In your personal life, your reputation is something that’s very important because it speaks on your character. There are good reputations and there are bad ones… Ideally, you want a good one but sometimes people have bad ones for various reasons. Well, that same theory applies to businesses as well.
You may not realize it but consumers base their shopping decisions on a business’ reputation before even looking at the products and services. What if you owned a restaurant but it had a bad reputation for bland food? Or what if you had a clothing boutique but your boutique was known for having poor quality clothing? How would you fix that?
Certain solutions are easier than others. For example, with the restaurant, you just might have to tweak your recipes more or make sure the chefs are following your recipes correctly. With the clothing boutique, you might have to find an entirely new supplier for everything. Instead of printed labels, you may want to find a company that makes woven labels because they last longer, use different fabrics and materials, etc…
Those examples were pretty easy fixes but depending on how soon you realize the type of reputation your business has, it could be quite hard to recover from the damages. The thing about business reputations is that they don’t affect just one area of your business… it affects all areas of your business, and that applies to whether the reputation is good or bad.
Why a Good Business Reputation is So Important
You, of course, know that a business reputation is important, but do you know exactly why it’s so important? It’s because it gives your business a presence on the market. People need to know about your business in order to interact with it to have a good or bad opinion about it… It’s even been said that it’s better to have a bad reputation than no reputation at all because at least people are talking about your business.
Of course, ideally, you want a good business reputation, but the question is why do you want a good business reputation? Sure, you want people to like your business but your business being likable shouldn’t be your only reason to make efforts to have a good reputation… it benefits your business in more ways than one! Take a look at why having a good reputation is crucial for your business.
You Have No Control Over Your Reputation
When it comes to the image of your business, you have no control over its reputation. You can make efforts to positively contribute to it with quality products and services but your influence can only go so far. Ultimately, you can’t tell people how to feel or what to think about your business… they’re going to form that opinion on their own based on your efforts.
Word of Mouth Will Play in Your Business’ Favor
Word of mouth can certainly do damage to a business’s reputation but when your business has a good reputation, word of mouth can do a world of good for your business. The thing about word of mouth is that it doesn’t literally just come from someone’s mouth anymore. Word of mouth now comes in the form of customer reviews and social media platforms.
Through these various outlets, people are now able to voice their opinions about a business. The fact that someone else was able to “test” something out first and share their experience is all the more reason why people trust the opinions of others… even from complete strangers.
According to prdaily.com, 83% of consumers state that word-of-mouth influences their purchases. The article further states that word-of-mouth plays such a huge role because it builds a level of trust.
A Good Reputation Holds More Weight Than a Bad Review
In the world of business and trying to please customers, people are a lot faster to leave a negative review than a positive one. In fact, it’s been said that one negative review can be just as powerful as 10 positive reviews. That can be a little disheartening but there are ways to positively deal with negative reviews.
Where the good news comes in is that a good reputation lessens the impact of bad reviews. Negative reviews do indeed cause serious damage to businesses but when a business encounters difficult customers, their negative review won’t hold hardly any weight in comparison to the business’s good reputation. It’s going to be especially hard to influence a customer’s opinion if they already thought highly of that business in the first place.
A Good Reputation Is Reflective to Everyone Your Business Interacts With
When talking about business reputations, most people think it’s only referring to customers but really, a business reputation is referring to everyone who interacts with that business. Employees, vendors, suppliers… just by working for or doing business with your business, they’re forming an opinion about your business, just from a different perspective. So it’s also important to make sure you’re business is upholding a good reputation on the back end as well.