Why having the right reputation is a saviour to business
Thursday, November 13th, 2008Conducting business in the 21st Century is substantially different than in the last century. Increasingly there is a move towards buying from ethical companies and those that demonstrate good social responsibility policies. Brand perception and delivery is becoming all important.
Many consultants dismiss this as a trend that affects big business only but to do so can mean the difference between one consultant being hired over another. Brand reputation is becoming the ultimate decision maker and to ignore this trend will put your business and earning capacity in peril.
Reputation and Credibility
People increasingly buy from those that they know, like and trust, especially where the purchase has a high ticket value. Being credible and having a good reputational (personal) brand is essential, enabling the buyer’s decision making process to choose you over another consultant each and every time.
Whilst reputation and credibility are separate concepts and can be established and maintained separately they are integral to each other. To be credible as a consultant often means that you need to be an expert in your field. People and businesses prefer experts over generalists; this is after all, the decade of specialism.
To be credible therefore requires clarity on your business proposition (what your business does). Questions that you should be able to answer include the following:
- What makes you different from other consultants?
- How do you articulate what you do in a way that is easily understood by others?
- What are you known for?
- Are you easily remembered?
Credibility needs to be demonstrated and is based on your track record and competency. One of the ways to demonstrate credibility to those that have not seen your work is by articulating effectively how you achieve success for your clients in story form, free from jargon. Good stories are enjoyable to listen to and can enable subtle messaging about your expertise and ability to potential buyers or advocates. Another way is to provide support and advice to others; thus enabling snippets of your expertise to be demonstrated making it easier for others to advocate you.
I believe that reputation is based on the character of the person (or business) and the intent of the individual (or business). Reputation is therefore personal; it is how you are perceived by others. If others perceive your intention as good this can enhance your standing with others.
Reputation is built on what you say and what you demonstrate and it is important to build awareness and visibility amongst your target audience and potential advocates. It is essential that you are consistent with what you say and do, especially on the internet where everything that is recorded there is of a permanent nature. It is easy to forget that social networking sites are places where reputation and credibility is established, maintained and developed, not just places to ‘hang out with friends’. Many consultants take a relaxed and whimsical approach to how they network on places like Facebook, which can be quite detrimental to them. Others join business networks and then remain ‘invisible’ to the membership, ignoring the opportunity to enhance their reputation and find advocates for their service.
Both reputation and credibility can be established and enhanced by writing on subjects which demonstrate your expertise. Where you publish your thoughts will be dependent on your objectives.
The benefits of having the right reputation
One of the most essential benefits, especially in times of economic downturns, is that having a good reputation reduces operating costs. When you are trusted, speed in decision making is increased and cost decreases as you need less risk protection. For example, long legalistic contracts become less necessary and collaboration on projects become easier – often without the need for Non Disclosure Agreements.
An expensive but necessary component in business is having the resources to be able to market yourself effectively. Most traditional marketing techniques are ‘push’ marketing ones. For example, the consultant advertises his services to his target audience, unsure of whether they are looking for his expertise. Having a good reputation can mean that ‘pull’ marketing techniques are used. An example is where the potential client ‘pulls’ your services when he needs it – without specific advertisement. He might decide to use your service based on a referral from an advocate of yours. This means advertising spend has not been made to secure this client.
You are more likely to find that the sales cycle is reduced because you have a good reputation. It also enables others to believe that there is less of a risk working with you. This is equally true if you are an interim consultant working for short periods within large companies. A good reputation and a credible persona will help ensure that you are chosen for the role over a more obscure consultant.
Distinguishing yourself from others by being a credible expert with the right reputation makes it easier to be advocated. Advocacy is when an individual is almost evangelical about someone or their services. Advocates understand your business proposition inside out and can sell your services to potential clients with very little intervention from yourself. This reduces your marketing costs as well as your sales cycle.
The current economic climate shows now signs of improving in the short term, and the increased competition for reduced customer spend has meant that establishing and promoting your competitive advantage has never been so crucial. A good, strong and credible reputation is the one thing which can provide you with the superior and sustainable leverage you need to survive the credit crunch, whilst others around you fall by the wayside, and it wont cost you a penny!


