Posts Tagged ‘Online reputation management’

Nestle, Greenpeace, social media, crisis management, facebook, YouTube, Twitter. PR measurement. Interested?

Prediction: we should see signs of Nestlé’s share price recovering from its latest issue within about 15 days.

Prediction 2: at some point this year, 2010 will be named the Year of the Social Media Crisis. So I’m doing it now just to be the first. (If I’m not the first then please let me know so I can link to that person’s blog and boost my traffic But it didn’t come up on Google today).

Last week Greenpeace kicked off the latest element of its ongoing campaign against the use of non-sustainable palm oil, lining up the cross hairs on Nestlé, and in particular the iconic Kit Kat.

What started out as a fairly run-of-the-mill campaign (Greenpeace has run similar palm oil campaigns in the past), took a bit of a turn when social media gurus jumped on Nestlé’s response to criticisms on the company’s facebook fan page. This was the point at which I started to pay a bit more attention as it was no longer just the Greenpeace campaign that was fuelling the issue (and thanks to fellow H&K blogger Matt Muir for flagging it to me on a Friday afternoon!). Interestingly, the official video in question still only has around 80,000 views on YouTube (sorry folks, one of those is mine).

The problem the company now faces is that the story of its engagement with stakeholders via social media has, as was probably expected by anyone with a facebook account, overtaken the original issue of its sourcing practices, as highlighted by this PR Week story.

Since there are 90,000-odd people out there all with an opinion on that, I’m going to leave that particular debate alone. I’m more interested in what’s happening with the company’s share price, which, as you’d probably expect, has taken a bit of a dip. (Hopefully on Monday our IT wizards – or Matt – can explain to me how I insert that as an actual image – to be updated…).Now updated with actual artwork.

While that’s not wonderful for the company’s shareholders, it’s useful as an in situ case study. As mentioned previously on this blog, good crisis management can have a remarkably positive impact on shareholder value.

The Knight & Pretty study on which that assertion is based shows that companies that recover well from a catastrophe tend to show the start of an upward trend returning to their share price around 10-15 trading days post-disaster (recoverers are the top line):

Figure 4 from Knight & Pretty's "The Impact of Catastrophes on Shareholder Value"

This recovery is largely attributed to the performance of company management in the early stages of the recovery. I think Nestle is the kind of company that will be able to manage its way out of this fairly promptly. However, there are some additional challenges the company will face in getting there (I think):

  1. Getting the facebook thing right will probably involve a bit of sword-falling. But that’s no good unless you mean it (which means there has to be some kind of behaviour change first, before the public perception piece will work).
  2. The marketing sub-set of social media guru-dom will continue to feast on its young, until more tech-savvy marketers take the point of view expressed by @mediaczar (thanks @Matt_Muir yet again). Great example of Twitter as a debate platform. In the meantime, watch the carnage continue.
  3. Institutional investors will remain all over the shop courtesy of having to work out how the economy works again after a global financial crisis. The upturn in value I think will be affected by just how much brokers and analysts value the impact of social media vs. the old fashioned kind.
  4. They’re still going to have to do something about the palm oil. Incidentally, so are thousands of other companies because it’s remarkably pervasive stuff – you wouldn’t believe how much of it’s out there, and ever since we all got scared of trans fats in our diet, palm oil’s been making a comeback in ingredient lists.
  5. Supply-chain scrutiny is going to return to the fore. We’ve not long ago finished Fairtrade Fortnight, when Kit Kats across the world were celebrated for the appearance of the new logo. The ease with which this issue has captured public opinion will, I think, galvanise a lot of other interest groups who have previously struggled with highlighting labour/sourcing/deforestation practices in the past, having another crack.

Time will tell if I manage to fluke at least one of these (or my two predictions). I have a feeling there’ll be a hat eaten at some point this year…

As an adjunct to all of the above, I think communicators/marketers/crisis managers and PR students should spend some time with a PR text book and the Greenpeace website.

Professionally I have a lot of time for the sophistication Greenpeace brings to its campaign activities, because they show all the hallmarks of strategic, issues-led communication campaigning. PR measurement isn’t rocket science (well, only rocket science is really)…point being, if you set your PR or communication objectives properly, measurement becomes a binary thing. Either you achieve your objective, or you don’t. Pretty simple stuff, and yet remarkably difficult to do well – usually because we get side-tracked by things like events, press clippings and “we want to do a viral video”.

Eurostar was not a social media crisis

Back in December when this was still a gaping wound we promised to take a look at the Eurostar rail crisis in detail, to identify some lessons that could help us and our readers learn from this high profile crisis. As we said then, we’re not going to pass judgement on the situation because we weren’t in the room, and frankly there are a lot of Monday morning quarterbacks already on that case. Instead, let’s look at a few key areas that we can all put to some constructive use.

After watching the story unfold, quiet down and revive itself over the past month, we thought it was time to make good on that promise. Unfortunately, there were so many things we wanted to look at we’ve had to stagger our analysis over a few posts, so if you’re not completely alienated by what’s about to follow then you’ll have to come back again.

Here’s the first thing we learned. What transpired was not a social media crisis. What actually happened was this: a few trains broke down. In no way was that caused by the internet, nor was it caused by a sweeping movement of social change that brings unprecedented power to the voice of the individual. It was caused by snow (in response to feedback received in our Comments, I’m updating the “cause” of the train breakdown to “caused by condensation shorting out electrical systems as the trains moved from extremely cold conditions outside the tunnel to warmer temperatures inside.” However, according to this AFP story that states: “the company blamed the ‘wrong kind of snow’ for causing problems with its trains’ electrics”, I think it was a fair error to make – GS.). The second thing we learned was this: business operations and communication functions must be intrinsically linked in order to provide any semblence of good communication in a crisis.

Now before you start sharpening your pitch forks, let me give you a bit of perspective.

If you’re on fire (yes, physically alight), then you have a crisis on your hands – it’s stopping you going about your day to day life. What you want in this case is an operational solution to your problem. You want the fire put out. Ideally, fairly soon. A communication solution requires you to find someone to ask to put it out. An operational solution involves…putting it out yourself, however you need to.

If you’re stuck on a train in a tunnel, where in the best of my experience you can’t get mobile reception or a decent wifi signal, then what you don’t want is to read on Twitter that your train is stuck in a tunnel. In face, you probably already have a hunch that this is the case. What you want…is someone to get you out of the tunnel.

In the meantime, you’re probably going to settle for a) knowing what’s going on, b) knowing how long it’s likely to go for, c) knowing how that’s going to affect your life in the foreseeable future, and d) knowing how the people responsible for your wellbeing are going to make the experience as painless as possible.

At this point, communication starts to have a role to play. Communication in a crisis is all about facilitating the flow of information, and the very human thing to do is to focus firstly on the people who are immediately affected by the crisis. In this instance they are the passengers stuck on a train, closely followed by the people waiting for them at their destination, who are probably on par with people waiting to get on a train themselves. Frankly, everyone else is a spectator.

The priority should be (should always be) to communicate first to the people most directly affected by the crisis, in this case the passengers on the trains, followed by the people waiting for them at the other end.

This information will always “leak” anyway, so if you’re responsible for communication you need to get this bit right first. The best social media strategy in the world would still be useless in this case when you’ve got actual passengers tweeting about pools of vomit, starving babies and over-flowing toilets.

When it comes to actually getting information to our previously identified audiences there are so many other channels that would make for a more targeted (effective) communication of the breakdown information – arguably more appropriate as well. Here are a few:

  • PA system on trains
  • Actual train staff
  • Arrival boards at stations
  • PA systems at stations
  • Information desks at stations

For passengers or greeters who haven’t left home yet to catch their train:

  • A company website interstitial page that re-directs people away from the corporate site for information about the delay (helps stop servers crashing and is just as transparent if you badge it properly)
  • Direct to customer emails/sms to advise of the issue

Not until all of the above channels have already been tapped would something like Twitter become a relevant consideration. Although at this point all of your connected audiences who got their information from one of the above channels will already have tweeted about it, and you’re probably already getting media enquiries…so what really are you going to say that’s any different? And isn’t that up on your crisis website anyway? Where people can already get all the information?

Yes, you should absolutely be providing information to external sources, and if you get out there early enough then the world’s news media will happily go and write their stories and then tweet about them – leaving you to get on with fixing the crisis. And if your company has an existing social media strategy that is actually appropriate for communicating crisis information, then sure, go for it. But don’t be fooled for a second that a #hashtag with your brand attached to it is going to make life any better for a three-year-old sitting in a tunnel.

From a crisis management perspective I’d venture that Eurostar not using its (unbranded, push-marketing focused) Twitter account @little_break to provide updates was the right thing to do in this case. As so many of the social media commentators have noted, this is a marketing account with no link to customer services. Why then should it be a considered channel in the first hour of the crisis?

A bigger problem according to many of the eyewitness accounts was the flow of information at all. Had the company got Twitter right, they just would have alerted a bigger audience to the fact there was a problem at all. You know what – that’s why the media exists. To report news. Let professionals deal with that – company focus should be on fixing the problem.

And fixing the problem comes back to our earlier point – business operations and communications need to be intrinsically linked. The communication team can now describe in vivid detail how the outside world perceived this crisis, and hopefully the operations team will take a good look at how passenger comfort might be maintained in the event of a future scenario, followed by communicating to passengers and greeters appropriately.

I don’t believe any agency, be that PR, social media or anyone else should get to take credit for either of those. They should be business-critical activities, not crisis PR.

What a GCSE in social media means for Crisis management

As of next year, it seems that teenagers are going to be able to turn their Tweets into UCAS points, with The Daily Telegraph reporting today that an exam board is set to launch a GCSE called ‘English Studies: Digital Communication’.

According to the paper, this will require students to be able to “read, analyse, critique and plan…industry made or user generated examples of advertising, audio podcasts, video/moving image, websites, social networks, wikis and blogs”. In other words, social media.

At the same time, The Independent, which has long-targeted a youth audience (in particular students on campus) and always been something of a pioneer with regards new ways for people to read its newspaper, is embroiled in a potential minefield with its readership over the possible appointment of a new editor, Rod Liddle.

Within hours of Media Guardian publishing the story that Liddle was being lined up as a potential recruit, a Facebook group had sprung up opposing the move. At time of writing, that group has 2,732 members, which is nearly 1,000 more than it had this time yesterday. This is only one example of a string of unpopular decisions by prominent organisations that have resulted in a large number of people registering their dissatisfaction within a short space of time in a similar way.

For comms professionals, social media can be a powerful tool provided you can harness it. For crisis practioners however, it presents a different challenge – how do you communicate sensibly, clearly and effectively with this type of audience, who are clearly pushing for change, whilst protecting your company’s reputation?

As my colleague Grant notes in his blog post today, monitoring and listening to social media channels is a great place to start, but it should only be a start. Actually being in a position to effectively engage with this audience requires an understanding of what motivates them, what their goals are, how you can acknowledge these and crucially, how you can best communicate your key message to them in a way that they will listen to, understand and accept.

In other words, before you can apply the basic principles that drive your crisis comms to these groups, you really need to know and understand your audience first. Sounds familiar? It should do, because it’s something that we do with other audiences and channels already. It’s just that new learning is required with regards to these groups and it is this that can appear daunting at first.

Training can help immensely in this regard, but it also still requires a lot of hard groundwork as well in order to succeed.

Are you really using Twitter for crisis management? Really?

Here’s a really interesting post on the Marketing Pilgrim blog, looking at a recent eMarketer report on the uses that companies are putting social media to.

Of immediate interest was the finding that more than forty percent (40% ?!?) of respondents claim to “Monitor Twitter for PR problems in real time”.

While it’s encouraging to see so many organisations recognising the benefit a platform like Twitter can provide from a monitoring and issues management perspective, I’m not sure I believe the 300-odd respondents who said they’re actually doing it. It’s always easy to answer a survey question in the affirmative if you think that’s what you should really be doing – case in point, *of course* I get my five-a-day every day.

I think what I find more believable is that only around half of the respondents that claim to monitor Twitter as an issues management tool actually respond to the tweets they’re picking up on. This is a worry in itself.

If you’re not going to do something about the problems your stakeholders have with you, then all monitoring does is take away the element of surprise when one of those niggles becomes an actual issue or crisis. And it gives you some time to start updating your CV.

As our Digital team constantly reminds us, monitoring and listening are great places to start, but the important bit is actually doing something to fix the underlying problem.

This is one of the topics that Gaylene Ravenscroft and Candace Kuss cover in our Social Media Workshops, which we’ve been running with numerous clients to great effect (having sat through one of these myself I can vouch for the quality of the content – it’s actually part of the reason we started this blog).

And for those readers who are on Twitter, you can follow Hill & Knowlton London. Relevant crisis-related posts have a #HK_crisisUK hashtag for easy reference.

What a teenage vampire love story can teach crisis managers about Twitter

At a recent event I was challenged over my views on Twitter – specifically as to whether or not it’s really all that big of an issue in the context of your average crisis manager’s day in the office.

Before we get too carried away with this (perceived) blasphemy, in principle I agree with the challenge on the following points:

  • Not everyone’s on Twitter
  • If you’re not following a particular Twitterer (e.g. Ashton Kutcher) then you’re not really all that likely to see their tweets (leaving aside for the minute the phenomenon of re-tweeting)
  • The “push” mentality of most Twitterers (yours truly included) means many tweets are practically spam, although working this out for yourself means the quality of your tweets should improve over time
  • With some notable exceptions such as the Iranian elections (or here for The Washington Post’s coverage of the Twitter phenomenon), most trending topics lack apparent relevance for big corporations (the number of companies selling tickets to see New Moon, for example, is far lower than the audience interest in buying them)

However, on reflection, the phenomenon that is Stephenie Meyer’s Twilight saga actually makes the opposite point. Like Harry Potter and The Davinci Code before it, copies of Twilight and its sequels can be seen on trains, planes and around the Hill & Knowlton offices, on our colleagues’ desks. And that’s largely the point.

As the Current Twitter trends column from independent.co.uk highlights, the topics that trend on Twitter are in fact the things that a critical mass of people actually care about. In real life.

And this is where I think many of us have, until recently, missed the point with Twitter and other social media.

There’s something of a bias towards believing that if something’s covered in the news media then it’s objectively important. It must be, because it’s “the news”, as opposed to a published stream of consciousness, right? So it then begs the question as to why a respected newspaper would go to the trouble of republishing a list of things that people are tweeting about.

It’s all about dealing with real people, whose actual lives exist offline. No-one lives on the internet. You can’t eat it, you can’t breathe it, it doesn’t keep you warm. Social media is populated by real people, with concerns that are as real to them as the need to eat and breathe.

The role then for crisis managers, is to recognise that grievances, complaints, valid concerns and, dare I say it, helpful tip-offs, are all getting aired in pubic, around the clock, around the world, and on the internet. Good crisis management requires us to be alert to that scenario, and do something about it (which is why the Issues & Crisis team here at Hill & Knowlton works closely with our counterparts in the Digital team to make sure we’re continually learning about how to do this better).

As I’ve said in a previous post, social media should be considered on its merits for every individual case. However, understanding the premise of the beast is no longer optional for any crisis manager.

As an aside (although somewhat related from the perspective of corporations using social media as a communication channel), check out this post from the Brand Twist blog on why you don’t need a social media strategy…

Also, follow Hill & Knowlton UK’s Twitter feed here.

Disclosure: this is an edited version of a post I made last week. While some of the examples have been updated, the basic thrust of the post hasn’t.

How social do you want your crisis management to be?

Nearly every article written on the role of social media in crisis management overlooks the hundreds of crises managed by organisations every year that no-one outside of a very small management team ever hears about. However, that’s a topic for another day because we’ve found a very good article by Euan Semple, on the Internal Comms Hub, on the importance of incorporating social media into your crisis management plans.

Euan makes a good point when he says: “When you have an unpredictable situation the distributed nature and inherent spontaneity of social media is just what you need.” That’s absolutely true when you need to get a message out to as broad a population as possible, as quickly as possible.

But good crisis management planning should increase the predictability of most situations facing organisations today, and the likelihood that you need to alert a whole country to a problem is very, very small. There aren’t really that many people in the world who will ever have to deal with a tsunami, earthquake, flood or terrorist attack.

So while it’s important to understand how social media works, and how that can help or hinder you in your crisis management efforts, it’s probably more important at the planning stage to understand how it fits with your organisation’s overall identity, and your existing relationships with your audiences both on- and off-line. At the end of the day, we’re still talking about real people (you and your colleagues) talking to other real people (the rest of the world). Just because it’s on the internet doesn’t change that.

If you’re using a facebook fan page as a one-way channel to push information out to a customer base, a sudden switch to two-way crisis communication is going to create more problems than it solves because that’s not what your audience is coming there for.

Social media is the great communication equaliser in that it levels the information playing-field for both organisations and their stakeholders. This also means that cranks, charlatans, hackers and general trouble-makers get to enjoy the power shift as well. In the midst of a crisis do you have the physical resources available to tackle these head-on? Probably not. Can you rely on any social media platform to self-regulate itself into a rational state of mind? Probably, eventually. In the timeframe you need it to? Probably not.

Escalating a crisis, 140 characters at a time

In an article last month published in Communicate, Hill & Knowlton’s own Peter Roberts made the following point:

…social media does two things incredibly well: “The first is creating an environment where people can communicate one-to-many, instantly. The second is the observer’s view of a conversation. Thanks to social media, we can now watch a conversation unfold.”

In his Telegraph.co.uk blog today, Head of Technology (Editorial) for Telegraph Media Group, Shane Richmond, highlights some of the issues that this phenomenon represents – particularly when you or your organisation become the subject of the conversation in the context of Twitter.

This raises an interesting question for communicators, and particularly with respect to crisis management. Do these increasingly transparent (if not voyeuristic) forms of communication mean we’re facing a different type of crisis? Our Canadian colleague, Brendan Hodgson, shares his views. Ultimately, the principles of crisis management should remain the same, but the emphasis on speedy and transparent response is more pronounced than ever.

Online reputation management

Further to yesterday’s post about managing online rumours, here’s a great column we read recently on the Financial Times website (you may need to register to read this – it’s ok, registration is free and well worth the 3 minutes it will take). As our team of Digital specialists here at Hill & Knowlton constantly remind us, online reputation management means recognising that you’re now stuck in a conversation. You can’t dip in and out like you do with the media agenda. It’s like the difference between channel surfing and a family dinner.

Ugly rumours – online reputation management

Online rumour mongering threatens brands every day. This piece in a recent issue of Communicate Magazine provides some insights into managing the threat, including a great response model used by the US Air Force, and commentary by Hill & Knowlton’s own Peter Roberts.