How Important Is Online Reputation ManagementFebruary 5, 2016 - Author: steph
A World Economic Forum study has determined that 25 percent of a company’s market value can be tied to their reputation. Yet many companies are not prepared for this situation, especially when it comes to online review management of customer ratings and reviews that exist on third party websites.
With half of the planet’s population online, brand recognition can become a key component of how a company is perceived. Online reputation can determine conversion rates just as much, or maybe more than factors like search engines and content.
The dynamics that impact on conversion includes:
Social Media–Social media has grown so much that there are more than 207 sites around the world.
Total Control–Generation Y customers want to be in control of the purchases they make.
Opinions–Review sites can make or break a company’s reputation.
Security and Privacy—This is a major concern for online consumers.
Online Reputation Management can be a way of paving the way for an organization to be seen as positive, and a company you can buy from with confidence.
Failure to react to negative reputation factors can create a disaster for a company. An example is MNC, a food and beverage company that was slow to react to negative publicity regarding its environmental policies. This gave the impression that the company was complacent, which resulted in highly negative backlash, MNC was forced to suspend activity on their public web page to counteract the impact of the backlash.
With online reputation becoming such a vital factor it has spawned a new industry. It’s called online reputation management specialist. Once such company is Status Labs. One of their specialties is to keep a company;s online reputation constantly on the positive side of the ledger, Status Labs will manage search engine results in order to enhance their client’s status on the internet.
The company has grown to the point that they represent 1500 clients, which includes Fortune 100 brands and public figures.
If negative information is out there about a client Status Labs can develop a plan to remove such negative content, and replace it with more favorable search engine results.