ORM Approaches the Tipping Point

by Daniel Dessinger on July 22, 2009

Give credit where credit is due. Facebook reached 250 million users. Twitter is the fastest growing social media network. Nearly a million blog posts are published each day. We’re on the cusp of it now. Communication has really transitioned to a Web / Text based enterprise.

Steve Nash to announce the signing of his new NBA contract on Twitter. Oprah, Ellen, Ashton Kutcher, and ESPN all promote Twitter to the masses. CNN teams up with Facebook to provide live chat during major events. It’s happening right now. The majority is adjusting to instant spontaneous expression. And the ORM flood tide is about to roll in.

I’ve been awaiting this season since 2005, when I bought up a handful of domains related to online reputation management with the expectation of turning my Web marketing business into an exclusive reputation monitoring, management, and consulting service.

How Will We Recognize the Tipping Point?

A few things have to happen first. As you observe each step you’ll know we’re “that much” closer.

Phase 1: When the average person feels more comfortable sharing their opinions online than offline, you know we’ve reached critical mass. It’s only a matter of time.

Phase 2: Once people feel more comfortable searching out opinions online than asking around offline, the level of influence each online opinion holds trends up drastically.

Phase 3: When people spread opinions, rumors, and gossip found online without verifying accuracy, the iron is white hot.

Phase 4: Any and every possible comment will be shared, read, and spread about brands, products and services, and each company will either be prepared to address them as they are posted across the Web or they will be caught unaware and suffer the damage caused to their reputation, which inevitably leads to an erosion of consumer/investor confidence.

Phase 5: Online reputation monitoring, building, and repair services will have to ramp up their staffing to handle the volume of clients and mentions online.

Some would argue that we’ve already reached Phase 3. I see phases 1-3 still rising. But the tipping point is near. Most companies should already be engaged with ORM services to protect and expand their influence. But even the latecomers will hop on board soon enough.

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  • We are clearly reaching the tipping point for Online Reputation Management, but I believe that the industry is creating another bubble. Customer recommendations are proven to have greater influence on prospects over all other forms of advertising because they are perceived to be objective information based on real world experiences. Right now social media is driving online reputation management and I believe that it is enjoying a “honeymoon” period due to consumer’s trust of user feedback on ecommerce sites like ebay’s merchant ratings. But unlike ecommerce sites where authenticity can be managed via the shopping cart, it is impossible or impractical to authenticate the millions of blog post or the motivation of the blogger – is it self promoting, is it pay for post or is it just span to earn a Starbucks gift certificate? Unless authenticity of social media can be managed I believe that it will be relegated to entertainment and marketing applications but will fall short of an effective reputation management tool. People want authenticity not smoke and mirrors, that is precisely why they filter out adds when ever possible they are just irrelevant.
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