Publicity is what drives interest and attention to a brand. It’s what generates new leads, creates new partnerships and investments, and ultimately stimulates business growth. But what if the public paints a rather unflattering picture of your brand? Negative publicity can be a hindrance to getting new customers and keeping existing ones. It can deter other businesses from partnering with you as well. Read on further as we discuss the five most likely results of negative publicity for a company.
Distrust From the Public
Information leaks, inaccurate news, and exposed lies can produce bad publicity. It’s quite easy for advertising campaigns to be blown out of proportion and for truths to be stretched too far that it deceives people into buying your product. While advertising strategies are a powerful tool that can pump up businesses’ capabilities and consumer interest, avoid strategies that are inaccurate and misleading as these can backfire and lead to disappointment and distrust.
Damage to Your Brand’s Value
Long-term brand value can get damaged due to bad publicity. For instance, a product recall from a phone or car company due to reported safety or health hazards can mark the brand as an unreliable source for that specific product over the next few years. Sure, you can repair the underlying problem and continue selling the product line but public perception of the product being dangerous can take a toll on sales and revenues.
Difficulty Attracting Employees
Imagine if people spread the word that Lularoe scam their customers and salespeople. Would you, as someone looking for work, apply for a job there? The obvious and logical answer would be “no”. Bad publicity directed towards your business can make it challenging to attract the right talent and keep existing employees. Sexual harassment charges, discrimination, and other scandals that surround a business can make it an unflattering workplace, especially for highly qualified and experienced professionals. Aside from attracting employees, it can also be challenging to attract the right investors and business partners.
Low Sales and Revenue
Of course, all of the three aforementioned results boil down to low sales and revenue. Negative public sentiment means most consumers will not buy your product/service and instead go for your competitor’s. For instance, if a company providing poultry products gets involved in a scandal wherein they are accused of inhumane slaughter practices, most consumers will see this as horrible and unacceptable and they’ll likely avoid the brand the next time they go grocery shopping.
Stress and Emotional Discomfort
Hearing about how awful your business is in the newspapers or online posts can be difficult for any business owner or CEO to digest. The unfiltered comments and blunt accusations of people can easily get to you. This creates unnecessary stress and can lead to more bad judgment calls that further affect your business in a negative way. Negative publicity can also put your business under the microscope. Each move and decision you make is scrutinized by industry experts and concerned citizens, which can make things uncomfortable for you and restrict you from managing your company freely.
Negative publicity is undoubtedly something you should avoid as a business owner or CEO. The crippling effects can haunt you for years and prevent you from growing your brand. So, how does one avoid negative publicity as a commercial enterprise? Planning and preparing your every move, communicating with your internal team, and securing your data are the three most important steps to avoid negative publicity. It also helps to establish good relations with people you come in contact with, whether it’s business partners, employees, and even media personnel.
