A business’s reputation is a living, breathing entity, constantly shaped by the perceptions of customers, stakeholders, and the global online audience. While this presents incredible opportunities for connection and growth, it also exposes brands to multiple vulnerabilities. From falsified reviews wielded like weapons to the silent threat of data breaches, the landscape of potential threats to brands is both diverse and dynamic.
While specific saboteurs may differ depending on industry, size, and audience, the danger is universal. Let’s dive into six of the top threats to a brand reputation. We’ll also uncover strategies to deal with each one – ensuring you and your team can protect your business’s reputation.
1. Disinformation
While the ‘fake news’ frenzy of 2016 may have faded, fabricated news stories or press can still have severe impacts on brands and organizations. A single wayward piece of content, reported as truth, can turn your business into the antagonist in a completely unwarranted brand narrative. In fact, businesses with just one negative article in search results risk losing up to 22% of prospective customers.
Peloton, the fitness and exercise brand, is one example of a brand that suffered from disinformation. In January 2023, an episode of the TV show “And Just Like That…” featured a major character dying of a heart attack after using a Peloton bike. While fictional, the scene sparked concerns about the safety of Peloton products and worryingly coincided with a stock price dip, despite company statements clarifying the unrealistic portrayal.
The lesson? Even if claims are demonstrably false – and easily proven fictional – the initial damage can be concerning.
Solutions
- Invest in targeted, real-time media monitoring tools, like Buzzsumo or Brandwatch. Features like social media listening, sentiment analysis, and trend identification can track misinformation about your brand and industry.
- Partner with fact-checking organizations specializing in your field or relevant misinformation themes to proactively debunk false claims and amplify their authority.
- Go beyond debunking by promoting credible sources, fostering open communication with stakeholders, and educating employees on identifying and combating misinformation.
- Develop proactive relationships with relevant media outlets and journalists, establishing clear communication channels to ensure your brand’s authentic voice is heard during controversial situations.
- Focus on building trust through transparent internal practices and clear, consistent communication to strengthen your brand’s resilience against misinformation.
- Partner with reputable fact-checking organizations, like Snopes or PolitiFact, and leverage their authority to counter false narratives.
2. The Dark Side of Viral Social Media
Social media has been instrumental for brand exposure and discovery. On the other hand, in the era of instant digital justice, one small social media misstep can snowball into a full-blown crisis.
One such incident? A viral Chipotle video from 2022, which showcased a “hack” to get a significantly cheaper taco by ordering a single taco with most of the free toppings and a tortilla on the side. While seemingly harmless, the hack triggered a multi-faceted controversy for Chipotle – including loss of perceived value resulting in dissatisfaction and potential brand erosion, operational strain at the employee and customer support level, and concerns about food waste.
Solutions
The Chipotle taco hack controversy highlights several important lessons for brands navigating social media:
- Be aware of potential loopholes. Viral content can expose vulnerabilities in pricing and operations. Proactive analysis and contingency plans are crucial.
- Communicate value clearly. Ensure customers understand the benefits and rationale behind pricing structures and brand positioning.
- Respond swiftly and transparently. Addressing concerns publicly and highlighting brand values can help mitigate negative impact.
Other tactics include:
- Proactively building a strong online community of loyal customers and brand advocates who can rally to your defense when needed.
- Implementing robust social listening tools like Sprout Social or Hootsuite to track conversations and address grievances promptly.
- Having a pre-established crisis communication plan outlining clear lines of authority and communication protocols for your social media team.
3. Fake Review Campaigns
Fake reviews are especially harmful in a world where 9 in 10 buyers have been influenced after reading online reviews. This often involves competitors or malicious parties posting a large number of fake reviews that appear to be written by independent customers, but are actually created and controlled by a third-party hired for the purpose, or some other organized campaign with underhanded intentions. These falsified negative reviews will often steer potential customers away and damage a business’s reputation.
While clear, confirmed cases of smear campaigns driven by fake reviews are, understandably, difficult to find publicly, businesses continue to report situations like these on platforms such as Google and Reddit. As such, any brand, large or small, must remain diligent to these fake reviews. You should look out for:
- An unusually high volume of reviews within a short timeframe
- Reviews that use similar language or phrasing
- Reviews that lack specific details or personal experiences
- Reviews that focus on attacking instead of discussing the product or service itself
Solutions
When faced with fake reviews, it’s important to move quickly. Flag suspicious feedback on platform(s) where they were posted and alert the respective customer support and/or moderation team(s). Gather any evidence you have to prove that these reviews were not written by verified customers. Depending on how widespread the situation is, you may want to put out a statement or get a PR firm involved.
In the long run, however, the best offense against fake reviews is an ironclad defense. Here’s what we recommend:
- Encourage more genuine, positive reviews by reaching out to verified customers using review requests via trusted, third-party platforms like Google or Jabio.
- Implement review filtering and alert tools to quickly identify and report suspicious activity
- Respond to both positive and negative reviews proactively, demonstrating transparency and a commitment to customer satisfaction.
- Leverage third-party review verification services, often offered by reputation management platforms like Jabio, to add an extra layer of trust.
- Monitor industry publications and online forums for any red flags or rumors about your brand.
- Focus on delivering unparalleled customer experiences that make your brand the clear choice over any competitor, ensuring that even in the face of malicious attacks, your loyal customer base remains strong.
4. Data Breaches
A data breach isn’t just a legal headache – it can be highly detrimental for a business’s reputation (and bottom line). In 2020, a Marriott data breach exposed the personal information of 5.2 million guests, including names, passport numbers, email addresses, and payment details. This incident resulted in lawsuits, massive regulatory fines, lowered financial projections for a full year, and a decline in customer trust and brand loyalty.
Solutions
- Invest in robust cybersecurity measures like firewalls, data encryption, and intrusion detection systems.
- Conduct regular penetration testing to identify and patch vulnerabilities in your IT infrastructure.
- Prioritize data security awareness training for all employees and strictly enforce access controls and data storage policies.
- Be transparent and proactive in communication during and after any data breach, demonstrating your commitment to customer security and outlining the steps you’re taking to prevent future incidents.
5. Influencer Risk
There are myriad reasons and benefits for brands to collaborate with influencers. But what happens when the influencer you partnered with posts offensive content or gets embroiled in a scandal? Their image becomes your burden, jeopardizing your brand reputation.
The highly publicized case of makeup brand Morphe and social media figure James Charles in 2021 is one notable example. Following controversy surrounding the influencer’s inappropriate online behavior, customer sentiment shifted negatively, impacting sales and prompting Morphe to publicly distance themselves and implement damage control measures.
Solutions
Businesses must address such incidents swiftly and resolutely, releasing statements to address public concern and severing ties when necessary to mitigate further risk.
Protecting a business reputation against these types of scandals involves thoroughly vetting potential influencers before entering partnerships:
- Look beyond follower count and engagement metrics – prioritize alignment with your brand values, ethics, and target audience.
- Conduct background checks and research their past content to identify any potential risks.
- Clearly define contractual obligations and termination clauses in your partnership agreements, outlining expectations and consequences for inappropriate behavior.
- Consider incorporating “morality clauses” to protect your brand in case of unforeseen controversies.
6. Inadequate Communication
Sometimes, the biggest threat to your reputation isn’t an active attack, but poor communication in the face of negative or even mildly questionable publicity. Minimizing public concern, failing to address inquiries, or even going radio silent when the media spotlight shines brightest can all harm a brand image.
In March 2020, Lululemon, a popular athletic apparel brand, faced widespread criticism over reports that some of its leggings were “see-through” when worn during workouts. Lululemon initially downplayed customer concerns, attributing the transparency to the lightweight nature of the fabric. This response came across as dismissive and out of touch, and the company’s official statement lacked urgency and did not address the issue head-on, causing further frustration and anger among customers.
Solutions
- Develop a comprehensive crisis communication plan and train your team on effective communication strategies.
- Prepare for various scenarios, such as social media backlashes, product recalls, data breaches, and other situations mentioned earlier in this article.
- Ensure timely, transparent, and empathetic responses, acknowledging concerns and outlining the steps you’re taking to address the situation.
Remember, silence rarely buys time – rather, it erodes trust and fuels speculation.
Manage Your Reputational Risk
Building brand resilience requires awareness and proactive action. While unexpected storms may arise, having the right tools and strategies in place can help navigate challenges and mitigate reputational damage.
At Jabio, we understand the multi-layered challenges brands face today. Some of our brand-defending features include advanced AI algorithms and human expertise that help identify and remove fake reviews, and real-time monitoring/alert features to keep you informed and equipped to address emerging threats – before they become full-blown problems. We offer comprehensive reputation management solutions tailored to the specific needs of businesses, helping you build and maintain a positive online presence and foster enduring trust with your customers.
Remember, a strong brand reputation is your most valuable asset in the digital age. By building resilience and investing in the right tools, you can navigate brand reputation threats with confidence and protect your bottom line. Book your free consultation today.
