Half-assed strategies get you nowhere. This shouldn’t be a revelation, but it might be to a few of you. I don’t usually use crass language in my posts, but this subject warrants alarming verbage.
I had an international client whose brand name you would all recognize, but will remain anonymous here. This client was not willing to spend much money on web marketing due to the particular standards, vision, and business style of their leadership. When profits were down, so went the marketing budget. In other words, they were cheap.
This company wanted to monitor its reputation for potential crises, so I performed a one-off reputation analysis. In early 2008, I delivered an extensive report to the company, detailing the issues, potential issues, and misprints that needed to be addressed. The company thanked me and proceeded to do absolutely NOTHING. They decided that the time, effort, and money required to address the public’s perception of their brand was too costly considering the nation’s economy and some losses already incurred during the year.
Before 2008 ended, this major company declared bankruptcy. Yes, bankruptcy. Granted, the execution of my proposed strategy would have cost them tens of thousands of dollars. It takes some time, effort, and money to rebuild what has been damaged. Client X opted out of the expense. They have since lost billions. Makes you wonder why they balked, eh?
Now, as powerful as it would be for me to use this company as example of what can happen as the result of a bad reputation left unchecked, I must admit that there were multiple factors involved, including the economy and the rising cost to do business, which cut deeply into profits. Add to that dilemma the inability to get credit due to the recession and you get the perfect storm.
Consumer confidence was at an all-time low. The lack of reputation management allowed confidence to erode and when additional shares were offered up to the public, not enough were sold to keep the company afloat. One way or another, your corporate reputation will make or break you. It may not boost your profits to an all-time high, but it could keep you afloat in a recession.
Since September, I’ve heard more than once that indirect methods of ROI are first to go when the economy takes a dive. The board of directors wants to see results, and in times of crisis, narrowmindedness leads to inexcusable vulnerabilities. My ex-client COULD have salvaged something, had their reputation been intact.
Let this be a lesson to all of you who are looking for places to cut corners and free up budget. Your reputation is NOT an area you can afford to sacrifice. Image, reputation, and consumer confidence are what keep commerce alive during rocky times. Are YOU doing what is necessary to guard your brand’s reputation?
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