So, the MD has come for a spring catchup and being the inquisitive type, he’s asked you what single thing would improve the company’s marketing effectiveness over the next 12 months?
Assuming that he’s serious, and it’s not just the cumulative sugar rush from all that Easter chocolate, what should you say?
Well, at the risk of sounding self-serving, I’d like to suggest a focus on reputation management.
Okay, I admit that I’m biased, but I’m in good company. Bill Gates once said that if he had one dollar to spend on marketing, he’d spend it on PR. And let’s face it, he’s not exactly strapped for cash.
Charles Formbrun, the reputation guru and author of Reputation: Realising Value from the Corporate Image, conducted extensive research into the value of a favourable reputation and found that companies who are well regarded command premium prices, attract top recruits, have more loyal staff and customers, face fewer risks of crisis, and are given the benefit of the doubt when things go wrong. In short, the sun does truly shine out of their back-office. But how did they get to be so popular in the first place?
What’s interesting about companies with a good reputation is the incredible energy and commitment they show in developing, managing and enhancing their reputations at every turn.
They seem to have instinctively grasped the fact that today, it is not just a company’s shareholders who demand attention, but it is stakeholders as well. The concept of stakeholders includes customers, employees, concerned citizens and other groups who have a legitimate interest in a company’s behaviour.
A new approach to reputation management
In the past decade, we have seen the emergence of what some sociologists are calling the ‘active stakeholder’ and this has precipitated a need for a new approach to reputation management. The shift in attitudes for example; the steady increases in environmental concern and willingness to act provides legitimacy for pressure groups, and woe betide those that get it wrong.
As Ralph Nader, the consumer rights champion, said, We have been aided by those two modern weapons of mass communication; the Internet and email. Why complain to a company, when with a few clicks of the mouse you can tell half the planet?
According to the PWC Millennium Poll on Corporate Social Responsibility, two in three citizens want companies to go beyond their historical role of making a profit, paying taxes, employing people and obeying laws; they want companies to contribute to broader societal goals as well. Clearly it’s not going to be possible or even prudent to turn your business into a charity, but businesses must match their virtues with society’s values if they are to succeed.
So companies must learn to address the concerns of a much wider group of people than ever before, and learn to look beyond the bottom line. The good news is that, perversely, focusing on more than just money seems to have the effect of creating more shareholder value.
Guiding principles
So, at the risk of sounding patronising, here are my five principles for reputation enhancing communication:
1. Be Open & Accessible
Welcome enquiries, give access to senior people and be transparent. The single biggest mistake companies make in relation to the media and other stakeholders is to develop the bunker mentality. Afterall, if you choose to stay in the shadows, don’t be surprised if people think you’ve got something to hide.
2. Be Entertaining
B2B marketing is no different from any other form of communication, if what you’re saying doesn’t captivate your audience, it’s not effective. Make them laugh, tell them a story, give them something to remember you by you’ll be amazed how, all of sudden, people want to hear more and start to mention your business more often.
3. Be Passionate
Your business excites you, and you’ve got a stake in it, so don’t be shy, tell everyone how you feel. Great communicators are full of passion, and as a result, we take them into our hearts and trust them implicitly.
4. Be Human
If you’re a PLC, you can just about get away with sounding like a robot when you announce your results, but even then, the best companies tend to communicate their financial fortunes with verve and passion. Bottom line? Sound like a person, not a balance sheet.
5. Be Consistent
Almost everything you say will be weighed up and considered by someone, so don’t fall into the trap of saying one thing and doing another. That’s how reputation works. Think about people you know.