How Social Media Can Make or Break Your Company's Brand and Reputation
Social media has become increasingly popular over the years as it is considered one of the essential tools for both large and small companies and entrepreneurs to promote their brands, products, and services to a broader audience at record speed. The benefits of using social media are endless, but it's essential to handle it with care to avoid the potential risks that come along with it.
This blog aims to shed light on the power of social media to either make or break a company's brand and reputation among customers, as demonstrated by a recent event in Atlanta, GA.
Amplified Reach and Speed of Information
No matter the size of your company, the internet, and social media can be used to communicate your message and reach a large audience quickly. The recent case in Atlanta illustrated how a local issue quickly became a national conversation about customer experiences and business practices. With the ability to instantly spread negative reviews, videos, and harmful actions, companies need to manage their online presence and address any concerns proactively and promptly.
Building or Breaking Trust
Let’s be clear: any company's reputation relies heavily on trust. Social media can be a double-edged sword; positive experiences can boost brand loyalty, but adverse events can destroy faith in mere moments. The event in Atlanta may have damaged the company’s reputation and eroded trust among existing and potential customers. It is a friendly reminder that every customer interaction must be handled carefully, as social media can amplify the consequences of even a single misstep.
Potential Business Risk
The impact of a damaged brand and reputation extends beyond immediate consequences. It can result in reduced customer loyalty and missed potential revenue, jeopardizing a company's long-term sustainability. In Atlanta, the effects of that event on business revenue and customer retention are yet to be determined. Negative word-of-mouth could pose challenges in attracting new customers. Therefore, your company must acknowledge the potential risks of social media and take proactive steps to maintain a positive online presence.
The Importance of Crisis Management
It goes without saying in today's digital age, companies must have a well-defined crisis management strategy in place. Swift and appropriate responses, transparency, and a willingness to address concerns publicly are crucial in mitigating the impact of harmful incidents. In the case of Atlanta, there was an opportunity for one business to minimize reputational damage by promptly acknowledging mistakes, expressing genuine remorse, and taking corrective actions.
As a public relations professional, I can’t stress enough that companies must recognize the benefits and risks of social media and actively manage their online presence. By understanding the potential consequences of harmful incidents, adopting proactive crisis management strategies, and valuing transparency, they can navigate the challenging landscape of social media and protect their brand from potential risk.
If you’re interested in learning more about the benefits and risks of social media on your brand, contact me at katrina@claypr.com.
About the Author:
Katrina Clay is the principal of Clay Public Relations, founded in 2023. The practice specializes in providing strategic, results-driven public relations services to amplify the brands of U.S. financial services firms, ranging from public companies to fintech startups and small business owners in traditional and non-traditional media outlets.
Katrina has over 25 years of in-house public relations experience in the financial services industry, having worked at top-tier Wall Street firms.