ReputationDefender Blog recently came across this article at SMEweb.com that underscores the power of reputation in the business world. The piece states that customers will pay more money to businesses and brands that they think well of, improving profitability for firms that are well regarded by the public.

Well over half of consumers will pay a premium to the company they believe has the best reputation, even if they can buy a product or service cheaper elsewhere.

Excellent customer service was cited by almost half of all respondents (48 per cent) in a new CBI survey as the characteristic that most helps a firm build its reputation. Another third (36 per cent) said that products and services always living up to expectations mattered most. Seven per cent said a good reputation was down to being a good employer while four per cent attributed it to brand appeal.

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Among the 58 per cent of consumers willing to pay more to their most highly regarded company, 43 per cent would pay up to five per cent over and above a cheaper price, almost a third (29 per cent) are happy to pay six to ten per cent more, while a one in six (16 per cent) would pay more than a ten per cent premium.

Richard Lambert, the CBI’s director-general, said, “What comes through in our survey is that great reputations rest or fall on delivery. Whether the promise is of quality, fun, value or luxury, the 21st century customer is savvy enough to sniff out and avoid the shoddy or disappointing. Environmental credentials and social responsibility are also becoming increasingly more important to consumers’ purchasing decisions.”

Managing how you are perceived online is especially important in the digital age. Companies looking to improve their bottom line and word of mouth branding should utilize Online Reputation Management to optimize their online presence. ReputationDefender remains the leader in the Online Reputation Management field and our reputation specialists are happy to provide corporations Business Insurance for the Web ^TM.

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