Is your brand reputation increasing your brand equity?

Good or bad, all of us have a reputation. It’s not defined by strangers or the general public. Our reputation is defined by those who know us.

This is especially important for anyone who is marketing themselves.

The same is true for business brands. Every product, every service, every company or organization has a reputation. It too is defined by those who have experience with the brand.

There are those who love it. And there are those who hate it. Both viewpoints contribute to defining the reputation.

As a side note, I believe strong brands must have some individuals who hate it (e.g. Microsoft and Apple, Coke and Pepsi). As a marketer, if you’re not taking a stand to make someone unhappy, then you don’t have a significant brand.

The real question is, “Is your brand reputation increasing or decreasing your brand equity?”

In other words, is your brand bank account growing or being depleted? For marketers and business leaders, monitoring your brand’s reputation is essential.

Reputation as a Value

As a differentiating value, Reputation means held in high esteem and honor; or notoriety for some particular characteristic.

Most marketers understand the second part. The ‘particular characteristic’ that creates notoriety is what marketers define as their unique value proposition. It’s what creates competitive advantage.

It’s the first part that can stump marketers. The misconception is that to be held in high esteem means the brand must be “shiny clean”.  This leads to the risk of taking no risk, of being safe.

Yet, successful marketers know that to earn high esteem and honor one must take risks. Leaders are bold.

The reason Apple has been highlighted and honored so much over the past few years is because the organization took risks – and won. Yet, Microsoft and BlackBerry have also taken risks. But they haven’t won (again) yet. Their loyal fan base is still waiting…..

Reputation can appear to be fickle. The esteem and honor can come and go like the wind, depending if your brand is winning or losing, right now.

In other words, managing the value of your brand’s reputation is an ongoing process.

Where is Your Reputation?

When it comes to reputation, business leaders and marketers are trying to do one of 3 things:

1)    Build a reputation. Starting from scratch is tough. Whether the owners of a start-up company realize it or not, their reputation is formed rather quickly. It happens as customers experience the products and services, encounter the various parties involved in the distribution channel, and interact with employees. For start-ups, one “bad apple” can spoil the whole reputation pie. But achieving enough consecutive wins can lead to a brand to go from being virtually unknown to being a billion dollar business – like Pinterest.

2)    Change the reputation.  IBM used to be known as a company that made computer hardware. They had a reputation for building large, expensive computer systems. In the 1990s, Lou Gerstner, IBM’s CEO at the time, managed to change IBM’s reputation to services. This was a huge undertaking that, while risky, paid off in a big way. Today, selling computer hardware is only a part of their business and the IBM brand is now synonymous with services. More importantly, IBM brand equity was not only restored, but increased significantly.

3)    Rebuild a reputation. Hollywood superstars, rock stars, and other egocentric brands are prone to failure when the human being(s) behind the brand mess up. Some do this in a big way by crossing the line with their fans. For example, in 2003 the Dixie Chicks publicly criticized President Bush’s wartime policy that really offended their fan base. They quickly found themselves banned from country radio stations, their top-10 single disappeared in days from the top of the charts, and a major marketing sponsor ended their contract. Since then, the Dixie Chicks have been trying to rebuild their reputation, but their brand equity has been significantly depleted. Even after taking a hiatus for several years, the band has struggled to leave the political controversy behind.

When it comes to the value of reputation, two things are certain: there is no simple formula for creating a strong reputation; and even after building a positive reputation it can be lost overnight. The best you can do is continually monitor and measure it, and be willing to take some risks. You never know when your brand reputation will suddenly positively impact your brand equity.

What one thing can you do today to help improve the reputation of your brand?

What are you doing or saying that has the potential to degrade or ruin your reputation?

Today’s value was selected from the “Fairness-Respect” category, based on the e-book Developing Your Differentiating Values.