The impact of customer reviews on a company’s reputation
Various aspects influence a company’s reputation, including customer reviews online. Negative comments about a product or service can severely affect the organization’s image in the eyes of potential customers. However, if handled properly, the company can manage its reputation, even through negative feedback.
This article discusses what SERM is and how this tool can be used to manage a company’s reputation.
SERM: What is it and why is it needed?
SERM stands for Search Engine Reputation Management. In Russian, it translates to управление репутацией в поисковых системах (managing reputation in search engines).
SERM helps manage a brand’s reputation online, even in the face of negative reviews. It is known that 9 out of 10 users make purchasing decisions based on reviews.
It may seem that a business’s reputation is solely based on customer comments, but that is not the case. The ability to handle feedback correctly can significantly improve the organization’s online profile.
The main task is to train employees on how to deal with negative reviews. Customers should feel that their opinions matter when communicating with a company representative. This involves creating scripts and protocols to guide communication with users and thus manage the brand’s reputation.
Utilize PR promotion tools and internet reputation management tools; one such tool is РБК Компании. Fill out and maintain your profile, publish company news, and inform partners and customers about your business. Provide your contact information and details to show that you can be trusted.
What is the purpose of SERM?
- To improve the company’s reputation in front of potential customers:
SERM involves processing reviews of the company’s products or services but does not entail deleting negative comments. Proper feedback on negative experiences increases trust in the company. - To enhance the company’s image as an employer:
SERM helps uncover nuances in the company’s internal processes and manage them. Feedback from former employees can identify weak points in top management or the organization’s policies. - To identify competitors and combat defamation:
Handling negative comments about a product or service may lead to uncovering unfair competition. This information helps build protective mechanisms within the company and more effectively manage its online reputation.
SERM is equally beneficial for both marketers and managers.
How managers can use SERM
SERM is useful for top management as it allows them to shape and manage the company’s reputation.
- Monitoring customer and employee reviews:
Analyzing comments about the company’s performance helps identify strengths and weaknesses in business processes. - Processing negative comments:
Properly handling negative feedback enhances potential customers’ loyalty to the company. - Identifying the reasons for dissatisfaction and resolving issues:
Stabilizing business processes based on negative comments about the brand helps effectively manage its online reputation, creating a positive image. - Establishing an open dialogue strategy with customers:
Acknowledging mistakes and engaging openly with customers fosters effective reputation management for the company.
SERM as a marketing tool
SERM can be useful for marketers when managing the company’s reputation online.
- Active social media presence:
Frequent updates on the company’s social media strengthen its online presence, making it easier for consumers to access its products. - Engaging with the audience:
Openness and honesty with users create a positive image for the company and simplify reputation management. - Participation in industry events:
Presence at professional conferences and forums enhances brand recognition and helps manage its image online effectively. - Company mentions in rankings:
A brand’s appearance in rankings increases its visibility and potential consumer trust. - Launching customer loyalty programs:
Loyalty programs simplify the path for potential customers to the company’s products, creating a positive brand image in the eyes of consumers.
What happens if SERM is ignored?
An online review of a product can either motivate a user to purchase or deter them from doing so. Ignoring comments about a product or the company as a whole will damage the brand’s reputation, making it more challenging to manage. This can lead to a decline in revenue.
Negative feedback about the company’s operations can result in legal action. This happened to a Russian company that was sued due to negative reviews about its employer practices. This situation could have been avoided if the organization had integrated SERM into its processes.