Managementand Social Media

Laura Tyson

Vice President

FleishmanHillard

Crisis and Issues

James Hacking

Senior Vice President

BlueCurrent Group

December 1, 2014

Agenda

1. Where are we from?

2. Who are we?

3. What is a crisis?

4. The cost of crises

5. How fast?

6. Myths and Truths

7. ARC

8. Monitoring

9. Case Studies

10.Final Thoughts

FH and BC

LT and JH

• Any problem or disruption that triggers negative responses and greater scrutiny.

• Anything that disturbs the natural flow of business.

What is a Crisis?

Source: Managing corporate reputation through crisis – Adam Jolly-includes cleanup costs, days of lost production, boycotts, recalls, falling share price, brand damage

Perrier (Benzene incldent) $263,000,000 4x

Union Carbide (Bhopal) $527,000,000 8x

Pan Am (Lockerbie) $652,000,000 9x

Barings Bank $900,000,000 13x

Occidental Oil (Piper Alpha) $1,400,000,000 20x

Exxon (Valdez spill) $13,000,000,000 186x

The Cost of Crises

Asiana Flight 214 first made an impact at 11.27am on 6 July 2013

How quickly did this issue take to emerge?

1) 1 hour

2) 30 minutes

3) 30 seconds

4) 3 minutes

Asiana Flight 214 first made an impact at 11.27am on 6 July 2013

30 seconds!

What do we notice about this picture?

Passengers were quick to start communicating

How long did it take the company to respond?

4 hours and 12 minutes2 hours 19 minutes after Boeing

1 hour 30 minutes after the SFO Fire Dept1 minute before the White House

The impact of a Communications Void

The impact of a Communications Void

Not everything that was first reported was correct

The impact of a Communications Void

Share price opened down 8%

Trading volume soared (21 x)

One person can light the fire

Crises play on a global stage

Pace of events accelerates

15

The Internet is a Crisis Game-changer

Crisis Myths

You can’t predict or prevent a

crisis

You can control a crisis by

withholding information

The Court of Law > Court

of Public Opinion

You lose control by engaging

with social media

Crisis Truths

Most crises are

predictable

All crises can be mitigated

The primary focus should be the court

of public opinion

The longer a crisis lasts, the more

damaging it is

Crisis Preparedness

Assess Resolve Control

Crisis Preparedness

Assess Resolve Control

Crisis Preparedness

Assess Resolve Control

Crisis Preparedness

Assess Resolve Control

Why spend millions building your

brand if you won’t spend a few

thousand dollars on monitoring its

reputation?

24

Assess Vulnerabilities

25

Cover off all Audiences

Audience

Distributers

General Public

NGOs

Employees

Financial Institutions

Vendors

Customers

Media

Industry Analysts

26

Create a Team

Team

HumanResources

Legal

Finance

Operations

Customer Service

Marketing and Communications

30

Develop a Process Map

31

Pick Your Monitoring Solution

Sentiment

analysis

Positive Negative Total Month on

month

change

Forum

comments

30 45 75

Blog

comments

21 32 53

Product

review sites

11 15 36

Total for the

month

62 92 154

Asian Vs US Centric

Language matters

5,000

conversations

60

Conversations

US

Centric

Asia

Centric

Human Vs Machine

Automated sentiment scoring can be very inaccurate.

You can’t always replace a person

Positive Negative

What Can You Digest?

Ideal issues monitoring

reportsize

What Can You Digest?

Use all your Channels

Be Transparent and Ask Questions

Visuals

B-roll

Search / paid ads

Traditional media relations

Youtube

Website/darksite/microsite

Infographics

Third parties

Case studies

Kryptonite

A regular pen + a viral video + 10 days = USD $10 million product

recall real cost ignoring social media

Kryptonite

http://www.youtube.com/watch?v=t8XxcOj3Seo

Blogs and Search Engine results continue to damage the

reputation long after the crisis is resolved

BP

High impact visuals fuel online sentiment

Source: http://www.chinasmack.com

SAN LU

Toyota crisis – taking the official line

Toyota Recall “Toyota

Takes Care of its

Customers. Read the

FAQs at Toyota.com”

Paid Search

ads based on

bid price

Paid Search

ads based on

bid price

Organic SEO

listings

Toyota crisis – competitor strategies in Search

• Competitors respond with generic ads

May the Best car Win “On

New GMC Models, Assurance

Comes Standard. Get Details

Here.”

May the Best car Win “See

How Buick Stacks Up to the

Competition. May the Best Car

Win.”

Paid Search

ads

Toyota crisis – competitor strategies in Search

• Competitors respond where it hurts, emphasizing reliability of their brands vs. Toyota

Paid Search

ads

Consider a New Mazda

“Check out the reliable

vehicles from Mazda and find

a great deal.”

Ford Vehicles “Drive Safe and

Reliable Ford Cars.

Browse Large Inventories

Today.”

Toyota crisis – other strategies in Search

• Lawyers inflame the situationPaid Search

ads

Toyota Recall 2010 Update

“Sudden acceleration danger.

Free case review for injured.”

Toyota Accident Victims

“Toyota Sudden Acceleration

Recall. Free Evaluation, 1-

866-***-****”

Interesting

• Toyota did not rely much on PPC ads to its strong dealership network

• Toyota covered main keywords but missed the long tail searches like “Toyota sucks”, “Toyota gas pedal”, “Toyota investigation”

Uber fails to deliver their apology

The failJosh Mohrer, is the general manager of Uber NYC is accused of using the company's "God view" tool to track a journalist from BuzzFeed. After the scandal happened, 45 percent of Uber drivers said they would drive less for the service. Uber's chief executive Travis Kalanick attempted to steer the ride-sharing company away from the pileup of criticism.

However, Kalanick's tweets(shown on the right side) read less like a heartfelt, we-messed-up here apology to customers, and more like an outline for his PR strategy or an internal screed for employees.

The lesson• Amid a PR crisis, a CEO's apology — or

apology-like statement — should put an issue to bed, allow the company to move on and turn the tide of sentiment.

“apology” from Uber’s chief exertive

Uber and Failed Apology

The NYPD Twitter Fail

The failIn order to "create new ways to communicate effectively with the community“, The NYPD’s Twitter encouraged residents to share photos of themselves with officers using the hashtag #myNYPD. Warm images on the right side are the ones that the department was surely hoping for.

However, the campaign went off the rail with many people starting to upload photos of alleged police brutality along with sarcastic captions.

The lessons• Asking people to talk about how terrific you are in social

media is likely to generate a louder negative response than a positive one.

• If a controversial organization wants to encourage questions and educate consumers, do so in their own private community versus the uncontrollable and anonymous Twitter network.

• Be cautious when using hashtags because they might also gathers in negative voice and turn into bashtags.

NYPD Twitter Fail

The failIn an effort to attract more customers, SingTel, a telecommunication company, released statistics on Facebook showing that they have the fastest fiber broadband.

The post was met with harsh comments saying the statistic couldn’t be true. The customers experienced slow speeds frequently, so they didn’t believe Singtel’s statement.

SingTel’s Facebook Post Stirs Harsh CommentsSingTel’s Facebook Provokes Harsh Comments

The lessonStop asking for trouble. Be honest with yourself about your brand's position in consumers' minds. Remember that advocacy does not come from a social media or ad campaign – It comes from who you are, what your brand stands for.

The failAngry staff at a Kuala-Lumpur based bakery Les Deux Garcons hurls aggressive and abusive insults in response to negative feedback from customers on the company’s official Facebook page.

The Facebook outburst causes extensive negative domestic and international media coverages and online buzz. The company also suffered from loss of sales.

Les Deux Garcons Abuses Customers on FacebookLes Deux Garcons Abuses Customers on Facebook

The lesson• Providing social media training for staff is a

serious and important matter• The customer should always come first –

always treat your customers with respect and take constructive feedback on board

Chow Tai Fook executive posted inflammatory molest comments on Facebook

The failJoanna Kot, the Chow Tai Fook deputy head of public relations and media made comments on Facebook that mocked Occupy Hong Kong sexual assault victims. Her inflammatory comments angered netizens who called for a boycott of Chow Tai Fook products.

The company on Monday made a statement on its Facebook page distanced itself from Kot’scomments. It said her posts were not representative of Chow Tai Fook’s opinion or stance.

“Molested? Remember not to report to the police. Revolution requires sacrifice, fighting for democracy is above the law. Those anti-Occupiers are ‘peacefully’ molesting you. Please be understanding! LOL!”

Chow Tai Fook Executive Posts Inflammatory Comments

The lesson• You should watch what you say on social

media because people will associate your views with your company even if you think your views are personal and your own.

The failHong Kong-based herbal medicine chain Hoi Tin Tong fails to respond quickly to an online video revealing that mouldy jelly was prepared for sale, quickly followed by a study finding that its turtle jelly signature product has very little or now turtle shell.

The reputation is badly damaged and sales saw a significant loss.

Hoi Tin Tong Fails to Respond Quickly after a Food Safety ScandalHoi Tin Tong Fails to Respond Quickly after a Food Safety Scandal

The lessonMove fast to disprove allegations using all channels.

A CRISIS NEEDN’T BE A DISASTER

• Managed correctly a crisis can make a company, managed badly it can break a company

• It’s an opportunity, it’s exposure• Can enable companies and organisations to reach new and

different stakeholders• It’s chance to show leadership and the human side of a

company• A well-handled crisis can be team-building and enhance

staff and customer loyalty• Can provide an opportunity for wholesale change which

would otherwise be difficult to implement/achieve

The successAn insensitive tweet about President Obama’s grandmother was posted to the Kitchenaid Twitter account, instead of the personal account of a KitchenAid staff member. The tweet was quickly deleted, but many people had already seen it. The head of the Kitchenaid brand took to the Twitter account just 15 minutes later and explained what had happened. She apologized to President Obama and the public and pointed out that the person who posted this will no longer be tweeting for them.

A social media crisis handled with honesty and speed: Kitchenaid

The lessons• If a mistake does happen it should be

addressed immediately. A honest explanation and apology will be well received and the damage to the brand reputation will be limited as a result.

DKNY Responds Quickly, Decisively to Its Facebook Crisis

The successAfter a photographer realized that DKNY were using his photos in a window display without his permission, he mobilized his community to share a post asking DKNY to donate $100,000 to a local YMCA in lieu of compensation. DKNY responded quickly by way of an apology. They explained that the Bangkok store involved had accidently used the ‘mock-up’ photos and they promised to donate $25,000 to the YMCA. The photographer accepted it was an honest mistake and thanked them for the donation.

DKNY Responds Quickly, Decisively to Its Facebook Crisis

The lessons• DKNY’s quick and strong response

successfully defused the situation before a social media crisis erupted.

Final Thoughts

Who else can cause a crisis?