Running your own business can be tricky. Companies invest time, creativity and resources just to market their brand. It is important to keep in mind that all of your efforts will be wasted if you do not protect your company’s reputation.
Every company should think of strategies on how to perform online crisis management. What makes this important? They say that word-of-mouth is the most effective form of advertising. In a survey, 84% of consumers trust recommendations of friends and relatives the most. Since small firms can’t afford celebrity endorsements, it matters to get customers and clients to recommend your company to their friends and loved ones.
What makes word-of-mouth advertising complex is the fact that we live in a digital world. These recommendations are not just secluded in private conversations anymore. There are online reviews, blogs and even comments on social media that also serve as a platform for word-of-mouth endorsements.
Just how important is an online review in today’s time? Reviews are viewed by many as just as trustworthy as a friend’s personal recommendation.
What if you mess up?
Regardless if you are running a large or a small startup, it is only normal to mess up now and then. Perhaps you have a customer who wasn’t pleased with your product or customer service. How exactly are you supposed to handle this situation? Here are some things that you can implement to lessen the damage to your company.
1. Confirm the validity of the concern
Given the tough competition for different businesses, there’s a possibility of getting a smear campaign from one of your competitors. The first step in crisis management is to always confirm the validity of the negative feedback against your company.
Did the person who made the review really purchase from your company? When did this happen? Before you decide to make a move, you have to know the complete story.
It is also important to have a protocol to confirm if the complaint is honored within the terms and conditions of the company. For instance, if there’s a damage seen on a particular item bought from your company, it is imperative to know if it’s the fault of your company or the consumer.
2. Admit your fault if you have to
Once you have confirmed that the mistake came from your end, it’s time that you admit your fault. It is important for a company to show humility and be open-minded about their mistakes. In fact, even big companies make mistakes. That is a fact that every business has to deal with. However, accepting criticisms saves the company from ruining its reputation.
Even automotive companies recall models that have shown issues. Despite being a blow to their reputation, admitting the company’s mistake and issuing an apology can make a huge impact on how consumers see the brand.
3. Compensate for your mistake
Now that you are at fault, it’s time that you compensate for your mistake. One of the most common reactions by businesses is to provide a refund. What you have to understand is that a refund should always be the last thing on your mind. If you can provide the customer with a freebie or a discount to pacify the situation, then why not? A refund ultimately means a loss, while a discount code allows you to still have some profit from the situation.
4. Learn from your mistakes
After committing the error, it is time for the management to learn from the entire situation. Can this problem be avoided next time? What could’ve been done in order to avoid this type of mistake again? Can the protocol be improved?
Businesses should take these mistakes as learning opportunities in order for them to improve and handle similar scenarios better in the future. Though crisis management can be stressful, you have to always remember that these challenges define a company.
5. Issue a statement if needed
Despite having a protocol on how to perform crisis management, it is still a common scenario that things can go out of hand. If you find other people joining the bandwagon of destroying the reputation of the company, it’s time that you issue a press release to answer the issues.
There are times when you will need to issue not only an apology, but also an explanation of what transpired. Though it may not have affected all your customers, publishing a press release could allow the company to explain its side and even gain sympathy from their market.
6. Monitor the progress
Social media works both ways. It can be a tool to refer clients and customers to your company, or it could also be used to destroy the reputation of your company. The sad thing is that some customers are unforgiving. There are times when there will still be negative comments about your company floating online.
What you have to do is to monitor these things and make sure to answer them. After correcting the mistake, it is just as important to increase your company’s online presence and monitor for other negative comments. Keep in mind that it isn’t easy to silence your critics.
7. Avoid committing mistakes
If you heard of the adage, “you are what you repeatedly do”, it also applies to businesses. For businesses that commit mistake after mistake on a regular basis, this becomes your reputation as a company. Depending on the severity of the mistake you’ve committed in your company, there are times when you just can’t commit the same mistakes of the same severity.
There are times when these steps work. However, you also have to understand that there are instances when no amount of crisis management can save you from demise. In fact, this is the reason why some companies close or even decide to re-brand.
What you have to remember is that is important to always implement the best business practice that prioritizes your customers. This way, you don’t have to deal with mistakes that could put a dent in your company’s reputation.
One of the most effective ways to market your product and service is to have a good reputation within your niche. However, let’s accept the reality that there are times when mistakes are committed, and some customers are unhappy.