How to Manage Market Crises

You have to be the first person to tell your client about the screw-up. A timely #failurefriday post. Many of us were impacted by the cell outage yesterday, some lost all modes of communication, others just cell service. My life didn't change one bit. My daughter thought the world was ending. Even though nothing changed for me, I still wanted to know why I could not use the device that I paid for to access a service that I paid greatly for. I had to dig deep to find a DailyMail.com clip about the outage. When I walk my clients through their Crisis Proof Your Business checklist (link in the comments) we plan what happens when we cannot meet our clients' expectations because of a FUBAR. We plan it and we rehearse it. When we discover an event - such as 70% of our clients being unable to use the service we are paid t provide - we have one main rule: ***The Client Must Hear About the Disruptions From Us First*** The message is this: 1. There is an interruption. 2. We apologize for the inconvenience. 3. We are working to restore service as fast as possible. and then keep them updated. Our Crisis plan also includes alternative communications that happen simultaneously (in case our mode of communication is the missing piece.) 1. Update the website (that is the first place I go). 2. Broadcast the message in all formats (autodial, text, social media). 3. Issue a press statement. Let your clients know about the issue in every mode possible. Want to instill loyalty and nurture trust? Build in this practice. Those impacted will respect that you cared enough to let them know. Those not impacted will KNOW that you care for them. CTA - Practice your crisis communications (even you solos). PS - Have you Crisis Proofed your Business? Shoot me a DM.

When I reflect back on the wireless outage from yesterday, I look for lessons learned, and applicable teaching moments for those of us in the #financialservices industry. While there was a level of frustration, personally, as I made the peaceful 5:45 AM drive to Uptown Charlotte without the ability to stream my favorite songs, I realized there's probably a deeper impact to others. So where's the parallel to banking???? #communitybanks and #creditunions are critical infrastructure, just as mobile networks are. In our connected world, banking has transformed making it more dependent on third and often times fourth party vendors to provide banking channels to your customers and members. I couldn't get to my banking app yesterday without being connected to Wi-Fi, therefore, my banking app was essentially down. The lack of communication for this incident was the biggest misstep in this situation; therefore, the most significant reminder on the importance of communicating to your customers (regardless of industry). Not proactively communicating led to rumors of a cyberattack and other falsehoods which makes it tougher to have confidence that this was actually an upgrade issue. If you're a bank or credit union, use this example as an opportunity to do the following: 1️⃣ Tabletop tests and see how you'd do if your institution, or one of you partners, went down. 2️⃣ Review your communication plan for a similar outage (including talking to your vendors)- making sure your employees and customers are in the loop will be key. 3️⃣ Review the change management policy & procedures on IT changes to confirm you have an appropriate backout script if the updates don't work. 4️⃣ Make sure your #cybersecurity infrastructure remains up and monitoring for any unresponsive systems impacted by the outage. If you don't feel you're prepared for an event like this at your institution, reach out to me- I'd be happy to review options! If it can happen at a company like #ATT, it can happen to you. #clapromise #DRpreparedness #cybersecurity #communicationplans #criticalinfrastructure

How do you prevent mayhem when crises occur that affect you and your team? Bridges collapse. Criminals mow down innocent victims. CEOs have heart attacks. Contagious diseases spread. Layoffs happen. Such crises create havoc as misinformation and fear run rampant through an organization or team. So what’s your part in calming the hysteria among your team? Communication. Communication that’s current, consistent, and complete. When I’ve consulted on handling crisis communication previously, I often get this question from bosses: “But how can I tell people what’s going on when we haven’t yet investigated and don’t have the facts?” That’s never an excuse for delayed communication. Be mindful that when people don’t have the facts, they tend to make them up. In a communication void, people pass on what they think, fear, or imagine. Noise. Keep these communication tips in mind to be part of the solution, not the noise: ▶ Tell what you know as soon as you know it. ▶ State what information you don’t have and tell people what you’re investigating. ▶ Stifle the urge to comment on/add to rumors, fears, guesses. ▶ Communicate concern specifically to those directly affected. ▶ Offer tangible support when you can (time, money, acts of kindness). ▶ Communicate kudos to those working behind the scenes. Accurate, speedy communication creates relationships and cultures that build trust and encourage loyalty. Have you been affected by a crisis? Was it handled well or poorly? Outlandish rumors that circulated? #CrisisCommunication #LeadershipCommunication #BusinessCommunication #ProfessionalCommunication #DiannaBooher #BooherResearch

As a customer marketer, I'm often called on to manage crisis communications when there is an outage. It's not the easiest part of the job. So, I’m always curious to see how other software companies and brands manage these situations. Square recently experienced an outage. In addition to being a customer marketer, I own a vintage business, and I’m a Square customer. I wasn’t directly impacted by this situation, but I took the time to read the email they sent me today. Square’s email was transparent. They took responsibility for the situation and apologized for the impact this had on their customers. And, they clearly outlined the steps they are taking to make sure they do a better job in the future. More importantly, Square admitted that during the crisis they didn’t communicate as frequently as they could have. Reading between the lines, I’m willing to bet that they didn’t have a clearly defined process in place for outages like this. Don’t neglect to plan for when things don’t go according to plan. Do you have a crisis communications plan in place? How will you make sure to keep your customers informed? A customer marketer can help guide the team in their response and strengthen your relationships with your most important stakeholder, your customers. Need help with your customer marketing? Let's talk.

I often say we are in the business of building, maintaining and, when needed, repairing reputation. People don’t always think about the importance of a proactive crisis plan in managing a reputation; however, having a solid crisis communication plan is key to safeguarding your reputation (or that of your business) in turbulent times. From data breaches to natural disasters, how you respond in critical moments can make or break your reputation. A well-thought-out crisis media plan is not just advantageous, but essential. My three keys to crisis communication are: 1. Preparedness is confidence among key stakeholders. This allows you to: a. Communicate early b. Communicate often c. Be transparent (even if you can’t provide many details) 2. Time is of the essence. A crisis media plan outlines exact protocols and procedures to minimize confusion and increase communication. 3. Business continuity: Effective crisis management includes provisions for maintaining essential operations while coordinating internal and external communications. Failing to plan is planning to fail. https://bit.ly/4awrF3f

🌟 Lessons Learned from the Daily Harvest Crisis 🌟 Last year, Daily Harvest, (company with a valuation of $1.1 billion in 2021), found itself in a major crisis. The company launched a new product, the French Lentil + Leek Crumbles (sounds delicious?). Soon customers started complaining they were getting sick, both on social media and to company support. Despite the complaints, Daily Harvest was slow to respond, with customers feeling dismissed when the company suggested that their health issues might be due to improper preparation of the product. The company offered a $10 credit and sent customers a survey asking "how long did you cook the product". More than 140 people were hospitalized, and around 40 had to undergo gallbladder removals. The CEO resisted using the word "recall" on social media, and instead customers with pending orders were informed that their orders were canceled due to "high demand" and a temporary stockout. It was only after hiring a crisis management company that the company finally issued a recall. Now Daily Harvest is facing arbitration with customers (forced arbitration in their terms of service) and lawsuits from influencers who previously promoted the brand and received the product free (not subject to arbitration). They've had two rounds of layoffs and closed a retail location since. This is a great use case and a lesson in leadership and how to act in times of crisis. Some lessons I personally picked up Transparent Communication: Acting out of fear (of what might happen if it is your fault) and not facing issues head-on can be the downfall of a business. You have to be forthright with your customers first - and I believe if the CEO was transparent early on, the response from customers would be much more positive. Crisis Management - Every business must have a crisis management plan in place to handle unforeseen challenges. Especially if you're in a business more prone to issues coming up (toys/supplements/machinery/food). Taking Customer Complaints Seriously: Listen to customers, have empathy, and respond quickly. Downplaying customer concerns is not the way to build trust. The Daily Harvest crisis reminds us that even successful companies are not immune to challenges. We will never be able to avoid challenges, but how we show up makes all the difference if we rise to our next level, or we're not ready to get there.