According to recent studies, today, about 80% of the value of a brand falls on its intangible assets. These assets are divided into: reputation, commitment to employees, identity, customer satisfaction and the propensity of people to recommend the company’s products or services. In this sense, reputation tops the list, which has led to the emergence, some years ago, of the concept of reputation economy. Here we tell you what you should know about it.
Origin of the concept of reputation economy
The term reputation economy was coined for the first time in 2011 in the framework of the XV International Conference on Corporate Reputation, Brand, Identity and Competitiveness, of the Reputation Institute, which was held in the city of New Orleans in the United States. This had to do especially with a context of great reputational crises in world-renowned companies. These led business leaders around the world to begin to understand that a bad reputation could trigger the demise of a company. At the same time, being understood as a management discipline, the concept of the reputation economy also began to consolidate after the international financial crisis of 2008. In which reference began to be made to the economy of intangibles.
Knowing this framework, it can be understood that, today, purchase decisions by customers, as well as investment or employment options, are necessarily linked to the trust, respect and admiration that a company or organization is capable to transmit. For this reason, it is considered that the management of intangibles, such as reputation, must be at the forefront of business models. Due to the value that this ends up having in the results and survival of a company.
What does a company need in a reputation economy context?
Taking into account the aforementioned aspects, in order to grow and succeed in a context dominated by the concept of the reputation economy, a company needs to generate different strategies that foster trust, respect and security. Both from clients and potential clients as well as from investors and workers. To this end, aspects such as good working conditions, transparency in management, data privacy, among other things, are highly relevant factors.
Among the keys that must be followed in a world increasingly marked by the reputation economy, meeting the expectations and wishes of customers is essential. This includes complying with users and followers of social networks and other digital platforms, in order to achieve the maximum possible satisfaction.
In an increasingly competitive framework in which users can choose between a large number of companies that are dedicated to the production and marketing of the same types of products or services, the coherence that a brand can manifest is essential for them. In this sense, a brand must be able to be socially responsible and environmentally responsible in all its internal processes and policies.
Monitor social platforms
With a monitoring of platforms and social networks through a social listening paradigm, you can be aware of the conversations that take place around the brand. This makes it possible to take actions that increase user satisfaction, correct problems or complaints in advance that could lead to a reputational crisis, incorporate new tools or processes that meet people’s needs, among other things.
Take care of internal reputation
Finally, the image that the workers themselves have regarding the brand, its processes and its operation is essential for a good reputation economy. Therefore, it is essential to keep workers happy and build trust in them.
At 202 Digital Reputation we are an agency specialized in digital and corporate reputation. We accompany all aspects of a company’s reputation from a 360° management. Contact us and find out much more about it.