3 Different BrandsTeach Us About Reputation Management
3 Different BrandsTeach Us About Reputation Management. Your brand’s reputation is its most valuable currency. Here are three powerful lessons from Berkshire Hathaway, Google, and Dippin’ Dots for not only sustaining your brand’s good name but also for actively elevating it.
When it comes to reputation management, the greatest risk lies not in making a mistake, but in failing to use opportunities that showcase what your brand is all about.GETTY IMAGES
Until rather recently, reputation management wasn’t even on the radar of most brands. Sure, brands have always cared about their reputation, but there’s a big difference between a brand wanting to maintain their good name and having a sophisticated strategy for doing so. But in today’s digital landscape where connected consumers hold the power to essentially try and “cancel” brands in the court of public opinion, reputation management is critical for every brand.
Let me put this in perspective: According to a Harvard Business School Working Paper, an additional one-star increase in Yelp ratings increases a brand’s revenue by as much as nine percent. And negative reviews stop a staggering 40 percent of consumers from doing business with a brand.
So what can companies do to ensure they not only stay in good standing but also actively elevate their brand in the eyes of connected consumers? Here is what three very different brands can teach us about reputation management.
Berkshire Hathaway: Understand that a Trusted reputation is Your Brand’s Most Valuable Currency
In a 2014 biennial memo, the iconic CEO of Berkshire Hathaway, Warren Buffett, emphasized to his senior managers that the top priority on the list is to “zealously guard Berkshire’s reputation.” Beyond that, he advised his staff members to gauge what’s right and what’s wrong not just by business or legal standards, but by moral character. A snippet of Buffett’s letter is below, and I highly suggest reading the full letter as published by The Wall Street Journal.
