Warren Buffet has summed it up very well; “It takes twenty years to build a reputation and five minutes to ruin it.
If you think about that, you will do things differently.” Your brand reputation is what shows people what they can expect from your brand, to a degree. Political campaigns are either won or lost in large to the politician’s reputation. A strong public image goes a long way in winning over the voter audience.
Your brand’s public reputation can either win you or lose you the audience in a very similar way. In this article, we will be showing you why your business needs to start investing in your reputational capital and how your brand can safeguard it.
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Reputational capital boils down to the trust you have built up in your consumer’s mind and your overall brand awareness. A strong brand reputation helps with both customer retention and acquisition.
Fostering sustainable reputational capital is a must in the digital age where consumers can see that you want to share the world with them.
How does your businesses reputation affect your business, you ask? Well, let’s look at the Old Mutual scandal from late last year. A family brought in a deceased loved one to an Old Mutual branch just to prove that the member has in fact passed on.
All because they refused to pay the policy benefit because they refused to believe the family member has passed on. How many policies do you think they sold the next month?
After the events that transpired, Old Mutual did end up paying out for the funeral, but every consumer was left thinking “Do I need to drag a deceased body to Old Mutual before they’ll pay me?”
It is going to take a lot of convincing before consumers even consider them again. If consumers don’t trust your brand, they’ll simply end up going elsewhere. Modern consumers are looking at brands differently with each day that passes by.