that, the importance of reputation management has exponentially grown in recent times. With the internet and social media sites making everything accessible, people have more options to compare and choose from.

Besides increasing competition for businesses, it has allowed people to read reviews by customers and make informed decisions.

Why Reputation Management Matters?

Reputation management has key importance in breaking or making your business. Let me explain this with a personal life example.

I subscribed to AT&T Internet after reading its online reviews. ATT reviews showed how happy its customers were. Some commented how symmetrical speeds helped them with online gaming, while others mentioned upsides like no data caps or annual contracts, etc.

So, after reading positive reviews about a business, I knew I could trust its services, and eventually made up my mind to opt for an AT&T Internet plan.

Now, from a business point of view, it gained a customer without spending a dime. They just offered exceptional services to their customers, provided top-notch after-sales services, and urged them to leave reviews. 

Ultimately, positive reviews did the talking on their behalf and attracted more customers.

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How Can Businesses Focus On Reputation Management?

Before I explain how businesses can focus on reputation management, keep in mind that it’s a vast concept with several relevant factors to watch out for.

Comments, shares, suggestions, mentions, reviews, endorsements, news, and other factors can impact your business’s reputation. Ideally, a business should be mindful of all these factors. 

Plus, customers can leave reviews on any platform, such as Google Reviews, Trustpilot, Reddit, or any social media site. So, it becomes extremely important to address those reviews, especially the negative ones, before they impact a business negatively.

Now, the most crucial factor while focusing on reputation management is to understand which platforms are widely used by your customers. Simply because chances are, they might leave a review, be it a positive or a negative one, on the platforms they’re most active on.

Plus, you also need to collect the reviews they leave, so that you can analyze their queries and respond accordingly.

Having said that, there are several reputation management software, such as Sprout Social, that can help collect reviews from different platforms. So, with a proactive approach, you can easily address the negative reviews and do damage control by resolving such customer queries.

Benefits of Reputation Management

Managing online reviews about your business can positively impact your sales and help retain customers. Now, let’s discuss some major benefits of reputation management in detail:

• Gain Customer Trust: When a brand is actively involved in managing its online reputation, it has to address customer queries quickly. While doing so, it can create a brand’s perception that it actually takes care of its customers and is serious in resolving their queries.
• Increase Business Visibility: Similar to gaining customer trust, brands that actively participate in reputation management can increase their online visibility. Replying to comments or offering query resolution on social media sites and other platforms can automatically increase their business visibility.
• Generate Leads and Boost Sales: It’s a fact that positive reviews leave a good impression about a business’s products and services. Just like I subscribed to AT&T Internet after reading several positive reviews, brands can generate leads and boost sales with reputation management.
• Reclaim Unhappy Customers: Unhappy and unsatisfied customers are the most difficult to retain and can significantly damage a brand’s reputation. However, a brand with quick reputation management tactics can cater to such customers by offering instant support and resolving their concerns.

Frequently Asked Questions

Should brands ask customers to leave a review?

Yes, brands that are confident in their services and products should encourage customers to leave a review.

How should businesses deal with negative reviews?

Brands must never justify their mistake or confront customers when they leave a negative review. Instead, they should apologize to customers for the trouble and offer a quick resolution.