It's amazing how quickly a brand can find itself in crisis, either because an issue arises with its portfolio of products/services or because another brand in the same industry is facing misfortune.
According to the White House Office of Consumer Affairs, a dissatisfied customer will tell an average of 9-15 people about his or her experience. Now more than ever, digital media is shrinking the gap between "crisis break" and customer perception of a brand. Consumers are communicating at a much faster pace, often using the mobile Web to share news in real time and participating in online discussions that enable them to share their thoughts and even communicate their opinions to brands directly. At the same time, digital media is also enabling companies to react with the same swiftness.
I've learned that communicating early and often is the best strategy for mitigating a brand crisis. Again according to the White House Office of Consumer Affairs, 96% of customers who have complained about your product/service will do business with you again (and even refer others to your brand) if they feel you acted quickly to resolve a problem. The key? Providing consistent and accurate details about how the situation is being handled and offering reassurance that your product/service will be available again soon.
Successful crisis management depends largely on developing a planned, integrated solution and a sustained communications approach. Regardless of which channel they use, brands must communicate quickly and effectively with their key constituents during a crisis. That means understanding the best channels and targeting your message accordingly to help reduce the impact of the crisis on your brand and to minimize consumer backlash.
Here are six steps for companies to consider implementing both before a crisis and after it, during efforts to rebuild loyalty.
1. Plan ahead
Have a preliminary strategy ready before you need it. The more prepared you are, the easier it will be to execute your strategy calmly and confidently when the need arises. As you plan, think about all the tools in your toolbox.
Define and group your key stakeholders by the type of information you will need to communicate to them. Furthermore, select a partner capable of deploying your message via multiple media vehicles.
2. Make every opportunity count
Thank and reward loyal consumers for their patronage. Look for opportunities to rebuild your brand's image—locally, regionally, and nationally—via, for example, special events, or social media contests that both educate and engage your customer base.
3. Convince customers to return to your product
As you communicate your efforts to remedy the situation and end the crisis, give consumers a reason to come back to you. For example, consider replacing a faulty product for free or sending incentives, such as coupons or samples, via mail, newspaper inserts or polybags, or various digital media. Create a call-to-action that offers exclusive value and savings to maximize impact.
Integral to rebuilding and rewarding is getting consumers to identify with your brand again. Put a face and a name to your brand. Communicate with customers on an individual level. When using direct mail or email, address recipients by first name. In essence, make your brand a person with whom consumers can identify. Act quickly with complete openness about what has transpired, speaking sincerely and candidly to customers about measures being taken or already taken to prevent a recurrence of the problem.
5. Harness the power of local media
In a 2011 National Newspaper Association survey, 73% of respondents said they read a local newspaper at least once a week. Local publications are an integral part of their communities; your message will benefit from the trust readers place in them. Harness their power!
Use a variety of media outlets and tactics to reach the most consumers and prospects post-crisis and to maximize reach and frequency of your message. A blended approach that incorporates online and print ensures that you are reaching customers strategically via their preferred channels of communication.
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These six steps are certainly not the end-all-be-all of crisis communications. The road to rebuilding customer confidence and reinforcing brand reputation can often be a long one. The important thing is for companies to stay committed to the effort and identify the best messages and channels for communicating with customers in challenging times. Do you have more steps to add? Happy to discuss!