by Steve Fodor When you get right down to it, all you have in life are your word and your reputation. Hopefully, both are seen in a positive light by people you associate with.
With all the Wall Street distrust and fallout, Tiger Woods and Toyota publicity in recent months, company reputation has become a popular topic in corporate boardrooms. I read recently that The Reputation Institute, a private consulting firm, conducted nearly 25,000 online interviews asking people their perceptions regarding the reputations of the nation’s largest (by revenue) 150 companies. The survey measured factors such as products and services, innovation, corporate citizenship and leadership. Respondents were asked to provide rankings on a scale from 1 to 100, with 100 being the highest or best score.
To be honest, the results were not too surprising to me. Brands like Johnson & Johnson, Walt Disney, UPS and Kraft Foods were at the top of the list. I’m not surprised because these are brands that invest heavily in promoting their brand image. I’ve also always had great experiences with these top brands. Also of little surprise, financial institutions and large banks were scraping the bottom of the barrel in terms of perceived reputation.
What I did find interesting, though, was a statistic put forth by The Reputation Institute regarding their study. “When reputations improve by five points, consumer recommendations hike by 6.5 percent,” according to The Reputation Institute. “Get more people talking about your products and company, and you can bet you’ll improve your bottom line.”
I’ve always believed in the value of brand investment, public relations, and developing strategies to improve how your brand is perceived versus only focusing on selling products and services at a price. And when combined with a social media marketing program, consumer recommendations that promote your company’s reputation can add even more to your bottom line. I’m just glad that The Reputation Institute did this study and put some quantitative support to what good marketers have always known to be true.
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