2: The Warning Is on the Label and the Clock Is Ticking
The author warns that "no brand is immune" to events that will shake consumer confidence. There are many things a business can do wrong to harm its own brand, but in some instances "stuff happens" that could not be predicted, and just needs to be dealt with.
Brand Shake-Ups
The author provides a list of some of the brand-shaking events. This is not by any means a comprehensive list, but some of the more common causes.
Accidents are common causes - not merely the incident, but the speed and competence with which the firm responds. Oil companies such as Exxon and BP have taken from not reacting quickly enough to accidents to prevent or contain the environmental damage.
Product recalls are also inevitable, and companies are expected to be highly responsive at the first sign of trouble. Consider that the pain reliever Tylenol remains highly trusted after their prompt responses to product tampering (cyanide-laced pills in 1982 and in 1986) and production defects (pills that were improperly mixed in 2010).
Public scandals threaten celebrity personalities, and even the personal exploits of ranking executives can bring significant embarrassment on a firm and devalue its brand. Sometimes, it's brought on by actual bad behavior, but in the present environment, even an accusation can cause damage. Even the behavior of rank-and-file employees can damage a brand.
Shifts in the marketplace can also damage a brand, though it is again the failure of a firm to be proactive that causes people to question whether a brand is still in touch. Blockbuster investors and customers both fled when the firm didn't have an adequate plan for dealing with Netflix and other online delivery sources.
Consider that none of this is new, but the added threat today is the speed at which word spreads. In years past, an incident would be known by few, addressed before word got out. Nowadays, a customer with a cell phone can capture video of a store manager berating a customer and broadcast it online in minutes, where it can be seen by hundreds of thousands of people in a few hours, millions by the next day.
Brand Meltdown: A Case Study
(EN: The author presents not a case study, but a hypothetical nightmare scenario where a delivery truck gets into an accident and things spin out of control. While I don't find much value in reconstructing the narrative, it's worth noting that this author isn't stretching the truth. His hypothetical incident seems plausible, and likely less serious than he might have made it out to be.)
Brand Exposure, a Reality Check
Because stuff happens, and happens more quickly now than in the past, it's especially important for firms to have plans laid in advance to deal with things that occur.
Brand meltdown on a grand scale takes a great deal of attention: when a national brand suffers, it does so on a national scale, drawing lots of attention. However, small brands have just as much exposure in their markets: while the entire country may not be aware of a problem, the entire town might know about it - and that may be 100% of the brand's present market.
The author notes the importance of knowing your brand's "essence": what is it s purpose, how it is distinguished from others, what it promises to customers and other parties, and what its "personality" is. Your reaction to any unfortunate incident should remain true to the essence of your brand: if your corporate voice changes from casual and friendly to stiff and aloof, your response will be perceived as disingenuous.
The author then presents a quiz-like evaluation that helps a brand manager consider the level of exposure. However, it all comes down to three basic points:
- The more widely known your brand is now, the more people will be aware of anything that damages you
- The more your brand is connected to emotions, the more dramatic people will be in reaction
- The degree of current opinion, positive or negative, will impact the degree of opinion in any incident.
Have a Plan Ready
Because things happen quickly, you should have a plan at the ready, and while no single plan can cover every brand and every contingencies, there are some basic tips and techniques.
First, assess your risks. While it's not possible to accurately predict the future, you should be well aware of the things that are more or less likely to happen, given your line of business.
Then, assess your resources. Traditionally, media relations had contacts with reporters who could be counted on the help spread the word; in the present age, it's bloggers and people active in social media who can help tell your side of the story.
Determine a multidisciplinary response team, including those from legal, marketing, corporate leadership, and other departments (if an event involves logistics, maintenance, manufacturing, or other departments, you'll need subject-matter experts with boots-on-the-ground perspective).
When disaster strikes, build a narrative to explain the situation from your perspective and defend your brand. Be clear about your position, and be sure it aligns with your brand essence. State your priorities.
Avoid seeming evasive. A flat "no comment" raises suspicion that you've got something to hide. "We are still trying to find out the answer to that question" is safer. Likewise, don't shut the media out completely - respond in a timely manner, even if it's to say that you're unable to provide a good answer at this time.
Have in place a planned response, or risk having a random one.
- Decide what kinds of events would call for a brief press release, a media conference call, or a live press conference.
- Identify a primary spokesperson, knowledgeable and even tempered, and drill them on handling Q&A sessions with media
- Be prepared to handle transitions - as more facts or uncovered, the story will change, and you must be able to change a position without seeming indecisive or disingenuous
- Being defensive is never a good option: be compassionate, show remorse, but be honest, neither claiming guilt or innocence prematurely
- Consider daily briefings, or even more frequent ones, during times of crisis
- Take control of the Internet, pushing out accurate information to counter the inaccuracies and exaggerations others may spread to enflame the situation.
- Don't neglect your internal audiences. The media may be the most pushy, but your employees, customers, partners, and community is far more important to your recovery.
- Look beyond the expediency of the moment to consider long-term actions you will need to take to restore your brand. Over-committing to mollify the media or the public will lead to greater long-term damage.