"It takes 20 years to build a reputation and five minutes to ruin it. If you'll think about that, you'll do things differently."
Or will you? These oft-quoted words fromWarren Buffett are a favorite among PR professionals who like to tout their attention to reputation management. But in today's
unpredictable business climate, simple reputation boosters aren't enough any more (and we're not sure they ever were). Now, steps must be taken not just to improve and maintain
good corporate reputations, but to prove definitively that progress is made, that strength is indisputable, that value is apparent. Bottom-line business results depend on it, as
does communications credibility among constituents and C-suite executives. The magic ingredient, of course, is measurement.
Measuring brand and reputation was a subject of great importance at the Institute for Public Relation's Summit on Measurement, held in Hanover, New Hampshire last month, as
well as the October 17 PR News Webinar "Advanced PR Measurement Workshop: How To Effectively Measure Your Reputation and Brand."
Among the executive-level presentations and discussions were many that addressed the increased measurability of intangible drivers such as brand and reputation. And it was all
good news - most agree now that reputation can in fact be measured, both in its own right and in terms of repositioning and rebranding, as measurement is directly linked to
ROI.
"Brands and corporate reputation are manifested in return on investment," Mark Weiner, president of Delahaye, said during the PR News Webinar. That measurement can link such
communications functions as reputation to bottom-line results is an overarching cause for attention, but the first step of executing a reputation measurement plan is knowing what
you want.
What manufacturing services provider Rockwell Automation wanted was to reposition its brand and reputation to capitalize on its competitive differentiator - its loyal customer
mindset - and reap financial benefits accordingly. But the road to getting there was mined with challenges, one of which was siphoning the knowledge of its precise competitive
advantage out of a vast array of options.
"Knowledge is power," said Matt Gonring, VP of global marketing and solutions at Rockwell, in his Summit presentation: "Effective Use of Measurement in Repositioning a
Corporate Brand." "A little can drive communications. A lot - along with metrics - can drive the enterprise."
To zoom in and focus on that momentum, Rockwell followed a series of steps that, if adapted to each specific organization, serve as a good roadmap for best measurement
practices:
1. Establish the starting point and benchmark from there: You have to start somewhere, and remembering that somewhere is essential when measuring brand and reputation. By
conducting surveys in the same vein as Rockwell's Market Perception Study, communications executives can (1) identity current reputation strengths and weaknesses, and (2) give
direction to measurement efforts. In Rockwell's case, the survey established that their focuses of complete automation, global capabilities, products and solutions/innovations
weren't competitive advantages/differentiators; rather, the focus should have been on customer loyalty. With that information in its arsenal, the communications team could move
forward with a goal.
2. Gather data. Then, gather more: Having enough data on hand to measure any intangible driver - including reputation and brand - is an essential piece of the puzzle. For
Jonathan Low, partner and co-founder of intangible evaluation service provider Predictiv, LLC and partner of measurement-consultancy Communications Consulting Worldwide, that data
is the definitive element of executing measurement evaluation. Data can be gathered both from public and proprietary sources; Shell International BV, for example, conducts
independent annual surveys to track attitudes towards the company and competitors within the industry, amongst key stakeholder groups.
3. Crunch numbers: When all the collected data is analyzed - either by an outside vendor or an in-house provider - the key findings will define success or highlight areas for
improvement. Rockwell's data analysis revealed that, under their current focus of products and solutions, their customer loyalty and advocacy were below industry averages. Once
they knew this, communications executives could readdress reputation management with a very specific goal in mind.
4. Come up with a solution: Once measurement has either proven value or, perhaps more important, revealed an area of weakness that must be addressed, plans for rectifying the
problem or just pushing reputation forward punctuate the entire process. That solution may come in the form of redirecting messaging; employing internal communications to define,
align and drive business value; or managing competitive differentiators differently.
Measurement has long been thought of as a key communications driver, but relatively new methods of quantifying the intangibles that define the communications function create
even more opportunity to boost ROI and assist reputation growth. After all, many would argue reputation is the core of the business and the crux of success or failure. Tuck School
of Business Professor Paul Argenti itemizes why reputation plays a key role in business success. Well-regarded companies:
- Command premium prices
- Entice top recruits
- Experience greater loyalty
- Have more stable revenues
- Face fewer risks of crisis
- Are given greater latitude by constituents
- Have higher market valuation and stock prices
- Generate greater loyalty of investors and, thus, smaller stock price volatility
No matter what you believe, it's tough to argue that reputation isn't key in setting your business apart from the crowd.
"It's human nature to act on perceptions," Weiner says. "A good reputation is like a magnet. As brands become increasingly commoditized, reputation is a differentiator."
(Next week in PR News, the measurement discussion continues with definitive "how-tos" in tracking down that essential data, sending it through the proverbial measurement
machine and applying the results for the best business outcomes.)
CONTACTS:
Mark Weiner, 203.663.2446, [email protected]; Matt Gonring, 414.382.5575, [email protected]; Jon Low, 561.832.3352, [email protected]; Paul Argenti,
[email protected]; Kelly Groehler, 612.291.6115, [email protected]
Consider This
During the PR News Webinar "Advanced PR Measurement Workshop: How To Effectively Measure Your Reputation and Brand," presenter Kelly Groehler, senior manager of corporate
public relations for Best Buy, offered 10 considerations when undertaking corporate reputation measurement and management"
1. A reputation cannot be managed - it's earned.
2. Reputation management is the best possible alignment of actions and words.
3. Reputation management is not a public relations campaign.
4. The public relations function cannot manage reputation alone.
5. All the communications in the world cannot fix an operational problem.
6. A specific business case must be made for the reputation.
7. Speak to reputation with a strong voice that business leaders understand and that mirrors their needs and concerns for the business.
8. Media measurement alone cannot gauge reputation - but it's a great indicator of how your company is perceived.
9. Go straight to the people.
10. Reputation management is not finite - you're never done.