Jason Murphy

Reputation Capital

admin — Tue, 15 May 2012 17:49:51 +0000

Figures released by BIA/Kelsey this morning show that social media advertising revenues are expected to rise from $3.8 billion in 2011 to $9.8 billion in 2016, for a 21% compound annual growth rate.

The local social story is even better: there, BIA/Kelsey predicts that advertising revenues will grow from $840 million in 2011 to $3.1 billion in 2016, for a CAGR of 29.8%.

This means your reputation is a form of capital.

Definition

For a business, reputation capital is the sum of the value of all corporate intangible assets, which include: business processes, patents, trademarks; reputations for ethicsand integrity; quality, safety, sustainability, security, and resilience.^[4]

Delivering functional and social expectations of the public on the one hand and manage to build a unique identity on the other hand creates trust and this trust builds the informal framework of a company. This framework provides “return in cooperation” and produces Reputation Capital. A positive reputation will secure a company or organisation long-term competitive advantages. The higher the Reputation Capital, the less the costs for supervising and exercising control.^[5]

Reputation capital is a corporate asset that can be managed, accumulated and traded in for trust, legitimisation of a position of power and social recognition, a premium price for goods and services offered, a stronger willingness among shareholders to hold on to shares in times of crisis, or a stronger readiness to invest in the company’s stock.^[5]

(what is reputation capital? Find out more here)

For decades, brands have produced a reputation. Production of said reputation has typically belonged to some form of advertising. Print, radio & T.V, direct mail, whatever, most of the influence came from the brand side.

But today’s reputation capital is built on the backs of consumer experiences. Experiences that can be published instantly online with a tweet, status update, text or review, often times while they are still sitting in your lobby.

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Jason Murphy — Tue, 27 Mar 2012 16:58:24 +0000

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Jason Murphy — Tue, 27 Mar 2012 16:51:03 +0000

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