Is Social Media Damaging Your Brand?

The Challenge: Companies who do not monitor what customers are saying about them online—can wind up using social media for damage control rather than for profit.

In a report by Stanford University it was reported that

• 90% of executives claim to understand the impact that social media can have on their organization, however, only 24% of senior managers and 8% of directors surveyed actually receive ongoing reports.

• Approximately half of the companies do not collect this social media information at all.  

If you are not allocating time for brand reputation management, you will never fully know what your customers are saying to you—and more damaging, saying about you to others.

• In a study by JD Power, over 60% of surveyed consumers said they want companies to listen to what they say about them online and to respond.

• And an Aberdeen study on Brand Reputation Management, it was noted that companies that take the time to stay on top of their reputation management are more likely to have a higher customer retention rate.

While many companies have been put in the position of rapid damage control after negative social media chatter, Reebok recently demonstrated their ability to respond quickly, make adjustments, and move forward when consumer voices were raised in protest over a product spokesperson, Rick Ross, after he rapped about drugging a woman and having sex with her without her knowledge.

A well orchestrated campaign by the feminist group, UltraViolet included an online petition signed 50,000 times in 24 hours, a video viewed over 17,000 times, ads on Facebook, and messages to Reebok’s Twitter page. The group called out Reebok regarding its contradictory position of a controversial spokesperson versus its marketing of products to young men and boys and marketing to women and investing in women’s athletics.

As a result the company rapidly severed ties with Rick Ross.

The lesson for all businesses is to truly understand your customers and put in place the ability to listen in every element of the media mix, and react with speed when the voices of your customers are raised--in any medium.

Takeaways:

• It is far easier to cultivate high brand reputation ratings than to do damage control. Create dedicated staff positions to monitor social media on a daily basis to find out what is being said about your business.

• Your monitoring should include searches on all media; search engines, all social media comments on your page(s) or through hash tags, rating sites such as Yelp, and customer complaint sites.

• If a problem arises, don’t delay in acknowledging the situation. Respond honestly and authentically. Do not engage in “corporate speak”.

Social Media Crises: 3 Tips for Calming the Storm

The Challenge: No company is immune to the possibility of damaging comments, posts and tweets. So how do businesses prepare for unwanted attention on far-reaching social channels? Here, we look at a few companies that have weathered the storm and provided some valuable lessons.

Step 1: Create a social media crisis plan before a crisis erupts. That way, you can address damaging comments and reactions swiftly and professionally. By having a plan in place, you hit the ground running -- a critical step when a social media firestorm ignites. In April 2010, BP had no plan when it found itself in the midst of a crisis when oil spilled into to the Gulf of Mexico. Sadly, the company made several missteps. It failed to own up to what happened, it made statements that didn't align with the truth, and it lacked follow-through with solutions.

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Step 2: It is a given that customers will share service snafus and other experiences online, so it's imperative that companies monitor what is being said. KFC learned this the hard way when a disgruntled customer posted unsightly pictures of an unusual-looking substance in his chicken. The fast food chain did little to address the questionable photograph. Instead, it continued to post its regular stream of marketing messages, making it appear as if the company was trying to ignore the situation at hand. Monitor messages, evaluate and adjust your plan as needed.

KitchenAid faced a similar crisis when an employee accidentally sent an insensitive tweet during a presidential debate using the company's twitter handle. KitchenAid responded quickly and with sincerity, effectively lessening backlash. Specifically, the company acknowledged the mistake, took responsibility for what happened and apologized to President Barack Obama and other Twitter followers.

Key Takeaways for Marketers:

1. Monitor your presence online. Follow online conversations so you know when potentially damaging situations are developing/have occurred. Gatorade uses a sophisticated social media command center to keep tabs on social media activity. Other companies choose to designate a point person to monitor online conversations and do periodic searches relevant to the company's brand.

2. Act quickly. When it comes to social media, you don't have days or weeks to come up with a plan. An offensive tweet can go viral in the span of a few hours. Don't sit on your response. Instead, address situations as quickly as you can -- preferably within 24 hours.

3. Remember that transparency is vital. In most cases, you don't want to delete damaging posts and pictures. Instead, you want to respond quickly and with tact. Apologize, and focus on solutions. If emotionally-charged discussions get out of hand, direct the conversation offline. For example; “We'd be happy to discuss this with you to find the best solution. What number can we reach you?”.