Understaing the Importance of a Business Maintaining a Strong Online Reputation
It’s time to buy a TV for football season (let’s just pretend it’s not months away). You’ve just moved into your new apartment and are looking for a new giant tv to spend your free time ogling. There’s lots of choices out there including Sony, Samsung, Panasonic, etc.
You decide to Google each of them.
Lo and behold, a negative review! Apparently one of Samsung customer’s reviewed a tv with hundreds of dead pixels. This customer complained to the customer service but to no avail. Yikes, that’s no good. Sure, you may know that that’s just anecdotal evidence and that statistically your TV won’t come with so many dead pixels. But you can’t get the thought of it out of your head! All it took was a 1 star ALL CAPS REVIEW to dissuade you from buying a tv from Samsung.
A recent Nielsen survey shows that customers have a 70% degree of trust when it comes to online peer reviews, which is why a series of unmanaged negative reviews like these could yield terrible results for a company’s bottom line. These reviews happen and no product is perfect. However, when cries like these come from consumers it’s important to address them as soon as possible.
How many people could have their minds changed by a review like that? On a site like Amazon the number could safely be in the thousands if not tens of thousands. That’s hundreds of thousands in potential revenue lost to a single review! Negative reviews stack up like unpaid bills and the longer you leave them unattended the more damaging they become.
So what is Online Reputation Management? It is a two pronged solution, with one facet acting as an arm of customer service. If customers go online to voice their complaints, it’s best to assuage and solve the problem the customer faced. This aspect leaves current customers pleased, while at the same time serving a valuable marketing purpose. That 1 star review that would quickly turn sales from your company to a competitor has now turned into a 5 star. Now it will help bring in customers as people will see that problems don’t go unresolved at your company.
This actively turns a potential loss of hundreds of thousands of dollars into a possible profit.
Marketers agree that this is a very important facet of marketing, and an overwhelming 84% believe that building consumer trust will become a marketer’s primary objective moving forward. ORM is definitely huge piece of the building trust puzzle.
In addition to the marketing advantages of managing a company’s online reputation, there are internal benefits as well. Having every negative review brought to the attention of a company helps point out inefficiencies and flaws in the product line, or customer service. If the only negative reviews a product gets stem from negative customer service when a product needs warranty repaired, it’s easy to see what area of the company needs to be on a shorter leash.
As the landscape of consumer trust changes, it’s the job of marketers to survey the changes. These changes are pointing marketing in a direction where reputation management emphasizes customer satisfaction and user content showcases as well as demands quality service from companies.