The most important asset of your company is your reputation.
6 min read
The opinions expressed by employees are personal.
What is the most valuable for a company? If we go to the classic business idea, perhaps assets and capital are the answer. But if you are an entrepreneur, talent and the work team are what add value, but we rarely buy products and services for it.
So why do we buy what we buy, especially when the price or ease of purchase is only part of the decision? According to the study, companies with the best reputation make 72.3% of their customers recommend their products and services to their friends and family, compared to 9.4% of companies that have a questionable reputation. According to the aforementioned study, the good reputation can account for 80% of the value of intangible assets of companies.
Building a reputation for our brand or business is something that 40 or 50 years ago could easily be achieved by spending millions on advertising, but today, with more informed consumers who can check everything we tell them, creating popularity represents a great challenge.
We can verify that many perfectly consolidated brands built their image without betting so much on advertising and once people located them, they turned to advertisements to stay present as Al and Laura Ries say in their book. Uber, Airbnb, Starbucks, Funko, Amazon, and Beleki are good examples.
How to build reputation?
We must start knowing what it is. Corporate reputation is understood as the perception that the interest groups of an organization have, whether it is a corporate, company or brand.
These audiences depend on the nature of each business and are not limited only to customers but to all those groups that interact with our company and have expectations of this: suppliers, employees, investors, partners, press, community, neighbors, civil society and government.
To generate a positive perception of our key audiences, it is not enough to spend on advertisements, but to generate authentic credentials with them: recommendations, good experiences and an image that is favorable to the competition. For this, long-term relationships must be established with those audiences in which they are kept informed and that information allows them to know more about us.
In the world of marketing this is known as public relations .
What advantages do public relations have for SMEs and startups?
One of the problems we face when undertaking is not having a marketing budget that allows us to hire advertisements in all the spaces we want. The risk of betting on advertising first is that we will be present while we pay and when the money runs out, the magic is over.
Therefore, promote ourselves through other channels such as interviews, press releases, video blogs, question and answer sessions in live broadcasts, recommendations on social networks, participation in events and initiatives for the community, in addition to having a significantly lower cost, It brings many advantages to starting businesses:
- It gives more confidence. Unlike the advertising that are the brands talking (well) about themselves, here the recommendation comes from third parties, making it more credible. A good example of this is the phone tests that journalists or youtubers do.
- Let people know you more. Public relations are based on trust and relevant content. If the content you create is of interest to your audience, they can take a few minutes to read you, see you on a video or listen to you on the radio or podcast without being tied to the time restrictions of an advertising spot. Projects such as doubts are given or Shut up and sell have built a community that has allowed them to look for other business options.
- It sets you apart from the competition. In markets where there are many competitors, the one that is most present will always win. Cases like Baby Yoda's taught us that it is important to be in the public's mind even before it is available in stores.
- Generate business opportunities. Not only attracts customers but also business partners, investors and anyone who wants to add. For sample, a button: according to Nielsen, 2 out of every 3 customers are willing to pay more for brands they perceive as socially responsible or committed to the environment.
- Increase responsiveness and action. It helps to anticipate a crisis , respond more efficiently and promptly to customers, prevent a conflict situation in the business from escalation until it becomes a problem that generates economic losses and maintain a positive perception despite unexpected situations that may occur.
- It allows you to create connections and alliances easily . When looking to build a network of contacts that allow you to learn, form alliances and grow, it is always helpful to be located. A positive reputation that can be verified with a Google search helps generate more opportunities than those companies that have not invested in your image.
- Its effects are long term. Unlike advertising, which serves very well to communicate launches, new products or offers of short duration, betting on public relations helps build a favorable and lasting perception in our key audiences that allow us to survive in the business.
As you can see, it has many advantages and the best thing is that it does not imply high budgets. Many of the success stories you know every day have taken advantage of this tool to make themselves known.