A reputational crisis can wipe out tens of millions of Rands from a company’s value. writes CHRISTELLE MARAIS, practice leader of enterprise risk management at Marsh Africa
According to a study by the World Economic Forum, an average of more than 25 percent of a company’s market value is directly attributable to its reputation. This means that a reputational crisis can wipe out tens of millions of Rands from a company’s value. This risk has increased because the rise of online and social media means crises are now less predictable, can occur faster and with a more drastic impact.
Companies are aware of the potential dangers that could negatively affect their reputations, but never have those dangers been as pervasive and immediate as they are right now.
As organisations strive to upskill their workforces and encourage responsible decision-making at all levels, the risk of immediate publication, financial flows and business impact increase with the use of technology, even if such activities are executed in good faith. This is why business leaders need to understand the importance of their companies’ reputations. From an employment perspective, organisations with strong positive reputations attract and retain better skills and are therefore perceived as providing more value, which allows them to charge a premium for their products and services. They also attract a more loyal customer base that is open to a wider variety of products and services from the firm.
Enabled by transformation and growth in the internet and mobile communications systems, global economic activity has grown exponentially over the last few decades. However, companies, and in turn brands, are constantly vulnerable to reputational risks that can arise from virtually anywhere, be it factors as diverse as product quality, social media, environmental impact, employee malpractice and outsourcing. Reputational risk has now become a potential threat on par with new competition, technology failures, talent issues and changing regulations.
Yet, there are still organisations that do not consider reputation management until disaster strikes. The job of managing reputations in general is mostly done when the company’s reputation has been affected negatively. Dealing with threats to your organisation’s reputation once it has already surfaced is crisis management, a reactive approach aimed at limiting damage, not risk management in terms of reputation.
Perhaps the greatest risk worth noting is the reputational risk in the age of social media. Before the advent of social media, the focus remained on risk avoidance or minimising asset or financial losses. Today, with over half of the world’s population connected to the Internet, companies need to relate enterprise reputation matters to strategic outcomes. In a world increasingly influenced by social media and instant global communications, managing customer expectations and perceptions is critical to success.
The use of social media by organisations to communicate its goods and services is augmented by the need for modern society to connect with the organisations they purchase from. At Marsh we offer risk management maturity and risk management culture surveys and implementation plans, informed by an organisation’s life-cycle position and its future aspirations. With effective support from organisations, these programmes align employee behaviour with strategy, organisational performance and risk management objectives, thereby empowering employees to make the right decisions when it comes to executing operational and financial activities as well as to communicate responsibly about their organisations.
Warren Buffett famously said that “it takes 20 years to build a reputation and five minutes to ruin it”. It’s no wonder that reputation is commonly referred to as a company’s most valuable asset. Reputation is not simply about a balance sheet, service offerings, social responsibility, or even corporate communications, marketing, and public relations – reputation is all of these and more.
Well embedded risk management and continuity management processes will prepare organisations to respond effectively in the limited time available to respond.
Projection tech transforms retail
By TIMOTHY WILSON, visual imaging business account manager at Epson South Africa
Display designs, such as those found in retail stores, are no longer confined to static visuals on pull-up banners, 2D print and posters. The increasingly popular use of projection technology has ushered in new and exciting ways to create immersive displays using rich media and high-quality visual content to go beyond the four walls of traditional marketing.
In the past, projectors were lamp-based and prone to failure when used in a harsh environment, such as a retail store. Today, newly introduced laser projection technology has unlocked a range of capabilities.
Transforming the way brands engage with audiences
Creative techniques such as projection mapping, which can be described as the projection of video, animation and other colourful displays onto 3D surfaces, have completely transformed the way brands engage with audiences and can live in retail spaces, concert halls and even sports stadiums.
Projection mapping offers venues wide-spread creativity in using lighting in small or large environments, as was the case with Epson’s showstopping kinetic portal, which implemented projection mapping on a 360 degree vortex at the largest AV and systems integration show in the world – Integrated Systems Europe 2019. Driven by a new, affordable generation of projectors, mapping not only covers flat walls and traditional projections screens but also irregular shapes, objects, and even entire building façades.
When projecting on a larger scale, such as at events and music concerts, the process of visually combining several projectors to display one single seamless image might sound simple enough in principle but can prove to be a challenging task in reality. To overcome this challenge, experiential marketers are adopting the use of image edge blending, which refers to the process of stacking multiple projectors to create a single overlapped projection that appears continuous and clear.
It’s due to these advancements that displays in retail and events no longer pivot just on aesthetic appeal but can now deliver immersive consumer experiences that drive engagement and increase foot traffic. This is starting to drastically change the way that retailers, events and even restaurants host, engage, entertain and communicate with their audiences.
Projection is driving growth in experiential marketing
Consumer interest in the transition towards projection has seen this technology take centre stage at leading retailers such as Mall of Africa, events by brands such as ABSA and restaurants like Saint, transforming their environments into immersive spaces through projection that displays captivating imagery and video.
Saint restaurant in Sandton has pushed the boundaries of branding and displays, transforming all surfaces into a visual delight. Patrons entering the restaurant are greeted by a visual experience within a dome, featuring a series of moving, constantly changing artworks – such as a starry night sky or a replica of the Sistine Chapel – projected onto walls and the ceiling.
In fact, EventTrack research, which showcases the current state of marketing around the globe, highlights the continuous growth of event and experiential marketing. It notes that high-quality projection technology, more specifically its ability to emit stunning visual experiences, has grown in popularity to become the go-to tool for event organisers and retailers looking to captivate and engage with consumers.
The future of projection technology
Projection technology has proven to be an outstanding, much more cost-effective and reliable form of marketing collateral – setting an entirely new standard for high-resolution projection.
Sandton City recently embraced this market-leading technology with the installation of a virtual aquarium in its Centre Court. This installation centred on creating a 3D mapping concept that enabled shoppers to select an undersea creature from a touchpad to swim across digitised hoarding.
With capabilities to meet the demands of large-scale projection and the ability to effectively transform the way brands remain visible at shopping malls, restaurants and retail spaces – the unprecedented imaging power of projection technology has set a considerably high bar when it comes to retail and event displays.
Epson, which is not only pioneering imaging technology and innovative projection solutions, is also the market leader when it comes to high lumen laser projection, having recently announced its 30,000 lumens laser projector (EB-L30000U) which will officially launch in 2020. This high-end installation laser projector, complete with 4K enhancement, is aimed at rental and staging companies, hospitality markets and visitor attractions, which is yet another progressive step towards transforming the way marketers engage with their consumers in the 21st century.
GoFundMe hits R9bn in donations for people and causes
The world’s largest social fundraising platform has announced that Its community has made more than 120-million donations
GoFundMe this week released its annual Year in Giving report, revealing that its community has donated more than 120-million times, raising over $9-billion for people, causes, and organisations since the company’s founding in 2010.
In a letter to the GoFundMe community, CEO Rob Solomon emphasised how GoFundMe witnesses not only the good in people worldwide, but their generosity and their action every day.
“As we enter a new decade, GoFundMe is committed to spreading compassion and empathy through our platform,” said Solomon in the letter. “Together, we can bring more good into the world and unlock the power of global giving.”
The GoFundMe giving community continues to grow with both repeat donors and new donors. In fact, nearly 60% of donors were new this year. After someone makes a donation, they continue to engage with the community and give to multiple causes. In fact, one passionate individual donated 293 times to 234 different fundraisers in this past year alone. Donations are made every second, ranging from $5 to $50,000. This year, more than 40% of donations were under $50.
GoFundMe continues to be a mirror of current events across the globe. This year, young changemakers started the Fridays for Futuremovement to fight climate change, which led to a 60% increase in fundraiser descriptions mentioning ‘climate change’. Additionally, the community rallied together to support one another during natural disasters like Hurricane Dorian and the California wildfires, where thousands of fundraisers were started to help those in need.
The report includes a snapshot of giving trends from the year based on global GoFundMe data. It also includes company milestones from 2019, such as launching the company’s non-profit and advocacy arm, GoFundMe.org, and introducing GoFundMe Charity, which provides enterprise software with no subscription fees or contracts to charities of every size.
Highlights from GoFundMe’s 2019 Year in Giving report include:
- Global giving trends and data
- Top 10 most generous countries
- Top 10 most generous U.S. states and cities
- Biggest moments in 2019
To view the entire report, visit: www.gofundme.com/2019