Online reputation management, also referred to as ORM, involves the effective handling and upkeep of how a brand, business, or individual is perceived by the public in the online sphere.
In today’s digital landscape, the significance of online reviews cannot be underestimated, as evidenced by the fact that 77% of consumers consult reviews while exploring local businesses.
Furthermore, 79% of consumers anticipate that brands will provide timely responses, typically within 24 hours, when contacted via social media. With numerous communication channels available for people to discuss your brand, keeping track of and responding to everything can be challenging.
Fortunately, various tools and strategies can be employed to safeguard your brand’s reputation. In this article, we will provide a concise overview of essential information and actionable insights necessary for effectively managing your business reputation. These include:
Table of Contents
- Understanding Online Reputation Management (ORM)
- Why is Reputation Management Important for Your Business?
- 10 Strategies on How to Manage Your Brand’s Online Reputation
- Reputation Management Software and Platforms
Understanding Online Reputation Management (ORM)
Online Reputation Management (ORM) is the process of effectively managing and controlling how the public perceives a brand, business, or individual on the Internet.
It involves actively monitoring and influencing the online conversations and content related to the entity to shape and safeguard its reputation.
ORM is of utmost importance in the modern digital era, where information is readily accessible online and can significantly impact the success or failure of a brand or individual.
Uber Eats is a popular food delivery platform that operates in various countries, including the United States. Uber Eats allows users to order food from a wide range of local restaurants and have it delivered to their desired location
Here, we can see a negative review of the Uber Eats delivery service by the customer. Negative reviews, social media backlash, detrimental news articles, or any unfavourable online material can quickly spread and damage a reputation, potentially resulting in losing customers, business opportunities, and trust.
The Four Media Channels
- Paid Media
- Shared Media
- Owned Media
- Earned Media
Paid Media
Paid media channels refer to advertising platforms and channels where businesses pay to display their promotional content to reach their target audience.
These channels provide a means to amplify the visibility and reach of marketing messages through paid advertising. Such as Google Ads, Facebook, Twitter, and Google Display Network
Shared Media
It refer to platforms and channels where content is shared and distributed by users themselves, allowing for broader exposure and engagement. These channels rely on the active participation and sharing of content by individuals or communities. These channels facilitate the viral spread of content and often blur the line between owned and earned media.
- Messaging Apps: Popular messaging apps like WhatsApp, and Facebook Messenger,
- Online Communities and Forums: Platforms like Reddit, Quora, and Stack Exchange,
- Collaborative Content Platforms: Platforms like Google Docs, Dropbox Paper, and Wiki
- User-Generated Content (UGC) Platforms: Websites and platforms dedicated to user-generated content, such as YouTube, TikTok, Vimeo, and SoundCloud,
Owned Media
It refer to platforms and channels that a brand or business controls and manages. These channels are typically owned and operated by the brand itself, allowing for direct control over content creation, distribution, and messaging. Owned media serves as a foundation for a brand’s overall marketing and communication strategy.
- Social media accounts managed by the brand
- Websites and Blogs
- Mobile Apps
Earned Media
Earned media channels refer to the organic exposure and publicity that a business or brand receives through word-of-mouth, recommendations, mentions, and coverage by third-party sources without direct payment. It is essentially the result of public relations efforts, positive customer experiences, and the quality of a brand’s products or services.
- Media Coverage: bloggers, influencers, reviews, articles
- Online Reviews: Google Reviews, Yelp, TripAdvisor,
- Public Relations (PR) Efforts: press releases, media pitches, events
- Social Media Mentions: When individuals or social media users share positive experiences or content related to a brand on platforms like Facebook, Twitter, Instagram, LinkedIn, or TikTok.
Why is Reputation Management Important for Your Business?
Maintaining a positive reputation is crucial as it directly influences sales. Nearly 60% of consumers in the United States have indicated that they would refrain from purchasing from a brand that appears untrustworthy.
A negative online reputation can potentially undermine your brand’s trustworthiness and, consequently, impact your business negatively.
Reputation management holds immense significance for businesses in the modern digital landscape. The way a company is perceived and the reputation it holds can profoundly impact its success, customer trust, and long-term viability.
Here are several key reasons why reputation management is crucial for your business, supported by examples to highlight their importance:
- Consumer Trust and Purchase Decisions:
- According to a survey by BrightLocal, 91% of consumers trust online reviews as much as personal recommendations.
- Another study by Moz found that online reviews impact 67.7% of purchasing decisions.
- Negative reviews can lead to a loss of trust, with 86% of consumers stating that they hesitate to purchase from a business with negative online reviews (Zendesk).
- Influence of Search Results:
- 93% of online experiences begin with a search engine (Search Engine Journal).
- Brand perception is highly influenced by search results. According to a study by Conductor, 63% of people believe that a brand is trustworthy if it appears in search results multiple times.
- Damage Control and Crisis Management:
- Negative news or viral incidents can spread rapidly online, affecting reputation. A study by Weber Shandwick revealed that 88% of executives believe that managing reputation risk is more important than managing strategic risks.
- A crisis can result in financial losses. The 2017 United Airlines incident, for example, caused a drop in stock value by $1.4 billion within hours (The Guardian).
- Recruitment and Talent Acquisition:
- Reputation plays a significant role in attracting top talent. According to a survey by CareerArc, 75% of job seekers consider an employer’s online reputation before applying.
- A strong online reputation can lead to a 5-20% increase in job applications (Harvard Business Review).
- Business Growth and Revenue:
- Positive online reviews can boost revenue. A study by Harvard Business School found that a one-star increase in a business’s Yelp rating leads to a 5-9% increase in revenue.
- Conversely, negative reviews can harm revenue. According to a study by Womply, businesses with a rating below 3.5 stars on review sites earn 19% less revenue than average.
- Customer Loyalty and Retention:
- A study by Temkin Group revealed that customers with a positive emotional connection to a brand are 8.4 times more likely to trust the company, 7.1 times more likely to purchase more, and 6.6 times more likely to forgive a mistake.
- Effective ORM can nurture positive customer relationships, leading to higher loyalty and customer retention rates.
Prominent Instances of Companies and Brands Prioritizing Online Reputation Management:
- Nike
As your brand grows, finding time to fulfil daily tasks becomes increasingly challenging. From mastering content marketing to conducting competitor research and handling customer support emails, managing your online reputation can feel overwhelming.
However, you can take inspiration from Nike’s approach and establish a dedicated support handle. For instance, Nike created a separate Twitter account called @NikeService solely focused on addressing customer queries.
If you’re facing similar difficulties, consider launching a social media account specifically dedicated to customer service issues.
This approach proves beneficial as it consolidates customer comments and queries in one place, improving your ability to respond promptly to consumers. By implementing this strategy, you enhance your chances of providing timely customer support.
- Wells Fargo:
Wells Fargo, one of the largest banks in the United States, faced a reputation crisis in 2016 when it was revealed that employees had created millions of unauthorized bank and credit card accounts to meet sales targets.
The scandal led to public outrage, regulatory investigations, and substantial fines for the bank. Wells Fargo’s reputation suffered a severe blow, emphasizing the importance of maintaining ethical practices and addressing internal issues promptly.
Wells Fargo has reached a settlement in a class action lawsuit related to the fake accounts scandal, agreeing to pay a substantial sum of $1 billion. The lawsuit alleged that the bank caused harm to investors by misrepresenting the extent of its efforts to rectify the situation following the scandal involving fraudulent accounts. As part of the settlement, Wells Fargo has agreed to provide financial compensation to the affected parties.
- Nestle:
Nestlé encountered a significant setback in managing its reputation when it was accused by Greenpeace of engaging in environmentally harmful practices online.
Instead of directly addressing the accusations, Nestlé exacerbated the situation by requesting YouTube to take down Greenpeace’s video.
As a result of the controversy, the company had to temporarily close its public page due to the influx of negative comments, including a modified KitKat logo that read “Killer.”
- Volkswagon
Volkswagen faced a major ORM crisis when it was revealed that the company had manipulated emissions tests in their diesel vehicles.
The scandal caused significant damage to its reputation and led to legal consequences, financial losses, and loss of customer trust.
Volkswagen maintains its stance that the eight million cars sold in Europe, which were equipped with defeat devices, did not require them to pass the less stringent EU emissions tests. Consequently, the company argues that it has not committed any wrongdoing within the European Union.
Despite incurring significant financial losses of approximately $29 billion (£22 billion) due to the scandal, Volkswagen’s reputation doesn’t appear to have sustained long-term damage.
10 Strategies on How to Manage Your Brand’s Online Reputation
The Elements of Company Branding
Effectively managing your brand’s online reputation requires a combination of proactive monitoring, strategic actions, and engaging with online platforms. Here are some essential steps and strategies to help you manage your brand’s online reputation:
1. Establish Your Brand Identity
Prior to addressing your reputation, it is essential to establish a brand that is deserving of management. Building a robust and unified brand identity provides a solid foundation, enabling a clear comprehension of your company’s values, guiding appropriate actions, and facilitating expansion while upholding integrity.
For example, Nike has formed strong partnerships and endorsements with renowned athletes, such as Michael Jordan, Serena Williams, Cristiano Ronaldo, and many others.
Associating with top athletes has not only enhanced Nike’s brand image but also demonstrated the brand’s commitment to excellence and performance.
You can create a brand identity by:
- A unified visual style encompassing branding components such as your logo, color scheme, and imagery.
- Maintaining a consistent brand voice across all communication channels.
- Establishing a clear and well-defined company mission, vision, and value statement.
2. Monitor Online Conversations:
Regularly monitor social media, review sites, forums, and news articles to stay informed about discussions surrounding your brand.
Utilize tools like Google Alerts and social media monitoring software to track brand mentions and customer feedback, enabling you to identify and address reputation issues promptly.
3. Respond to Feedback and Reviews:
Engage with customers who provide feedback or reviews about your brand. Promptly and professionally respond to both positive and negative comments.
Show appreciation for positive feedback and address negative feedback with empathy and a commitment to resolving issues. Active engagement demonstrates your value for customer opinions and dedication to excellent service.
4. Encourage and Manage Online Reviews:
The foundation of positive online reviews is delivering exceptional customer experiences. Focus on providing excellent products or services, addressing customer concerns promptly and effectively, and going the extra mile to exceed customer expectations.
Satisfied customers to leave positive reviews on relevant platforms. Respond to reviews, positive or negative, and address customer concerns.
Establish a systematic process for managing and responding to reviews to maintain a positive online reputation.
5. Staying Active on Social Media:
Take control of your brand’s online presence by optimizing your website, social media profiles, and other platforms. Ensure accurate and consistent brand information across all platforms.
For example, Sephora stays active on all their social media platforms, with celebrity endorsements, collaborations and new launches worldwide.
6. Address Negative Content:
Evaluate the validity of negative content about your brand and determine the best approach. Publicly address issues, provide clarifications, or offer solutions when appropriate.
Avoid online arguments or defensive responses. Focus on constructive and helpful engagement that demonstrates your commitment to resolving concerns.
7. Build Positive Relationships:
Actively engage with your audience and cultivate positive relationships with customers, influencers, industry professionals, and media outlets. Collaborate with influencers to generate positive content and endorsements. Participate in industry events and online communities to establish yourself as a trusted authority.
8. Continuously Improve Customer Experience:
Exceed customer expectations through exceptional products, services, and experiences. Solicit feedback and utilize it to enhance your offerings and address recurring issues. Prioritize customer satisfaction to proactively manage your brand’s reputation.
9. Monitor and Manage SEO:
Optimize your website and content to rank positively in search engine results. Control the search engine results pages (SERPs) to influence the information users see when searching for your brand. Implement SEO best practices, create valuable content, and leverage relevant keywords to enhance your online reputation.
10. Plan for Crisis Management:
Develop a crisis management plan to effectively handle reputation crises. Identify potential risks and establish protocols for addressing and mitigating them. Have clear communication strategies, spokespersons, and proactive approaches to address issues. A well-defined crisis management plan minimizes the impact of negative events on your brand’s reputation.
Remember that managing your brand’s online reputation is an ongoing process. Continuously monitor, adapt, and improve your strategies to maintain a positive online image and build trust with your audience. Active reputation management safeguards your brand’s image and ensures its long-term success.
Reputation Management Software and Platforms
Online Reputation management software offers valuable assistance to businesses in multiple ways. Some software solutions monitor and identify negative reviews on various platforms while also gathering new reviews. They also emphasize positive customer testimonials and keep track of brand mentions across social media platforms.
These software tools simplify the collection and analysis of reputation-related data, enabling businesses to effectively manage and maintain their brand reputation. Additionally, some software platforms provide sentiment analysis capabilities, allowing for swift resolution of potential issues.
Here are some popular choices:
- Yext:
Yext is a comprehensive platform for digital knowledge management that assists businesses in overseeing their online presence, which includes reputation management. It enables businesses to monitor and address customer reviews, manage business listings across various directories, and track customer sentiment. Yext also offers insights and analytics to help businesses comprehend and enhance their online reputation.
- Brandwatch:
Brandwatch is a social listening and analytics platform that empowers businesses to monitor and analyze online discussions related to their brand. It provides real-time monitoring of social media platforms, news sites, blogs, and forums, enabling businesses to track brand mentions, sentiment, and trends.
Brandwatch also delivers advanced analytics and reporting functionalities to assist businesses in understanding their online reputation and making data-driven decisions.
- Reputation.com:
Reputation.com provides a comprehensive suite of reputation management solutions for businesses. It offers tools for monitoring and addressing customer reviews, managing business listings, and generating positive online content. Reputation.com also provides sentiment analysis, competitive benchmarking, and insights into customer sentiment to aid businesses in enhancing their online reputation.
- ReviewInc:
ReviewInc is a reputation management platform that focuses on managing online reviews and customer feedback. It allows businesses to monitor and respond to reviews across multiple review sites, gathers customer feedback through surveys, and generate positive reviews.
ReviewInc also provides reporting and analytics capabilities to help businesses track their online reputation and identify areas for improvement.
- BirdEye:
BirdEye is a reputation management and customer experience platform that supports businesses in managing their online reputation and enhancing customer satisfaction.
It provides tools for monitoring and addressing reviews, managing business listings, and generating positive customer reviews. BirdEye also offers sentiment analysis, competitive insights, and customer surveys to assist businesses in measuring and improving their online reputation.
Using reputation management software can be especially beneficial for small-to-medium-sized businesses that have limited public relations resources. In the following section, we will explore some of the leading options available in the market.