How to Measure Your Brand s Reputation During and After a Crisis?
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1 1 How to Measure Your Brand s Reputation During and After a Crisis? Martin Murtland, VP & Managing Director Factiva for Communicators 18 April 2012 PR Measurement Conference
2 Outline 2 Timing is everything Case Studies: Netflix Goldman Sachs Costa Concordia 3 Big Changes due to Digital
3 Reputation 3 It takes 20 years to build a reputation and five minutes to ruin it.
4 Secret to Being Nimble and Smart? 4
5 Timing is Critical... Anticipate 5 Strategy Focus: Impact on Firm Affect development of issue Adapt to change Example: Working Conditions of Suppliers Compliance & damage control Levi Strauss Created policies & not focused on by activists Nike Did nothing was attacked by activists & had to focus on damage control Apple Foxconn and Apple to increase wages & working conditions as a consequence of Fair Labor Association report Time Issue Identification Interest Group Formation Legislation Administration Enforcement
6 6 Case Studies: Safer to Learn from Someone Else! 1. Netflix 2. Goldman Sachs 3. Costa Concordia
7 Netflix: There s No Business Like Bungled Communication 7
8 How Does the Popcorn Taste Now? 8 Stock Price and Dow Jones Insight Media Index Score Stock Price Jul 5 Jul 19 Aug 2 Aug 16 Aug 30 Sep 13 Sep 27 Oct 11 Oct 25 Nov 8 Nov 22 Dec 6 Dec 20 Jan 3 Jan 17 Jan 31 Feb 14 Feb 28 Mar Insight Media Index Media Index Score has Recovered Stock Price still not as Tasty Stock Price Media Index Analysis by Dow Jones Insight
9 Goldman Sachs: Why I Am Starting a Media Storm 9 Source: YouTube
10 An Op-Ed Goes Viral Social Media Reaction Press & Web Reaction 10 Blogosphere and Twitterati jumped in Unfavorability spiked Spike in coverage vs. peers Increase in stories around regulation and clients
11 Words & Names Catch the Bug, Too Sticks & Stones 11 Greg Smith became prominent Muppets and evil empire, too Analysis by Dow Jones Insight
12 Coverage Fever Spikes, Price Declines 12 Source: Factiva Media pile on for surge in stories, posts, Tweets, videos Goldman Sachs stock price declined 3% but since recovered Will names hurt them?
13 Issue Life Cycle: Timing is Critical... Anticipate 13 Strategy Focus: Impact on Firm Affect development of issue Adapt to change Compliance & damage control Time Issue Identification Interest Group Formation Legislation Administration Enforcement
14 Costa Concordia & Carnival: Charting a Disaster 14 Source: Guardia di Finanza/Associated Press
15 Carnival Share Price: Rough Waters 15 Carnival stock falls after tragedy Quality of coverage is showing gradual recovery
16 Cruise Industry: Navigating Heavy Seas 16 Royal Caribbean also saw price decline Positive media coverage helped stock recover
17 Traditional Media: Taking the Helm 17 Traditional news dominated coverage Unlike other disasters, social media coverage was NOT a driver
18 Is Social Media the Whole Story? 18 Source: The State of News Media 2012 by Pew Research Center
19 Scouts Motto Be Prepared 19 Define reputation goals & drivers Pre-crisis level Measure it and set a baseline Present goals & metrics to C-suite Pre, During & Post crisis During: more frequent and add recommendations Ensure crisis playbook covers digital e.g. response site Photo Source: Wikipedia
20 Use Metrics to Guide Your Response 20 I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. Photo Source: Wikipedia Rudyard Kipling ( )
21 3 Big Changes Due to Digital 21 Changes due to digital Media faster & more fragmented Dialogue + Message delivery No secrets need to be more transparent What to do? Tools to filter content but not panacea Dynamic metrics to keep pace with media Track trends & industry players Know influencers & channels to respond to & in Experiment, learn & train Invite and engage in dialogue during crisis Listen and adjust messaging (resonate) Not just press releases & scripts Build relationships with influencers now Align business practices to positioning Be sincere and authentic Use medium of detractors
22 Questions? 22 Factiva Solutions for Communications Professionals The Conversational Corporation Trends & best practices in PR, Media evaluation & Social media
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