Risk Management: make sure your social media approach is up to scratch!

A risk lurks in every corner. And when it pops out, the effects could have a big impact on the reputation of your company if you don’t react to it appropriately. Nowadays, information can spread as fast as lightning via social media. So you had better have a contingency plan if things go otherwise than anticipated.

Last year, BP incurred massive damage to its reputation when, as the consequence of an explosion, an unstoppable oil flow contaminated the Gulf of Mexico. BP was totally unprepared to counteract the indignation that was expressed through social media. The scale of this disaster was huge, of course, but a good social media PR plan would have helped to limit the damage as much as possible instead of exacerbating it. Twitterers agitated about the fact that communication by way of Twitter and Facebook was poor to non-existent. One Twitterer even set up a mock BPGlobalPR account in order to make this clear to BP. It got almost 162,000 followers.

BP could have taken an example from other companies, who use social media to limit damage to their reputation.

For example, KLM. In April 2010, KLM discovered the benefits of social media when the ash cloud from a volcanic eruption in Iceland completely disrupted European air traffic. Passengers were stuck at various airports and there was nowhere they could go. But how could KLM keep these passengers informed? Twitter turned out to be the solution and in this way, passengers were continuously kept informed of the latest updates. This was greatly appreciated by stranded travellers. In addition, KLM opened a Q&A page on their Facebook and, in a YouTube video their CEO paid attention to the situation and extended his apologies to passengers for all their inconvenience. Thus KLM was able to show a human side. From that moment as well, social media have come to play a more important role in KLM Policy.

Listening

The beauty of social media is that you can listen to what is being said about your company or brand. This enables you to give a timely response to negative sentiments. If a company makes a mistake, then the sting is usually removed if a company admits it and shows that it is doing everything to make amends for its error.

Communication plan

In order to be prepared for a crisis, a social media communications plan has to be in place. The PR department, for example, could be put in charge of this task. There also need to be procedures for dealing with complaints on social media.

@NS_online Is it true that till 13:00 there will be only 1 sprinter per hour (Rotterdam-Utrecht) and no Intercity trains at all? @junoenbert Indeed there are fewer trains on this route because of a signalling and points failure with diversions via Schiphol

Make sure you have a social media policy

But risk or reputation management begins long before a crisis arises. By maintaining an active presence on social media, by listening and responding to questions, you build up your credit. The creation of positive customer moments – online and offline – for example through Customer Service, Sales and Communities – ensures that your connection with customers is strengthened. As a result, trust in a successful outcome at a time of crisis is enhanced and you’ll probably encounter less damage.

The NS(Dutch Railways) is also a company that has to contend with negative sentiments due to disruptions to service and delays. NS has adapted its social media policy accordingly, and last year, amongst other things, it launched the Twitteraccount @NS_Online to engage in dialogue with travellers, informing them about delays and solutions. It’s a way to work on their online reputation.

The NS(Dutch Railways) is also a company that has to contend with negative sentiments due to disruptions to service and delays. NS has adapted its social media policy accordingly, and last year, amongst other things, it launched the Twitteraccount @NS_Online to engage in dialogue with travellers, informing them about delays and solutions. It’s a way to work on their online reputation.

You can deploy social media to good advantage in times of crisis, but only if you start now:

Social Media as a risk management tool

You can deploy social media to good advantage in times of crisis, but only if you start now:

• Develop a social media strategy, in which you build communities and carry out discussions, before something happens.
• Listen to what is being said about you on social media. There are very many (free) tools for this!
• Develop a social media communication plan for the purpose of risk management.
• Make sure that all your staff are informed about how they can and are allowed to use social media.
• Make social media part of your PR communication generally.

If anything should happen, remember:

Make sure you respond quickly.

• Respond personally, people like to be spoken to by people and not by ‘a company’.
• Offer apologies if there has indeed been an error caused by your company. In general, customers are quite prepared to be understanding if a company shows its human side.
• Always stay authentic, polite and leave room for dialogue.

Social Media + Strategy

Developments in the field of Social Media are so rapid that many people can no longer see the wood for the trees. It is also a recent and therefore relatively unknown phenomenon – numerous misconceptions abound. No company can prosper nowadays without a strategy, but where do Social Media fit into this strategy? In many cases, companies progress no further than opening an account on a few platforms. The problem with this approach is that the use of Social Media then becomes the goal instead of the means.

Content Strategy – Why Do People Share Content?

Social Media make sharing information quick and easy, but why do people share information with one another? The New York Times recently conducted a quantitative and qualitative study into this subject among a group of over 2,500 people. The study provides insights for marketing professionals when implementing Social Media and content sharing strategies.

According to the report, people share information with others based on the relationship that exists between them. Sharing information is nothing new. We have always done so and the motivation to do so can be found in the upper three levels of Maslow’s Hierarchy of Needs, i.e. the need for social contact, esteem and recognition, and self-actualization.

The E4 Process – Four Steps to Improved Sales Performance using Social Media

I am often asked by companies to help them find new customers. Naturally, I welcome such challenges, but at the same time, I actually advise them to examine opportunities to increase existing customer value. Costs incurred hunting down new customers are on average seven times higher than the costs required to retain existing customers. Moreover, these customers have already embraced your brand and are open to intensifying the existing relationship.

A well thought-through customer contact strategy and associated cross-media marketing can boost an organization’s profitability. The sales process is a subtle art form made up of several steps – entice, enchant, engage and enhance. The E⁴ model illustrates the various phases of the sales process in relation to a customer contact strategy. Social Media – and in turn Earned Media – are important factors for success in this process.