fbpx

Bad reputation has huge repercussions for businesses—from brand image to monetary effects. A brand who is in the glory days of their business can go crashing down with just a spark of bad reputation.

Just like what happened to known fashion designer, Kenneth Cole in 2012 when he tweeted and promoted his then new line of clothes as protests persisted in Egypt that year. The backlash was astounding and even lead to Cole posting an apology on Facebook.

United Airlines also had to experience it the hard way. Musician, David Carroll, released a song titled “United Breaks Guitars” sharing his experience of damaging his precious guitars due to United Airlines’ manhandling. His video spread all over the internet and got 15 million views on YouTube. The bad publicity cost the United Airlines $180 million or 10% of their weekly stocks.

Simply put, brand reputation determines your customers’ trust to your company. It is important because this will drive your customers whether or not they will buy or continue purchasing your products and services.

In the infographic below, know the costs of a damaged brand reputation and what you can do to save your business from this brand tragedy.

Common Causes of Damaged Brand Reputation

Bad Customer Reviews/Customer Service Failures

A truckload of bad reviews about your business spells disaster. There are a lot of reasons why, but this mainly roots from a maltreatment of your customers or a bad experience with your product or service. According to Grade.us, 80% of customers won’t buy from a negatively reviewed business.

If this grows bigger, this could make your business lose investments, and worse, lose your business all in all. According to a study by Cone Communications, four out of five customers will head the other way when they see that your business has been negatively reviewed. This counts 80% of your potential customers and that’s huge enough to shake your business structure.

 

Ethical Lapses

In this day and age, any illegal business activity can spread out like wildfire especially if this is against what the company stands for. One misjudgment by an employee can affect the whole business’ brand reputation.

This could lead to serious crisis management like loss of financial resources and paying of reputation debt. Based on a study by Corporate Responsibility Magazine (CRM), ethical lapses like public disclosure of environmental scandals, public exposure of criminal acts, failure to recall defective products, and public disclosure of workplace discrimination could be the most damaging reasons for a bad business reputation.

 

Low Employee Satisfaction

Eventually, a low employee satisfaction can affect your hiring. Attracting top candidates can be a struggle for businesses with a bad reputation.

 

Brand Reputation by the Numbers

It takes around 10-12 positive reviews to counteract a single negative review.

84% of 269 executives said that the CEO should handle the issue when there’s a reputational risk.

In assessing reputation through media, 20% of the stories told by news portals should be positive while the negative ones shouldn’t exceed 10%.

Every star increase in an online review leads to 5-9% increase in revenue.

In line with that, there’s an 18% difference in revenue between three-star reviewed businesses to a five-star reviewed ones.

 

What Should You Do?

Solve the reputation issue

Listen to your critics. Track everything they’re saying and classify them into groups. From this, you can solve them by brainstorming a solution. One thing critics hate is their issue being ignored by businesses especially if it’s massive.

Be involved or elevate your corporate social responsibility (CSR)

While it may not completely return your brand reputation to a hundred percent, your customers and employees will appreciate a company that makes an effort to do something positive in this world.

In a survey by CRM, 72% of candidates would like to work for a company that prioritizes CSR.

Go back to what makes your customers happy

When in a crisis, a business should reset at least mentally. Remind yourself what made these customers come to you in the very first place. Increase customer satisfaction by starting with a better customer service.

 

After reading what a bad reputation can do to your business, there are enterprise risk management trainings which your business could enroll at such as the APEX Crisis Communication Planner. In the set of sessions, know the 101 of crisis management and settle it once and for all how to deal with this negative backlash brought to your business.

E-Learning Landing Pop Up TEST

E-Learning Landing Pop Up TEST

×
calendar_popup

Calendar

No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
Jun 17 - Jun 18Complaints Management - Turning Complaints to ComplimentsManila, Philippines
Jun 18 - Jun 21BCM Lead Auditor – ISO 22301 (ICOR Certified)Manila, Philippines
Jun 18 - Jun 19HR Business PartneringManila, Philippines
Jun 18 - Jun 21Big Data FoundationManila, Philippines
Jun 24 - Jun 26CQL - Certified Quality LeaderManila, Philippines
Jun 25 - Jun 26MS Power BIManila, Philippines
Jun 27 - Jun 28ISMS (Information Security Management Systems) PractitionerManila, Philippines
Jun 27 - Jun 28PSM I - Professional Scrum MasterManila, Philippines
Jul 9 - Jul 11BCM Lead Implementer - ISO 22301 (ICOR Certified)Manila, Philippines
Jul 15 - Jul 16DevOps FoundationManila, Philippines
Jul 17 - Jul 18DevOps FoundationManila, Philippines
Jul 18 - Jul 19MS Excel Advanced Features (2010/2013)Manila, Philippines
Jul 18 - Jul 19HRMET - HR Metrics and Workforce AnalyticsManila, Philippines
Jul 18 - Jul 19CompTIA Cloud EssentialsManila, Philippines
Jul 22 - Jul 23SMC - Scrum Master CertifiedManila, Philippines
Jul 23 - Jul 24DRP - Disaster Recovery PractitionerManila, Philippines
Jul 24 - Jul 25CQP - Certified Quality ProfessionalManila, Philippines
Jul 24 - Jul 25PRINCE2 FoundationManila, Philippines
Jul 25 - Jul 29Accelerated Six Sigma Green BeltManila, Philippines
Jul 25 - Jul 26Integrated Metrics Management (People, Process & Organization)Manila, Philippines
Jul 29 - Jul 30DevOps FoundationManila, Philippines
Aug 6 - Aug 9Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Aug 12 - Aug 14ITIL® 4 FoundationCebu City, Philippines
Aug 13 - Aug 14BCMP - Business Continuity Management PractitionerManila, Philippines
Aug 14 - Aug 16RE - Requirements EngineeringManila, Philippines
Aug 14 - Aug 16Certified IT Manager (CITM)® TrainingManila, Philippines
Aug 15 - Aug 16Intro to Project ManagementManila, Philippines
Aug 22 - Aug 23BIA - Business Intelligence and Analytics FoundationManila, Philippines
Aug 27 - Aug 28Enterprise Risk ManagementManila, Philippines
Aug 28 - Aug 30Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Aug 29 - Aug 30Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Aug 29 - Aug 30Agile SCRUM PractitionerManila, Philippines
Aug 29 - Aug 30ISMS (Information Security Management Systems) PractitionerManila, Philippines
Sep 2 - Sep 4Certified Data Center Facilities Operations Manager (CDFOM)® TrainingManila, Philippines
Sep 9 - Sep 10I2BA - Intro to Business AnalysisManila, Philippines
Sep 10 - Sep 12CQL - Certified Quality LeaderManila, Philippines
Sep 12 - Sep 13Data Story TellingManila, Philippines
Sep 16 - Sep 20CEH - Certified Ethical HackerManila, Philippines
Sep 17 - Sep 20Big Data Hadoop AdministratorManila, Philippines
Sep 18 - Sep 20SDA - Service Desk AnalystManila, Philippines
Sep 23 - Sep 24HR Business PartneringManila, Philippines
Sep 23 - Sep 24MS Power BIManila, Philippines
Sep 23 - Sep 24PSM I - Professional Scrum MasterManila, Philippines
Sep 24 - Sep 25CCP - Crisis Communication Planner (ICOR Certified) TrainingManila, Philippines
Sep 24 - Sep 25DevOps FoundationManila, Philippines
Sep 26 - Sep 27Complaints Management - Turning Complaints to ComplimentsManila, Philippines
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
x

Calendar

No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
Jun 17 - Jun 18Complaints Management - Turning Complaints to ComplimentsManila, Philippines
Jun 18 - Jun 21BCM Lead Auditor – ISO 22301 (ICOR Certified)Manila, Philippines
Jun 18 - Jun 19HR Business PartneringManila, Philippines
Jun 18 - Jun 21Big Data FoundationManila, Philippines
Jun 24 - Jun 26CQL - Certified Quality LeaderManila, Philippines
Jun 25 - Jun 26MS Power BIManila, Philippines
Jun 27 - Jun 28ISMS (Information Security Management Systems) PractitionerManila, Philippines
Jun 27 - Jun 28PSM I - Professional Scrum MasterManila, Philippines
Jul 9 - Jul 11BCM Lead Implementer - ISO 22301 (ICOR Certified)Manila, Philippines
Jul 15 - Jul 16DevOps FoundationManila, Philippines
Jul 17 - Jul 18DevOps FoundationManila, Philippines
Jul 18 - Jul 19MS Excel Advanced Features (2010/2013)Manila, Philippines
Jul 18 - Jul 19HRMET - HR Metrics and Workforce AnalyticsManila, Philippines
Jul 18 - Jul 19CompTIA Cloud EssentialsManila, Philippines
Jul 22 - Jul 23SMC - Scrum Master CertifiedManila, Philippines
Jul 23 - Jul 24DRP - Disaster Recovery PractitionerManila, Philippines
Jul 24 - Jul 25CQP - Certified Quality ProfessionalManila, Philippines
Jul 24 - Jul 25PRINCE2 FoundationManila, Philippines
Jul 25 - Jul 29Accelerated Six Sigma Green BeltManila, Philippines
Jul 25 - Jul 26Integrated Metrics Management (People, Process & Organization)Manila, Philippines
Jul 29 - Jul 30DevOps FoundationManila, Philippines
Aug 6 - Aug 9Project Management Professional (PMP)® Training - REP #4536Manila, Philippines
Aug 12 - Aug 14ITIL® 4 FoundationCebu City, Philippines
Aug 13 - Aug 14BCMP - Business Continuity Management PractitionerManila, Philippines
Aug 14 - Aug 16RE - Requirements EngineeringManila, Philippines
Aug 14 - Aug 16Certified IT Manager (CITM)® TrainingManila, Philippines
Aug 15 - Aug 16Intro to Project ManagementManila, Philippines
Aug 22 - Aug 23BIA - Business Intelligence and Analytics FoundationManila, Philippines
Aug 27 - Aug 28Enterprise Risk ManagementManila, Philippines
Aug 28 - Aug 30Certified Business Analysis Professional (CBAP®) TrainingManila, Philippines
Aug 29 - Aug 30Certified Data Center Professional (CDCP)® TrainingManila, Philippines
Aug 29 - Aug 30Agile SCRUM PractitionerManila, Philippines
Aug 29 - Aug 30ISMS (Information Security Management Systems) PractitionerManila, Philippines
Sep 2 - Sep 4Certified Data Center Facilities Operations Manager (CDFOM)® TrainingManila, Philippines
Sep 9 - Sep 10I2BA - Intro to Business AnalysisManila, Philippines
Sep 10 - Sep 12CQL - Certified Quality LeaderManila, Philippines
Sep 12 - Sep 13Data Story TellingManila, Philippines
Sep 16 - Sep 20CEH - Certified Ethical HackerManila, Philippines
Sep 17 - Sep 20Big Data Hadoop AdministratorManila, Philippines
Sep 18 - Sep 20SDA - Service Desk AnalystManila, Philippines
Sep 23 - Sep 24HR Business PartneringManila, Philippines
Sep 23 - Sep 24MS Power BIManila, Philippines
Sep 23 - Sep 24PSM I - Professional Scrum MasterManila, Philippines
Sep 24 - Sep 25CCP - Crisis Communication Planner (ICOR Certified) TrainingManila, Philippines
Sep 24 - Sep 25DevOps FoundationManila, Philippines
Sep 26 - Sep 27Complaints Management - Turning Complaints to ComplimentsManila, Philippines
No class / event scheduled for this month
No class / event scheduled for this month
No class / event scheduled for this month
ENROLL NOW








REQUEST A CUSTOM QUOTE






Request a callback
[contact-form-7 404 "Not Found"]