What is reputational damage and how does it affect businesses?
Reputational damage refers to the negative perception that stakeholders may develop about a company due to its improper practices. In the context of email marketing, this can occur if a business is found guilty of spamming or data breaches. Reputational damage can erode customer trust, lead to loss of business, and make it difficult to attract new customers. In severe cases, it can even lead to a decline in stock prices and investor confidence.