The Importance Of Business Reputation

The Importance Of Business Reputation

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Traditionally, businesses both big and small, depended largely on word of mouth by their stakeholders and traditional advertising to establish, build and maintain their reputation. However, according to Hans Hanekom, CEO of Swartland Investments, things have changed dramatically:

“Today, with the influx of social media and other methods of instant communication, any business needs to be conscientiously attentive to building and maintaining their reputations at all times.”

He says that although the concept of reputation might be unquantifiable, having a good reputation can go a long way to benefiting a company in a number of different ways, including standing out as a consumer’s go-to brand, support for a company in times of crisis, and of course, setting out the future value of a company going forward.

Related: How To Manage Your Business Reputation Online

The power of reputation

Jurie Hanekom, Chairman of Swartland, explains: “A reputation is a powerful thing. Swartland has been in the business or windows, doors and joinery since 1951, and over this time, it has managed to build a trusted and solid reputation based on best-in-market quality products, excellent service and unwavering business integrity. The company’s good reputation has helped tremendously over the years – when the economy is bullish, it has helped us to expand and grow, and when the market is in a slump, it has helped us to retain our market share and even open up new markets.”

Just like Swartland, if a business has a good reputation, consumers may have a preference for the company, even if there are similar products or services on the market. It can also enables a company to differentiate its products in an otherwise competitive space, which can be the deciding factor on whether a customer decides to patronise one business over another.

Says Jurie: “Research shows, for example, that due to an increased demand for more energy-efficient building products, Swartland has been able to distinguish itself as a window and door manufacture that boasts some of the most energy efficient products and manufacturing methods in its class. As such, our loyal customers are happy to pay a little more for our products, as they know that not only are they getting beautifully crafted and high-end quality products, but that they are also signing up for cradle-to-grave sustainability and energy efficiency throughout the products’ lifecycle.”

Related: How To Advance Your Reputation Globally

Element of a reputation

Another member of the Swartland, executive team, James Hanekom, CEO of Swartland Properties, says that there are 10 main components that make up and that can be used to measure a company’s reputation – these include the following elements pertaining to the business in question:

  1. Business ethics
  2. Employees and the workplace
  3. Financial performance
  4. Leadership and innovation
  5. Management and future vision
  6. Social responsibility
  7. Customer focus and commitment
  8. Quality and value
  9. Reliability and service
  10. Emotional appeal

Building a good reputation

building-a-good-reputation

James notes that a business’s reputation is something that evolves over time, but it also has to be carefully nurtured and encouraged to grow. He says that there are a number of different ways to grow a healthy and strong reputation in order to improve your market position and profitability – these include:

  • Trust is key: In business, as in life, your word is your bond, says James: “The bottom line is that if you said you will do it, then you must follow through and keep your word – whether it is related to services, products or business dealings. For example, if you have made a claim that your products are eco-friendly, then you need to deliver on this and be able to back your claim up. Or if you have promised to pay your creditors on a certain date, then you need to follow through and ensure payment goes through timeously. Trust runs through the entire gambit of your business, and establishing trust will go a long way to helping you solidify and build credibility with your customers, business partners and your employees.” 
  • High-level responsiveness: Don’t leave people hanging, notes James: “Make sure that you and your staff all return calls and answer emails and queries as promptly as possible – this will communicate to your customers and business partners that they are important to you and your organisation.” 
  • Responsibility and resolution: Make sure that you take responsibility for anything that is your company’s fault and sort it out as quickly as you can, advises James: “Don’t ever lay the blame at the customer’s door – if there is something wrong with the product or the service they have received from you is anything but exceptional, then you need to acknowledge this and do whatever you can to rectify the problem. Remember that a distressed customer can become your most loyal ally if you make an effort to resolve their issues quickly and professionally. If left unresolved – they can become one of your worst enemies and do untold damage to your brand and reputation.” 

Related: Richard Branson on Building a Strong Reputation

  • Value and service: Acknowledging and rewarding customers for their loyalty and paying attention to their individual preferences can make a really big difference in how your customers perceive you, says James: “If you manage to handle this well – a customer will move away from regarding you as a mere organisation, and become more familiar and friendly towards your company’s brand.”
  • Take on technology: Make sure that you are at the top of your game when it comes to technology and innovation, as James says that this can be critical to being perceived as a competent and capable business: “Swartland’s revolutionary SpecNet for example, is a practical, easy-to-use web-based tool that supports professionals operating in the built environment by providing free downloadable ArchiCad objects, Revit families and product information for Swartland’s range of windows and doors – making specifying and accurate design a synch for architects, engineers and specifiers alike.” 
  • Communication and transparency: Your business’s reputation hinges on the way people perceive it, so make sure that all correspondence, whether it be letters, emails, voicemails or any other methods of communication are always professional, to the point and grammatically correct, explains James: “It is essential to use the correct spelling, syntax and grammar and to make sure that you leave the correct contact information at all times.”
  • Give back: As a business, it is vital to see yourself as a part of the greater community, which is why corporate social responsibility is an essential arm of any business’s reputation, says James: “Give back to the community wherever possible, because at the end of the day, the strength of your community and your country as a whole is the foundation of the strength of your business.”
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