4 aspects that can trigger a reputational crisis

By: Ruben Gálvez

Currently, a company's image is its most important asset. It impacts the trust that users may have and, therefore, the sales the company can achieve. In a context of growing competition, brand image and digital reputation are key. They have the power to spark trust and interest in both customers and potential customers, either by building loyalty or attracting them. This is why one of the most important tasks for a company today is to avoid those aspects that could trigger a reputational crisis.

Reputational risk and the factors that can trigger a reputational crisis

Reputational risk

As mentioned earlier, we must refer to the concept of reputational risk. We identify reputational risk as the one that arises from a negative perception of a company’s image. This perception can come from customers, suppliers, partners, shareholders, and even employees. Reputational risk refers to internal and external factors that may promote the occurrence of a reputational crisis, and it is therefore important to recognize and address them.

Reputational risk is measurable

Discover in the following link how reputational crisis risk is measured.

Poor response to claims

In many famous cases of reputational crises, they were triggered by a company’s failure to adequately respond to customer claims. It’s important to keep in mind that we are in an environment where negative comments or user experiences have a wide viral potential, reaching a large number of people in a very short time.

That is why both a lack of response and an inadequate response to customer claims can lead to customers taking their experience to social media. These, in turn, can rapidly spread across various platforms. Many cases of this nature have led to a reputational crisis.

Information leaks

The security measures that companies take regarding their information and that of their customers, as well as everything related to data protection, are key in the current context to prevent a reputational crisis. Therefore, information related to customers and also internal company information must necessarily be protected by taking the appropriate information security measures to avoid any leaks.

Fake or negative reviews

One of the major challenges companies face today, which can trigger a reputational crisis, is fake reviews. At a time when users increasingly rely on reviews and comments from other buyers to make decisions about a brand or product, and when they are more likely to abandon a brand upon encountering negative comments, the appearance of fake or negative reviews is one of the main factors that can trigger a reputational crisis.

Poor product or service quality

Companies have always needed to guarantee the good quality of their products to attract customers and build loyalty. However, along with what was mentioned earlier, quality today can lead customers to leave negative reviews and comments on different platforms. That is why, to satisfy customers and avoid triggering a reputational crisis, maintaining good product quality is fundamental.

Moreover, we must include the quality of service here. Users are increasingly demanding and expect to receive good, respectful, attentive service, with a genuine interest in addressing their inquiries and needs. Therefore, to avoid something that may trigger a reputational crisis, it is important to ensure the best service before, during, and after the purchase.

In 202 Digital Reputation, we are specialists in digital reputation, offering a 360° management of it. We handle risk management to prevent a reputational crisis and manage it, as well as recover trust if it occurs.