4 minute read
Companies with a good reputation can spend less on marketing
Updated on March 28, 2020 by Brianne Schaer
A good reputation is worth a lot more than you might realize.
Not only is having a good online reputation linked to higher trust in your brand, increased profits, and better talent, but it also improves marketing efforts. This blog will focus on the link between a positive corporate reputation and lower marketing costs.
A business with a good online reputation practically markets itself. People are naturally attracted to companies that share their values and mission. They’ll choose companies like this over the competition, pay more for their products or services, and then go on to promote it (for free!) through online reviews and social media posts.
In fact, consumers are willing to spend 9% more for products from a company with a positive corporate reputation, and an even higher premium when there are desirable extra features.
Consumers are willing to spend 9% more for products from a company with a positive corporate reputation.
Make your company stand out from the competition because of its reputation, not because of marketing, advertising, or PR. Although you should definitely continue to market your business, your marketing team will have a much easier time if it already has a positive image.
A good online reputation can lead to:
Increased brand awareness
Brand awareness deals with the level of familiarity people have with your brand. If your target audience is able to recognize your brand, they are likely to choose it over of the competition.
Establishing brand awareness is critical for business success, and is usually attributed to your marketing team. But a lot of the work to build brand awareness can be done by improving your reputation. Getting people to know and trust your brand is a huge part of reputation management.
Here’s how it can be done:
- Optimize your owned properties: Make sure your website is in great shape and includes a blog that you update regularly. Claim and monitor your social media channels. Owned channels like your website, social media, and other profile listing websites are a great opportunity for you to put your best foot forward on the internet and show potential customers what your brand is all about.
- Focus on reviews: Although reviews aren’t something you have a lot of control over, the way you respond to reviews is a reflection of your overall brand. In short, your review management strategy can make or break your brand. People will remember if you respond politely to reviews (especially negative ones) and will probably talk about it with their friends and family.
- Create valuable content: The more buzz you can create around your brand the better. Most reputation management strategies will include creating content for your brand. By sharing your content on different sources, you can reach a larger audience and increase your brand awareness.
Free marketing and promotion in the form of reviews and social media posts
People are quick to share their opinions of things, whether that’s a new restaurant that opened in their neighborhood or a trendy fashion brand everyone’s wearing. Positive reviews and social media posts are a free marketing gold mine, and whether your brand is doing well in this space often has a lot to do with reputation management.
Online reviews have so much influence over purchasing behavior, most people today won’t do anything without checking reviews first. In fact, 85% of consumers trust online reviews as much as personal recommendations. These reviews and posts can be further amplified if people share them on their own social media accounts. Reviews are worth so much more than advertisements because they are a trusted source of information. You can’t buy that level of trust using traditional marketing.
With enough promotion in the form of online reviews and social media posts, your marketing department won’t have to invest as much in traditional advertising. Additionally, when people are posting about your brand in reviews and social media, your company will be more likely to be given free press articles about your product or services, further amplifying your brand.
Decreased cost per acquisition
It’s easier and cheaper to attract customers to your brand if they already know about it. By improving your online reputation, your audience will begin to feel like they are a part of your brand before they even have a need to purchase anything from you. This will turn people into champions of your brand, and will make marketing efforts much easier when the time comes to convince them to purchase from you.
Brands with reputation success don’t have to rely on marketing
Some of today’s most successful brands didn’t get there by spending tons of money on marketing. They did it because of their reputation. When people believe in a brand and its products, they are more likely to stick around for the long haul. People are looking for that sense of community and bonding when they choose one brand over another. Whether they’re shopping for groceries or buying a new designer bag for a special someone, people will often base their purchasing decisions on reputation.
Reputation management and marketing are often two sides of the same coin. While they both focus on different aspects of the buying journey, it is not an exaggeration to say that your marketing will only be as successful as your reputation. The better your reputation, the easier it will be to market your products, and as such you can effectively lower your marketing budget.