Importance of Brand Reputation

Brand reputation simply refers to the way others see a brand or what they think about it. A company with a favorable brand reputation enjoys the trust of its customers. A good market reputation also helps brands grow.

With consumers across the world being hit hard emotionally, physically, and financially by the pandemic, brands need to innovate to continue to enjoy a positive reputation.

A Top Priority

Brand reputation is interlinked with brand identity. In building a brand identity, the power of word of mouth is undeniable. Reviews and referrals also play crucial roles. The mission and values of a brand explains the ‘why’ behind a brand, so stating these values is important too.

The mission and values of a brand are connected. Customers will hold a brand accountable for its mission and values.

Living up to its stated values will help a brand build a positive reputation. In the past couple of years, brands have shown surprising bursts of transparency.

They demonstrated what they care about and how responsible they are to social issues. Brands that can express their vision boldly and with courage demonstrate that they are committed to maintaining their reputation. Given below are the effects of positive brand reputation.

Trust

An effective way to retain customers is to build trust. According to a survey, 94% of customers said that they will trust brands that show transparency.

Some respondents stated that they would even pay more for the products of such brands. Trust takes a long time to build, and hence brands need to adopt a strategy that secures the confidence of their customers.

For instance, in early 2019, Ikea showed their sustainable side during the opening of their sustainability-focused London store.

They collaborated with local artists to create colorful and beautiful homes for wild animals. Bird houses and bat villages were created. This showed that Ikea is not only a quirky brand, but also one that cares. This initiative impacted sales positively.

Competitive Edge

A good reputation can give a brand a competitive edge. When a customer has to make a choice, they will always choose a brand that enjoys a positive reputation over one that doesn’t.

Even if a reputable brand charges more than others, customers will still end up choosing them.

Their choice is driven by the knowledge that the product or service offered by them will be of good quality.

Customer Loyalty

Customer loyalty can be ensured if a brand delivers the same customer experience each time. When a customer comes back to a brand, it should be able to fulfill the brand promise again and again, and if possible, elevate the experience each time.

Customer loyalty turns customers into brand ambassadors who in turn strengthen a brand’s reputation. For instance, the organic cosmetics industry has gained a lot from customer loyalty.

Health-conscious consumers contributed significantly to the positive reputation of certain brands by encouraging other consumers to use them.

Ronn Torossian is the CEO and founder of NY based PR firm 5W Public Relations. Torossian is also the founder of the Ronn Torossian Foundation, and a lifelong New Yorker.

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Ronn Torossian’s Articles on Entrepreneur
Ronn Torossian’s Blog Posts on Times of Israel
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