How to better manage your brand’s reputation in the digital age

It was a saving story about how not to manage a reputation. Skin care brand Sunday Riley was forced to settle with the Federal Trade Commission after its management ordered employees to post fake reviews to the influential website Sephora and resent negative reviews being removed. Review manipulation is: a growing phenomenon. In 2023 Amazon sued 44 bad actors in Europe, and this yr won a civil case in Milan against a review broker that attempted to provide five-star rankings for an Italian Amazon store. At a time when consumer trust is dangerously low, manipulating online rankings can destroy public trust in a brand.

In over 30 years of working in the hospitality industry, perhaps a pioneer in the field of online reviews, I have seen many scenarios of each good and bad reputation audits. As social influence and social proof amplify the traditional influence of word-of-mouth and media, negative news and negative opinions can get uncontrolled – and quickly. However, with so many booking platforms and social channels, it’s almost unimaginable to manually tag individual reviews. Businesses need a more positive, ethical and proactive approach to raising standards and solving social problems.

Strive for authenticity

For better or worse, the “wisdom of the crowd” influences where people spend their money. After the Edelman Trust Barometer announced that 2022 could be a “cycle of distrust” among consumers, the situation barely improved last yr as Overall, economic optimism has collapsed. Online reviews are increasingly filling this trust gap, with Tripadvisor finding that they are the most vital factor influencing purchasing decisions for 66% of U.S. consumers.

For businesses like hotels, the flip side is that one negative review can start a chain of complaints that reduce recent bookings, customer loyalty and revenue; and increase operating costs. Consumer trust is not blind either. Tripadvisor found that 49% of consumers worldwide believed that brands manipulated reviewswhile a Boston University study found that people were more likely to trust four-star reviews because they were perceived as more thoughtful and thorough. A separate study found that shopping peaks in the 4.0-4.7 rating range and then decreased because it approached 5.0.

These findings all relate to perceptions of brand name authenticity, and in the sometimes fickle world of online reviews, this will be the most precious currency of all.

Become your own influencer

Over the past few years, we have seen influential people reach huge audiences when they review almost every thing – including hotels. Cleanliness problems lead to live-streamed disputes with staff, making any real or imagined infractions painfully public. Virality on apps like Instagram, X (formerly Twitter), and TikTok amplify their disproportionate power.

While Paris Fashion WeekInfluencers let the world know that local businesses, especially hotels, were infested with bedbugs. While the pest problem may have been brewing long before the event, it wasn’t until influencers posted about the problem that it gained publicity. For retailers and brands, high-volume events like Black Friday, Cyber ​​Monday and Amazon Prime Day represent each risk and opportunity. If their web sites, supply chains and customer support are not prepared, even a few hours of downtime can do serious damage to their reputation.

The cost of negative promoting is staggering. The peloton saw it almost $1.5 billion lost its value after backlash over an ill-advised Christmas advert that went viral. The margin between success and failure is slim, and according to internal research shown to me by a leading reputation management company in Europe, hotels can expect a 20% drop in revenue if their online rating on Booking.com drops from 7.0 to 6 .9 . The answer is to actively monitor customer feedback and take immediate steps to address negative sentiment.

How to better manage your online reputation

Although firms are extremely sensitive to negative online reviews, the opposite is true for positive online reviews, which lead to improved reputation. This is confirmed by the “Very good 8+” criterion. one of the most continuously used search filters on Booking.com. To increase the likelihood of positive reviews, use the following 4 strategies:

1. Implement service recovery: Asking for feedback across multiple touchpoints may also help firms discover recurring issues. In one internal study conducted by a luxury hotel brand, customer satisfaction increased by 13.8% when customers were asked to complete surveys each during and after their stay.

2. Increase your reviews: Invest in review generation programs that make it easier for customers to leave rankings and reviews immediately after an interaction or purchase.

3. Create targeted team responses: Segment feedback data and be sure that the right teams get actionable information that matches their roles and responsibilities.

4. Stay away from review manipulation: The short-term gains in revenue and visibility could seem huge, but the risks are too high. Even if your competitors are involved in review manipulation, it’s never price the risk.

5. Adopt data breach response strategies: Because retail and hospitality are so reliant on technology, a data breach response plan is essential. It should provide transparent communication with consumers about the breach and planned steps to treatment it.

From investment to effect

British hotel management company RBH uses a third-party solution that collects and analyzes 1000’s of reviews and post-stay surveys to discover weak points and review trends. With a wealth of knowledge at their disposal, the group found that just a one-point increase in the Global Review Index (GRI) rating could lead on to revenue increase of £3 million ($3.8 million) in over 45 hotels.

Reputation management software helps brands understand what issues need to be addressed based on sentiment evaluation to reduce negative reviews over time as this space evolves. The review market share of Google, Yelp, Booking.com and Tripadvisor has modified significantly over the last five years — and if Instagram added reviews to its functionality, the situation would change again overnight. Companies dependent on public rankings cannot afford to stand still. A proactive approach using the latest data tools can protect reputations as consumers proceed to vote with their rankings.