What Is Brand Reputation? Importance and How to Improve It

Having a good brand reputation is vital in this competitive age. It determines how your market feels about your company and whether or not they are likely to invest in your products or services. Whether you’re a large or small company, your reputation can make or break you. 

Your brand reputation is also important when it comes to online marketing. Unless your target audience trusts and believes in you, then your influencer marketing campaigns are unlikely to succeed. However, the good news is that the right campaign can help you boost your brand reputation, provided you hire the right influencers.

What is Brand Reputation?

Brand reputation refers to the collective perception of a company's image as seen through the eyes of its customers, stakeholders, and the market at large. This perception encompasses beliefs, opinions, and knowledge about a brand, and it is shaped by the brand's past actions, marketing efforts, customer experiences, and public relations. In other words, the things you say, the things you do, and the values that you promote. Every step you take, from the copy you include on your website to the Tweets you share on your social media profiles, has an impact on your brand reputation.  

Essentially, brand reputation is a critical aspect of a brand's identity and can influence its success or failure in the market. A strong, positive brand reputation often leads to greater customer loyalty and brand equity, whereas a negative reputation can harm a company's business prospects. 

Moreover, brand reputation is not static; it evolves over time in response to a company's actions, market trends, consumer feedback, and societal changes. Maintaining a favorable brand reputation therefore requires consistent effort and alignment between the company's actions, communications, and values.

Importance of Brand Reputation

Let’s expand now on why it's so important to maintain a positive brand reputation.

A positive brand reputation:

• Increases customer trust and loyalty. It fosters trust, and encourages customer loyalty and repeat business.
• Enhances brand value and equity. Strong reputations lead to higher brand equity, contributing to increased market share and profitability.
• Attracts better talent. Good reputations draw in skilled employees, enhancing innovation and overall performance.
• Facilitates higher pricing power. Reputable brands can command premium prices due to perceived quality and reliability.
• Improves crisis management. A positive reputation provides resilience in crises, maintaining customer loyalty during challenging times.
• Boosts word-of-mouth marketing. Satisfied customers are likely to recommend trusted brands, organically expanding their reach and customer base.
• Increases investor confidence. Positive reputations attract investors, signaling stability and growth potential.
• Creates a competitive advantage. In saturated markets, a good reputation differentiates a brand from its competitors.
• Enhances customer engagement. Positive perceptions lead to more customer interaction, yielding valuable insights and stronger relationships.
• Facilitates expansion and growth. An established reputation makes it easier to enter into new markets and launch new products, leveraging existing customer goodwill.

In contrast, if you have a bad reputation then you will almost certainly isolate yourself from your target market and fall behind as a business. Especially in these competitive times when consumers are looking to buy from ethical companies that make a positive impact in the world. That’s why it’s so important to consider your reputation at each and every touchpoint you have with the public. The wrong message, however small, can send your reputation spiraling. When that happens, there is very little you can do to save face and recover.

How To Build Brand Reputation

As we just mentioned, having a good brand reputation is important to guarantee the success of your business and your influencer marketing campaigns. But building a strong reputation isn’t a one-off task; it’s something you need to work on continuously. Your brand reputation strategy needs to be both proactive and reactive. You need to constantly feed the opinions of the public and reinforce their belief that you have a positive brand reputation. What’s more, you need to make sure that you hire the right influencers for your marketing campaigns. 

Here are a few valuable strategies to get you started on the right foot.

Build a Strong Brand Identity

The first step in nurturing a positive brand reputation is building a strong foundation: your brand identity. This is the identity that you will reflect with each and every interaction you have with the public. That way, you can demonstrate that you have strong values and beliefs, and you stand by who you are as a brand at all times: that you have integrity. 

Your brand identity should be based on a clearly defined brand mission and vision statement. It should align with your values and beliefs as a company and reflect your core value proposition. Your brand identity also needs to have a clear and cohesive voice and be identifiable in all your materials, including your logo, your website, and your social media pages. This is what’s known as a brand narrative, and consistency is crucial here. Make sure your identity is clearly communicated during every interaction your company has with the public.

Harness the Power of Influencer Marketing

Influencer marketing can be a highly effective strategy for enhancing brand reputation, drawing on the authenticity and trust that influencers have with their audience. By teaming up with influencers whose followers align with the brand’s target demographic, businesses can achieve more personalized and impactful outreach. These influencers contribute not just through their follower base, but also by creating unique and engaging content that diversifies and amplifies the brand's messaging. This strategy not only expands brand awareness but also strengthens brand recall, maintaining a consistent and strong presence in the consumer's mind.

Send Out the Right Messages 

Make sure that any influencer that you work with understands who you are and what your key messages are. This is vital because they represent your brand, and they have the power to make or break your brand reputation with a single post. If they are unable to embody and transmit your core values and ethics, then it can water down your brand identity and damage the trust that you have developed with your customer base. 

Perhaps most damaging of all, the wrong message from an influencer can have a direct negative impact on the brand reputation that you have been carefully crafting over time. That’s why it’s so important to think carefully before you collaborate with an influencer to make sure they are the right fit for your brand, in every aspect. 

Create The Right Types of Campaigns

Make sure you promote the right types of campaigns during your influencer marketing efforts. Use your campaigns as a platform to reinforce who you are in a positive light. Although it’s important to keep up with influencer marketing trends, it’s equally important to stay true to your brand identity and demonstrate that you stand by who you are above everything else. 

Here are a few examples of influencer marketing campaigns that can help you build a strong brand reputation:

• Informative campaigns, such as explainer videos or product tutorials.
• Campaigns that communicate your commitment to corporate social responsibility or other social cause activities.
• Authentic campaigns that avoid a “hard sell”.
• Campaigns that provide consumers with real value and reinforce the idea that you support substance over style.
• Positive content that builds goodwill.

Implement Corporate Social Responsibility (CSR)

Aside from influencer marketing, there are a number of additional business strategies that you can implement to enhance your brand reputation.

For instance, engaging in corporate social responsibility (CSR) initiatives can greatly enhance brand reputation. This is because brands that are seen as responsible and contributing to the greater good often enjoy a more positive public image. An example of a CSR initiative that a business could engage in might include establishing environmentally sustainable practices, such as reducing carbon emissions, using renewable energy sources, or implementing recycling programs in their operations. 

Another powerful CSR initiative is community involvement, which can range from sponsoring local events and supporting community projects to offering educational programs or scholarships. Businesses can also donate a portion of their profits to charitable causes or encourage employees to volunteer for community service.

Engage on Social Media

Social media is a powerful tool for building brand reputation. Regularly engaging with your audience on these platforms helps in creating a more personal and approachable brand image. It’s important to actively respond to comments, questions, and feedback, both positive and negative, on social media. This engagement demonstrates that the brand values its customers and their opinions.

Leverage Public Relations and Media Outreach

Effective use of public relations and media outreach can enhance brand reputation. This includes getting featured in relevant publications, participating in community events, or engaging in partnerships that align with the brand’s values. Positive media coverage can significantly boost a brand's image and credibility.

Foster Brand Advocacy

Encourage your satisfied customers, employees, and partners to become brand advocates. Word-of-mouth from these advocates can be incredibly powerful. Provide them with the tools and incentives to share their positive experiences and stories related to your brand.

Invest in Thought Leadership and Content Marketing

Establishing your brand as a thought leader in your industry can significantly boost brand reputation. For instance, consider investing in content marketing strategies that showcase your expertise and insights. This can include blogs, webinars, whitepapers, and speaking engagements at industry events.

Focus on Employee Satisfaction

Finally, don’t forget about the power of your most important assets in building brand reputation: your employees. Investing in your workforce, ensuring a positive work environment, and encouraging employee engagement and satisfaction can help you nurture more passionate and dedicated employees who can serve as highly powerful ambassadors for your brand.  

Benefits of Building Brand Reputation

Let’s recap the biggest benefits of building brand reputation that we discussed at the start of this post. 

A strong brand reputation is a vital asset for any business, providing extensive benefits that contribute to long-term success. It fosters deep-rooted customer loyalty, transforming consumers into brand advocates who organically amplify the brand’s reach and influence. This loyalty is particularly valuable in competitive markets, where it supports the successful introduction of new products and market expansion.

Financially, a reputable brand often enjoys enhanced profitability due to increased sales and the ability to command premium prices, reflecting the trust and perceived value it holds among customers. This financial strength is a cornerstone of sustainable business growth.

A robust reputation also offers resilience against crises or negative publicity, helping to preserve customer trust and loyalty during challenging times. Additionally, it opens doors to new partnerships and collaborations, as other businesses and influencers are more inclined to engage with well-regarded brands.

Ultimately, a strong brand reputation is not just about a positive image; it’s an integral component of business strategy that ensures customer loyalty, financial stability, brand consistency, talent attraction, resilience, and collaborative growth opportunities.

Examples of Good and Bad Brand Reputation Strategies

Good brand reputation strategies are pivotal for business success, as they foster trust, loyalty, and a positive image in the public's eye. For instance, Patagonia’s commitment to environmental sustainability and ethical manufacturing has bolstered its reputation as a socially responsible brand. This is reflected in its transparent supply chain practices and dedication to using sustainable materials, resonating deeply with eco-conscious consumers. Similarly, Apple’s focus on innovation, quality, and customer service has earned it a reputation for being a leader in technology and design. Its consistent release of groundbreaking products and emphasis on the user experience have cultivated a loyal customer base and a prestigious brand image.

Conversely, poor brand reputation strategies can lead to a significant loss of consumer trust and business. Volkswagen’s emissions scandal is a prime example. The company's decision to use software in diesel engines to cheat on emissions tests severely damaged its reputation for reliability and ethical business practices. This led to a massive recall, legal consequences, and a loss of consumer trust. Another example is the United Airlines incident, where a passenger was forcibly removed from an overbooked flight. The incident, and the company’s initial handling of it, sparked public outrage and highlighted issues in customer service and corporate responsibility, significantly tarnishing the airline's reputation.

These examples underscore the importance of aligning your business practices with ethical standards and customer expectations. Good brand reputation strategies involve consistent quality, transparency, and ethical conduct, fostering trust and loyalty among consumers. In contrast, strategies that overlook these elements can lead to a damaged public image, loss of customer trust, and long-term negative impacts on the business.