You thought I flew the coop, didn't you? You can't get rid of me that easily. The writer's block is gone. The head is free and clear for lots of new posts and topics. And true to previous form, I am going to throw some wrinkles into the mix.
Witness the following news from a PR agency and its client. Maybe I'm old-fashioned, but I have a hard time making news around murder and mutilation. Yet that was the impetus for one company to ask its PR counselors to issue a release on background security checks. It would be easy for me to critique the agency for even letting this client release the "news." In fact, what has me twisting in the wind is the apology that came from the company's top dog.
Pop quiz: In this story, the president/CEO apologized for the release "if anyone thought it was in poor taste... but if I was renting out my basement, I'd want to know who I was renting it to." Which words have me riled up?
A. "If anyone thought"
B. "Poor taste"
C. "But"
D. All of the above
The answer is not the obvious choice. The easy answer is "D." If you chose "C," here's your prize.
Apologizing with "but" implies anyone with a different opinion is wrong. What's more, the executive tap dances around the issue, trying to substantiate the reason for committing the actions discussed in the release. His statements come off as attempting to save his company's reputation, not to mention his own hide. Yet these are too little, too late.
An apology's after-effects ripple broadly, but we investors often focus on stock price and company trust. Witness the decline of the stock price of Chesapeake Energy (NYSE: CHK) after its CEO talked about his "distractions." I have been following the stock price and investor sentiment since the revelation that he ran a hedge fund in addition to being a CEO. Except for glimmers of sunshine that came out in response to Carl Icahn looking for a change in board seats, the company has been in decline. Now the company has to address the distractions on top of addressing a declining stock price. Fun, huh?
Both CEOs would be wise to review the following Twitter feed and Adweek story about an apology that turned out really well. If you're from the UK or follow the grocery business at all, you have probably heard of Sainsbury's. I first heard of this company a few months back when Adweek ran a story about how a three-year-old got the ball rolling on a product's name change. Fast forward to May, and a blogger complains about a product sold in the store and posts it on Twitter. Not only did Sainsbury's apologize for the act, but it also provided a phone number, encouraging the blogger to call and share his concerns.
Anyone see the parallels? Sainsbury's has a strategy in place to respond to feedback that permeates all of its consumer functions -- good or bad. In each situation, the company took the bull by the horns, listened to its consumer base, acted swiftly to generate the right kind of support, and reacted favorably. What's more -- it got bonus points because it transformed its apology into a good joke, unlike the security company CEO who thought murder was funny.
The bottom line -- if you think that words don't affect our portfolios, think again. Better yet, think before you speak or say. And above all else, if you're going to joke about something, you better ask someone if it's funny first.
Social media can present a real challenge for businesses that sell to consumers. Mostly seems like a new way for complaints to get broadcast everywhere - including baseless complaints.
Hadn't come across the Sainsbury example and I like it. Shows how humer and humility never go out of style.
Social media can present a real challenge for businesses that sell to consumers.
@PredictableChaos, yes you are right, social media does present a real challenge but then it provides all the companies a better platform to connect with its customers. It gives all the companies a chance to solve the compalints of the customers real quick.
Sainsbury's has a strategy in place to respond to feedback that permeates all of its consumer functions -- good or bad.
@Michael, thanks for the post. I am really impressed with the sainsbury's responses to the customer complaints because it's always a good thing to see a company share a bit of personality and a sense of humor.
I doubt it will really win the heart of your custom with this kind of quip.
@Value Hiker, why do you think this will not help the company to win the heart customers. All that the company is doing is trying to reply to the feedbacks of its customers.
If the company doesn't want to keep (maybe win more) customers, I don't know why the company want to spend money and time on the social media in the first palce.
The point that I was hoping would also be apparent has NOTHING to do with social media. It has EVERYTHING to do with ethics.
Social media is a tactic. Being in the PR business, I am so amazed at how many people think social media fixes things; it merely facilitates. At the end of the day, we need to think about the decisions that are being made about what we say, how we say and where we say it.
Where these apologies succeed or fail has to do with the CHOICE that each company made before they got to this point. People don't think about the ramifications of their words. On the flip side, people will scrutinize their investments beyond the purchase and think about where it fits in their portfolio.
I am so amazed at how many people think social media fixes things; it merely facilitates.
@Michael, I totally agree with your point. Social media just facilitates things. But I am not sure why companies think social media is the solution to all the problems they face. I think companies will slowly learn that social media has too some limitation.
@Value Hiker, I would invite you to look up this company online and on Twitter and look at their trends. Then tell me that humor hasn't made a difference. It takes a very bold company to make fun of itself the right way. These guys get it.
@Michael, don't get me wrong. I enjoy the humor, especially good one. Most likely, it is my problem because i saw other people in this forum loved the comany's humorous comments
You're not wrong at all. Some people don't think humor fits. Witness Groupon and their Super Bowl ads. Think they thought it was funny when they had to recant the ads with the mud on their face?
This also points out why many businesses use professional PR firms. It is very difficult to get your point across in the best light - especially if the news is bad. Having a professional help here may be the key to getting the message right.
I think that having a PR pro on board to take care of spin is always a good idea. Its all too often we say something then think DOH! what did I just say, that is supposed to be what PR people take care of.
Being a part of a PR firm, I am always on the lookout for good clients, but I will NEVER spin things, nor will any of my colleagues.
We PR counselors tell the truth more often than you think. What we do is help clients think about their communications before they implement them. Makes a world of difference.
After all, our reputation is at stake just as much as our clients, no?
If I am spinning the truth, then I am lying. PR is not lying.
Reality way:
We help clients guide their way so they can tell the truth. When people ask us, "Can you spin this for us?" it tells me that they have something to hide. If a client has a skeleton in his closet, people will find them; media will find them; customers will find them. We want clients to expose things and be real about them because the truth hurts.
So, if PR is not spin, it's communication, where does the spin come from? Marketing? I want to know who to blame next time a company gives me a bad case of vertigo... LoL
One can tell the truth while putting things in the best light.
As an example - A fast food restaurant should provide nutritional information and have some healthy offerings.
Still, they know the truth - most customers shouln't be eating some of their popular items three times a day because it's just not healthy. They don't deny this, but they also don't have to emphasize the fact with their advertising spend, right?
and THAT, my friend, is why we wrote this column initially--it is all about ethics and decision making. What some people see as truth is merely opinion or how they seek to manage conflict.
If someone is seeing opinion as truth, do you think that is more offten a case of them chosing to see it that way or the opinion being "spun" as truth in the media?
If I could count the number of times that clients and media each said they reported or spoke the truth--but ended up saying things differently than they really happened--I would be a rich man.
An opinion is like a nose--everyone has one, some just honk louder than others. Sometimes it's a matter of speaking the truth so people form opinions. Sometimes it's a matter of speaking your truth louder than someone else's voice. In our line of work, this is a common debate--no matter what the real truth is.
Some media outlets choose to hear the louder voice; some like to hear all sides of a story. It gets messy when people start saying "no comment" and don't let their truth come out. I can point to several crisis situations where the truth--the real one--came too late, thereby giving the other parties involved more credibility.
Does this make sense? If you wish, I can bring it back to home if you want to talk about your own company or another situation. Your call. Tweet me at @shmaraksmpr if you're up to it.
It might not be healthy, but it can sure be tasty. and it does come down to choice, the truth about the nutriion or lack their off is right on the menue.
But at the end of the day, it might just be easier to look past truth, even if right there in front of you to see.
Its easy to say honesty is the best policy but im sure a lot of companies would never want to be be 100% honest.
@Telecomfreq, I agree with you. But then companies should realise that being honest is the best policy to attract customers. Many customer prefer those companies who are honest in their dealings.
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