Have you ever bought from a company that you don’t agree with how they do business? Probably not.
That’s because you, like most people, value a company based on their morals and how they do business. According to the Harvard Business Review, 64 percent of consumers reported shared values as the primary reason they do business with a company.
This goes to show how crucial corporate image is when it comes to doing business. Keep reading to discover why public perception means so much to your band.
1. Holds Employees to a Higher Standard
It comes from the top-down, starting with leadership and gradually working its way to employees. From there, it’s passed on to consumers. The importance of having a favorable public perception cannot be stressed enough.
It will require employees to be held to a higher standard than companies with a bad public image. This higher standard will set the tone for how employees should act and behave while on the clock and off. A better work ethic from employees can lead to improvements in things like:
- Employee retention
All of these areas of improvement have the potential to translate to financial success.
The corporate image of a company can also determine what kind of talent they are able to recruit. Skilled candidates are significantly more likely to choose to work for a company with a better brand image.
According to a recent study from Glassdoor, 40 percent of job candidates are more likely to apply to a company with a company brand they are familiar with. The study also noted that 60 percent of hiring managers cited brand awareness as a significant barrier to attracting candidates.
2. People Like to Fit in
Another important reason that a companies public perception is so important is because of the simple fact that people like to fit in. This means companies with a strong brand have a unique ability to sway consumers’ decision making.
Humans, in general, look for other humans for certain social cues on how to behave. According to recent research, people are influenced by their environment more than they have previously believed, especially when it comes to other individuals’ behavior.
You can see this type of behavior in everyday life. Take for example Apple, their brand is known for being innovative, sophisticated, and superior. Naturally, people who are looking to fit these descriptions will gravitate towards Apple products.
You can see this trend at all ages of life as well. As a school kid, when all of your friends get the newest pair of shoes, you start asking your parents to get them for you because you feel left out. The same thing happens when you go to college, everyone has a car, and you feel the need to get one as well.
Businesses are beginning to take advantage of these common behaviors, presenting a particular image to their followers that they want to be seen as. Companies are utilizing things like a corporate transportation group, to show the high standards they set as a company.
3. Puts You in a Position of Strength
Having a positive company image can give you a significant advantage over your competition.
When marketing professionals are trying to determine where they fit in a certain industry, they will likely conduct a SWOT analysis. A SWOT analysis consists of writing down your
The reason for writing these down is to determine what your company is doing well and what you should be working on. One of the biggest strengths a company can have in this category is a positive corporate image.
With a favorable company image, it puts your business in a position of strength when compared to your competition. Consumers are more likely to do business with a company that they believe is doing good.
According to research from the 2020 Zeno Strength of Purpose study, consumers who believe a company has a strong purpose are 4.1x more likely to trust them.
4. Increased Customer Loyalty
When it comes to business, customer loyalty is one of the most essential aspects of growth. Research from Bain & Company, a consulting firm, shows that companies that increase customer retention by 5 percent enjoy a 25 to 95 percent increase in profits.
Increasing profits is at the top of every company’s to-do list, and for such a little increase in customer retention, you can appreciate a significant increase in profits.
Customer loyalty is a hard thing to obtain and even harder to hold on to. One way of increasing customer loyalty is by building a strong brand image. The better the perception of the company, the easier time that the company will have in retaining customers.
Studies have shown that the cost of obtaining a new customer can be up to five times greater than the cost of retaining an existing one. Spending unnecessary amounts of money on marketing to new customers can eat into your bottom line and set you back in the long term.
5. Marketing Made Easier
The public perception of a brand will also determine relatively how effective marketing of products will be.
Companies that have a strong brand perception receive special treatment in terms of marketing with their products.
Think about when you visit a grocery store, the products that are displayed on premium eye-level shelves are typically consumer favorites. The reasoning behind this is because these are the products that sell and will, in turn, bring in more money for the grocery store.
This relationship benefits both the producer of the product and the grocery store. The producer benefits from its products selling and generating interest, and the grocery store also benefits from the sale.
Looking for More Information on Corporate Image?
In the world of business, the corporate image is everything. You can think of a companies image like how you view other individuals. You are more likely to go up to someone with a positive image, the same is true for business.
Companies with a bad public image are forced to spend more money trying to compensate for their public perception. It’s best to stay ahead of this and create a favorable public image from the start.
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