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.
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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
7.
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
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
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
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
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.
53.
54.
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.