Prevention is better than cure. We know the impact of reputational damage can do to businesses and brands. And you should always be prepared.
A crisis is an event, or series of events, that threatens an organization’s existence. It can disrupt business operations, damage your reputation and impact your finances.
You might think it will never happen to you. Our experience says it could, and will, at some point.
In today’s online world, companies risk losing 22% of business when people find 1 negative article. This rises to a whopping 70% with 4 or more negatives. Damaging content has already cost the consumer market in the US a huge $537 billion in business. Customers are switching because they’re unhappy with the company.
There are many different types of business reputation crises. From product recalls and stolen data to bad reviews and even an improperly timed tweet. Each of these can affect your company in different ways, such as:
Negative stories will hit that positive reputation that you’ve spent years building.
Remember when United Airlines dominated the headlines in 2017? A man was removed from an overbooked flight and the airline took a 2.5% stock hit after that crisis. The full estimated loss is around $700 million.
There are two types of crisis management- reactive and proactive. Reactive is a ‘firefighting’ approach, waiting for a crisis to happen and then dealing with it. Whereas proactive is the planning that organizations take to overcome any potential issues.
It can be tempting to put off planning your crisis communications when things are going well. But businesses that are not prepared are more likely to make poor decisions that will have long-term effects. For example, your customers could see your business in a negative light if you respond without all the facts.
Which is why it pays to be smart, planning ahead to handle a crisis should you need it. The three stages of crisis management are before, during, and after the event.
Before an issue arises, you can put your crisis plan in place. Take the time to identify and train key internal stakeholders and draft your response plan. This should form part of your online management strategy so that you can take back control.
Activate your crisis plan with your team. You should keep all stakeholders informed throughout the process and maintain regular contact.
Clear and concise communication will maintain the trust that your key stakeholders have in your company.
When you’re in the thick of a crisis, it’s difficult to think about anything else. But there is always the recovery period.
Now is the best to think about using reputation management to repair any damage. If search results don’t show your company in a positive light, this will help you strengthen your online presence.
Igniyte helps companies to protect against, prepare for, and tackle a business reputation crisis. We help restore a damaged company reputation.
Speak with Simon our online reputation management expert, in complete confidence.