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Crisis and issues management and social media

B
B
BlueCurrent Group Hong KongPublic Relations, Social Media, SEO

A presentation originally given to final year university students in Hong Kong on the subject of issues management in the digital age. Includes: recent APAC examples, key learnings and best practice.

Crisis and issues management and social media

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Crisis and Issues 
Management 
and Social Media 
Laura Tyson 
Vice President 
FleishmanHillard 
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
What is a Crisis? 
• Any problem or disruption that 
triggers negative responses 
and greater scrutiny. 
• Anything that disturbs the 
natural flow of business.
The Cost of Crises 
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 
Source: Managing corporate reputation through crisis – Adam Jolly 
-includes cleanup costs, days of lost production, boycotts, recalls, falling share price, brand damage
Ad

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Crisis and issues management and social media

  • 1. Crisis and Issues Management and Social Media Laura Tyson Vice President FleishmanHillard James Hacking Senior Vice President BlueCurrent Group December 1, 2014
  • 2. 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
  • 5. What is a Crisis? • Any problem or disruption that triggers negative responses and greater scrutiny. • Anything that disturbs the natural flow of business.
  • 6. The Cost of Crises 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 Source: Managing corporate reputation through crisis – Adam Jolly -includes cleanup costs, days of lost production, boycotts, recalls, falling share price, brand damage
  • 8. 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
  • 9. Asiana Flight 214 first made an impact at 11.27am on 6 July 2013 30 seconds!
  • 10. What do we notice about this picture? Passengers were quick to start communicating
  • 11. How long did it take the company to respond? 4 hours and 12 minutes 2 hours 19 minutes after Boeing 1 hour 30 minutes after the SFO Fire Dept 1 minute before the White House
  • 12. The impact of a Communications Void
  • 13. The impact of a Communications Void Not everything that was first reported was correct
  • 14. The impact of a Communications Void Share price opened down 8% Trading volume soared (21 x)
  • 15. One person can light the fire Crises play on a global stage Pace of events accelerates 15 The Internet is a Crisis Game-changer
  • 16. 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
  • 17. 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
  • 19. Crisis Preparedness Assess Resolve Control
  • 20. Crisis Preparedness Assess Resolve Control
  • 21. Crisis Preparedness Assess Resolve Control
  • 22. Crisis Preparedness Assess Resolve Control
  • 23. Why spend millions building your brand if you won’t spend a few thousand dollars on monitoring its reputation?
  • 25. 25 Cover off all Audiences Distributers Industry Analysts Audience General Public NGOs Employees Financial Institutions Vendors Media Customers
  • 26. 26 Create a Team Human Resources Team Legal Finance Operations Marketing and Communications Customer Service
  • 30. 30 Develop a Process Map
  • 31. 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
  • 32. Asian Vs US Centric Language matters 5,000 conversations US Centric 60 Conversations Asia Centric
  • 33. Human Vs Machine Automated sentiment scoring can be very inaccurate. You can’t always replace a person Positive Negative
  • 34. What Can You Digest? Ideal issues monitoring report size
  • 35. What Can You Digest?
  • 36. Use all your Channels Visuals B-roll Search / paid ads Traditional media relations Youtube Website/darksite/microsite Infographics Third parties Be Transparent and Ask Questions
  • 38. Kryptonite A regular pen + a viral video + 10 days = USD $10 million product recall real cost ignoring social media
  • 39. Kryptonite Blogs and Search Engine results continue to damage the reputation long after the crisis is resolved http://www.youtube.com/watch?v=t8XxcOj3Seo
  • 40. BP High impact visuals fuel online sentiment
  • 41. SAN LU Source: http://www.chinasmack.com
  • 42. 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
  • 43. 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
  • 44. 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.”
  • 45. Toyota crisis – other strategies in Search • Lawyers inflame the situation Paid 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-***-****”
  • 46. 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”
  • 47. Uber fails to deliver their apology The fail Josh 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
  • 48. The NYPD Twitter Fail The fail In 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
  • 49. SSingiTnelg’s TFaecelb’oso kF Poastc Setirbs Hoaorshk C oPmrmoenvtsokes Harsh Comments The fail In 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. The lesson Stop 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.
  • 50. Les Deux Les DGeaurcxonGs Aabrucseos nCuss tAombeurss oen sFa cCebuosoktomers on Facebook The fail Angry 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. 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
  • 51. Chow Tai Fook Executive Posts Inflammatory Comments Chow Tai Fook executive posted inflammatory molest comments on Facebook The fail Joanna 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’s comments. 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!” 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.
  • 52. Hoi Tin Tong Fails to Respond Hoi Tin Tong Fails to Respo Qnudi cQkluyi acfktleyr aaf Fteoro da SFaofoetdy SSacafentdya lScandal The fail Hong 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. The lesson Move fast to disprove allegations using all channels.
  • 55. 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
  • 56. A social media crisis handled with honesty and speed: Kitchenaid The success An 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. 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.
  • 57. DKNY Responds Quickly, Decisively to Its Facebook Crisis DKNY Responds Quickly, Decisively to Its Facebook Crisis The success After 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. The lessons • DKNY’s quick and strong response successfully defused the situation before a social media crisis erupted.
  • 59. Who else can cause a crisis?