3 Attempts at Crisis Management with Television Commercials — 3 Lessons to Learn

By Gerard Braud, CSP, Fellow IEC

Think of a crisis as UN-selling your customers.

Traditional crisis management and crisis communications are practiced almost the same way by every company and public relations firm. A company screws up and UN-sells their customer. Then the public relations team tries to clean up the mess. They essentially try to resell the customer.

Three television commercials have just hit the air with three high-profile companies attempting to repair their self-inflicted wounds and resell their customers.

Will it work?

Facebook lead the way with their television commercial, followed by Uber, and now followed by Wells Fargo.

As a cynic, I wonder if they would be running commercials if each crisis didn’t hurt their bottom line? That’s what happens when you un-sell. As a crisis communications expert, I question why their respective responses were so slow, which further damaged their bottom line.

Most so-called crisis communication experts want to repair reputation. My expert advice is to protect revenue by preventing the crisis from happening to begin with and by getting out ahead of the crisis if it reaches a flashpoint.  I have three tips about this at the bottom of this post.

All three of these companies were initially silent and all three were much too slow to respond. Speed in crisis communications is critical. The sooner you address the crisis with one or more statements, the faster the crisis will go away.

Facebook apology video Gerard Braud crisis expertFacebook  was the first I saw on television. Imagine, the company with one of the largest advertising platforms in the world having to buy television commercials because so many of their customers were un-sold and the only way to reach them is through television.

As commercials go, it is sentimental and emotional and may cause some people to give them a second chance. It confesses the sins of the company, then boldly states, “That’s going to change.” I like that. But what is missing is the phrase, “We let you down, and for that, we are sorry.”

Uber Apology Video Gerard Braud Crisis ExpertThe second commercial I saw was from Uber. Uber portrays their new CEO as the crusader who will right the wrongs of the past and invites the customer “to move forward together,” and “to help write our next chapter.” Void again is the phrase, “In our growth we let some things fall through the cracks and for that we are sorry.”

What is also interesting about Uber, is their growth resulted from virtually every taxi driver in America un-selling people with open windows, dirty cabs, excessive speed and a lack of courtesy. Uber drivers were essentially the opposite until a handful of crises happened that were not addressed quickly enough.

Wells Fargo apology Crisis Expert Gerard BraudWells Fargo has the weakest of the three attempts to win customers back. Their commercials are frankly years too late, since their crisis was exposed in the Fall of 2016. The cynic in me says that a commercial this late in the game is likely the result of executive denial, portrayed by folks who thought this crisis would blow over. It didn’t. Human denial in a crisis is the thing that slows response. Regarding the commercial, the music is bad. The script is weak. The commercial is vague in alluding to the company’s actions in which reportedly two million fake accounts were opened, leading to 5,300 employees being fired and the company paying $185 million in fines. Added to the list of bad moves is the company paying almost that much in bonuses to the executives who lead the teams which led to the bad behavior. Oh, and never is there an apology.

Your crisis management and crisis communications lessons should be this:

1) When your company screws up, respond fast. If you want to know how, ask me about the 100 pre-written news releases I now provide to each of the clients who use my crisis communications plan.

2) You must apologize for something. Your lawyers don’t want you to say you are sorry as part of a confession of wrongdoing. I understand that. But I have written many phrases in the past that apologize to the offended party without confession to anything that would give ammunition to the plaintiff’s attorney. I’ve included some of those above, such as, “We are sorry for letting you down.” Remember, winning in court is a small consolation when you have lost in the court of public opinion and your customers have left you.

3) The best form of crisis management is to recognize a potential crisis before it goes public. I could have spotted all three of these crises long before they went public. My best case studies are always about potential crises that were caught in the early stages and made to go away before they ever went public.

When denial, bad behavior, and poor judgment exist in the C-suite, you will have a crisis. That crisis will un-sell your customers.

Continuity Insights Keynote Presentation 2018 – Gerard Braud – Don’t Talk to the Media Until…

It was an honor and a privilege to deliver the keynote speech that opened the 16th Annual Continuity Insights Management Conference in Miami, Florida on Monday (April 23, 2014). The conference audience contained 400 professionals and experts in Business Continuity and Disaster Recovery. Gerard-Braud-Keynote-Speaker-Continuity-InsightsThe keynote speech was titled, Don’t Talk to the Media Until..During the 90 minute speech and presentation, we discussed the need to be fast and effective in communicating with the media and other key audiences when an incident or crisis happens. The goal we discussed is to be nearly as fast as social media. I shared the concept of how I use a library of 100 pre-written news releases in each of the crisis communications plans that I license to businesses around the world.

To supplement the presentation, here are the

Additional resources I promised the audience while I was on stage:

1) This link will let you download a PDF of my slides.

https://braudcommunications.com/pdf/Gerard-Braud-2018-ContinuityInsights.pdf

2) For the free special report on the Three Most Critical Mistakes Made in Media Interviews, use this link to my web store:

https://braudcommunications.com/store/

Gerard Braud Media Interview Expert Special Report

3) To download a free copy of my First Critical Statement, also visit my web store. Select the First Critical Statement and use the coupon code CRISISCOMPLAN  Please note that this is not a substitute for a crisis communications plan, but only one page out of a 700-page crisis communications plan and news release system that I license to my clients.

4) If you would like to purchase a copy of my book, Don’t Talk to the Media Until…  visit the web store. The books will remain on sale for only $10 for the remainder of the week

If you have any questions, please reach out to me at 985-624-9976.Gerard-Braud-Author-Book-199x300

 

Starbucks Crisis Communications Quandary: 4 Expert Observations

3342282_1280x720By Gerard Braud

The average public relations person, who claims to be a crisis communications expert, usually tries to sell reputation management to a CEO in crisis. The Starbucks crisis drives home the point that I always try to make, that an expert must consider both damage to reputation and revenue in crisis communications.

Here are key components of this case study:

  1. A flawed corporate policy led to this crisis.
  2. The CEO’s apology is flawed because the policy is flawed.
  3. The crisis will be expensive because of the flawed policy.
  4. Social media, once again, amplified a crisis, that just a few years ago, would have only been an isolated, corporate issue.

On May 29, 2018, Starbucks will shut all stores for three hours for racial profile training. What will be the cost of a three-hour shutdown? This comes after two African-American males were removed from a store by police because a) they wanted to use the bathroom and b) they had not made a purchase, which is company policy for anyone who wants to use the restroom. No #Java No #Pee

The event was amplified by a video on social media. How much money has the company lost in revenue from customers who took offense and took their business elsewhere?

And how is the CEO doing in controlling the crisis? To Starbucks’ credit, they are using their website to post a message from the CEO.Starbucks Atty

However, my expert advice would have been to put the CEO’s video on the homepage, and not buried in the Newsroom. Furthermore, the headline says, “Statement from Starbucks and Attorney Stewart Cohen from Cohen, Placitella & Roth.” Are you kidding me? Attorney? This says, “We are covering our ass because we’re going to get sued.” How about “Starbucks CEO Kevin Johnson Apologizes” as a better headline.

On HLN News, Money Expert Jennifer Westhoven @JenWesthoven showed a great checklist for CEOs who need to apologize. I agree with her. She’s as cynical as I am when it comes to judging CEO apologies. However, if the bad Starbucks corporate policy is not fixed, the apology lacks congruency, i.e. the CEO’s words don’t fully match his actions.

It is good that the CEO is out front owning the crisis. In a CNN media interview, Starbucks CEO Kevin Johnson says this won’t happen again. But it can happen again because Starbucks has a policy that says a person cannot use the bathroom if you don’t make a purchase, and employees are taught to refuse the bathroom to all non-paying customers, regardless of race.Sorry-Checklist

We can only guess if race played a role in this. Yet the company is going all in on training regarding racial profiling by staff. While race is the amplifier of this crisis, I think this crisis may be more rooted in a flawed corporate policy in which employees are trained to question all non-paying customers.

Think about it… a major corporate crisis because someone didn’t spend $3 for a cup of coffee so they could pee.

Let’s calculate the lost sales from bad publicity and shutting down for a day of training because of a corporate policy that demands $3 for a cup of coffee.

Crisis communications is not about reputation management; Crisis communications should be about reputation and revenue… and preserving it by doing the right thing.

 

 

Who Gets It? The Surprising Reality of Crisis Communications Plans

Who gets it?By Gerard Braud, CSP, Fellow IEC

“Only the people who get it.” That was my answer to a frustrated colleague.

“Crisis communications is critical to our company,” she said. “But I can’t convince my boss that I need time and money to write a crisis communications plan. I’ve sat in your workshops at IABC, PRSA, plus the one you did for our state chemical association.”

Her frustration escalated.

“We handle freaking hazardous and toxic chemicals that can kill people and we still don’t have a crisis communications plan,” she fumed. “And I don’t have time to write it. And they won’t give me money to bring you in. They say we’ll just figure it out. They don’t get it. How can they NOT get it?”

“The ego of executives often overrides their common sense or logic sensors,” I explained. “Most will hire a consultant to write an emergency operations plan and maybe a business continuity plan. They’ll pay big bucks. But they think communications during an emergency is something that they will just magically figure out on the day of their crisis. They refuse to allocate less than $10,000 for a world-class crisis communications plan.”

“I just got off of the phone with a power company CEO who is facing a customer uprising because of high winter bills,” I told her. “He told me, ‘We won’t be needing your plan. We just wrote an Emergency Operations Plan.’”

“He doesn’t get it, and me having an extended conversation and educating him wasn’t going to change a thing. He’ll never hire me,” I explained. “He doesn’t get it.”

Many of you are in the same boat. Communications is undervalued. Executives think it is easy and fast.

As a guy who earns his living writing crisis communications plans, it is a difficult sell every day.

It doesn’t necessarily help that I’ve figured out how to package a year’s worth of work into a two-day, turnkey workshop that delivers a crisis communications plan plus 100 pre-written news releases. Executives look at cost over value.

Here are some of the selling points that I use, which may help you with your discussions with your superiors:

  • Always calculate the combined damage to reputation and revenue when considering a crisis communication plan. If the financial damage of a single event exceeds the cost of your crisis communications plan, it is a no-brainer to purchase the crisis communications plan.
  • Not every crisis is a fire and explosion. Sexual harassment and data breeches can be just as damaging to your reputation and revenue.
  • Often, you will use your crisis communications plan even when you do not use your Emergency Operations Plan (Incident Command Plan) or your Business Continuity Plan (BCP).
  • The presence of social media makes it impossible to control the narrative if your plan doesn’t have a full library of pre-written news releases that can be edited and shared with all stakeholders during the first 30 minutes of an event.

Even with those points, many executives “don’t get it.” I’ve had to build my business off of working only with the people who “get it.”

My advice to those of you who are frustrated is to take a deep breath and then fight for what is right. If your boss won’t give you the tools to do your job, it never hurts to look for a job with a boss who gets it.

If you need to have a “therapy session” and talk, give me a call at 985-624-9976.

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Facebook Crisis: 3 Expert-Inspired Crisis Communication Truths

By Gerard Braud, CSP, Fellow IECZuckerburg Silence

Crisis Communication Truth #1

You must communicate quickly in a crisis.

Crisis Communication Truth #2

If you fail to communicate quickly in a crisis, the narrative will be controlled on social media.

Crisis Communication Truth #3

Failure to control your communications, the narrative, and the truth, will result in damage to both your reputation and revenue.

Boom: Enter the Facebook – Cambridge Analytica crisis and the absence of a statement from Facebook CEO and Founder Mark Zuckerberg.
When I went to bed Tuesday night, March 20th, comedian Stephen Colbert was showing tumbleweeds rolling past an image of Zuckerberg, as the comedian noted the absence of a statement from Zuckerberg. At that time the stock value had dropped by $39 billion dollars.

By morning, Wednesday, March 21st, as I watched HLN, their graphic showed Zuckerberg with question marks all around him as they asked, “Where is Mark Zuckerberg?” By this time, stock value had dropped by $50 billion dollars.

It was Wednesday afternoon before Zuckerberg released a statement on Facebook, trying to explain what happened. This brings us to a bonus truth that we will call Crisis Communications Truth #4: When you attempt crisis communications via social media, the angry mobs, trolls, and haters will unleash on you in a way that is uncontrollable and accomplishes nothing, except allowing space for people to vent.

IMG_5531

Ironically, I’m in the midst of preparing a presentation called, “Social Media is at the Crossroads.” It will be presented at the International Association of Business Communicators (IABC) conference in Montreal, Canada on June 4, 2018 at 10:30 a.m. This case study personifies so many challenges that companies face in a crisis.

Facebook and Zuckerberg did what most companies do; they made no statement because they are gathering more information.

WRONG. It is always wrong to remain silent, because the void is filled with speculation by the media, pundits, social media, and comedians.

The RIGHT way to handle this begins with a simple statement that says your company is aware of the crisis, that it is being investigated, and that you hope to issue a statement shortly with more information. That’s it.

  • Acknowledge the crisis
  • Empathize with those who have been harmed
  • Apologize where possible
  • Promise to deliver more information within a reasonable amount of time

While the silence prevailed, the primary discussions were people asking, “Where is Mark Zuckerberg?” and “Are you getting off of Facebook?”zuckerberg2

Behold: A crisis of communications that damages reputation and revenue.

Behold: A crisis made worse because of the lack of proper crisis communications.

Behold: A crisis that cannot be controlled by releasing a statement on social media.

How to Deal With a Crisis? 5 Expert Crisis Communications Tips

MARCH MEDIA TRAINING MADNESS-3

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By Gerard Braud

Crisis communications is vital when bad weather strikes. The March 2018 wave of winter storms is demanding expert crisis communications from schools, universities, electric companies, government agencies, airlines, and a slew of other types of businesses.

People are often surprised when they ask, “How to deal with a crisis?” when I respond, “Don’t let the crisis happen.”

The secret: Manage expectations

Winter weather, much like a hurricane, has two crises in one. The crisis of the natural disaster cannot be prevented. But the crisis of public outrage can be mitigated if you manage expectations of your audience before the crisis begins.

Here are 5 steps you can follow:

1. Scare the pants off of people.

Don’t beat around the bush. Let people clearly know the pain, problem, and predicament they may face. If you are an electric company, warn customers of the harsh conditions they may face because the power may go out. Use strong, direct crisis messages, such as, “You may be without power for hours, days, or even more than a week.” Then give a specific list of steps they should take, such as evacuating, having backup generators, having ample food and water, or having ample gas or wood for heating.

2. Empathize before the storm hits.Latimer

Open your warning statement with an empathetic preamble, such as, “We know that our customers expect {Insert Your Service Here}. We want the same thing for you. However, we could all soon be facing the effects of {Insert Name of Effects}. We are prepared to respond as quickly as we can, but you may face some serious hardships because of events beyond our control.”

3. Blanket all communications channels.

Do media interviews with newspapers, radio, and television. Make your warnings strong. Consider purchasing commercials or ads to supplement your news coverage. Blanket your website by putting the warnings on the homepage. Blanket your social media with shareable images and videos. Email all employees so they become your message ambassadors. Email all customers, if you have their email addresses. Let public officials know the potential impact, to keep them from grandstanding their outrage for the media and voters to see.

4. Don’t feel compelled to respond to every social media post.

Frustrated customers quickly vent frustrations on social media. When possible, take your response offline with a direct message or a phone call. Reject the misguided notion that responding to every message on social media implies transparency. The truth is, replying on social media will boost the negative comments to the top of everyone’s newsfeed. Then trolls and haters add more hate, causing you to reply, causing the post to go to the top of the newsfeed again, which invites more hate. In a crisis, you can get sucked into a vortex of negative comments, which you ultimately can’t manage. However, if you’ve previously managed expectations with clear warnings (Step 1), empathized with the potential suffering (Step 2), and blanketed all communications channels (Step 3), the negatives on social media should be minimized.

5. Blanket communication channels with updates.

If your storm recovery is going better than planned, announce it and create hope. If your storm recovery is hitting glitches, announce it and manage expectations while adding an extra layer of empathy.

In conclusion, if you see angry elected officials, citizens, or customers lashing out, there is a strong likelihood that the targeted organization allowed the crisis to become a bigger crisis, because they failed to manage expectations.

Expert Crisis Communications & Crisis Management Begin with Managing Expectations

Gerard Braud Crisis ExpertBy Gerard Braud

As the flooding disaster in Houston continues from Hurricane Harvey, and as I look back today, August 29th, on the 12th anniversary of my own experience with Hurricane Katrina, one element of crisis communications, crisis management, and disaster management looms heavy: Manage the expectations of your audience.

In the case of Houston, managing the expectations of your citizens before disaster strikes.

Numerous news reports are focusing on whether Mayor Sylvester Turner should have called a mandatory evacuation. I would raise a different crisis issue: Did Mayor Sylvester Turner fail to manage the expectations of his citizens? Did he fail to tell them the trauma they would experience if they failed to voluntarily evacuate?

Powerful communications and rapid communications before a crisis has the power to move people out of harm’s way.

A community does not need to spend millions of dollars and hours on rescues if you move people out of harm’s way in advance of the storm.

The National Weather Service clearly predicted 40 inches of rain. A mandatory evacuation was not necessary, but more forceful communications about the impending danger and the need for an aggressive voluntary evacuation was needed.

In 1985 I started chasing hurricanes as a television reporter. In every hurricane and associated flood, humans immediately regret not evacuating and they are consistently in need of the same creature comforts: water, ice, and electricity.

Life and death are legitimate concerns for those close to the eye of a hurricane. But for most people, the way to appeal to them is to explain the misery they will experience. This is called managing their expectations.

Believe it or not, the fear of death doesn’t frighten people enough. However, making them afraid of the misery they will live through can motivate them. (At the risk of sounding sexist, men especially think they can survive even the worst storm. I’ve interviewed many who lived to tell the story and the story they tell is that they were stupid to try to ride out the storm because of the misery they lived through.)

Motivating people to leave before a storm is an art form that, frankly, I do not see politicians and elected officials learning, despite so many case studies, including Hurricane Katrina.

Millions of dollars and millions of hours do not have to be spent on rescue efforts if there is no one to rescue because you have successfully motivated people to leave by explicitly describing their future human misery.

Exhibit A: A television news report I aired in 1990. Fifteen years before Hurricane Katrina, the report explained the pain, problem, and predicament the New Orleans metro area would face.

Officials in every parish in the area, except New Orleans, ordered timely, mandatory evacuations. Their residents were responsive. New Orleans, however, had a mayor who dropped the ball. He showed no concern when he needed to, and thousands died, while tens of thousands were stranded in their flooded homes. Hundreds of millions of dollars were spent on rescue efforts required because people were not strongly encouraged to evacuate in a timely manner.

Here are some things I would have encouraged the mayors of Houston or New Orleans to say:

“Your life could get very miserable, very fast. You could be trapped in your home, with your children, with elderly family members, with sick family members. This is not something you want to do.

If you stay, expect water to possibly enter your home without warning. Expect it first to ruin your floors. It will continue to rise and ruin all of your belongings on the ground floor of your house. For some of you, it will overtake your second floor as well.

You won’t really be able to save your personal belongings. You will be too busy wondering if you can save your own life and the lives of your family members as they panic and cry in terror.

You’ll likely live through it, but you might be standing in water up to your chest.

Your neighborhood may have never flooded before, but it very well might flood this time. No two storms are alike. Do not think you will stay dry because you have not flooded in the past. 

Your neighborhood may be lucky and not flood, but your neighborhood may be surrounded by floodwaters without creature comforts.

You will be trapped, without electricity in the hot August heat.

Your water supply might likely become contaminated and unfit to drink.

Your toilets and plumbing may not work. They might even overflow into your home.

You may run out of food.

You may run out of water.

Your cell phone may not work.

You may need emergency help and no one will be able to come for you.

If you are willing to endure what might be great trauma, then stay. However, if you are wise and if you recognize the suffering that awaits you and your family, you should voluntarily leave now. 

Millions of people who have stayed behind in storms, only to regret their decision, would tell you just as I am telling you, a voluntary evacuation now is the smartest decision you could make.”

Regardless of whether your community is facing a hurricane, a tornado threat, a blizzard, an ice storm, or any of the many predictable disasters, moving people out of harm’s way is much smarter than dealing with the crisis of responding and rescuing people.

Be an expert in crisis communications and disaster management: Manage the expectations of your citizens.

 

Crisis communications expert Gerard Braud, CSP, IEC has been the go-to expert for organizations on five continents for nearly 25 years. He shares his passion for effective communications through his keynote speeches at conferences and conventions, as well as by helping organizations write an effective crisis communications plan. Additionally, he media trains spokespeople around the world. Braud began his career in journalism in 1979. During his 15 year career on television, you may have seen him on CNN, NBC, CBS, The BBC or The Weather Channel. In 1994 he left television to venture out into the world of public relations. This video will help you get to know him better.

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United Airline’s Flawed Apology: 4 Lessons in Crisis Communications

by Gerard Braud

So which of the three statements issued by United CEO Oscar Munoz should we believe?

Monday he said, “This is an upsetting event to all of us here at United. I apologize for having to re-accommodate these customers.”United Airlines Response

Later on Monday in a statement to employees he said, “While I deeply regret this situation arose, I also emphatically stand behind all of you, and I want to commend you for continuing to go above and beyond to ensure we fly right.” He went on to say, about the man dragged off of the flight, “Treating our customers and each other with respect and dignity is at the core of who we are, and we must always remember this no matter how challenging the situation.”

Oscar to employees

 

Or do we believe the Tuesday statement that says, “The truly horrific event that occurred on this flight has elicited many responses from all of us: outrage, anger, disappointment. I share all of those sentiments, and one above all: my deepest apologies for what happened. Like you, I continue to be disturbed by what happened on this flight and I deeply apologize to the customer forcibly removed and to all customers aboard. No one should ever be mistreated this way.” He goes on to say, “It’s never too late to do the right thing.” United Apology Statement

Yes, but it’s never too soon to do the right thing either.

As one who has sat in public relations war rooms on five continents, I’m constantly amazed that big companies constantly make predictable bad decisions based on out-of-date public relations standards and failed crisis communications strategies, often supervised by a team of lawyers who do not want to ever use the word “apology” out of fear of giving ammunition to the plaintiff’s attorney.

Here are four lessons you should consider to be a crisis communications expert:

Lesson #1: Never make one statement to the public and another to your employees. All audiences should always get the same statement. The incongruencies in your statements will always be released to the public by an employee. I’ve said this a thousand times to clients and to conference audiences around the world and I’ll keep saying it.

Lesson #2: Your corporate response must move at the speed of Twitter. If it takes two days to get as outraged as the Twittersphere got in a matter of seconds, then you don’t understand modern crisis communications. I have more than 300 pre-written news releases on my laptop that are lawyer approved and ready to use in seconds. On average it takes 10 minutes for me to edit one.

Lesson #3: If you could attach a dollar value to your words and actions in a crisis, would you make money or lose money? United is losing. The stock is crashing. The cynic in me wonders if Munoz would have foregone the Tuesday statement if it were not for the outraged world screaming advice in dollar signs.

Lesson  #4: Parse your words until they are cynic-proof. Let’s break down the words parsed in the statements from United and let us add a cynic’s view. On Monday he said, “I apologize for having to re-accommodate these customers.”

The cynic reads this as saying, “We needed to get four of our employees somewhere and they are more important than you are, even if we have to call the cops to drag you out of your seat.”

Later he said to employees, “I want to commend you for continuing to go above and beyond to ensure we fly right.” The cynic reads, “You showed our customers who is boss. Keep up the good work. Follow the rules written to benefit us, regardless of who gets hurt.”

He went on to tell employees, “Treating our customers and each other with respect and dignity is at the core of who we are, and we must always remember this no matter how challenging the situation.” The cynic looks at the video and clearly sees that the customer dragged from the plane was in no way treated with respect or dignity.

The Tuesday statement says, “The truly horrific event that occurred on this flight has elicited many responses from all of us: outrage, anger, disappointment.” The cynic thinks, we all got that feeling 48 hours ago. Why did it take you two days to feel the same way?

Somewhere at United there is a room full of executives, PR folks, PR agency people, and lawyers. Do you think any one of them should get to keep their job after how they have mismanaged this in the past 48 hours?

The key to crisis communications is to take the steps and to make the decisions on a clear sunny day, about how you will respond to the many things that can happen on your darkest day. Yet most organizations are too focused on bringing in money to discuss the methods they should use to keep the money from gushing out the door when they screw up.

 

Crisis communications expert Gerard Braud, CSP, IEC has been the go-to expert for organizations on five continents for nearly 25 years. He shares his passion for effective communications through his keynote speeches at conferences and conventions, as well as by helping organizations write an effective crisis communications plan. Additionally, he media trains spokespeople around the world. Braud began his career in journalism in 1979. During his 15 year career on television, you may have seen him on CNN, NBC, CBS, The BBC or The Weather Channel. In 1994 he left television to venture out into the world of public relations. This video will help you get to know him better.

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Stop Unselling: Crisis Communications Tip for United Airlines

united3By Gerard Braud

Are you constantly amazed by how companies unsell you as a customer? Think about the millions of dollars spent and hours invested trying to get you to buy. Then in a heartbeat, they unsell you. When will companies learn to Stop Unselling?

United Airlines had done just that with the video of the doctor being dragged off of an overbooked flight. The impact is compounded by the recent news story about passengers who were denied boarding because they were wearing leggings. That’s two strikes United.

Just for fun, do a Google search for United Airlines and witness how the negative news stories have pushed the airline’s own SEO optimized site out of first place.

united

Then peek at Twitter, to see the field day of negative comments from people who are actively being unsold by United.

united2

The one piece of expert crisis communications advice every company should know is that if your rules favor the company more than they favor the customer, you will eventually unsell your customers.

The incident happened Sunday and began making the news Monday. By the Tuesday news cycle less than 48 hours after the incident, Marketwire reports a 6% fall in the company’s stock, wiping out $1.4 billion dollars in market cap. Even more frightening than the financial loss is that we have to even wonder if that matters to a company with a $22 billion dollar cap? Will they even care?

Will you fly United again? How many people since seeing this video have made a conscious effort to not fly United and are buying their tickets on any other airline?

United has been on my do not fly list for more than ten years after one of their red-coated gate managers removed me, my wife, and two daughters from a flight to Belize, ruining our summer vacation and never compensating us. United repeatedly gave us flawed information about our travel documents before and during the trip. Finally seconds before the door closed we were told to remove our bags and exit the flight. I solved my problem with a single phone call to customs agents in Belize who gave us the green light to fly. It was something United could have done, but didn’t.

United unsold me. On an annual basis, I spend about $50,000 for airline tickets and most of it is spent with Southwest Airlines. Not only has United unsold me, but so has Delta and American because of various acts in which they treated me like a second-class citizen by putting their interests and rules above my rights as a customer.

I’m not sure if we will be able to measure how many passengers right now are selecting flights on other airlines because they saw the video of the doctor being dragged down the aisle.

My fear is that there are actuaries in companies like United who will say that the stock drop and the loss of ticket sales are within the acceptable spectrum of doing business.

Relative Ad Value

In public relations, experts love to measure the relative ad value of positive news. It is based on the idea that your time in a news story is worth three times the value of you having bought an ad in that same media. I can’t wait for an expert to run the data and tell us the negative, unselling effect of this news story.

And what about social media and the comment sections on web-based news sites? What is the negative ad value of that?

Stop Unselling

The bottom line is that corporations make stupid decisions every day. United Airlines is the poster child today.

Dear United Airlines,

Stop Unselling.

Sincerely,

Your former passenger Gerard Braud

 

 

Crisis communications expert Gerard Braud, CSP, IEC has been the go-to expert for organizations on five continents for nearly 25 years. He shares his passion for effective communications through his keynote speeches at conferences and conventions, as well as by helping organizations write an effective crisis communications plan. Additionally, he media trains spokespeople around the world. Braud began his career in journalism in 1979. During his 15 year career on television, you may have seen him on CNN, NBC, CBS, The BBC or The Weather Channel. In 1994 he left television to venture out into the world of public relations. This video will help you get to know him better.

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When Crisis Strikes: 3 Ways to Think, Act, and Communicate Like a Reporter

— By Gerard Braud

Braud-WebinarYou can’t turn on the television without a major crisis, tragedy, or disaster dominating the 24-hour news cycle. Through what lens do you view these events?

If you’ve never done so, try to watch events unfold with the eyes of a crisis communications expert. Focus on deadlines, timing, and how quickly, or in most cases, how long it takes, before the organization crippled by the crisis starts providing official information to the media. Keep an eye on the clock. Furthermore, zap through the television channels to observe the media and how they fill the information void.

Effective crisis communications requires you to think fast, act fast, and communicate fast. Watch the media so you can determine how to manipulate the media and the information cycle.

Here are 3 ways to adapt to the mindset of the media:

1) To quote Don Henley’s lyrics to the song Dirty Laundry, “Just give me something; something I can use.”

When a crisis happens, your job in public relations is to start pushing out information as soon as the event happens. And this is important – you don’t need a lot of facts to put out information. In fact, saying you don’t know all the details yet is actually a legitimate first statement to the media. Yes, within moments of your crisis going public, you can issue a statement that says,

“We have experienced a ________ at our ____ location. Details are still being gathered. We will share more information as soon as possible.”

This language should already be written in your crisis communications plan. In plans I write for clients, I call this the First Critical Statement, because it is critical that you fill the information void as soon as possible. To get a free download use the coupon code CRISISCOMPLAN when you select the item from my shopping cart.

Not every crisis gets 24/7 media coverage, but if you are in PR there is a high probability that it can happen where you work. Trust me, I spent 15 years as a reporter and 20 years in crisis communications. It is never a question of if it will happen, but a question of when.

The tragic events in San Bernardino are reflective of this. The media initially covered the unfolding story by interviewing worried family members and capturing images and videos from people inside the facility where the shooting occurred. We see this very same behavior every time there is a school or workplace mass shooting. It is very true that in the midst of chaos and tragedy, nearly everyone in the affected organization is focusing on the crisis. But YOU, the PR team, must make it your responsibility to not manage the crisis but to manage crisis communications at the speed at which the world and the media want to know more information.

2) The new normal is built around crises of all sorts being amplified on social media. The media fill the information void with rumors from social media. This exponentially increases pressure on communicators and leaders in companies to issue statements faster to keep the media focused on official sources rather than social media. However, eyewitness social media images and video are highly valuable. This means you need to be prepared to provide the media with your own newsworthy images and video as soon as possible.

3) Media need someone to advance the story as time passes. As a public relations expert you should treat the release of information to the media like a casino buffet. In other words, start small and keep it coming. Just like a buffet has soup, salad, and an entrée, official information should be fed to the media in the same way. They are hungry. You should feed them a little at a time. Too many organizations have executives who think no information should be shared until all information is known. This is a tragic flaw that must be fixed.

Although the media are a critical audience, in crisis communications you must realize that communications to your employees is equally as valuable and sometimes more valuable. Employees who know the truth are less likely to spread rumors. Your goal should be to give the same information to the media, employees and other stakeholders as simultaneously as possible. What you say to one audience you should say to all.

Achieving these high standards requires you to specify this behavior and these timelines in your crisis communications plan. Your crisis communications plan must then get support from your executives on a clear sunny day, long before the crisis. You must also test the process through crisis communications drills that can test your plan, the behavior of each leader, the ability of spokespeople, and the speed of your PR team.

If you’d like to delve deeper into this premise, join me for a free webinar on Thursday, December 17, 2015. Use this link to register.

In this program you will:

  • Learn to adapt a reporter’s mindset
  • Develop a 5-part strategy for effective crisis communications
  • Unlock the secrets necessary to change the leadership behavior within your workplace

About your webinar leader:

Gerard Braud, CSP, Fellow IEC (Jared Bro) is known by many as the crisis communications expert who is able to put a low cost, yet highly effective crisis communications plan in place in just 2 days. As a former reporter, you may have seen him on NBC, CNN, CBS, the BBC or The Weather Channel. It is the mistakes he saw people make daily as he covered the news that lead him to create a system of crisis communications plans and strategies that have served his clients on 5 continents.