Brands & Crisis Management

Although all organizations intend to create the best possible customer experiences, occasionally something real or perceived happens that produces just the opposite effect: a crisis. Every brand will experience a crisis at one time or another. The hallmark of a strong brand is how well it handles those crises. The crisis could come as a result of something the company does (such as the BP oil spill in the Gulf of Mexico—more on this in a moment) or something that is foisted upon it (rumors that McDonald’s’ hamburgers are made of worms). But, when a crisis occurs, it is time to enact a well-rehearsed crisis management plan. So, think about a crisis management plan now (hopefully, long before any actual crisis), and begin with the following considerations:

• Steadily and consistently build brand goodwill over time.
• Identify and address potential problem areas ahead of any actual crises.
• Have a well-thought-through crisis (or emergency response) plan, including scenarios, step-by-step instructions on how to best address each scenario, approved spokespeople, contact information, and key communication documents (e.g., fact sheets, backgrounders, press releases, bios).
• Work with crisis management experts and your legal staff in developing those plans.
• Conduct crisis management drills at least once a year.
• Conduct a crisis vulnerability audit.
• During the crisis itself, follow these general rules:
• Follow your crisis plan.
• Identify your spokespeople.
• Respond quickly.
• Be honest. Don’t deny or cover up things; ultimately, they will be exposed.
• Accept responsibility as appropriate.
• Share as much information as is possible and prudent.
• Let people know what you are doing to manage the situation
• Show concern for those affected.
• Let people know what you are doing to help people who are negatively impacted.
• Explain what you are doing to cooperate with the authorities.
• Let people know if neighbors or others are in danger and what they can do about it.
• Provide the media with telephone and Internet access and the other tools that they need to perform their jobs.
• Provide frequent updates to keep the communication lines open.
• Act with integrity, reinforcing the brand’s personality.

If not handled well, a crisis can undo years of brand equity building. According to Bob Roemer—who was then responsible for BP-Amoco’s public and government affairs worldwide emergency response capabilities—the key to effective crisis management is to offer maximum information with minimum delay. If you don’t have a well-rehearsed plan, you should work with your public affairs department and a PR agency to develop one.

Reprinted from Brand Aid chapter 14: Creating the total brand experience. © 2015 Brad VanAuken

United Airlines Just Can't Get it Right

Physically removing a paying passenger from an overbooked flight is not good for the United brand, especially given that other passengers were capturing the whole incident on video, which can now be seen on YouTube. The correct response was not for the airline to claim it was right but instead to make things right. 

It would have been much better policy and far cheaper to continue to offer higher value flight vouchers until someone voluntarily gave up the last overbooked seat. And clearly it would have been better to do this before all of the passengers were assigned seats and comfortably boarded on the plane. There are so many better ways to have handled this situation that it is surprising that physically removing a boarded passenger against his will was the chosen course of action. 

This seems to me to be a policy, customer service and PR issue. 

And this from the same airline that encountered a PR SNAFU a few weeks ago when it barred two girls from boarding a plane for wearing leggings. 

And of course, it is the same airline whose callous approach to a musician passenger whose guitar they broke led to the famous "United Breaks Guitars" video, viewed by almost seventeen million people. 

And, while almost ancient history now, it is the same airline whose flight attendants threatened a labor action labeled CHAOS (an acronym for "creating havoc in our system") during the airline's "United Rising" advertising campaign, which was intended to indicate a reemergence from an extended customer service slump. 

All I can say is, "United, you are not managing your brand well." People remember these things, and given options, will choose other airlines if they are able. Hire and train for legendary service, focus on employee satisfaction and up your crisis management game.

The Moment of Truth for Brands

Most brands promise useful benefits. The majority of brands are aesthetically pleasing. Most appear to be high quality. Most seem as though they will meet your needs well. Many have great reviews. Some promise long lives. Others offer unconditional guarantees.

None of this matters at the moment of truth…the moment your brand is called into action and fails in its delivery. What are examples of this? A new roof that leaks. An insurance policy that is reluctant to pay your claim. An expensive pair of slacks whose seam rips. Performance clothing whose zipper fails. A computer whose hard drive crashes. A newer car that won’t start. A restaurant entrée that has a hair in it. A waiter who completely messes up your order. A shoe whose sole becomes detached. A barber who makes a mess of your hair. A power outage. A cup that begins to leak. A parking attendant who scratches your car?

Have you ever had one of these problems? If not, maybe you have experienced a different type of product or service failure.

What does the brand do at its moment of truth, when it experiences a failure? Is it aware of the problem? Does it remedy the problem? Does it make a repair or provide a replacement? Does it provide discounts on future products or services? Is it able to convince you that the problem is an isolated occurrence? Does it surprise and delight you with its response? Does the response reinforce your previous positive perceptions of the brand? Does the response make you want to do business with the brand again?

Ritz-Carlton employees are empowered to spend up to $2,000 (without further authorization) to solve any guest complaint. How has your brand planned for a successful recovery from product or service failures? Customers can become even more loyal to a brand if they have experienced outstanding recovery from a failure.