Uncovering the Importance of Brand Reputation in 2022

Did you hear Amazon workers are skipping bathroom breaks to make sure deliveries are on time?

How about that Shein is being accused of violating local labor laws?

Or that Chick-Fil-A doesn’t support LGBTQ+ rights?

If you have any social media presence it is very likely that, yes, you have heard one or all of these things. Yet, these brands are still out there, succeeding in the ever-changing marketplace. In our latest market study, The State of Marketing Technology, we explore the importance of brand reputation in this marketplace and, perhaps most importantly, how it affects you.

Nearly 60% of companies stated that their brand reputation was essential—that customers are carefully considering a company’s quality, customer centricity, and social values—before they purchase. The remaining 40% believe that the brand’s reputation only matters somewhat, slightly, or not at all.

In other words, brand reputation matters in varying degrees to various businesses. Brian Cantor, Managing Director of CMP Digital, tells us, “In some circles, any misfire on a hot-button issue could lead to massive criticism, boycotts, and disengagement. In others, a history of delivering a strong product experience will likely outweigh all but the most extreme social grievances.” Consistent with this, only 2.13% of customers surveyed claimed that customers did not care at all about their brand image or identity.

This does not mean that large corporations like Amazon, Shein, and Chick-Fil-A can do anything they want with no repercussions because they have a history of good service. It does mean, however, that if they consistently deliver on customer promises and promote the happiness of their employees, one slip up, or even a controversial stance on a hot political issue, won’t tank their entire business.

For example, my old apartment complex had a shuttle system that would take tenants to work every morning. It was a nice amenity, but the shuttle itself had no AC or heat, nor did it have any sort of hydraulics system. Regardless, the man who drove the bus did a phenomenal job— he rarely honked, was gentle with the breaks, didn’t smoke, and always left on time. I bought him presents every big holiday. If he were to tell me he voted for the opposing candidate in the most recent Presidential Election, or even that he didn’t support a social cause I cared about, I would not change my bus route. Not only because it would be inconvenient, but—and this is the important part— I liked my bus driver. One little thing would not make me rethink my entire schedule.

On the other hand, if this same driver began leaving late, driving erratically, and shared some unethical beliefs of his, my schedule would absolutely see some alterations (and he would receive fewer Christmas gifts). The convenience of the shuttle would no longer be worth curbing my ethics.

Though this is a small example, the point still stands that the scale of ethical tolerance varies from business to business. What brings you to the brand greatly impacts what the brand would have to do to drive you away. Cantor reminds us that, “A brand that is clear about who it is, and then commits wholeheartedly to embodying that persona in all its communication and behaviors, stands the best chance of building sustainable relationships with customers.”

For more about the state of marketing technology and other leading challenges in the customer engagement industry, download our latest Market Study here.

Header Photo by Kristian Egelund on Unsplash