With the global economy looking fragile and one of Australia’s largest trading partners, China, slowing down, it’s important for Australian business decision-makers to re-evaluate their position as the new financial year begins, according to Atradius. Mark Hoppe, managing director, Oceania, Atradius, said, “The start of the new financial year is traditionally an ideal opportunity for Read More…
Does getting recognized really boost your business?
Tue 26 May 2015 - 9:49 amEditor's Choice | Growing | Hot Tips | Management | Managing | Marketing | Opinion | Public Relations | Small Business | SME Inspiration | Strategy
It always feels good to be recognized and have your actions valued and acknowledged, whether it’s in the area of business, leisure or any other field of human activity and interaction. This type of validation helps us know that we’re doing something right and that our efforts have concrete, positive results on the world around us. Not only does it give us purpose, but often enough it helps us become inspired to achieve even more and grow as people and professionals.
When it comes down to business, most of the same rules apply and you’re likely to benefit in terms of more customers, volume and profit. However, there are some possible issues that could potentially make all those awards a double-edged sword.
A guarantee of quality
Consumers face difficult choices in the market on a daily basis – there is risk in every new purchase, but there is something that ultimately helps them decide and makes them feel they’re getting adequate value for their money. That something is a brand, and the promise of value that it delivers. In the business world, being recognized and awarded by peers and professionals can easily help a company position itself as a trustworthy, approved and tested option in the minds of consumers, making them much more comfortable when making their choice.
A great example is Printzone, which was recently awarded Google Trusted Store badge. Receiving validation from one of the leading global companies gives Printzone more authority and credibility, and this stamp of approval helps create new business opportunities.
Customer loyalty and brand strength
With wide approval comes more brand visibility, which any efficient marketer will use to their advantage. By emphasizing its various quality awards and recognitions, an enterprise can reinforce its brand’s position and further build on its image. If combined with a constant or rising level of delivering quality and value to its customers, a business can likely count on increased customer loyalty, satisfaction and great likelihood of retention. This also ties in very well with organic marketing strategies, including word of mouth and viral campaigns for maximum results.
Desirability and prestige
The very perception of quality can often enable a business to put a premium price tag on its products – take Apple, for example. This goes to show that the end price of a product or a brand isn’t something that depends solely on the input required to produce it, but rather on the consumers’ perception of that value and their willingness to pay a certain price to get it. Since consumers are always striving to maximize their value for money, a recognized, awarded brand can easily leverage this and evoke desirability and prestige in its products to increase that value perception on a social and psychological level. Now, imagine having your product, or your entire enterprise receive an award for being the best in its respective class – more prestige definitely means more business.
Motivation and improvement
Receiving recognition indicates you’re on the right track and that your actions are being channeled into positive results. In a driven organization with strong focus on progress through merit, getting validation from both the market and one’s peers can help create strong momentum in terms of further growth and development. Employees are motivated to work even harder and create additional value for their customers, drawn forward by the need to become better and more valued themselves.
However, what is one man’s meat it is another man’s poison. So it is of little wonder that rewards may affect different people in various ways. Some workers may experience the positive effects of a reward while others may be turned off by it. According to Professor Ian Larkin, rewards may sometimes lead to decrease in productivity and/or motivation in a certain group of employees. Thus, it may be a double-edged sword, and the experienced managers must know the profiles of people they work with in order to get the benefits from using a reward system.
Acting as motivation’s evil mirror image, complacency represents the most detrimental potential result of a business that’s received perhaps too much recognition. As it happens, some enterprises simply become weary or disinterested in raising the bar after a while, feeling that they’ve reached their desired milestones and awards. Others start finding ways to cut back on costs and neglect their customers, which results in lower quality service and ultimately in the businesses’ demise at the hands of the competition.
Receiving awards and recognition for one’s professional achievements can indubitably be a most positive driver on the journey towards even greater entrepreneurial successes, but it also bestows responsibility – an award represents value, and it binds the awardee to the promise of constantly delivering it to their customers. If this promise holds true, success is sure to follow.
About the Author:
Don Broida is an economics student with the interest in entrepreneurship. He loves all things Australian, great wines above all. He would love to see bottles of Australian Shiraz stock shelves worldwide.