Crimson Hexagon uses its patented social media analysis technology to assess the impact of the NSA surveillance program on the Verizon brand. How has this PR crisis concerning customer privacy affected consumers' perception of the Verizon brand?

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COMPANY & TECHNOLOGY OVERVIEW
TELECOMMUNICATIONS

2. PROPRIETARY & CONFIDENTIAL
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FIRM: Verizon Wireless
BUSINESS
QUESTION: How does a PR crisis concerning customer privacy impact
consumer perceptions of our brand?
METHOD: Analyze social media conversations before Verizon was
implicated in the NSA surveillance program, and then compare
this data to sentiments after the PRISM discovery to uncover the
net impact on perceptions of the Verizon brand.
CASE STUDY: NSA PRISM SCANDAL

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NSA PRISM SCANDAL: VERIZON BRAND (BEFORE)
FINDINGS:
A. In months prior to PRISM
leak, online discussion about
Verizon is very unfavorable (73%)
• Negatively-charged opinion is
drivenby complaints about bills
and excessive service fees (29%)
B. Poor customer service experiences
outweigh great ones (12% vs. 1%)
C. Consumers reveal high praise for
Verizon’s speedy network and data
coverage (25%)
Verizon:BrandPerception(PriortoPRISMLeak)
(3/1/13–6/4/13) 253,996Relevant Posts
C
A
B
B

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FINDINGS:
A. Distrust of Verizon emerges when
The Guardian initially reports on
PRISM (77%)
B. Intent to leave Verizon as a result
of the scandal is very low (2%)
• Peaks to 8% on June 7th
C. As more details surface about the
far-reaching operation, neutral
and positive sentiments
grow, deflecting some attention
away from Verizon
Verizon: WeekOneConsumerReactionstoScandal
(6/5/13–6/12/13) 42,489Relevant Posts
NSA PRISM SCANDAL: FIRST LINK TO VERIZON
A
B
C

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FINDINGS:
A. Following the PRISM leak, Verizon
brand discussion becomes even
more negative (From 73% to 93%)
B. Proportion of chatter expressing
distrust of Verizon surges
(From 3% to 31%)
C. On the positive side, consumer
praise of Verizon’s network
performance significantly drops
(From 25% to 4%)
Verizon:BrandPerception(AfterPRISMLeak)
(6/5/13–6/12/13) 97,784Relevant Posts
C
B
NSA PRISM SCANDAL: VERIZON BRAND (AFTER)
A

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Through social media analysis, we can
also uncover the secondary effect of the
PRISM leak on Verizon:
• PR crisis leads to increases in
consumer commentary expressing
distrust of Verizon
• However, we also see consumers
link the PRISM scandal to Verizon’s
customer service
NSA PRISM SCANDAL: THE SPILLOVER EFFECT
UNEXPECTED SPILLOVER
Proportion of customer service complaints
increases from 12% to 40% after the leak
EXPECTED

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• Throughsocial mediaanalysis, brand managers and PRteams can uncoverhow consumer
perceptions shift duringa crisis anddetermine brand valuerisks
• Using the Crimson Hexagon ForSight™ platform, firms can evaluate (1) how consumers
discuss their brand in the context of the scandal and (2) how the overall perception of the
brand shifts during the crisis
- Distrust of Verizon emergeswhen The Guardian initiallyreports on PRISM (77%)
- Customerservicecomplaints growfrom12%to40%oftheconversation, asconsumersassociatethe
scandalwithVerizon’sunsatisfactory customer service
• Firms can also analyze reactions to new messaging after the crisis to determine the net impact
on brand perception
NSA PRISM SCANDAL: KEY TAKEAWAYS

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Crimson Hexagon, founded in 2007, is the leading provider of analysis
software that delivers business intelligence from social media data for global
corporations. Powered by patented technology developed at Harvard
University’s Institute for Quantitative Social Science, the Crimson Hexagon
ForSight™ platform delivers the industry’s most comprehensive Big Data
analysis capabilities for a variety of large-scale data sources. Clients include
leading global organizations such as: Microsoft, Paramount
Pictures, Starbucks, Simon & Schuster, Twitter, and many more. For more
information go to: http://www.crimsonhexagon.com.
CRIMSON HEXAGON

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