The value of brand reputation in business
Brand reputation is an essential and crucial part of any business which sells goods or services. Without a good reputation, a business may be unable to sell its goods or services to enough clients and customers to remain profitable, and thereby being at risk of insolvency or bankruptcy, depending on the nature of the business itself.
The digital age has brought with it a whole array of challenges for businesses from a reputational viewpoint. It is now much easier for prospective purchasers to access information of a particular business or its goods and services based upon previous experiences of others, and likewise, it is very easy for dissatisfied customers to publish negative statements which about a particular business or its goods and services.
Google reviews are widely used to inform a prospective purchaser’s decisions, and in particular, a need to maintain a rating above 4.4 is considered by practice by Google and businesses alike. Accordingly, even a single, negative Google review or any other negative statement can have significant impact of brand reputation.
For this reason, it is of paramount importance for any business to have, at the forefront of its mind, the continued maintenance of a good brand reputation, both from an online perspective, and within the community more generally.
Common defamation risks for businesses
Businesses and their brand reputations can be damaged from the publication of defamatory statements (defamation), false statements about its goods or services (injurious falsehood), or misleading or deceptive statements (misleading and deceptive conduct claims). Common ways and platforms where this can occur include:
- Dedicated business review websites, such as Google reviews, Yelp, the Yellow Pages, Facebook or other business rating platforms;
- Social media platforms, such as Instagram posts about a particular business by a known influencer, Facebook, TikTok or other social media platforms;
- Competitor’s statements, such as where they publish, on their website, a comparison between the goods and services of your business and theirs, that paints or portrays your businesses’ goods or services as inferior (for whatever reason), and that theirs is superior;
- Media reporting, usually in the form of investigative journalism, which investigates and published a report or other journalistic investigative piece, about a particular business or its goods or services.
What can a business do to reduce exposure to brand reputation damage?
If your business or its goods and services has been defamed online, it is important that you immediately obtain appropriate and measured advice. Doing so helps to limit the impact the statements could potentially have on your business, as well as restore and even in the odd occasion, improve brand reputation.
If the damage to your brands reputation is substantial, further considerations can be given to taking more formal legal action, including concerns notice or cease and desist letters, and potentially legal proceedings to recover damages that your business has suffered as a consequence of the publications in question.
Managing risk: practical strategies.
A business should also have in place an online-reputation risk management policy or system in place, this can include:
- Proactive reputation management:
- Monitoring online reputation and reviews regularly;
- Responding to both positive and negative feedback appropriately.
- Designated social media manager:
- Designate a person who has the role of collating information, and responding appropriately to all statements which may have brand risk involved.
- Legal advice:
- Obtain appropriate legal advice if the situation requires a more delicate, measured and risk-mitigation focused response.
Contact us today to see how we can help.
Phone: (03) 7020 6563
Email: enquiries@allenlawyers.com.au
Website: www.allenlawyers.com.au
Disclaimer: This article is general in nature and does not constitute legal advice. Please contact Allen Law for advice tailored to your particular situation.
