How Much Does a Bad Reputation Cost Your Business?

Following the spread of the video of an elderly doctor being violently dragged off a United Airlines flight, the said airlines garnered a lot of back-lash and negative reviews. In the aftermath of this disaster, United Airlines suffered a $255 million loss in market value. Its investors simply loss confidence in the long-term standing of the company as United became the receiving end of a lot of negative attention on the Internet.

This incident clearly manifests that a bad reputation can definitely cost a company millions. Indeed, brand reputation is one of the factors that dictate customer attitude towards the brand’s products and services. Reputation also affects your customers’ trust and loyalty to your brand. If the company is of ill-repute, its products and services may not be well-patronized. Consequently, if customers do not purchase or avail of a company’s products and services, sales revenues may take a hit and affect the company’s financial standing.

This infographic from APEX Global Learning illustrates just how a bad reputation can cost your business.

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