Every business, whether small or large, has faced a brand crisis caused by a competitor, a dissatisfied customer, or unforeseen circumstances. It’s like a battle, and when starting your company, you should be aware that sooner or later, you will also experience such a challenge in one way or another. In these moments, however, it’s crucial not to lose your self-control and to take the right steps in your crisis response.
Analysis and evaluation
The first and perhaps one of the most important steps in handling a brand crisis is to analyze the situation. Where is the attack coming from? A competitor? A customer? Supplier? Former employee? Assess the damage. Has someone gone on TV claiming you’re selling spoiled food, for example, or have you read a post on a local forum? The bigger and more aggressive the campaign, the faster and more seriously you need to react. But remember that in today’s times of social media and rapid information sharing, a completely innocent post can turn into a real tsunami. It’s critical to determine whether the blows are directed at your entire company or at a specific product or service. In the second case, you might come forward and say, “Yes, this isn’t our best product, but we have hundreds of others that customers love.”
Contact the source
Try to contact the source of the attack. Speak to them calmly and professionally. Maintain a good tone without becoming aggressive or overly apologetic. Find out what the problem is and whether you can solve it. Understanding your “opponent” is essential in deciding what communication plan or crisis response strategy to adopt — offensive, explanatory, defensive, etc.
Be careful! Always remember that the other party might be recording you. You definitely don’t want a video emerging of you shouting or making threats.
Prepare your team
Undoubtedly, handling a brand crisis requires the support of a skilled team, including marketers or communication professionals who can guide you through the correct steps. However, it’s equally important to inform the team you work with. Your employees should know that management is aware of the problem and is actively working on a solution. During a brand crisis, it’s crucial that your teams remain calm and united in their approach.
The danger here lies in trying to cover up serious mistakes. Never send an email instructing everyone not to admit you’re selling dangerous toys, for example. There will always be a dissatisfied employee who might leak this information, regardless of confidentiality agreements. If public opinion turns against you, you’ll face a far bigger business reputation problem than simply dealing with legal consequences.
Talk to your teams often and clearly. If your colleagues don’t know the truth, they’ll fill the gaps with all sorts of speculation. And conspiracy theories are the last thing you need during a brand crisis.
Be honest and transparent. If you don’t have all the answers, it’s better to admit it. Surprises make employees nervous and distrustful. Of course, that doesn’t mean disclosing every confidential detail. Remember that there will always be someone eager to dig deeper. Find the right way to communicate with your employees.
If the crisis forces you to part ways with some team members, do so with respect and gratitude whenever possible. Of course, if someone has leaked trade secrets to competitors, there’s no need to send them off with flowers and chocolates.
Talk to customers
Once you’ve taken every step to reassure your internal team, shift your focus to your customers. The rules for communicating with them during a brand crisis are very similar. Be honest, transparent, and communicate regularly. Avoid sounding arrogant or dismissive. This is one of the biggest mistakes businesses make during crises. In trying to defend themselves, they sometimes cross the line. Never forget that customers respond emotionally. Even if you’re completely right, if your communication comes across as arrogant, people will distance themselves from your brand.
Keep updating customers about your progress in resolving the issue. For example, if the paint on the kitchens you sell peels off after a month, don’t hide it. Say, “We recognize the problem and have immediately decided to change the factory that produces the paint.” People should never feel that you’ve merely acknowledged the issue without actively working to solve it.
Show what happens “behind the scenes.” Let customers see how processes run in your company, how your employees work, and how you’re addressing the situation. This level of transparency can quickly soften negative perceptions and may even help you emerge from the brand crisis with stronger customer trust.
Time matters
If you’re facing a serious brand crisis, response time is critical. In the age of social media and 24-hour news cycles, it’s extremely challenging to react instantly.
Today, everything moves so fast that people only pay attention to what’s happening right now.
Create a plan
Determine how you’ll manage the communication plan during a brand crisis — whether through daily conversations, meetings, press conferences, messages, or responses to troll attacks.
Set clear goals — for example, to protect the company’s business reputation, defend specific products under attack, or even sacrifice a product to save the overall brand.
Designate a person responsible for communicating with each target audience. Choose someone who presents well to employees internally and someone else who can effectively handle media and social networks.
Define the communication channels you’ll use for each audience — emails, videos, press releases, etc. Anticipate possible questions or criticisms and prepare your answers. Create a few key messages to stick to during the brand crisis.
Decide how you’ll measure your progress and whether the crisis is escalating or slowing down.
Inappropriate circumstances
But what happens if your company is simply threatened by external circumstances beyond your control? (COVID-19 is a perfect example.) Should you focus on new markets or stick to the old ones? This is the time to remain flexible. Look for new channels to reach customers, new products, and respond immediately to shifts in demand.
The coronavirus brought severe restrictions, cancellations of seminars and meetings, which were crucial for many businesses.
Many companies chose to reallocate their budgets and focus on existing programs. But… does it make sense? Is it wise to bombard customers with more ads, webinars, and emails during a brand crisis? Will customers engage, or will they ignore you — or worse, become irritated?
In such situations, flexibility alone isn’t enough. You must combine it with creativity, innovation, and digitalization. Take a step back and imagine that you’re starting from scratch — a blank whiteboard in front of you, ready for new ideas. Don’t do this alone. Select a group of employees (no more than 10, and if you have more, divide them into teams) and ask them to share the wildest ideas they’ve heard in your industry, customer comments, competitor activities. Put everything on the table before you start evaluating.
Ask yourself: What do our customers like? What do they complain about? What do they want, and can we provide it? What will customers do if we don’t offer a specific service or product? Are there new technologies or communication channels that could help us reach them?
Then look for what will get your business back on track. Choose a few promising options and study them thoroughly.
You never know what might happen in the end — but with a strong crisis response and effective communication plan, your brand can emerge even stronger.