Krystian Sobczyk
18.09.2024
71
No organisation is immune to crisis. While the nature and effects of a crisis are difficult to predict, it is possible to limit the negative effects by following a few tips. We will look at a few tips for successful crisis communication.
Crisis communication is a set of actions taken to counteract the effects of an event that may negatively affect an organisation's image. Any organisation can face a crisis and a poorly managed crisis can have serious consequences. To avoid the worst-case scenario, it is important to ensure prompt and effective crisis communications. The purpose of crisis communication is to minimise the risks associated with a ‘bad hype’ and prevent it from happening again in the future.
In the age of new technology, information spreads very quickly and in the event of a crisis it is important to respond quickly. Therefore, every organisation should have a crisis communications plan ready to help anticipate crises and identify ways to handle and disseminate information. Crisis can have a negative impact on customer loyalty and sales, so the goal of crisis communication is to mitigate and recover different areas of the company including human, financial and commercial. It is important to mitigate the financial impact of the crisis by targeting appropriate communications to both the public and the company's own staff.
The main objective of crisis communication is to preserve the company's reputation and the public's trust in the brand, as a deteriorating image can have a negative impact on future prospects. Trust in the brand and its products is undermined, which can have long-term consequences for the company. Effective communication is about staying visible, being responsive and demonstrating the company's integrity during difficult times. Proper crisis management not only minimises the negative effects, but can also help a company become stronger by enhancing its reputation and image.
Crisis communication requires a systematic approach to effectively manage complex situations. Every step of this communication is important to minimise negative consequences and preserve the company's reputation. Let's look at the key steps that will help you successfully manage a crisis:
The scandal broke in February 2013 when Findus, a well-known frozen food brand, explained that traces of horsemeat were found in its lasagne sold in the UK. The scandal soon spread to several other countries and resonated around the world. Despite this, two months later the brand announced a 4% rise in sales, while the beef-based ready meals sector recorded a 40% drop.
Findus managed the crisis through successful communication and transparency. The brand announced the problem while maintaining control of the situation and recalled all incriminated products, despite there being no health risk. The company also committed to DNA testing of all its products containing beef and pledged to join the fight for full traceability. Through such measures, Findus was able to save its brand.
Ferrero faced a major scandal in late 2012 when French senators introduced an amendment to increase the tax on palm oil, criticised for its harmful health effects and role in deforestation. Nutella, which contains 18% palm oil, found itself in the spotlight. Instead of changing the recipe, Ferrero explained to consumers the reason for using palm oil and pledged to only use an environmentally friendly product.
Ferrero actively used social media to communicate with the brand's main target audience - young people. ‘Touche pas à mon Nutella’ pages were even created to protect the product. Thanks to skilful communication and transparency, Nutella is still produced using palm oil and sales remain stable.
Volkswagen, one of the world's largest car manufacturers, faced a scandal in 2015 when it was revealed that the company had installed software on its cars that allowed them to pass emissions tests. As a result, 8.5 million cars in Europe and 500,000 in the US were affected, and the company set aside €6.5bn to settle fines and lawsuits. Sales fell 5 per cent in the month following the scandal and Volkswagen was late in taking anti-crisis measures, which only made matters worse.
The company revised its crisis communication strategy after the crisis was widely publicised online. The new CEO publicly apologised in a video posted on the brand's website and social media. To demonstrate transparency, Volkswagen commissioned an external investigation, the results of which helped develop an action plan to recall and bring vehicles up to standard. In addition to this, the brand launched an investment campaign to research and develop electric vehicles.
In conclusion, we can conclude that crisis communication plays a key role in preserving a company's reputation, as well as in restoring public trust in the brand. If the crisis is managed correctly, it is possible not only to minimise the negative effects, but also to make the company stronger by strengthening the image. Effective crisis communication includes crisis anticipation, prompt communication and transparency with the audience. We have looked at real examples of how to act in crisis situations in order to stabilise the situation
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