A strong brand reputation affects every facet of your company and has numerous benefits:
1. Increased Credibility and Trust.
Credibility and trust are crucial for the success of any brand. The importance of brand reputation lies in its ability to earn public trust, allowing room for mistakes when handled appropriately, while maintaining a favorable perception.
Trust is an important aspect that affects how much individuals spend, how loyal they are, and whether or not they will promote a brand.
Trustworthy and respectable brands are not only more profitable but also more robust. Customers will always decide to assist in times of crisis or financial difficulties.
More loyal customers.
Brands that have a positive reputation are more likely to retain customers. Customers that have a favorable perception of your brand are more likely to make repeat purchases.
Profitability and customer loyalty are tightly related. A new customer usually costs more to get than it does to keep. For retention and loyalty, a good reputation is crucial.
Pleased customers are excellent brand ambassadors. They will spread the word about you both offline and online, resulting in sales and improving your reputation.
However, no matter how excellent your items are, if you have a negative reputation and people don’t want to be linked with you, they won’t promote you.
Increasing Sales Revenue
For numerous reasons, a strong brand reputation boosts sales and profitability. More sales are the result of increased trust, customer loyalty, and brand advocacy.
With a solid reputation, you can also charge more for your goods and services without scaring away potential clients who value and want your brand.
Enhancing Employee Retention and Attracting Top Talent.
Both the general public and employees are drawn to desirable brands. Better talent is attracted to and retained by brands with a solid reputation.
Employees tend to have higher job satisfaction and remain with you longer when they are glad to be affiliated with your brand.
Candidates will research your brand before applying, and they are less likely to select unreliable brands. Nobody, least of all employees, wants to be connected to a bad brand.
On the other side, you have a significantly higher chance of hiring the top personnel if you have a strong reputation and are offering a competitive package.
Examples of bad brand reputation
Unilever-owned Dove gained notoriety in 2017 after airing a body wash commercial with a black woman who changed into a white woman. Given that the advertisement was for soap, it was implied that Dove could ‘wipe away her blackness’.
The advertisement was problematic, and that is an understatement. In less than a week, there were more than 30 000 unfavorable posts about the advertisement on social media as the criticism quickly went global. The hashtags #doveisracist and #boycottdove were used in connection with the posts.
Shein, the giant of Chinese fast fashion, is a company that frequently receives negative press. They have a reputation for having severely subpar quality, uneven size, stealing designs from other companies, late shipment, and nonexistent after-sales support.
Pages and pages of scathing, one-star evaluations, as well as videos and pictures of cheap, ill-fitting products, can be found when you search for “Shein reviews.”
Despite this, they have become the largest fast fashion brand available exclusively online. They achieved this by combining deft marketing with absurdly low prices.
They actively market on social media, adding new styles every day, and they target a youthful, impressionable clientele that is focused on overconsumption and keeping up with fast fashion trends.
Examples of good brand reputation
Lego enjoys a strong brand reputation. They have long been regarded as one of the most popular brands, liked by both kids and adults.
Lego is known for its high-quality products, exceptional customer service, and connections to families, communities, and imaginative, creative, and educational play.
They remain current with evolving trends and principles, such as efforts to be more sustainable and inclusive. Lego is frequently seen as a high-value brand with upright morals and forward-thinking societal principles.
Over time, Lego has amassed a sizable fan base and solidified its position as a dependable and appealing brand. They may charge exorbitant prices and still control the market because consumers consider their products to be valued and attractive enough.
Over the years, American apparel company Patagonia has developed strong brand recognition. They are renowned for producing high-quality products and providing top-notch after-sales support.
However, what distinguishes them and contributes to their stellar reputation is their emphasis on social responsibility, corporate culture, and environmental sustainability.
Consumer perceptions of brands have evolved recently as a result of concerns with climate change, social responsibility, overconsumption of resources and goods, and exploitative, unethical labor practices.