When it comes to reputation management, there are many ways to damage your company. Doing your research and knowing when to beware can help when deciding what your go-to-marketing strategy should be. We’ve listed the top three ways you can ruin your reputation, sometimes beyond repair.
1. Lying about your product ruins reputation
- Claims that aren’t true
- This could be anything from saying a product is GMO-free when it’s not, using biased sampling, or implying good results when the data to back it up just isn’t there.
- Price hiding
- Companies sometimes offer products for free, but when it comes down to the fine print, a purchase is required to qualify.
- Environmental and social impact
- Sometimes, companies claim their product is good for the environment when it’s not. More often than not, the cost to produce a product is much greater than we are lead to believe, with much of the damage often occurring overseas.
Impact On Companies
Companies with CEOs that lie took at least five years to recover from their damaged corporate reputation. Lying reduces customers’ trust in your company, making them less likely to buy from you, and more likely to switch brands entirely. With so many options available to consumers today, honesty really is the best policy.
2. Forget to create and build your brand up
- Not focusing on customer relationships
- This includes disregarding customer complaints and not taking the time to build trust with consumers.
- Neglecting social media
- Social media should be one of your go-to marketing strategies. Without a strong social media presence, your company could be dead in the water
- User Experience
- This can include your website, customer service and the experience customers get from your stores.
Impact on companies
When it comes down to how to do business, not focusing on brand management can cause a loss in visibility, a decrease in new customers and an overall forgettable product. “According to a Nielson survey, 59 percent of consumers prefer to buy new products from brands familiar to them.”
3. Create a false image
- Lying about who you are associated with
- Trying to use big-name companies to boost your image when you may only purchase products or software from them.
- Social impact
- Companies tend to make hollow promises regarding their commitment to corporate social responsibility. This voluntary “commitment” could be a ploy to avoid actual regulation and reporting practices.
- Using images
- Images are a great tool when managing your reputation, but they can be abused. Companies sometimes use images that make false claims about their products or services.
Impact on companies
Misleading the public about your image is never a good idea. As a company, you are creating a false view of yourself that can easily crumble around you. The truth often comes out and it can hurt you more, in the long run, to hide from it. Just admit your shortcomings and make the steps to change them.
Takeaways on Reputation Management
In the words of Warren Buffet, “It takes 20 years to build a reputation and five minutes to ruin it.” So avoiding these pitfalls is paramount when considering what your go-to marketing strategy will be. You want to be honest and upfront with consumers and be a benchmark for others when it comes to how to do business.
For more information on reputation management, V12 marketing has all of the tools you need to be on the leading edge of product, brand and image awareness increasing your reputation in the eyes of the consumer.