In today’s review-savvy commercial environment, corporate reputations rise and fall based on the words of individual consumers – either dissatisfied or delighted. The credibility of an organisation in its industry is largely dependent on the trust gap between the organisation and its public.
Marketing Communications Specialist, Jennifer Moyer, in a 2011 article for the American Institute for Public Relations stated that “A favourable reputation requires more than just a communication effort; it requires an admirable identity that can be moulded through consistent performance, usually over many years.”
Public relations functions as a communication and action part of an organisation to maintain relationships and bridge the gap between the organisation and the other members of its system. Leading organisations leverage public relations to build and retain a strong and positive reputation with their stakeholders and the public.
The long-term success of every organisation is determined by the establishment and preservation of a positive corporate reputation.
The remarkable benefits of a strong and positive corporate reputation include;
- Customer Engagement – The purchase decisions of customers are often influenced by positive reviews of a product or service. When an organisation achieves a positive reputation in its customer reviews, more customers are influenced to buy its products and services.
- Financial Benefits – A good corporate reputation results in higher sales which in turn infers higher profits for the organisation. To be able to uphold a solid position in the stock market and charge a premium for the products or services, organisations need to sustain a very favourable corporate reputation at all times.
- Competitive Advantage – It is crucial for a company to have a good reputation in the market in order to service competition. This allows a company to distinguish its product from similar competitive ones, sell it at a higher price and still maintain its customer base.
- Brand Loyalty – The positive reputation of a firm often helps to shape and nurture a gainful association with the consumers. The high reputation of a firm is the simplest indicator of the quality of the product and service. This leads to high customer satisfaction rates and unflinching loyalty to the brand.
In conclusion, a sound corporate reputation is an indicator to your customers that they can rely on your company to deliver the highest quality products and services. It sends a direct message that the company cares and values customer experience. This gives the customers a reason to trust and patronize your business for ages to come.