Corporate image is one of the most important assets of an organization. It acts as a comfort factor for customers and assures them that they are buying from the best. It determines the manner in which a company, its activities, and its products or services are perceived by outsiders.

In a competitive business climate, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the general public. A company that mismanages or ignores its image is likely to encounter a variety of problems.

“Reputation problems grow like weeds in a garden,” Davis Young wrote in his book Building Your Company’s Good Name.

Even the most formidable business establishments can be brought down after facing a controversy. This is considered to be extremely damaging as it has been proven that redeeming an organization’s image is more difficult and costly than losing a good sales deal. If your reputation, as a business owner, is already ruined, then you will have a hard time fixing the damage that this will cause to your entire organization.

Here are a few reasons why a good corporate reputation, image and branding is extremely important for your business:

Corporate branding is an effective promotional and marketing tool.

If you serve your customers excellently, then expect them to always remember you. You will receive good feedback and this will help you generate more customers. Majority of the public will start spending their money on your products and services, but that will only happen if you are good enough at performing what you have promised to your previous customers. You will also no longer need to spend a significant amount of time trying to convince your potential customers to try out what you offer. Your previous customers who are greatly satisfied with your service will become your unofficial spokespersons. This will transform your business into one of the most trusted and respectable organizations in the industry.

A good corporate branding strategy put into action will reflect your credibility and integrity.

Since your reputation is also your identity, you have to make sure that you brand your organization in the most credible way. Bear in mind that if your organization does not have credibility and integrity, then a lot of people will have a hard time believing you. It will also be extremely difficult for you to prove your integrity if the public hears your previous clients talking negatively about the services of your company. Because of this, you need to be very careful in performing all of your actions.

A good corporate brand establishes confidence, loyalty, trust and stronger customer relationship.

When establishing an untainted corporate image, it is not enough for you to avoid scandals and controversies. It is also important for you to make sure that you meet the expectations of your clients. In order for you to effectively brand your organization and build an even better image, you need to constantly observe excellence and perfection. This will allow your clients to feel a stronger sense of security. It will also be easier for you to build an even stronger relationship with them. You can even expect them to recommend your business to the people that they know, thereby allowing you to expand your market.

Corporate Image is fragile and every action by an organization, its leaders and employees matters in terms of creating people’s sentiments. If sentiments are positive, people do positive word of mouth about the company that helps in lower customer acquisition and retention cost, better margins, employee loyalty, shareholder value and positive media attention. But if sentiments are negative, organizations could get into negative performance spirals.

These are just few of the many things that an effective corporate branding can do for your business. Considering all of these, it is just right for you to start looking for a way to effectively brand your organization and establish a good reputation in your industry.