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Brands Crisis Management Advices

July 7, 2011

Brands Crisis Management Advices

We are pleased to see our brand growing day by day in the target market, more and more customers are crowding in. We build out reputation, we develop more and more products and launch into the market. Every campaign is successful, profit is pilling up season after season.

We are so proud, we are losing caution, we are getting arrogant, we cease taking care of our current customers, there are only more and more potential customers in our eyes and our branding proposal, what we can see is the market share.

All of the blue, one day, one of our proud products is tested unqualified, even worse, it contains poisonous ingredient, the news is everywhere, TV, newspaper, internet, we are surrounded by unhappy ,moreover fury buyers.

We panicked, what should we do next ? We are yelling ‘ someone, please help me’, then we make critical mistakes, we lose the loyalty and trust on our customers.

One major mistakes tramps the long time trust.

As we all say, shit happens, we cant avoid mistakes, the point is how we fix it, how we face it.

I would like to give some advices here, but you will still be the brand runners who actually listen and take it practice.

When we have received the quality issue of our current products, the news has been spread,

You should

Begining

1: Call press conference, use the mass media as many as possible, make announcement that you are under the cooperation with the authorities and meanwhile the internal investigation procedure has been launched, the world will be given the update firmly. All products under your brands will be tested as well discover the existence of the potential risk during the internal investigation.

You take the leading position in the media, guide customers the direction that benefits what you expect.

2: Keep the world posted with any tiny progress, even it is the truth your product has the potential risk/danger, to show your customers you are honest, you are serious with your product and business, you will not try to hide any thing from the market.

The media following up will be seen in the whole process, the beginning, the progress, the post-op.

Don’t be shamed to admit your problem, it is ugly and stupid of trying to deny and facts.

Progress

3: Once the outcome of the investigation have come out, you marked it in your media advertising, you apologize for the inconvenience that has been brought to your customers, the recall program is active, any customers who had purchased the issued products may receive the full amount refund or exchange the other products under your brands with the purchase receipt.

Show the active and positive attitude and make compensation to the market for the wrong you have done, The cost is the price you have to pay in the lesson and it is only half of the price if you were acting oppositely.

4: Don’t waste this opportunity for further marketing campaign, it is the excellent time for you to profile your customers,

4.1: When the refund/exchange program is on the progress, customers will be asked to fill out the form which contains: personal information, product purchased, contact information. Tell them it is the standard procedure and it is designed for the investigation purpose at the same time.To make the utmost effort providing as many check-points as you may.

4.2 For luxury or large amount products, you may even provide the door-to-door service. Thos customers are the valuable assess to your brand

4.3: for the brand who owns loyalty program, the more benefit is offered in the further purchase. It can be in the form of VIP card level update, more discount, more credit, more gifts.

Post-OP

5: Announce the solution to the market what you will do with the issued products, the result of the other products under your brands after the internal investigation.

5.1: work tightly with the authorities and trust labs to strengthen the quality control.

5.2: More attention in the whole producing process. Examples will be given.

Those advices may sound easy and simple, well, I would say except the admit part, you are worried your customers will no longer lie their loyalty or trust on you once you do that, the answer is NO, you will unite the customers more firmly with your honesty.

Beside all the methods I have been talking about, an emotion essence cant be neglected, being friendly, respective, patient and honest must been spotted in every single snap of the whole crisis management chain.

July 8th 2011

Shanghai, China

Johnny Chown

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