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Crisis as Moment of Truth:When a Brand is under Fire
Timothy CoombsUniversity of Central Florida/Tallinn University
Problem with crisis
Impacts• Damage to Brand• Decrease purchase intention• Decrease in market share
Effective Crisis Communication
Beware of Risks
Question• What makes crisis communication effective?
Answers• Understanding the crisis situation• Understanding your response options• Knowing your limits
Understanding Crises
Crises
TraditionalCrises
Social MediaCrises
Traditional• Operational concerns and safety issues• Perceptions of crisis responsibility
Ethical Base Response: Initial Communication• Public safety• What happened (anxiety)• Corrective action (anxiety)• Expression of concern (anger)
Traditional Crisis
Low Crisis Responsibility High Crisis Responsibility
Low Crisis Responsibility
Rumor Attack
Communication Options• Denial Rumor• Suffering Attack
High Crisis Responsibility
Human-errorAccidents
Product Harm
ManagementMisconduct
Communication Options to Rebuild Brands• Compensation• Includes discounts
• Apology• Accept responsibility• Ask for forgiveness
Timing• Benefit to Brand if organization is first to disclose the crisis
Traditional Crisis Brand is Asset
Social Media Crisis Brand is Liability too
a concern that arises in or is amplified by social media resulting in negative news media coverage, changes in business operations, or threatens financial loss
Soci
al M
edia
Cris
is
Social Media CrisisPrimarily Brand threatBrand is target because it has value (liability)
Sources of social media crises
SocialMedia Crisis
ChallengesOrganizational
MisuseDissatisfiedCustomers
Refined View of Social Media CrisesSocial Media
Crisis
StakeholderActions
Challenges Customer Complaints
OrganizationalActions
Misuse of Social Media
Organizational misuse• Inappropriate use (competence)• Apologize and correct
Traditional Crisis Connection• Purposeful misuse (moral)
Dissatisfied Customers• Customer relations, not a crisis• Resolve the concern (opportunity & transparency)
Traditional Crisis Connection• Warning of a product harm
Challenges• Stakeholder claims organization is acting in irresponsible manner• Threat to CSR claims• Threat to Brands
Social media as risk• Stakeholders take control of organization’s social media• Planned• Spontaneous
• Creates negative messages
Social media as risk
Communication Options• Refuse• Refute• Reform
Rebranding too Toxic
Limits• Financial cost of response• Consistency with organizational strategy and culture
Tactical Advise• Be fast (but accurate)• Be consistent• Be open
Final Comments• Brands face Traditional and Social Media Crises• Crisis Communication potentially valuable resource• Reduce damage to brand• Reduce decline in purchase intention• Reduce loss of market share
Küsimused
