SOCIAL CRISES: BEST PRACTICES, CAUTIONARY TALES ERIC WEAVER • SVP STRATEGY & INTELLIGENCE • IPG MEDIABRANDS

GETSOCIAL 2013

SOCIAL CRISES: THE PROBLEM Consumers have a powerful voice, creating 66% of all touchpoints (McKinsey Consumer Decision Journey, 2009)

Consumers trust each other far more than marketers (Edelman Trust Barometer)

Social amplifies information, whether right or wrong

Speed of impact is faster than most companies are ready to deal with

Executives: “we’re safe” or “it’s a five-alarm fire”

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SOCIAL CRISES ARE GROWING YEAR-OVER-YEAR

Most companies are deaf to social, ill-prepared to respond, and are too slow to prevent reputational damage

Crises impact organisations across a wide-range of industries – food, fashion, autos, banking, government

IT’S NOT A MATTER OF “IF” – IT’S A MATTER OF WHEN.

2007: CONSUMERS HAVE THE POWER TO CHANGE PUBLIC PERCEPTION OF YOUR FIRM

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AND EMPLOYEES CAN CREATE REAL FINANCIAL DAMAGE Employees share YouTube video of pizza employee violating food for delivery

Sales plummet

CEO issues public apology on YouTube (but fails to go further)

Incident reflected in stock report – PizzaHut takes $2MM insurance hit

Crisis Team created

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CREATIVE, NEGATIVE CONTENT CAN RANK IN SEARCH RESULTS AND CAN LINGER FOR YEARS

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HIJACKED HASHTAGS In 2012, McDonald’s began posting tweets aimed at soliciting heartwarming stories from customers

Paid for promoted tweet

“Bashtag” got pulled within two hours – 68% of first 1600 tweets were negative

Negative backlash got covered in Hu�ngton Post, Los Angeles Times, Forbes, the Telegraph, Mashable, and the UK Daily Mail

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SPOTLIGHT SEEKER STIRS UP ANTIPATHY

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SELF-INFLICTED: POSTING ERRORS Hundreds of tweets of disapproval

No apology for hours

Write-ups in IrishTimes, Guardian, US business press

SELF-INFLICTED: POOR TIMING Carnival Corp says it will “go dark” out of respect to Costa Concordia incident

Next day, tweets a happy “#FF” to loyal brand fans

Shortly after, Costa o�ers a 30% discount to cruise survivors for “staying loyal”

Massive backlash in mainstream media

ANGRY CUSTOMER BUYS PAID MEDIA Paid USD $1000

Results: 76,000 impressions, 46,000 engagements, media coverage in BBC News, London Daily Mail, The Telegraph, Business Insider, AdAge, CNN, New York Post, NBC News, Time.com, The Independent, Times of India, Yahoo! News, FinancialTimes.com…

…and finally, an apology from BA.

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FINALLY – SOMEONE HANDLES CRISES WELL

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THE LIFE CYCLE OF A SOCIAL CRISIS

FIRST, DETERMINE CASES THAT FIT INTO FIVE LEVELS OF SEVERITY Based on reputational impact and public visibility:

LEVEL 1: limited reputation impact, limited audience.

LEVEL 2: moderate reputation impact, limited audience.

LEVEL 3: moderate reputation impact, local media exposure.

LEVEL 4: severe reputation impact, regional media exposure.

LEVEL 5: extreme impact reputation with extensive media exposure.

What actions should be taken at each level?

Who should speak on our behalf?

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SET UP A CRISIS WORKFLOW

POTENTIAL CRISIS IDENTIFIED

CRISIS TEAM REVIEWS INCIDENT

POTENTIAL REPUTATIONAL

IMPACT?

CONTINUE TO MONITOR (24

HRS)

NO

NO YES

YES

CRISIS TEAM ASSESS IMPACT

LEVEL 1: LIMITED IMPACT / LIMITED AUDIENCE

LEVEL 2: MODERATE IMPACT / LIMITED AUDIENCE

LEVEL 3: MODERATE IMPACT / LOCAL MEDIA

LEVEL 4: SEVERE IMPACT / REGIONAL MEDIA

LEVEL 5: EXTREME IMPACT / WIDE AUDIENCE

RESPOND & MONITOR PER RACI

NO

RETURN TO NORMAL BUSINESS

OPERATIONS

CRISIS TEAM CONDUCTS CRISIS PREVENTION POST-

MORTEM

POTENTIAL HIGH

VISIBILITY?

ISSUE RESOLVED

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LISTENING TEAM MONITORS

SOCIAL CHANNELS

YES

SOCIAL TEAM RESPONSE: “Reilly, that sounds awful. Did you let the store manager know? Either way, please call us at 00353 14967162, Mon-Fri, 0700-1600. Our policy is to always have a spotless restaurant where customers feel welcome and comfortable. Thanks for bringing this to our attention. “You can also click the Message button above and I can discuss the incident with you via Facebook messaging.”

CREATE A SOCIAL PLAYBOOK AND TRAIN YOUR TEAM

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CREATE A CRISIS “RACI” Crisis Team should include Corporate Communications, Marcomms, Legal, Operations, Customer Service, Investor Relations, Human Resources and members of the executive team.

Crisis Team determine the crisis level, alert appropriate internal contacts and escalate critical issues as they occur.

Media and bloggers are routed to Corp Comms as most employees might not be aware of the potential repercussions in their discussions.

Listening Team also responsible for making sure that the Crisis Team is aware of the latest crisis information and online commentary.

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WHEN WE DO IT RIGHT…

ALL CUSTOMER-FACING DEPARTMENTS (Marketing, PR, Customer Care, IR, HR, etc.) know how to triage, process and e�ectively handle social crises – mitigating them before they explode

FEWER MISSTEPS from lack of internal real-time knowledge sharing

UNIFIED MESSAGE and presentation to the press and the public

Loud, unruly or ILL-INFORMED VOICES ARE DISEMPOWERED because the brand is speaking within the same channels

Trained employees REDUCE FINANCIAL RISK, because unnecessary costs in reputation, brand value, personnel time are reduced

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HAVE SOCIAL MEDIA WATER FOR SOCIAL MEDIA FIRES*

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FINAL THOUGHT: POSITIVE CONTENT WILL REMAIN IN GOOGLE FOR YEARS AS WELL, BECAUSE GOOGLE <3’S ENGAGEMENT

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DON’T WAIT. HAVE A PLAN BEFORE THIS HAPPENS TO

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YOUR BRAND

THANK YOU. @WEAVE MEDIABRANDS.COM