What can take a business down – and has – in a heartbeat? Answer: A negative or bad business reputation, not surprisingly, can destroy a company before anyone realizes it. Surprisingly, however, what’s rarely calculated is the price tag attached to the loss of trust in a company.
What may or may not come as a surprise is how much faith consumers continue to put in online reviews, even though they’ve been openly accused of manipulation and fraud. This applies to not just mega retail stores (both online and off), but contractors, restaurants, hotels, and more.
The writing, selling, and buying of fake reviews online is a booming business. From shady competitors, your business could be vulnerable to an attack on its reputation, even if you offer superb customer service.
Let’s examine the true cost to a business that could result from a bad reputation.
Retention Costs and Hiring Costs Will Rise
Affecting more than just sales, a bad reputation online will cause a ripple effect through a business. Both an employee retention crisis and high hiring costs can be involved in the impact of negative press. For a company with negative press, what percentage of United States workers do you suppose won’t apply for employment? The answer is an astounding 71%! (courtesy of a CareerBuilder survey)
So, you can see, not only is negative press going to be a problem where customer service is concerned, it could affect current employees and the possibility of future talented workers.
A Falling Sales Revenue Will Be Experienced
What percent of the American public do you suppose reads online reviews? A whopping 93%! If a company has a negative review, 4 out of 5 consumers won’t purchase their products/services. For a hard-working business owner, those are some scary statistics. A bad reputation can cause a company to spiral out of control, even after years of building up a trusted business.
Here’s one more staggering fact: In the United States alone, more than $537 billion can (and probably will) be lost due to a universal bad reputation.
Reputation Protection Is Possible
In addition to the hiring of a competent, experienced, knowledgeable PR specialist (see below), the following can help you protect your business reputation:
- Draft a crisis plan
- Submit press releases
- Request reviews
- Be social
- Monitoring the web
- Prevent bad reviews
Reversing the Effects of a Bad Business Reputation
JoTo PR uses the science of PR with which to break away from old, established tactics of public relations and soar to new heights. Our “Anti-PR” can do the same for your company. It’s basically attaching high-powered rockets to a business, propelling it to previously unimagined success. Our unprecedented results speak for themselves.
Whether your company needs to concentrate on crisis management due to a bad reputation, you’re a new company just starting out, or you’re an established business that could use new customers and additional profit – JoTo PR should be your go-to source for public relations, marketing, content, and more.
Contact us today for more information.