Brands with a good online reputation are trusted more because people depend on the opinions of others. If people appear to trust a company or person, others are likely to follow with the same sentiment. Research shows that 83% of people trust brand recommendations from friends, and nearly 70% trust consumer opinions more than paid advertisements.
Companies with good online reviews tend to attract more business. In fact a restaurant that displays an extra half-star rating will sell out 19 percentage points (49%) more often. The benefits of online reputation management can translate into extra income for growth.
People want to work at a good company that is "going places". They trust the opinions of current and past employees. Along with workplace reviews, positive content online leads to a feeling they might have a bright future at your company. Companies with better reputations tend to attract more, and therefore better, talent. In one poll just 1 in 5 job seekers would consider an employer with a 1-star rating!
Companies with bad online reputations tend to earn worse reputations. This may be because of systemic problems within the company but it may also be the reputation management version of the "broken window theory". The theory states (basically) that a warehouse with broken windows tends to attract more vandals.
In today’s highly competitive business environment, the way people perceive a brand has a direct impact on its sales and revenue numbers.
The rise of social media and the shift from conventional advertising means modern-day businesses need to actively engage consumers and focus on building a strong online reputation.
Reputation management on the web is not just about countering negative content and generating positive reviews. It’s about building a reputation that makes a brand synonymous with its core values and the primary needs of its target market. This is precisely why businesses need to have a comprehensive online reputation management strategy in place.
A solid reputation has several direct and indirect benefits for a business.
To further clarify any doubts about the importance of having a strong online reputation, take a look at these eye-opening stats.
All the above statistics point in one direction — online reputation management is the future of marketing and branding.
When it comes to reputation management on the web, Google’s first page is the new business card. Customers and prospects judge brands based on what Google’s search results say about them.
In fact, a recent study showed that more than 45% of consumers discovered information via a Google search that changed their minds about doing business with a company.
It is, therefore, crucial for every business to have an online reputation management strategy that highlights its strengths and makes it look good on Google’s first page.