In today’s world, crises are a common occurrence in the business world. And the question is not whether they will occur but when. When they do, it is critical to have a communications strategy to address the crisis.
It is important to accept responsibility and come clean. If the company is to blame, it should express sympathy and apologise to the harmed parties. Concealing an offence is useless in this day and age of increased transparency. The goal was to communicate all bad news without hiding anything. Emphasis on making the information clear, understandable, and jargon-free is crucial. Top management must take the lead and serve as the first spokesperson. Crisis communication must assist customers in making sense of the situation. And it should reassure them that there is a commitment to preventing the recurrence of similar events. Corrective action may be required to rebuild customer trust. They should provide clear instructions on how to handle the situation.
PepsiCo, Inc. controlled a crisis through communication in the syringe claims case. And this serves as an example of effective crisis management by a company. The company responded on time because it had a crisis plan in place. And by doing this, it solved the claims with the help of a trusted third party, the FDA. Using a video news release, the company proved to the public that the claims were baseless and resolved the matter in eight days. The takeaway is that preparedness, pace, and the help of a credible third party can improve the effectiveness of crisis communication.
The Toyota crisis exemplifies both good and bad crisis communication. Although the company’s management apologised, it was too late and ineffective. Four months after the crisis, Toyota apologised directly to its US consumers. But it did not come from the company’s CEO. There was no quick solution to the problem, and when there was, customers complained that it did not work. Toyota began to share the truth only after there was significant damage.
Still, all crises are not created equal. And the appropriate response will vary depending on the circumstances. In the case of fashion designer Tommy Hilfiger, there were rumours that he had made rude comments about people of colour on “The Oprah Winfrey Show.” The gossip persisted for years, despite Hilfiger’s denials and Winfrey’s support. In this case, the company had to use a variety of strategies. The procedures are responding to the rumour on online discussion boards and creating a section on its website to invalidate the claim. Hilfiger even appeared on Winfrey’s show to finally put the gossip to rest.
The takeaway from this example is that the credibility of the denial message is critical. To make a response credible, the company must exonerate the brand. And use tactics that boost the message’s credibility. The characteristics of the spokesperson, such as expert status or truthfulness, can be included. They could also enlist the help of a third-party expert, as PepsiCo did with the FDA.
The company should use a “polish the halo” strategy by coming clean to improve its image. This strategy can keep new customers from having negative thoughts about the brand. It can also prevent customers from passing negative ideas about certain features to other aspects of the brand. This strategy is critical for customers who do not identify with the brand and are unlikely to come up with counterarguments. Launching a public relations campaign can help emphasise the company’s commitment, according to the plan. And also resolve and remind the consumers of the company’s long history of safety and quality.
Toyota has used this strategy to improve its image. The company aired a TV ad showing its commitment to resolving and reminding consumers of Toyota’s long history of safety and quality. The ads only showed Toyota factories in the United States, indirectly drawing consumer attention to the many American jobs Toyota offers.
When customers are convinced that the company’s intentions are good, polishing the halo strategy works best. Consumers may conclude that because a company prioritises profit over customer safety, such accidents are unavoidable and will occur in the future. Alternatively, they could regard the incident as a one-time transgression. Consumers are more likely to forgive and forget if they believe the company is acting in their best interests.
Coming clean and accepting responsibility are essential for restoring customer trust. And a “polish the halo” strategy can help prevent customers from developing negative opinions about the company. They must give customers clear and understandable instructions. And the company’s top management should serve as the first spokesperson. During a crisis, a company’s actions are just as crucial as its words in restoring customer trust.
Finally, an effective communication strategy can transform a crisis into an opportunity. By doing this, they will build customer trust and improve the company’s reputation.
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