Top Execs Finally Realise the Importance of Online Reputation Management

The Internet allows online consumers to throw on their invisibility cloaks while providing them with an injection of self-assurance. This often results in consumers unshackling their judgements resulting in the ability to gather clouds and cause raging online storms concerning any company that may have stepped out of line; but are top business executives aware of this?

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The Social Web has become a ubiquitous, real-time communication and collaboration platform, eliciting conversations that your company are sure to be unaware of. People are expressing themselves through blogs, videos, forums, pictures, reviews and social networks in order to share experiences about your company, your products, your services and your brand. The accumulation of this public perception ultimately affects your brand equity, your decision making, your customer’s perceptions and finally what really matters – sales.
 

There was a 137% increase in Google search mentions for “customer complaint sites in 2008” compared with 2003.

So you’ve heard the theoretical discussion above before, and have no doubt heard of numerous incidences of companies receiving online assaults as well - but what do the top executives of the world think about this? I stumbled upon Risky Business - 15 Realities and 15 Rules for Managing Reputation Online (which was done in collaboration with the Economist Intelligence Unit , so you know it’s super credible) and the study confirmed that Online Reputation Management is of prime importance – something which the world’s top businesses are finally understanding. The paradigm has shifted – Online Reputation Management must be considered standard business procedure. Here are some of the stand out points that highlight how ORM is seen today:

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Background information: the study was the result of a worldwide online survey of 703 senior executives from 62 countries. 60% of companies in the sample generated more than $500 million in annual revenue – so they’re certainly credible sources.

Useful figures:

• 100% of CEO’s frequently think about their company’s reputation.
• 99% of executives surveyed believe the leading source for company information is the respective corporate website.
• 98% of the top executives use the Internet to evaluate company reputation.
• 87% of global executives admit to having erroneously sent or received at least one electronic message (private e-mail, text or Twitter).
• The greatest perceived cause of reputation damage among global executives is 1) negative media coverage (84%), 2) customer complaints in the media/on grievance sites (71%), and 3) negative word-of-mouth (53%).
• Global executives are five times more likely to trust traditional media appearing online as they are to trust strictly online media, 72% vs. 13% respectively.
• 67% of top executives regard their company’s reputation as vulnerable.
• 59% of global executives say their companies are now rigorous about Online Reputation Management and 58% expect to be more rigorous three years from now.
• Executives believe the best way to reduce the number of online assassins and protect reputations online is to 1) monitor employee satisfaction levels and respond to results from employee satisfaction surveys (46%), 2) examine comments made about their companies in the traditional media (42%) and 3) use information generated by search engines or social media monitoring tools (38%).
• Executives ranked employee criticism (41%) in a tie for first place with leaked confidential information as the greatest online risk to their own company’s reputation.
• Only 10% consider building relationships with influential bloggers is helpful in keeping one’s reputations secure.
• Most global executives think more often about their company’s reputation than their own – from the belief that company reputation is significantly more vulnerable to misinformation online than personal reputation.

It is clear that top executives recognise the threat that the Internet brings to reputation management. When online attacks occur, the switch from being a glowing example of corporate responsibility to becoming a symbol of decadent and immoral practices is immediate in today’s digital world; the time is now to start worrying about your company’s online reputation.