What is Reputation Capital?
- Jun 13, 2019
Reputation capital describes the value of the insubstantial assets of a business. And thankfully, Online Reputation Management Services are offered by Social Media Marketing Companies to grow your reputation in the online market. Even though anything from brand identity to reviews can work as Online Reputation Management, the whole reputation of a business revolves around just a word – TRUST!
A positive reputation enables businesses to expertly control their prices, achieve industry recognition, and thought leadership. And perhaps, reputation capital is simultaneously one of the most important aspects of any business and the most difficult to quantify.
In this digital world, Reputation Management allows you to gain the trust of your peers. Hence, for a business, a trustworthy reputation can bring more customers and more visibility. But how is reputation measured? It’s difficult to assign figures or net worth to a reputation; however, a company’s reputation capital is solely as significant as its monetary capital, possibly even more.
How To Maintain Reputation Capital?
Even though there are numerous components of your reputation that are in constant flux, you need to strongly understand how to build and retain reputation capital. In this article, we’ve taken a deeper dive into all these components. Let’s go through them!
Reputation is fragile, and surely, it can change in the blink of an eye. Moreover, the savvy consumers of today have access to an almost endless supply of data on the brands and organizations they do business with or choose not to. Hence, making Reputation Management a real play that requires your efforts.
However, Social Media Marketing and peer-review sites like Yelp have made it simple and quick to research how a business treats its customers. Reviews are so important that the majority of consumers will not use a business with less than a four-star rating.
Businesses need to do more to gain people’s trust. It’s not enough to directly put out a product or service and invest in traditional Digital Marketing Services in Lahore and advertising. A business needs to convey that they care about their client, exercise good ethical and transparent principles, and can convey their personal stories in a way that is memorable and relatable.
Ratings Can Increase Revenues
The first aspect that crosses minds when trying to define a business’s reputation capital is its online ratings and reviews. Since reputation capital is difficult to quantify, it’s nice that at least one feature of the term is clearly quantifiable. Not convinced of the importance of reviews yet? Here are some stats;
- If a restaurant raises its Yelp score by merely one full star, it can foresee a 5-9% increase in revenue.
- 95% of consumers browse online reviews to locate and judge a business
- 75% of consumers have higher trust in a business boasting positive reviews.
Grow Your Business With A Better Brand Image
A business’s personality and ability to resonate with people work together to build a healthy and relatable brand. Hence, concepts like corporate responsibility, ethical leadership, and transparency are receiving increased importance to grow credibility and a positive brand image.
The conclusion? Maintaining a positive brand image can reap many benefits. Thus, allowing a business to increase prices, dissociate from certain other brands, or gain on a defined market.
Trust Your Customers And Your Customers Will Trust You
Without trust, it is impossible to build a good reputation. But how can a business win the trust of its consumers or merely of the public? The answer is simple; By being more human.
Provide your business a friendlier human layer to show that you consider the same beliefs as your customers and provide them something to relate to when they are choosing between your and your competitors’ products.
A business’s reputation carries a value that extends beyond day-to-day operations, impacting its bottom line. Although it is intangible in nature, reputation capital holds the key to thriving within the more measurable aspects of doing business. Hence, the conclusion – Positive reputation can yield higher profit margins, increased customer acquisition, and customer retention. And perhaps, a trusted business has a higher chance of beating out its competition, and that is the goal of Online Reputation Management Services that are carried out by a Digital Marketing Agency.