Mar 22, 2017
MagnaCarta, BrandManagement, Marketing, Aftermarket, Business, SouthAfrica, ReputationManagement
drives a company's reputation differs vastly across key industries in
South Africa – a fact that emphasises the crucial need for
executives to harness effective reputation management strategies to
improve their understanding of consumer behaviour and chances of
success when a crisis strikes.
Carta Reputation Management Consultant’s inaugural Africa
Reputation Index (ARI) finds that good governance is the top
reputational attribute for telecommunications companies in South
Africa, while consumers want to see improved working conditions for
sectoral and comparative analysis is needed to enable companies to
plan ahead of a crisis to improve outcomes and protect and enhance
profits. If the impact of reputation is not well enough understood
growth prospects will suffer,” says Katherine du Plessis, data
analyst at Magna Carta.
Carta’s Index, which was undertaken in collaboration with leading
marketing strategy consultancy, Yellowwood, enables high-level
planning to limit reputational damage and provide companies in Africa
with the tools needed to create an effective reputational management
strategy that is a vital component of business sustainability.
index ranks companies in five separate industries - car
manufacturers, food retailers, financial services, public services
and telecommunications companies - in terms of their key reputational
drivers. Each company received a reputation score out of 100. 1,306
South African consumers were surveyed.
index shows that in the telecommunications and motor vehicle sectors,
word of mouth is the most important driver of reputation.
telecommunications, recommendation is essential because people have
such an affinity to their mobile devices; whereas with cars it is
because of the pride that flows from choosing and paying for a
desired and expensive asset. For
both cell phones and cars, people aspire to make a choice that
reflects their personal identity,”
explains Du Plessis.
survey finds that with vehicles, quality is most important
reputational attribute followed by customer service. This is because
consumers are likely to spend a lot of time selecting the right car
to invest in and interaction with salespeople will be minimal and
is unlikely a consumer will select a new car based solely on service,
especially when a new, high quality vehicle resonates with his or her
personal image or they have spent a lot of time researching the best
car they can afford”, says Du Plessis.
service is the top reputational attribute, particularly being
available and responsive to client needs, but not one bank stands
out. The second most important attribute is integrity, an area where
banks have experienced some reputational damage in the past year,”
says Du Plessis.
important finding is that corporate social investment (CSI) had the
lowest ranking out of the reputational attributes across all
industries. This is not to say that CSI is unimportant, but other
attributes have more weight with regard to corporate reputation.
bottom line is that reputational risk is on the rise. “It is clear
that in the digital age of rapid information flow and consumption,
effective crisis management is quickly emerging as a vital component
of business sustainability. The best of breed in measurement and
analytics is needed to ensure reputation plays an ever increasing
role in corporate strategy and ultimately benefits, rather than
damages, the bottom line,” says Sechaba Motsieloa, newly appointed
CEO of Magna Carta Reputation Management Consultants.
Carta aims to expand the index to other sectors within South Africa
and into other African countries.
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