Global Brands Should Look at SME’s for lesson in Brand Reputation

Why is it that small and independent customer facing businesses often understand the role and importance of brand reputation so much more than larger brands? These smaller brands seem to have a much clearer idea of how their brand is perceived than larger brands do. What is it that causes larger brands to behave this way? Is is corporate arrogance? A tradition of the small business?

Only last week, I discussed the emergence of ‘Google-Enabled Choices’ and the fact that just three negative reviews are sufficient to deter consumers from purchasing and this is a classic example of how the web can cause negative brand perception to spread like wildfire amongst consumers globally, and all whilst the brand goes on thinking its reputation is impeccable because its annual Corporate Responsibility report says so.

Reality Check. Your brand reputation is only as good as the word of your customers and so how the brand is perceived by all of your stakeholders and this is something that means more than corporate views on what they think their brand reputation is.

I thought it would be interesting to find out your views on this so please do participate in my poll.

Educating the consumer

This week has been National Consumer Week and on closer inspection saw that the focus this year has been about businesses knowing about their consumer’s rights. This struck a chord with us because we know only too well that when it comes to managing brand reputation, or more to the point, managing disgruntled customers, knowing where you stand is critical to managing the communications process and minimising brand damage.

The increasing use of the internet as a place to voice opinion means that more than ever, brands need to manage their customers needs and expectations in a way that leaves customers feeling satisfied and not inclined to chastise the brand online. Consumer rights, trading standards, sale of goods act etc, it’s all pretty standard practice in business but vitally important that brands really get to grips with what these actually mean and potential implications for the brand as well as complying with legislation. In addition to this, consumers are often misinformed about what their rights actually are or make assumptions about the remit of trading standards and this can often lead to entirely avoidable conflict between the brand and the consumer.

Consumers respect brands that are open and honest, and it is this honesty that breeds trust, loyalty and advocacy. The strongest brands will be those who take the time out to educate their customers on what their rights actually are, whether this is online, in print or via a telephone helpline. By providing this transparency and vulnerability, brands will instantly nurture feelings of trust from their customers, who will feel that the brand is genuinely going the extra mile to try and keep them informed.

When brands are devising their customer communications strategies, we typically advise them to look at their brand from the perspective of a customer, identify areas that they may question or perhaps could be misinformed about and find ways to educate customers. A brand that shows it has its customer’s interests at heart will gain the trust of their consumers, who will be more likely to stick by them in the event that something does go wrong, rather than resort to smearing the brand online.

Change happens...

 As we enter into September and leave the "silly season" behind, our attention has been drawn back to brands who may now be knuckling back down into their strategy and planning for next years campaigns. With this in mind it is probably the time to remind brand owners of the importance of up to date consumer insight and why it is so important to take the time to find out exactly what it is that people think about the brand in the current climate.

A lot has changed in the past 18 months and so any consumer data that hasn't been gathered since this time is probably not likely to help as much given the changes in the economy. Although there are signs of recovery reported, it is unlikely we will never go back to where we were before and consumers have different mindsets than they did before the recession.

Now it is true that some brands have weathered the storm pretty well and are even stronger than before, but equally, some brands that it may be thought would be around forever have crumbled and many smaller brands have fallen off the map completely. But probably the biggest shift has been that big brands are no longer necessarily King and many smaller brands are now able to pose quite serious competitive threats to brands which previously were in a completely different league, at least in terms of consumer perception.

Marketers need to remain aware of the environment that the brand is participating in before they can create an appropriate brand building strategy. We've seen a noticeable increase in the number of clients using our monthly Sentiment Reports, which help them to monitor what is being said about their brand on a month by month basis and in the current climate it is this kind of frequency that is needed to fuel a successful post-recession brand strategy.

This week sees the release of the latest Nationwide Consumer Confidence Index and brand owners should use this as an opportunity to take a good look at what customers think about their brand right now, because what they thought last year is frankly irrelevant. And if they find that their messages aren't hitting the right notes with them, they need to start finding opportunities to engage with their customers in ways that do.

Who’s King of the Breakfast Bowl?

This week is Kellogg’s National Breakfast Week, which will now doubt be reminding consumers of the health and dietary benefits of eating breakfast every morning. Cereal brands have probably one of the most difficult mix of consumer interests to satisfy.

A few months ago, one particular cereal brand was considering removing all of its cardboard packaging to become more environmentally friendly and help reduce their carbon footprint. Great you may say, but then with the upcoming salt reduction campaign from the Food Standards Agency, consumers are bound to expect these same brands to also stand up to the line and pledge to reduce the salt content in their cereals.

Cereal brands have the biggest challenge because their customer base includes both adults and children, both with completely different interests and desires from their breakfast cereal. It is a long known fact that children tend to be the influencers for the purchase of particular breakfast cereals, yet as the purchaser, the adults still need to be happy that it is reasonably healthy and suitable to give to their children. Along with this, you then have issues which are of interest to adult consumer buying for themselves, such as price, eco-friendliness and taste (with less regard for salt or sugar content).

Any consumer brand should be transparent in their messaging to their customers including cereal brands. No brand will be good at everything or get everything completely right and deep down, consumers get that. The secret is to show them what you are doing right whilst accepting areas that need improvement and detailing how you intend to address these issues in the future. Being open and honest about the brands strengths and weaknesses displays a vulnerability that consumers appreciate and respect and helps create trust in the brand.

Consumers are loyal to brands they trust, so work on the trust and the customers will follow.