Created on March 17, 2021 | Updated on June 18, 2024

Why Is Reputation Management Essential for Businesses?

Content Marketing
importance of reputation management

Today we are going to talk about the importance of reputation management.

Reputation is something that every company and person tries to keep clean. Yet, its importance became even more prominent in the past few years.

So, why is reputation important?

Well, a proper reputation can not only attract new clients. But what's more vital, it helps you make these customers a returning one.

Of course, it also upholds your brand. This way, you can positively stand out from your competitors.

Thus, we suggest you review the reputation's significance in some more detail.


What is reputation management?

Before jumping straight to the benefits of keeping your reputation high, let's see its definition.

Reputation management stands for monitoring and shaping how people perceive your brand.

Though we define reputation management in one sentence, the process itself is much complicated. It requires lots of effort, patience, and consistency. Professionals who are in charge of your reputation should be aware of each thing concerning your brand.

Nowadays, reputation management surpasses building a brand's image only. This way, your PR & marketing department should follow every mention your brand receives and get rid of the negative comments.

The importance of reputation for your business

The importance of reputation is very much evident nowadays. You may have excellent services or products. Yet, if somebody dispenses misleading information about your company, you may fail.

Let us share some pieces of information to prove the power of the company's public image.

  • 93% of customers state that online reviews have affected their purchase decisions. (Podium)
  • 91% of 18-34-year-olds account for online reviews as much as personal recommendations. (BrightLocal)
  • 94% of respondents say an online review has persuaded them to bypass a business. (ReviewTrackers)

As you can see, online reputation management must be a part of your company's strategy. Without it, you can lose lots of potential customers.

The same applies to local businesses. Keep your reputation high (based on reviews and recommendations) to get more clients. According to Statista, 94% of respondents share that positive reviews make them buy from local stores.

How do online customer reviews afffect your opinion of local business?

And now, let's see what benefits await you if you maintain reputation management for your brand.

Higher ranking on search engines

Well, customers' journey begins with the search engine. It's how they start looking for products they need.

The point is to have your brand mentioned at the top of SERP. (Of course, positively.)

When working on the reputation management strategy, try working with local listings, review platforms, and placing guest posts. That enhances your brand's visibility online. Also, it may boost your ranking on SERP (by providing backlinks).

Recent studies show that buyers' reviews gain more and more weight (6.47%) in local organic searches.

So, join your forces with journalists and industry experts to spread the word about your company. Work precisely with reviews customers are leaving for your firm.

Strong digital image

The importance of reputation in business also results from creating its digital image.

A company's online image can become a solid foundation for your business's success. Yet, at the same time, it may destroy all your achievements.

In other words, a company's image can attract users and make them loyal customers. Or it might turn people away.

The way you are building a brand's image online may involve multiple channels. According to marketing guru Neil Patel, you can:

  • build a blog on your domain,
  • run additional blogs,
  • be active on social media,
  • involve in podcasting,
  • create Youtube channel,
  • submit press releases,
  • register on professional community sites.

As such, you enhance your online presence. Yet, you can control and communicate the company's message as you wish.

Reducing rumors and fake information

Though it's possible to build a positive image for businesses, there is something harder to control. And it's misleading information and rumors.

That's what many companies may experience during their journey.

This way, no matter how hard you work on your digital image. If a user reads fake information first, it may change the game for him/her and you.

Moz shares that businesses may lose:

  • 22% of potential customers after they read one negative article,
  • 59% of them when reading three articles,
  • 70% of potential buyers after reading four or more negative articles.

Accordingly, having a good reputation should be your top priority.

To reduce fakes, you have to monitor brand mentions constantly. If you find even slight untruths, reach out to sources that have published the wrong information.

Building long-lasting relationships with customers

Reputation management is your key to building lasting relationships with your customers.

Look back at the data we've shared. It clearly shows that positive reviews can establish a stronger bond with clients.

Good reputation pays back when it comes to customers' shopping decisions and behavior. Respectively, positive reviews or testimonials lead to the first purchase they make.

Nevertheless, there is a way to go.

To ensure people buy again, take another step. Firstly, you can ask your customers to share their experiences with your brand. It might be the reviews for your site, mentions on social media, and so on.

Indeed, it's better to encourage those actions. You can offer complimentary gifts or discounts in exchange for reviews.

Also, work with the existing reactions to your brand. 89% of users check businesses' responses to reviews.

Moreover, here are some interesting statistics from Shout about Us:

  • 57% of shoppers are not likely to use a business that does not reply to reviews,
  • nine out 10 users are highly likely to buy from a business that actively responds to online reviews,
  • 52% of shoppers claim they will use a business if its representatives have responded to only negative reviews.

So, make sure to process as many comments as possible.

Recruiting new personnel easier

We bet you did not expect to see this point coming.

Anyway, the importance of reputation management finds its display in the recruitment sphere. We'd like to mention that human capital is one of the essential elements of a company's success.

This way, if you want your business to grow and evolve - hire worthy personnel. But, sadly, a bad reputation can spoil those chances.

Various sources put it the following way:

  • 69% of respondents wouldn't take a position in a company with a bad reputation. (In House Recruitment Expo)
  • 86% of unemployed women and 67% of unemployed men claimed they wouldn't join a firm with a bad reputation. (Igniyte)
  • 46% of job seekers said that company reputation weighs with their job offer decisions. (360PSG)

Finally, let's sum this up with the following fact. 84% of respondents would consider leaving their current job if offered another position by a company with an excellent reputation.

So, do mind what customers and current and late employees say about your company.

How to work with reputation management

We've offered enough data about the importance of having a good reputation.

But how do you manage all that flood of information coming? That's a great question. Let's see what you can do.

Firstly, ensure that your PR or marketing team works on your brand's image. That must involve not only spreading the word about it on social media and other channels. Also, it should involve work with reviews and responses to them.

How can you audit your brand's reputation?

You can employ the good old search engine to find the mentions. This way, type,

  • your company name + review

to receive all the available posts.

Also, to find a mention for a physical spot (like a cafe, adventure park, department store), you can type the brand name only. Scroll down the page to find the reviews under the extra info snippet.

Additionally, with the Internet in place, the number and speed of appearing mentions might be overwhelming.

In this case, use brand monitoring tools. They allow you to screen the mentions based on the parameters you choose.

Start working with the reviews that can harm your reputation the most. Try to change the situation for the better. Solve customers' issues (if possible), provide discounts, and ask to correct a bad comment or respond to it with an updated experience.

Of course, don't forget to respond to good comments and thank your customers.


According to Forbes, 97% of business owners agree on reputation management importance. And we are happy to hear such a unanimous opinion.

Nowadays, you should keep in mind what users see first when they google your brand.

Every mention that casts an imputation on the character may deprive your company of profits. The way people see your business plays a more and more essential role.

As the Internet makes any firm exposed to the world, reputation management becomes an integral part of any business.

We hope this article explains why you should work on your reputation and what benefits it can bring.

How do you manage your company's reputation? What steps do you take to keep it clean? Leave your comments, and let's discuss your thoughts!

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