Reputation Winners and Losers
Prophet, a brand consultancy, released its recent reputation survey today. The survey was conducted among over 5,000 consumers in the U.S. Among the most important drivers of reputation rankings were:
- Is a company whose products and services make a difference in my life
- Is a company that inspires me
- Gives me peace of mind
- Is for people like me
Clearly, the above highlights that consumers are thinking of reputations in terms of emotionally-driven factors and ones that resonate with their personal lives. Not a surprise considering how difficult the past few years have been economically speaking. Companies need to think about communicating less in terms of functional performance and more in terms of what they stand for. We’ve noticed this shift ourselves and it continues to be more dramatic each year. It falls in line with the findings from BAV (Brand Asset Valuator) that I have mentioned on this blog before where they found that generosity and kindness have risen profoundly in terms of key reputation drivers among consumer populations. The world is going soft! Maybe that is all you can depend on these days.
Another finding is that consumers are twice as likely to purchase, pay a premium for and recommend products from companies with the best reputations versus those that are less liked. Reputation pays! They also report that companies with the best reputations “convert customers from considering a company’s products/services 90% of the time.” This conversion figure is lower at companies with less than stellar reputations — 60%.
Another result that confirms again that reputation and brand reputation are aligning at a greater speed than ever imagined is mentioned in their report: “Prophet’s reputation study found that reputation and brand have overlapping drivers that make both critical for creating impact throughout the purchase funnel. While a company’s brand often plays a crucial role in making customers aware of a company, and is important for driving long-term loyalty, reputation is critical for ultimately driving consideration and purchase.”
The survey looked at 150 reputations so take a look. Winners and losers for all.