social media crisis management - the good, the bad and the ugly

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Post on 16-Aug-2015

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85% of consumers say they will retaliate if their needs are not met, and 21% of 18 to 34 year-olds say they will do so

using SM outlets

The good

Happens after service failure

Not going back to a store or spending time on the telephone  Customers write on a firm’s wall or send a tweet

The firm should be primarily concerned about redressing the situation   For example, Discount Car Rental , BestBuy instituted Twelpforce  

The bad: 

Not all complaints found on SM are directly

addressed to the firm

Customer can badmouth the firm after a single

service failure, without giving it an opportunity to

fix the issue

 Negative word-of-mouth is more dangerous than

ever

 

Social media channels such as Instagram,

Pinterest are effective for this form of negative

word-of-mouth

 

The Ugly:  Spreading negative publicity to get revenge

French humorist posted a YouTube video denouncing what he felt were abusive charges for his having an overdrawn bank account.

This type of complaints are the most likely to go viral

This type of social media complaint creates a dangerous crisis for a firm

ACTIVITY

Customer not primarily concerned about revenge, mainly seeks effective recovery for an initial service failure.   No real damage has occurred, complaint can be viewed as an opportunity to provide superior service.

The notion of timing becomes especially crucial in this first instance.   Usually provide an answer within 15 minutes.   Should directly and publicly answer the complaint  When a problem is complex or severe, the company should communicate privately.  

Because these customers do not make contact with firms, it is upon the aggrieved firm to make contact with the disgruntled customer.

The firm should publicly contact the individual to acknowledge the situation. After negotiation to solve the

problem, the firm should close the cycle by communicating outcome Note that the firm does not always have to give in, especially if a customer’s request is unreasonable and if his/her tone is abusive

Alamo Drafthouse, an Austin, Texas-based movie theatre

This type of complaint that is the most likely to turn viral

When a complaint becomes viral, it becomes very difficult for firms to control, and almost impossible to turn around. Need to quickly identify the threat through its monitoring systems and to publicly acknowledge the situation

Need to privately contact the complainer in order to find a reasonable solution. - complainer not always willing to accept compensation

As a second measure the firm needs to directly address the public

THE END