If you run your own business, you know that some mistakes are inevitable. However, ignoring your reputation is one you can’t afford to make. According to the Harvard Business Review, roughly 70 to 80 percent of your market value is derived from your company’s reputation. Major blunders trash your reputation, and you could lose big; Goldman Sachs lost more than $1 billion as a result of a shocking reputation blunder, DailyMail.com points out. If people question the moral integrity of your brand, you may face financial losses from which you can’t recover.
Here’s a rundown of the areas you can’t afford to ignore:
Don’t bet against your customers, regardless of the business you’re running. Always provide them with the best customer service, as a major scandal could shut your business down. Goldman Sachs found itself embroiled in a scandal that ultimately cost the business more than a billion dollars. That financial loss was only the initial consequence; the company fell dramatically in the public’s estimation after the scandal broke, making it almost impossible for customers to trust the business despite their reputation management efforts.
Sixty-four percent of marketers believe that social media is critical to search engine success, according to JeffBullas.com. It’s second only to the quality of content your business provides. If you want your business to be found easily by the search engines, make sure you’re managing your social media.
JeffBullas.com listed two mistakes that can hurt your brand. The first is ignoring and removing negative comments; do so, and you lose the opportunity to learn about your customers and what they want. Second, don’t post the same information on each social media account; updates should be tailored for each network. This shows you understand the value of content.
Word of Mouth
It’s not enough to focus solely on online marketing strategies, according to Reputation.com. Consider the value of your customers’ experiences. Krispy Kreme Donuts is a prime example of the benefits of word of mouth. According to ABC News, Krispy Kreme built a reputation purely on word of mouth. The company did not have extensive marketing strategies.
The American Marketing Association places the value of word-of-mouth marketing roughly 20 times greater than traditional marketing. Word-of-mouth marketing has an immediate impact on people’s purchasing decisions. Never forget the power of your customers’ conversations and recommendations.
Your reputation depends on building up a solid client base. You cannot slack when it comes to social pleasantries or the opportunity to please your customers. Social media and an online presence is only one form of marketing, and it is a mistake to forget about the traditional methods of bringing your customers back for more products or services.
Strengthening your company requires efforts to build up your brand. Although social media plays an important role in the development of your brand and your ability to reach a large audience, you still need to take measures to avoid the common blunders that harm your reputation.