Corporate Reputation, CSR, and CRM: Key Strategies
Corporate Reputation Ranking
1. RepTrak: Based on the Fombrun model, the Reputation Institute is an international standard.
- Proportional sample to the population according to country.
- In Spain: Over 8,000 interviews (familiar with each company), over 32,000 total evaluations, and participants must answer at least 3/4 of the questions.
- Continuous data collection (timeless).
- Sample of companies: 282 (132 chosen for being the most relevant to the general public) plus relevant companies by billing and international presence.
- Each company is evaluated by a minimum of 100 people online.
Main Reason for Understanding This
If your company is in the ranking, you have to manage it. If it isn’t in the ranking because it is small, these are the factors you need to work on to manage Corporate Reputation (CR) correctly.
Why Manage Corporate Reputation?
- Greater effectiveness of communication and sales: Improved performance of commercial actions.
- Increased confidence: Reduced uncertainty in transactions with the company.
- Repeat purchases/word of mouth: Increased customer loyalty and associated behaviors, such as repeat purchases or favorable word of mouth.
- Difficulty to compete: An increase in the psychological barrier, which translates into higher costs for the competition to attract customers.
- Larger margins: Greater insensitivity to price, allowing for premium pricing.
CSR Definition
Corporate Social Responsibility (CSR) is when companies voluntarily integrate social and environmental concerns into their business operations and their interactions with stakeholders.
It is not enough to sponsor social events or take punctual action once a year.
The main objective of CSR is to address business strategy from the perspective of sustainable development.
Main Goals of Sustainable Development
- Fight against poverty and social exclusion.
- Address the economic and social implications of an aging population, guaranteeing the adequacy of pensions, healthcare, and elderly care.
- Limit climate change and increase the use of clean energy.
- Respond to threats to public health.
- Manage natural resources more responsibly.
Relationship Between CSR and Sustainable Development
It is recommended that all companies include sustainable development within their business strategies (according to each factor). Ensure that your impact in all three dimensions is positive.
CSR Factors
Economic
- Transparency in economic activity.
- Development actions for the economic growth of the community (positive impacts on the local community).
- Fair economic treatment of stakeholders.
Social
- Ethical and gender diversity.
- Working conditions.
- Contribution to society (in terms of public health and social inclusion).
- Fair social treatment of stakeholders.
Environmental
- Use of renewable energy.
- Responsible use of natural resources.
- Impact and waste management.
Why CRM (Customer Relationship Management)?
- With increased competition in the market at the end of the 20th century, the consumer gained power, shifting the balance from companies to customers.
- Brands must develop new strategies to attract and retain customers, which is becoming increasingly complex.