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Why a Good Online Reputation is a Gem for Your Company

By: Louise Harris


How to Build Your Reputation from Day One

Having a good online reputation can help your company with higher trust, less risk, better talent, and more profit. Companies with a good reputation online tend to be treated better online – even given a second chance.

The thing about reputation is that it can’t be the same every time. Just like reputations can be sustained, they can also be repaired so that you can take the amazing benefits of having a positive and good online reputation.

It’s important and worth the time to keep it in good and reputational shape. There are several benefits on how to maintain your online reputation, but, in this article, we’ll only talk about the ones that matter the most. 

Why Does a Company Need Online Reputation Management?

The reason why online reputation management is important because it helps your company to build trust and make your company more transparent to your consumers and all the right places. By listening to your customers online and responding to their comments, you are showing people that you listen to the queries and responses. Even a little step such as replying to a comment on Facebook can help in improving your online reputation and build trust with your customers. 

It’ll also help you build a good review management strategy, as most people trust the opinions of others rather than paid ads. A study in 2018 reveals that 91% of people trust online reviews like personal recommendations.

A Good Online Reputation Leads to Higher Trust

Brands and companies with good online reputations are trusted more because people trust other people’s opinions and reviews. If some people appear to trust a brand or a company, others are more likely to follow them with the same sentiment. If you can’t get people to trust your brand or company, you’re going to face challenges and have a difficult time selling your products or service. According to recent research, 83% of people trust brand recommendations from their family and friends, and nearly 70% of people trust consumer opinions/reviews more than paid advertisements. And with these percentages, you can see how much a positive reputation is important for a company.

A Good Online Reputation Can Increase Profits

There’s no doubt now, that companies with good online reviews tend to attract more customers. Now it’s more important than ever for companies to have lots of new, positive, and relevant reviews online. If we talk about Yelp, every additional one-star rating causes a 9% increase in the business’s revenue, according to a Harvard Business School Working Paper. Which is a clear picture of how positive and good online reputation management can generate extra income for your company.

A Good Online Reputation Attract Better Employees

Reviews are equally important for attracting employees as they’re for attracting customers. Only 1 in 5 candidates would consider working for a company with a 1-star rating! People want to work for a good company that is reputable, trustworthy, has the same core values, and beliefs as them. And they trust the reviews of current and past employees. Along with the workplace reviews, your positive content online shows that your company has a good environment and favorable culture. Companies that have better online reputations tend to attract more and better talent. 

A Good Online Reputation Can Lower Your Reputation Risk

Companies with bad online reputations tend to have the worst reputations. This may be because of systemic problems or workplace problems within the company, but it also can be a version of the “broken window theory.” This theory states that a warehouse with broken windows attracts more vandals. Improving a bad reputation may sound like a terrible task, but certain strategies and steps can save a damaged reputation and help restore the reputation and lower the risk down the road. 

A Good Online Reputation Will Impacts Your Sales and Revenue

In today’s highly competitive business marketplace, it directly impacts a companies sales and revenue by how people perceive a brand. According to Sage Pub companies that have a good online reputation spend less on marketing and paid ads than other firms. 

The rise of social media and new marketing strategies means companies need to actively engage with their consumers and focus on building a strong connection with them which ultimately helps in building a good online reputation.

Maintaining a good reputation online isn’t just about generating positive reviews and dealing with negative reviews online. It’s about building a reputation that makes a brand synonymous with its core values and meets the primary needs of its target market. This is one of the main reasons why businesses need to build a good online reputation online and learn how to maintain it.


Companies that have a good online reputation and effective reputation management strategies can expect to reap the benefits of their efforts. These benefits include higher trust, less risk, better talent, and more profit.

Published: April 26, 2021

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louise harris

Louise Harris

Louise Harris is a co-founder of Christian Marketing Experts and a marketing specialist working with various brands online such as PSD to WordPress, Gospeletters, and many more. She is devoted to helping small businesses bridge success gaps by providing in-depth, actionable advice on digital marketing, SEO, and small business growth. Visit her book list here.

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