Social Media Crisis – Finding The Right Response

Social Media Crisis – Finding The Right Response.

Social media is essential to many businesses. In some it is pivotal. It boosts recognition, attracts clients and promotes sales. But it can also spread negative information quickly and create a social media crisis for these same businesses. Failing to address a crisis early can lead to catastrophic results. This article discusses a hypothetical social media crisis and the value of early and bold steps to manage it.

1. Definition of a social media crisis

 A social media crisis can be purposeful or accidental, but when it occurs, can be unexpected, destructive, and hard to control. It can place the underlying business in jeopardy.

How does the crisis arise?

A business must constantly be alert to issues that could damage its reputation:  product recalls, health or injury, a safety or environmental incident, customer conflict, labour dispute, security breach, lawsuits and more.

What is a crisis?

Not all conflicts create a crisis. But sometimes a small issue can spin out of control. Sometimes it is malevolent or purposeful. A crisis is seen as a significant event that requires an urgent and focused response. It can generate intense scrutiny, threaten to disrupt the organisation’s ability to operate, put employees or others at immediate risk It can result in a loss of jobs, a business boycott, government attention and more. It can inflict or threaten long-term damage to the organisation’s reputation or financial viability. When a social media crisis occurs or is threatened, speed of response and good sense are required.

2. How can a social media crisis affect a business?

 Reputational Damage: The crisis can start with negative comments, viral misinformation, or controversial content on a social media platform. This can lead to a loss of trust among customers, investors, or the public.

• Brand Perception: It can alter how the brand is perceived. A business’s values, integrity, brand, safety, commitment to quality and customer satisfaction can be put into question.
• Customer Loss: The danger is that dissatisfied customers or employees will voice their complaints on social media. Negative posts can travel swiftly, mobilize existing customers and discourage new ones.
• Financial Impact: A crisis can result in decreased sales, loss of sponsorships, and increased marketing or public relation costs.
• Legal Consequences: A crisis may involve legal issues or alleged breaches of regulations. This could result in lawsuits, fines, or investigations – all damaging the company’s reputation.

3. A look at social media crisis management

 Consider a hypothetical social media crisis involving a restaurant. Briefly:

• Let’s say, on a busy Sunday, the restaurant is operating normally, but a storm, with strong winds rages outside. Suddenly, a tempered glass panel falls, causing injuries to several people inside. Let us say one customer was particularly injured. All signs point to the storm as the agent of the damage and the injury.
• The restaurant made no public statement but tried to carry on business as usual. Finally, it released a public statement expressing regret regarding the injury and stating measures that it had taken to deal with injured person – but it waited 7 days to do so.

There is always the question whether to face the issue openly and explain it to the public, or to remain silent and hope the crisis will pass. In this hypothetical, the business remained silent for a long interval before eventually publishing a statement via online platforms. However, by then too much time had passed and public opinion had mobilized. The statement backfired and angered many people in the social media community. They felt the business was insensitive and by waiting, tried to ignore the event and the injury. They created a boycott campaign which had a negative effect on the restaurant’s business and brand name. As a result, its reputation was tarnished. In hindsight, the following reactions were flawed:

• Late response: waiting 7 days to comment was far too long. Such a delay led the public to believe that the restaurant was trying to hide the incident and ignore the people injured;
• Made public statements, but did not show sympathy to the people injured;
• Continuing to post other promotional content before publishing statements regarding the incident–giving the impression that the business minimized the harm and its importance;
• Aggressively deleting all public comments on the incident on social media, which further raised tension and suspicion.

Bear in mind that there was no suggestion the business was at fault for the injury. What prompted the negative public reaction was the business’s perceived insensitivity to the injury, its failure to seek immediate medical attention, and its apparent desire to cover it up.

4. Suggested strategy to deal with a social media crisis

 The key is “timing”. Of course, taking action ahead of time and before a crisis arises is preferred. Also, judgement is required. Some perilous events will not result in a crisis. But where action is required, acting aggressively can stem a negative reaction and the spread of the crisis on social media platforms. A key response is to have and show genuine sympathy, and to show that the business is not evading (nor admitting) responsibility. Concern for injury or damage to others is paramount. It is important to protect its reputation and to retain customers’ trust.

Preliminarily, and even when the facts are not yet fully known, the business should consider the following:

• Make a clear statement acknowledging the event. It may not be necessary to assume any responsibility.
• Take immediate steps to assist victims while trying to determine the facts. That is, a business can express empathy and try to help affected parties without making an admission;
• A brief description of the incident as known, outlining the circumstances, time, and manner in which it occurred can often be helpful;
• Propose post-incident intervention (on a case by case basis and as appropriate). By this we mean, for example, compensating or contributing to the victims costs;
• In serious cases, create a channel to receive comments and feedback from the public – if the circumstances warrant–provide additional information, answer public questions, and receive feedback. This probably needs to be handled carefully.
• Immediately pause scheduled activity on the social media platform. If the business has scheduled unrelated statements in advance, it may want to consider delaying them. A sense of “business as usual” may occasion a negative reaction. As with all action and reaction, judgement is necessary.

5. Steps to avoid

 There are some behaviors that are probably best to avoid:Bottom of Form

• Blame another party. Avoid implying that the injured customers or others (eg, contractors, partners, vendors, landlords, bystanders) are at fault;
• Remain silent. Sometimes, when the incident is not severe, silence may be a practical response. The danger in this approach is that one might misread the public, or the incident may indeed be severe and warrant a response. Judgement, as always, is important.
• Make a disclaimer. Avoid statements implying that the business has no responsibility or obligation;
• Downplay the severity of the incident: Do not underestimate the consequences or the parties’ injuries. This may give the impression that the business is callous. On the other hand, there is no need to overstate the crises;
• Refuse to provide support to injured parties;
• Show lack of empathy. Avoid cold communications that lack empathy;
• Make public legal threats. They are usually of little value and aggressive statements are often seen as negative.

Conclusion

Social media crises can escalate quickly, affecting a business’s reputation in real time. Finding the right response is crucial to mitigate damage and regain control. Judgement is important, but it’s essential to act swiftly and usually to acknowledge the issue, showing that the business is aware and taking appropriate steps. Transparency and timing are also key–communicate openly with your audience about the steps being taken to resolve the problem. Apologize, if necessary, but with caution. If an apology is given, ensure that the apology is sincere and paired with actionable steps. Finally, after the crisis subsides, conduct a thorough review to learn from the experience and improve future crisis management protocols.

For further information, please contact:

Bui Quang Tuan, Russin & Vecchi

BQTuan@russinvecchi.com.vn