Madelain Roscher, CEO of PR Worx, lists tips for repairing damaged brands, which include containing the crisis, seizing control of the narrative and rebuilding brand trust and equity.
We all know the adage that bad news travels fast. But in today’s digital era, bad news travels at lightning speeds, creating unprecedented risk for organisations that fail to place proactive corporate reputation management as a going concern.
‘The rise of online and social media has massively accelerated the velocity and impact of reputational damage. In turn, this can have catastrophic consequences for companies that find themselves at the barrel-end of a crisis,’ said Roscher.
‘Within the space of an hour, just one misstep can leave brands on the wrong end of a trending Twitter hashtag that lasts for days, with a material impact on business revenue that lasts for weeks, months or even years.’
Ben & Jerry’s political storm
In just May of this year, a tweet by global ice cream giant Ben & Jerry’s on its new mint flavoured ice cream set off a chain of events that has led to widespread consumer boycotts, and numerous state pension fund divestments from parent company Unilever, valued at hundreds of millions of dollars.
The tweet itself was fairly innocent and read, ‘Any mint lovers out there? Browse all 7 NEW Topped flavors.’ However, one Twitter user quickly responded, ‘Will never buy Ben and Jerry’s until I hear you all stop doing business in illegal settlements stealing Palestinian land and contributing to the ethnic cleansing of Palestine.’
Unfortunately, this was just the first of a deluge of negative replies condemning the brand’s overseas practices, and specifically the company’s distribution to Israeli settlements in the West Bank and east Jerusalem. Presumably wishing to avoid further social media criticism, Ben & Jerry’s then went noticeably silent on its social media pages for two months. In July, it finally broke this silence to announce that it was halting sales in Israeli-occupied Palestinian territories – a controversial decision leading some consumers to criticise the company for boycotting Israel, and others to condemn it for not exiting Israel entirely.
Given that some 35 U.S. states have laws and regulations that prohibit them from investing in companies that boycott Israel, Unilever has also found itself in the crossfire. Notably, Arizona has already reduced its investment in the company from some $143 million to just $50 million, while New Jersey and Texas are threatening to follow suit.
Roscher noted that this controversy highlights the need for organisations to employ expert advice as soon as a crisis hits, and, even more importantly, to incorporate reputation management into long-term risk strategies, proactively building more resilient brands.
‘Business leaders need to understand that black swan events are not the exception – they’re the rule. But the good news is that there are several ways in which companies can repair their reputations in the wake of a crisis.’
Expert tips for managing a crisis
1. Contain the crisis
Given the speed at which rumours and bad news now spread, it is more important than ever that companies respond quickly and accurately to incidents as they arise. In the absence of a response, media and consumers will be left to indulge in harmful speculation or will focus on the views of any critics or opponents, further inflaming the situation.
However, caution is needed – a simple knee-jerk denial is unlikely to satisfy the public’s need for information, and if anything, will only fuel negative perceptions and speculation. As a first priority, companies should instead immediately seek to reduce any ambiguity or uncertainty in order to limit the damage caused by the incident itself.
This can be done by focusing on clear-cut facts, communicating honestly and transparently, and by providing meaningful solutions to any legitimate shareholder grievances.
2. Seize control of the narrative
Even after the initial storm has passed, companies need to seize and maintain control of the narrative by keeping lines of communication open and by sharing regular updates on progress made, as well as any other positive developments and stories. Additionally, marketers should set up social listening tools, media monitoring and keyword alerts online to flag whenever their brand is being mentioned or discussed. Monitoring these discussions will help to identify any complaints or issues that need to be addressed.
3. Rebuild brand trust and equity
Finally, brands need to implement a long-term reputation management strategy to rebuild brand credibility and trust, and to regain SEO authority for company names. An effective reputation management strategy is crucial to gradually refocus attention on the future of organisations through implementing programmes and campaigns that demonstrate a true commitment to acting as responsible corporate citizens and addressing the hard issues.
Importantly, reputation management is not about ‘spin’ and hype. Instead, it serves a critical strategic purpose safeguarding companies through building more resilient brands, and by helping to identify potential issues and risks before they escalate into crises. This function has become increasingly significant in view of the growing importance of online reputations, preventing negative headlines from appearing as the first result in web searches and turning customers away, which can directly impact businesses’ bottom lines.
‘As we’ve seen with major sports stars, it’s easy to fall from grace, and it can take years to rebuild reputations but sometimes, it cannot be salvaged. Ultimately, an ounce of prevention is far better than the cure, which is why we generally encourage companies to seek expert counsel before a crisis hits, rather than waiting until after they land in hot water. However, if they do find themselves in a crisis scenario, act strategically, quickly and accurately,’ emphasised Roscher.
PR WORX
+27 11 896 1818
info@prworx.co.za
www.prworx.co.za
