1. Andy Newman Newman Associates PR 21st June 2018
REPUTATION MATTERS
Andy Newman Newman Associates PR 21st June 2018

2. Reputation matters
“We can afford to lose money – even a lot of money. But we can’t afford to lose reputation – even a shred of reputation”
Warren Buffett

3. Reputation matters Companies with good reputations are:
7 times more likely to earn premium prices for their products and services
5 times more likely to have their stock recommended
4 times more likely to be recommended as a good place to work
3 times more likely to be recommended as a joint venture partner
Reputation Dividend Report, 2014

4. Reputation matters
A 1% improvement in a company’s reputation is expected to lift its market value by 1.4%
Reputation Dividend Report, 2014
NB: for the average FTSE 100 firm, that’s an increase in value of £266 million

5. Reputation matters Your reputation gives you a licence to operate
Customers will want to buy your products and services

6. Reputation matters Your reputation gives you a licence to operate
Funders will have the confidence to invest in your business

7. Reputation matters Your reputation gives you a licence to operate
Employees will want to work for your company

8. Reputation matters Your reputation gives you a licence to operate
Statutory regulators will be inclined to help not hinder

9. Reputation matters Your reputation gives you a licence to operate
Journalists are more likely to report on you
and more positively

10. A strong reputation can protect your business in times of crisis

11. A strong reputation can protect your business in times of crisis
No organisation is immune to a reputation crisis

13. A strong reputation can protect your business in times of crisis
Result:
£112 million profit turned into £122 million loss in one year
330 shops closed in UK and US
Value of Ratners sank by £500 million
Ultimately the brand (founded 1949) disappeared

14. “It takes 20 years to build a reputation and five minutes to ruin it
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
Warren Buffett

15. A strong reputation can protect your business in times of crisis
VW – caught cheating on an industrial scale

16. A strong reputation can protect your business in times of crisis
Why did this happen?
Culture of secrecy
Lax corporate governance controls
Lack of diversity of opinion and expertise on VW board

17. A strong reputation can protect your business in times of crisis
Result:
VW has set aside €6.5bn to cover costs – and it could cost a lot more
Stock price fell 42% in two weeks
But:
VW has survived and seems to be rebuilding its reputation

18. A strong reputation can protect your business in times of crisis
Why did Ratners collapse and VW survive, despite the crisis happening in the age of social media?

19. A strong reputation can protect your business in times of crisis
How did VW survive?
They immediately held their hands up and apologised
Building trust
Living their core value of honesty (oh, the irony…)

21. A strong reputation can protect your business in times of crisis
How did VW survive?
They immediately held their hands up and apologised
Building trust
Living their core value of honesty (oh, the irony…)
They had built a reputation for reliability

23. A strong reputation can protect your business in times of crisis
How did VW survive?
They immediately held their hands up and apologised
Building trust
Living their core value of honesty (oh, the irony…)
They had built a reputation for reliability
Consumers love their product
They had a good balance in their ‘Reputation Bank’

24. The Reputation Bank: Why Spin Doesn’t Work (in business, at least)

25. The Reputation Bank: Why Spin Doesn’t Work
What is reputation?

26. It’s what people say about you when you leave the room…

27. Reputation: (n)
1: The beliefs or opinions that are generally held about someone or something
2: A widespread belief that someone or something has a particular characteristic

28. It’s what Google says it is…

29. The Reputation Bank: Why Spin Doesn’t Work
Brand is the promise you make as a business
Reputation is how well your stakeholders think you are living up to that promise
That perception will only ever be based on reality

31. The Reputation Bank: Why Spin Doesn’t Work
How do you change the reality?
How you perform
Products and services
Innovation
Investor value
How you conduct yourself
Integrity and honesty
Engagement
Social purpose

32. The Reputation Bank: Why Spin Doesn’t Work
80% of variation in reputation is accounted for by the degree experience beats expectations.
Weber Shandwick research

33. The Reputation Bank: Why Spin Doesn’t Work
It’s all about trust

34. The Reputation Bank: Why Spin Doesn’t Work
The UK is one of the least trusting nations on earth
UAE India China US Germany UK Spain Turkey Japan
Average of a country’s trust in the institutions of government, business, media and NGOs
Informed Public Trust Index

35. People act decisively based on trust or distrust in companies Personal actions taken with trusted and distrusted companies
77% - Refused to buy products/services
72% - Criticised them to a friend or colleague
34% - Shared negative experiences online
17% - Sold shares
Chose to buy their products/services – 91%
Recommended them to a friend or colleague – 76%
Paid a premium for their products/services – 55%
Shared positive experiences online – 42%
Bought shares – 26%
Edelman trustbarometer

36. The Reputation Bank: Why Spin Doesn’t Work
Edelman trustbarometer

37. Your reputation needs managing

38. “Attempting to manage one’s reputation might be likened to trying to manage one’s own popularity – a rather awkward, superficial and potentially self- defeating endeavour.”
Reputation Management: the new face of corporate public relations

39. Your reputation needs managing
Reputation Management is largely about Experience Management

40. Your reputation needs managing
How do you change the reality?
How you perform
Products and services
Innovation
Investor value
How you conduct yourself
Integrity and honesty
Engagement
Social purpose

41. Your reputation needs managing
Six steps to building corporate reputation
Define Objectives: give your reputation a job to do
Identify Stakeholders: and their expectations
Identify Reputation Gaps
Change The Reality
Communicate That Reality
Track, Measure And Refine

42. Your reputation needs managing
Reputation Management is largely about Experience Management
But:
To experience you, people must first know about you

43. Your reputation needs managing
What are the main communications channels which will influence what people think about you? Which ones are most important?

44. “Google is not a search engine
“Google is not a search engine. Google is a reputation management system.” Clive Thompson, Wired

45. Why ‘Earned Media’ is so important

46. Why ‘Earned Media’ is so important
YouGov survey, 2018

47. Why ‘Earned Media’ is so important
Fake News is a big concern in the UK
50% of adults are concerned about the accuracy of news they read online
Just 12% are not worried
46% of under 35s are concerned about the accuracy of what they read on social media
Only 14% of consumers believe news in their social media feeds challenges their views
TV is considered the most trusted media source; social media the least
KPMG/Markit Media Tracker 2017

48. Why ‘Earned Media’ is so important
Newspapers (editorial)
TV and radio (editorial)
News websites
Influencer websites
Review websites
Other people’s social media
Likes, Retweets and Shares
Word of mouth
Owned/Paid Media
Advertising
Your own website
Your own social media
Your people
Marketing material
(e)Newsletters
Presentations

49. Why ‘Earned Media’ is so important
YouGov survey, 2018

50. Why ‘Earned Media’ is so important
Newspapers (editorial)
TV and radio (editorial)
News websites
Influencer websites
Review websites
Other people’s social media
Likes, Retweets and Shares
Word of mouth
Owned/Paid Media
Advertising
Your own website
Your own social media
Your people
Marketing material
(e)Newsletters
Presentations

51. Why ‘Earned Media’ is so important
Why Earned Media works:
Builds reputation, credibility and trust with new customers, while reinforcing current customer relationships
Since credibility and trust are established, it also inspires customer action
Earned media is (superficially) cost-effective because it requires your time, not a large media spend
Social signals such as likes and shares send positive vibes to search engines and organic search results can be positively impacted

52. Why ‘Earned Media’ is so important
Some drawbacks of Earned Media:
You can’t control the message - which can include negative press, reviews, and comments about your brand
Cultivating quality relationships with media outlets which cover your business is time-consuming and not instant
Newsrooms are slimmer on editorial staff than ever and earning placements is also more difficult
although this also brings opportunities
There is no guarantee of coverage at all
There is an increasing link between earned and paid media

53. The Media Landscape is changing

54. The changing media landscape
Content is still king
Mediocrity and repetition have been banished
Owned online media gives business an opportunity to control content
to an extent

55. The changing media landscape
Platform agnosticism

56. Individuals aged 18-36 spend an average of 17
Individuals aged spend an average of 17.8 hours a day with different types of media, with the notion of ‘multi-channel’ (merging digital, print and broadcast channels) media consumoption commonplace.’
Crowdtap

57. The changing media landscape
Platform agnosticism
The medium is no longer the message
Multi-channel media consumption is commonplace
Therefore a cohesive voice is crucial

58. The changing media landscape
Direct connection to target audiences
Via branded channels or influencers
Requires a greater degree of trust
Has to be a two-way conversation

59. The changing media landscape
Video, Video, Video
By 2020, 80% of online searches will be video
All media (including print) adopting this approach
You need a visual library
But don’t forget words!

60. The changing media landscape
The media business model has changed
Decline in straight advertising
Blurring of the lines between paid-for and earned media
Sponsored editorial

61. The changing media landscape
Print is not dead

62. The changing media landscape
Print is not dead

63. The changing media landscape
Print is not dead
As online gets crowded, print stands out
Print media are fighting back
EDP circulation – 2011: 59,000, 2018: 28,970
But often over 100,000 hits per day online
Print still a very credible and influential medium

64. The changing media landscape
Rise of micro-influencers
Very targeted, if small audiences
Authentic and engaging
Large degree of loyalty

65. The changing media landscape
Social media is important
Best used as part of an integrated media strategy
It does not replace other media
It is not a panacea
It is very powerful

66. In Conclusion Reputation matters
A strong reputation can protect your business in times of crisis
Keep making deposits in your Reputation Bank
Spin doesn’t work – change the reality
It’s all about trust
Your reputation needs managing
Earned Media plays an important part in shaping your reputation
The media landscape is constantly changing

67. Andy Newman Newman Associates PR 21st June 2018
REPUTATION MATTERS
Andy Newman Newman Associates PR 21st June 2018