Everyone knows what “word of mouth” is, which becomes the only criterion of choice for some. People almost always trust each other’s advice. This directly applies to the experience gained when buying or receiving a service. Marketers have long studied this feature of behavior, and it is successfully used to manage brand reputation.
Positive recommendations are formed not only based on offers of goods of the highest quality and affordable cost but also on opportunities to receive discounts, bonuses, and gifts for writing a product review.
How is reputation formed on the Internet?
Motivating customers to write opinions and reviews is an affordable, robust, and, most importantly, effective advertising tool. The referral marketing department is engaged in creating a favorable brand reputation. This process is much faster and more cost-effective than launching a standard advertising campaign.
According to social surveys, 48.4% of Russians trust friends’ opinions from social networks when choosing a product, 45.6% listen to feedback posts posted on marketplaces, and 39.7% study specialized feedback services.
How does reputation management work?
Almost every purchase made in the online store is carried out after studying the reviews. In their absence, the business risks becoming unprofitable and falling apart completely.
Brand reputation Management (ORM) is based on forming a favorable opinion of people and includes several areas:
SERM (Search Engine Reputation Management). It uses search tools. The method is included in the overall strategy, taking into account the specifics of the business. It is based on the junction of PR and SEO technologies.
SMRM (Social Media Reputation Management). A favorable reputation for the company is created and promoted on social networks.
SEO (Search Engine Optimization). Methods to help improve the ranking of site pages in the search.
HM (Hidden Marketing). This is “hidden” marketing. Its essence is the creation of opinions and reviews by fictional users (characters).
HRM (Head Research Management). An advertising tool that increases the attractiveness of a company acting as an employer.
The main principle of ORM is to eliminate indifference and negativity and replace it with positive content. Many channels are used to manage reputation: blogs, social networks, messengers, forums, and the media.
A well-thought-out and well-designed reputation management plan:
It has a positive effect on customer interest. According to statistics, almost 93% of consumers study reviews before purchasing.
Increases the credibility of the company. Most potential buyers perceive advertising campaigns as some “show.” But the reviews of “ordinary” people are listened to much more strongly, which increases brand confidence.
Creates practical business ideas. For example, it is much faster and cheaper to find out the opinion of a target audience based on the study of reviews rather than spending money on conducting online or social surveys. Working through online reviews helps to eliminate shortcomings faster and improve interaction with your audience.
Promotes rapid brand recognition. This is done with the help of “word of mouth,” which is instantly launched when the ORM is running.
Improves the web traffic indicator. Reliable positive reviews (opinions of various users) increase the site’s rating for search engines. This leads to more impressions and an increase in the number of visitors to the pages.
Improves interaction with consumers. By responding promptly to feedback (both positive and negative), you demonstrate respect and attention to customers, which positively affects the overall reputation.
Improves product quality. When working with a negative opinion, the manufacturer can quickly discover the wrong sides of the product (service) and promptly correct the shortcomings. At the same time, the consumer sees a reaction from the company, which also contributes to the growth of trust.
A good strategy for managing and building a reputation becomes helpful in a crisis or difficult time for a company because such a plan helps to identify and eliminate current difficulties quickly and minimizes the consequences. All this simplifies and accelerates crisis management.
The lack of reputation management strategies hurts the business as a whole and leads to problems such as:
- falling revenues;
- decrease in profit;
- reduction of the site’s position in the search;
- customer withdrawal and loss of the consumer part;
- the disappearance of trust in the brand;
- increased costs for advertising campaigns and Internet marketing.
Brand reputation management is an essential part of modern business. This strategy is necessary for all companies, without exception, who want to exist in the sales markets and consistently make good profits. A favorable image in the Internet space directly works to increase the volume of orders, expand sales, find profitable investment partners, and build a successful and profitable business.