If you’ve ever doubted the benefits of using online reputation management (ORM) system, then consider the following astounding facts:
- Nearly 86% of consumers rely on the internet to conduct research before engaging in a buying decision.
- Most Fortune 500 executives agree that reputation management ought to be an essential component of every company’s branding and marketing strategy.
- Close to 80% of consumers regard personal recommendations and online reviews with equal weight.
- For 90% of online shoppers, positive reviews helped influence their buying decisions.
These statistics point to a single fact- an online reputation management (ORM) system is the most important feature in all branding and marketing strategies.
Reputation, be it personal or professional, is shaped with time. By allotting effort and time to improve and maintain your reputation, you can expect quantifiable results that can significantly expand your business. Having and keeping a stellar online reputation is important; a feat that only an online reputation management system can accomplish.
Here are five compelling reasons why anyone would use online reputation management (ORM) system:
- Reputation directly influences sales and profits
The modern business environment is highly competitive. How people perceive a company directly influences its sales and revenue figures. The growing popularity of social media and the change from traditional advertising methods simply means that companies must engage in active interaction with consumers. They must continue to focus on developing a sound online reputation.
Online reputation management entails more than just amassing positive reviews and offsetting negative content. Companies need to focus on building a standing that is similar to its core values and the needs of their market.
- Good reputation builds trust
Brands and companies with a sound online reputation are more likely to be trusted because consumers care about other consumers’ opinions. If even a few people develop trust in a brand, company or person, other consumers are highly likely to take the same steps.
If people don’t trust your company or brand, you will have a hard time selling your services/products. Research studies have shown that more than 80% of consumers trust recommendations from other consumers. In fact, almost 70% of buyers trust consumer opinions compared to paid advertisements.
How can companies build trust? Increase transparency. Listen to your customers online and respond to all comments, whether positive or negative. This demonstrates that your company cares and responds to its consumers.
A simple response or comment is vital in building trust with consumers. An online reputation management (ORM) system can help your organization build a reliable reputation.
- Pulls in better employees
Did you know that good reviews also appeal to potential employees? In fact, when your brand has good consumer reviews, prospective employees are more like to apply for work with your organization. Most people would state that they prefer to work for companies that offer opportunities and is “going somewhere”.
They are eager to work for a company that shares the same beliefs and core values as themselves. If this commonality exists, it will be a company they will trust. As a result, they’re likely to trust subjective opinions from past and current employees.
Positive online reviews about your company’s products/services and even the workplace points to positive and favorable workplace culture. If your company has a stellar reputation, it will attract superb talent.
- Increases profits
Although it is an obvious fact, if your company has positive online reviews, it will attract more profits. Considering how competitive the business world truly is, having positive online reviews is more important than ever before. New and relevant online reviews are very significant.
According to the Harvard Business School Working Paper, for each star Yelp rating accrued by a company, there is a 9% increase in revenue. Implementing online reputation management (ORM) system into your company’s marketing can translate into increased profits.
- Lowers reputation risk
If your company has a poor online reputation, you can expect your reputation to worsen even further. Your company might have a poor reputation for several reasons such as the existence of systemic issues. Even the “broken window theory” might be applicable.
According to this theory, a warehouse that has wrecked windows will draw attention from more vandals. Although it can be a daunting task to improve a sullied reputation, there are ways in which you can improve your reputation and mitigate further reputation risk in the future.
- Additional benefits of having an Online Reputation Management (ORM) system
- A well-managed online reputation will create a good impression on cold prospects. In fact, it can potentially convert them into customers!
- Having a superb reputation makes a great first impression on prospective customers.
Implementing online reputation management (ORM) system into your company’s marketing and branding strategies will help your organization develop a reliable and trustable reputation.