Brand equity, intellectual capital and goodwill account for a significant portion of a company's market value, sometimes as much as 70% or 80%, according to Harvard Business Review. This means that an organization's reputation is crucial to its success.
Do you recognise your brand values in your customers' opinions? Are you aware of their needs? Are you happy with how your company is perceived online? Are your customers loyal to your products and services? Is your media strategy representative of your brand? Do you monitor your social channels?
As a brand owner in 2023, you need to have a clear idea of how people view your products, services, and company. Public perception and evaluation are directly related to a brand’s revenue and longevity, and a reputation crisis could cause catastrophe.
We know it's hard to do it all on your own, so if you're croatia whatsapp data not investing in protecting your brand to maintain and enhance your reputation, this is your sign to start.
Signs of a brand's downfall
By now, we can all think of the downfall of at least one brand. It's scary. One wrong move can lead to many negative consequences. It's important to be prepared, to be informed and to know how to manage a disaster. But first, let's learn from the two examples of how not to do things.
Brand reputation experts agree that the Balenciaga scandal is the biggest of 2022. However, this year has already started on a bad note for Morphe. The bankruptcy filing of the former makeup giant caught everyone by surprise, especially its employees, who were unaware of the store closures and their videos demanding answers on TikTok went viral.
These two companies may not have much in common, one being a fashion house and the other a makeup store, but there is a lot beneath the surface that these two different industries share when it comes to online scandals and social media meltdowns.
Two dangerous and useful ingredients to watch out for:
These two strategies work most of the time, but when it comes to brand reputation, these marketing tools can be as successful as they can be disastrous:
1. Influencer Marketing: Morphe was one of the pioneers of this marketing technique. The founders’ efforts to create meaningful relationships with online content creators fueled such success. The biggest names in the industry promoted Morphe products to their audiences. And it worked, for years, until those the brand collaborated with were “cancelled” by their followers, bringing the best-selling company to the ground.