Companies with a strong reputation can usually weather a crisis by demonstrating they are restoring their customers’ confidence. Through good messaging and actions, many companies can regain the reputation that they once had. Toyota is the most recent example of a rebuilt reputation in Canada. After slipping last year and continuing to slip as the year went on, they seem to have turned the corner and are heading back in the right direction.
So, if companies that manage their pre-crisis reputation well can see an improvement after something drops their score, what happens when a significant event improves their reputation? Is it a fleeting improvement, or something that sticks with the organization? A quick look back at companies that improved their reputation through Olympics sponsorship last year provides some answers.
In last year’s Marketing survey, we featured five companies who, through successful Olympics sponsorship, achieved a significant gain in their reputation score. McDonald’s improved from a score of 27 to a much-higher score of 43. One year after the Winter Games we now see the “afterglow” has gone out and most of those companies scoring closer to their pre-Olympics totals.
In every case, we see the scores flattening out and returning to historical averages as the spike of goodwill achieved during the Olympics disappears. Clearly, it is difficult to maintain an increase through a special event, even though it is good for a boost at the time.
When you look at how reputations are formed, it is easy to see how Olympic sponsors benefitted. Their advertising exposure was extensive, so we see an increase in awareness: Canadians would then feel closer to that organization. Also, in the post-Olympic fervour, there was an increased affinity to any brand associated with our historic medal haul on home soil. But reputation is more than just temporary increases in feel-good moments. True increases in reputation take time and must be carefully nurtured before a consistent growth can be found.
Walmart is an example of an organization that has been slowly nursing its reputation score higher and higher. In 2008, they had a reputation score of 26. That score improved to 28 (in 2009) and then to 37 in 2010. This year they have soared to 41, climbing 15 points in four years. They did not do this by any major sponsorship or by knocking anything out of the park. They were simply the best Walmart that they could be over that time. By staying consistent to their image, they have been able to slowly gain positive opinion among the significantly high percentage of Canadians who shop there but don’t often admit it. These results are showing us that it is becoming more acceptable to say you shop at Walmart. The more that people discuss it, the better the brand’s reputation fares.
Ultimately, organizations must work toward building relationships with consumers if they want to grow their reputation. Activities must be ongoing and centred around what seems to these customers as a genuine proposition. If Walmart were to offer high-end, expensive merchandise, they would suffer a reputation crisis. They would not be seen as genuine, and it is difficult to trust an organization that is not genuine. To build a relationship, brands must nurture several important attributes. From our research, we have found that organizations that have strong reputations and which we wish to do business with are organizations that demonstrate trust, transparency, a commitment to our satisfaction, and show mutuality. Mutuality is a measure where the communication flow between consumers and the business is deemed as two-way. In other words, the customers are listening and are also feeling that they are being heard. These days, social media is enabling this aspect of relationship development significantly.
Only through steady growth of these relationships will we see increasing reputation scores. Better to take it slow and steady rather than binge on reputation growth tactics. If you can’t maintain the positives you get from these major activities, you have to realize that you may come back to Earth sooner than expected.
