What ancillary benefits are there to an good online reputation
The main reason why a company seeks out a good reputation is to earn additional revenues and a higher profit margin on their sales. Customers care about your reputation and use companies with a good reputation as they believe it translates into better results for them through the receipt of higher quality services. This is only the obvious benefit of a good reputation and there are many other ancillary benefits that are also the result of having a good online business reputation.
Businesses that have a good reputation may not need to market and advertise their companies as much as other companies as supporters of their business will often advertise for them through word of mouth. This allows them to improve on their profit by spending less on growing their public image.
A business with a good online business reputation may not have to defend itself from competitors as much as many businesses may simply decide to stay out of a business industry where there already exists such a well established and regarded leader. Some competitors may be scared away and provide more opportunities for the company itself.
A company with a good reputation may be able to steer clear of lawsuits as plaintiffs may indicate that the public reputation of the business may harm the chances of the plaintiff in the case. This can potentially reduce the legal costs of the business and can avoid those legal contingencies that can potentially be so threatening to a company.
Finally a company with a good online reputation will get more positive press for their products which can be helpful for establishing the company in the public graces and providing for free press for product launches and other major company events. This can result in more public acclaim in a sort of self fulfilling prophecy that drives the business towards more and more success.
Overall all of these factors may not be as important as the higher revenues and better profit margins noted above but represent other noted advantages to a positive online reputation that are worth noting and worth pursuing for a business. Ultimately the success of your company is improved by a good online reputation and it is surely worth the added resources to incubate this good reputation in your industry.