Because so much market value comes from hard-to-assess intangible assets like brand equity and intellectual capital, organizations are especially vulnerable to anything that damages their reputations. In addition, companies with strong positive reputations attract better talent and are perceived as providing more value in their products and services. Their customers are more loyal and buy broader ranges of products and services. Since the market believes that such companies will deliver sustained earnings and future growth, they may have higher price-earnings multiples and market values and lower costs of capital.
We all know who the A+ players are. But do you know what your business reputation is? Do you know what people are saying about your business and brand? Do you have insights in to your organization’s online footprint?
Continuous awareness of external perceptions can be a critical factor to your success:
Monitoring what is being said about your brand can help you understand what customers’ perceptions are. Without consistent monitoring, you simply cannot know what is being said.
Awareness of customers’ perceptions allows you as a company to respond to both positive and negative feedback in a timely manner. Timely responses can help your company become more proactive in order to limit reputational damage.
Being aware of and responsive to customers increases positive brand perception and can lead to increased customer loyalty.