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How to protect your online reputation

Reputation damage can be devastating to a small business

A company's reputation is its most vital intangible asset. Building a solid reputation often takes years, but now that so many dissatisfied customers - along with random "trolls" and mischief makers - are venting their frustrations or boredom online, much of that hard work can be undone with a few mouse clicks. Reputation damage can be devastating to a small business, which, unlike larger corporations, typically does not have access to vast resources to repair the damage. Unfortunately, the Internet makes it easy for a few disgruntled customers' complaints to grow into a giant storm. Popular ratings sites make it effortless for consumers to post complaints and bad reviews, and it is precisely because of these sites' popularity that they often show up as top results in the search engines.

Internet hoaxes and urban legends can also cause a lot of trouble; just ask Procter and Gamble, which has been defending its reputation for years against everything from false accusations of Satanism to unfounded rumors that one of its popular fabric deodorizers is fatally toxic to household pets. Complaints and unfounded rumors have always posed problems for large, successful corporations, but in this Information Age, virtually all businesses are at risk of having their reputations by online activity.

The good news is that there are ways to minimize risks or reverse the damage. Michael Fertik, founder and CEO of Reputation.com (formerly ReputationDefender), and David Thompson, Reputation.com's general counsel and chief privacy officer, published a book last year entitled, Wild West 2.0: How to Protect and Restore Your Reputation on the Untamed Social Frontier (http://www.amazon.com/Wild-West-2-0-Reputation-Frontier/dp/0814415091). They offer a wealth of advice on how to lessen your risk and what to do when the damage is done. Here are some pointers for companies concerned about managing their online reputation.

  1. Respond graciously to bad reviews, and try to make things right. Many consumer complaints are legitimate, and, of course, there are well-documented cases of firms that are lax in quality, safety, integrity, customer service, or any combination of the above. But we're assuming that you're not one of those companies and that you strive to provide great products and excellent customer service. Even so, no firm is flawless. Mistakes and missteps happen, employees have bad days, suppliers sometimes don't deliver, and sometimes things just go wrong. In a perfect world, unhappy customers would always take their complaints straight to the manager or business owner, who would immediately do everything in his or her power to make it right. But sometimes it's easier for a customer to write an angry online review than to complain to a live human being. The first thing to remember when you see a bad review is not to panic, and whatever you do, don't react in anger (that will just make you look defensive or, worse, uncaring). After you've calmed down, reread the complaint to determine whether:

    (1) it seems valid

    (2) it is simply a misstatement of fact

    (3) it sounds like a rant or the work of a troll.

    If the complaint or bad review seems legitimate - for example, the reviewer complained about your restaurant because of poor service or cold food - maybe you can use this to help make improvements to your business, such as increasing your kitchen staff or providing more training for your wait staff. Perhaps you can even take the time to thank the reviewer for the comment and promise that you are taking steps to correct the problems. If the writer has simply misstated a fact, you are within your rights to correct those misstatements, but be respectful. If the complaint is clearly the work of a troll, it's best to ignore it. Trolls usually go away if they're ignored. Whatever you do, be polite and professional in your responses, don't be defensive, and go above and beyond in your offers to resolve the problem for the person who made the complaint. And by the way, beware of certain sham "review" sites that encourage users to post harsh reviews of companies, after which the sites make sure the negative remarks appear in the search engines - and then they offer the affected business a pricey "investigative service" to remove the negative remarks.

  2. Fight hoaxes and urban legends with calm and reason. Hoaxes and urban legends have always had a way of spreading like wildfire; the Internet simply makes those wildfires burn faster, hotter, and longer. Fertik and Thompson advise that your best bet is often to "get ahead of the rumor as quickly as possible." Using clear and concise language, debunk it on your own Web site, and provide as many verifiable facts as you can. In the event that you can't yet prove the rumor is incorrect, the authors advise, at least find a creative and credible way to express your conviction that it will be proven to be wrong. And since many concerned users will go to your site to find out more about the rumor, provide a prominent link to your rebuttal on your firm's home page. Your next step should be to contact any media organizations, blogs, or other prominent forums that have repeated the rumor. Politely request that they publish a clarification, correction, or retraction. Be calm, rational, and professional, but firm. Explain why the rumor is wrong, and perhaps even why it is hurting your business. Use the same techniques to handle comments from the public. Crafting a standard written response at the outset, which can be customized depending upon the recipient, can be a real time-saver. Phone complaints can be handled by instructing employees to direct callers to your Web site. This will reduce the risk of phone arguments that could exacerbate the problem, not to mention wasting your staff's time.

    In some cases, hoaxes involve manipulated images, but the same rules apply: Head it off at the pass. Post prominent rebuttals, including visual proof that the photo is a hoax. If you can do so, post the original along with the modified image, and that will convince most viewers. If you're unable to access the original image, an expert digital photographer might be able to determine if there's other evidence of manipulation to help you convince viewers that the image is fake.

  3. Do your utmost to maintain data security. Many companies fail to adequately protect their files and data from accidental or malicious disclosure. Once this confidential information gets into the wrong hands, it can be used by competitors, parties who are intent on doing harm to your company, or bored users who just want to spread gossip. One way to avoid this is to refuse to use file-sharing software unless you are completely certain that you understand how it works and which files you'll be sharing. Double, triple or even quadruple-check the software settings to make sure you are not sharing a file or directory that you intend to keep private. And never place personal files in a directory used for file-sharing.

    Sometimes, however, users can inadvertently set reputation damage in motion, such as by leaving private files on a portable device and then losing it. For more security, Thompson and Fertik advise, use flash drives available with password-based encryption, or even drives that require the owner's fingerprint in order to release the data. Also be sure to remove all sensitive data from any device before you dispose of it. And because viruses, worms, and Trojan horses can also lead to major data security breaches, make sure all of your systems are protected by appropriate firewalls and virus scanners.

  4. Know when it's time to bring in the big guns (or at least a lawyer or two). If you're diligent about preventing problems and quick to respond appropriately when they occur, you can avoid any long-term or even short-term damage to your hard-earned reputation. The last thing you want to do is threaten legal action at the first bit of bad press your company receives. Notwithstanding the highly publicized reactions of certain overly sensitive celebrities, not every complaint or snarky remark is actionable. Generally speaking, it's probably best to roll with the punches: handling criticism graciously, working diligently to rebut rumors and hoaxes when they arise; and doing everything possible to protect sensitive data. However, if someone seems to be truly out to "get" you, if all of your responses and efforts have failed to end the trouble, and you think your business really is being damaged by these actions, it probably wouldn't hurt to consult with a properly qualified legal professional - or at least a good PR firm. Fortunately most business owners facing online problems never have to resort to these options.

For better or worse, your online reputation is your reputation these days. It's your responsibility to protect it like the treasure it truly is.

THIS IS NOT INVESTMENT, TAX OR LEGAL ADVICE. Consult with a financial advisor, accountant or attorney before making important decisions in these areas.

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