How times have changed – before it was minutes, now it is seconds. Despite companies having well developed crisis management plans to help defend their reputations and manage risk, social media and other online platforms can destroy reputations in the blink of an eye.
It is estimated that over one trillion photos were taken in 2015, and that by 2017 nearly 80% of all photos will be taken by mobile phones. Many organisations have found, to their detriment, that consumers are now transmitting images and videos in real time globally.
According to Nielsen’s latest research into global trust, the most credible advertising comes straight from the people we know and trust. More than eight-in-10 global respondents (83%) say they completely or somewhat trust the recommendations of friends and family however, two-thirds (66%) say they trust consumer opinions posted online – the third-most-trusted format. Owned (brand-managed) online channels are also among the most trusted advertising formats – branded websites are the second-most trusted format, with 70% of global respondents saying they completely or somewhat trust these sites. In addition, more than half of respondents (56%) trust emails they signed up for.
Good customer service and products used to be enough, and reputation was spread by word-of-mouth, the new online platform is enabling people to comment and publish what they think about organisations, it products and its employees, with far-reaching impacts on share price, brand values and employee morale.
What is said about your organisation has become an important reflection of your organisation’s values, customer service, and the quality of its offering. Initially, the leisure market was most affected by online reviews, but now more and more business sectors including manufacturing, services, contractors, and the like are now being impacted by reviews.
Nielsen’s Global Trust in Advertising study found that 70% of global consumers indicated they trust online reviews from strangers when making purchasing decisions.