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Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
Backlash: When Former Fans Fight Back
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Backlash: When Former Fans Fight Back

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The Fort Worth Chapter of the Public Relations Society of America was kind enough to invite me to present on the recent spate of consumer uprisings that have vexed Netflix, Bank of America and Susan …

The Fort Worth Chapter of the Public Relations Society of America was kind enough to invite me to present on the recent spate of consumer uprisings that have vexed Netflix, Bank of America and Susan G. Komen for the Cure. The presentation I delivered wouldn't have made much sense since there were few words on the slides, so I've created this version includes incorporates my speaking points.

Published in: Business, Technology
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  • 1. Backlash When Former Fans Fight Back
  • 2. The Original Backlash  Soft drink market stagnated and Pepsi was gaining market share  Coca Cola Co. launched “New Coke” on April 23, 1985  Backlash – 400,000 calls and letters
  • 3. It (Only) Took 79 Days  Brought back original formula as “Coca- Cola Classic” on July 11, 1985  New Coke Rebranded “Coca-Cola II” in 1992  Coca-Cola II discontinued in 2002
  • 4. What has ChangedWhat Hasn’t Changed What Has Changed Organizations still aren’t  Ease of feedback – that smart Tweets, posts and e- People still have strong mails affinity for their favorites  Ease of sharing feedback Taking people by surprise from others remains risky  Speed – What used to take months now takes days
  • 5. Recent Examples of Backlash  Netflix restructuring hikes prices  Bank of America plans $5 ATM fee  Congress considers Stop Online Piracy Act  Verizon plans $2 convenience fee  Susan G. Komen for the Cure announces new funding criteria
  • 6. Common Reaction:They had to know thiswasn’t going to go well.
  • 7. Unknowns Can Be Tricky
  • 8. Typical Backlash Lifecycle  Step 1: Action  Step 2: Discovery  Step 3: Early media involvement  Step 4: Outrage and disbelief  Step 5: Demands  Step 6: Acquiescence/Apology  Step 7: Lingering disgust
  • 9. Typical Backlash Lifecycle Step 1: Action 6 Step 2: Discovery Step 3: Early media involvement 7Intensity 5 Step 4: Outrage and disbelief Step 5: Demands 4 Step 6: Acquiescence/Apology 3 Step 7: Lingering disgust 1 2 Time
  • 10. Bank of America Situation  A DigitalMR analysis found that Bank of America receives 1/3 of all the negative comments online about US banks  A change.org petition gathered 300,000 signatures  An estimated 846,000 consumers switched banks in reaction to the bank fee controversy  Nonetheless, Bank of America announced fee increases for new accounts in March 2012
  • 11. Komen Situation  More than 100,000 tweets were sent in regard to Komen during the controversy  They were dominated by critics of the move.  Just three of the top 28 hashtags support Komens move. Source: The Signal using a new tool called "influencers" created by the Yahoo! Labs Content Science team
  • 12. Source: The Signal using a new tool called "influencers" created by the Yahoo! Labs Content Science team
  • 13. Analysis of Twitter Impact  Influencers are Twitter users who tweet a lot on a particular topic, are retweeted and have a big following  In this controversy, influencers were a combination of official organization Twitter accounts, journalists and unaffiliated tweeters  This was initially top-down, then became a broad-based push in last two days  Pro-life groups never gained traction, with just one influencer on the list Source: The Signal using a new tool called "influencers" created by the Yahoo! Labs Content Science team
  • 14. Influencers During Controversy Feb 01, 2012:  Feb 03, 2012:  Ppact Planned Parenthood • Dailykos Daily Kos  IPPF_WHR Planned Parenthood  Rtraister New York Times journalist • HuffingtonPost Huffington Post  NPRHealth NPR Health • Ppact Planned Parenthood  HuffingtonPost Huffington Post • BreakingNews BreakingNews.com  David_Feldman Comedian • ProducerMatthew Reuters journalist  Nancyfranklin New Yorker journalist • Iowahawkblog Unaffiliated  Marikatogo Moveon.org • Someecards Some E Card (card mocking Komen) Feb 02, 2012: • jayrosen_nyu Unaffiliated • US_JUST Activist group • Julieklausner Unaffiliated • JessGrose Slate journalist • Dcdebbie Unaffiliated • Shannynmoore Unaffiliated • Ezraklein Washington Post journalist • Slate Slate • edstetzer President of Lifeway • taradublinrocks Unaffiliated • JessicaPhD08 Washington Post journalist Source: The Signal using a new tool called "influencers" created by the Yahoo! Labs Content Science team
  • 15. Results of Backlash Before After Netflix restructuring hikes price DVD spinoff killed Bank of America plans $5 ATM fee Fee pulled Congress considers Stop Online Legislation pulled Piracy Act Verizon plans $2 convenience fee Fee pulled Susan G. Komen for the Cure severs Funding restored ties with Planned Parenthood
  • 16. Fact Check:The vast majority pays little attention
  • 17. About 40% Tuned In  Pew Weekly News Interest Index Poll, Feb 5, 2012: As I read a list of some stories covered by news organizations this past week, please tell me if you happened to follow each news story...A controversy over whether the Susan G. Komen breast cancer charity would cut funding to Planned Parenthood.  20% Very closely  20% Fairly closely  22% Not too closely  36% Not at all closely  2% Dont know/Refused http://www.people-press.org/question-search/?qid=1804572&pid=51&ccid=51#top
  • 18. 9 in 10 Said Other Stories BiggerFacebook, 2% Refused, 17% Elections, 23% Other, 8% Economy, 18 % Super Bowl, 15%Afghanistan, 6 Komen, 11% %
  • 19. Very Similar Data for Netflix  Pew Weekly News Interest Index Poll, Sept. 25, 2011 - How much if anything, have you heard about Netflix announcing that it will divide into separate businesses for DVD rentals and streaming video…  20% A lot  32% A little  47% Nothing at all  1% Dont know/Refused
  • 20. Younger, Affluent More Aware 9% Age 50+ 28% < Age 50 14% HHI < $50K HHI $50K+ 30% 0% 10% 20% 30%
  • 21. Similar Moves Without Backlash  Hotels raked in $1.8 billion in fees in 2011  Airlines assess fees totaling $5.7 billion annually  Ticketmaster assesses fees of up to 25% on tickets  TSA steps up security searches  eBay introduced a 9% fee on shipping
  • 22. DNA of a Backlash  Prior sense of ownership  Surprise  Lack of understood/accepted rationale  Shared outrage  Slow and/or ineffective response
  • 23. Backlash Daniel Keeney, APR DPK Public Relations www.dpkpr.com @dpkpr

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