It takes firms years to build a good reputation but only seconds for it to destroy. A bad reputation of a firm can lead to negative reviews and bad press publicity which can affect its goals. To conduct a successful business, employers must understand the importance of engaging their employees, deepening and strengthening customer relationships, and attracting lots of investors. They must also take into account the reviews given by stakeholders as their opinions matter for the growth of the company.
Corporate reputation is the collective assessment of an organisation’s past behaviour, and the trust stakeholders have for its products and services. It directly impacts the organisation’s growth and progress. A company with a decent reputation attracts better people like employees, customers, business partners, and clients. They also provide more value to their consumers who return the favour by showing their loyalty. This factor separates companies from their competitors and allows them to charge a premium for their services and products. Companies with a poor reputation in the market mostly face dissatisfaction from their stakeholders and distrust from the public.
The effects of the negative reputation of a firm
Trust is the foundation stone for a corporate’s success. When stakeholders lose their trust in it, it results in the development of a bad reputation. Following are the factors that affect a company’s image:
- Negative online reviews
Contributions to online review sites have been on the rise in recent years. According to Harvard Business School’s study, a majority of the public read online reviews before engaging in business with the firm, and 91 per cent of them said they rely on positive reviews to use a firm for business purposes.
- Bad press
It comes from low customer reviews and service, employee mishaps, and company scandals. But fake news can also have a significant impact on the public perception of a company. Majority of the people will not apply for jobs at a corporate experiencing negative publicity. It can impact hiring costs, success, and employee retention issues. Employees who are not satisfied with their jobs at a firm tend to tarnish the reputation, and the firm is unable to find better ones.
How to fix a bad reputation?
Company executives spend most of their time and energy on handling reputation threats surfaced at the time of a crisis. They have to manage their reputation as well as fix the crisis by assessing existing risks to the company. They also consult reputation management service for aid to resolve the issues they face.
Customers post negative reviews about a firm after they exhaust their avenues of venting their dissatisfaction towards the products and services offered. Give them easier ways of voicing their opinions before posting it on the website. Request happy customers to review the company using strategic marketing tools. Also, submit positive press releases and improve the SEO ranking on websites.