Crisis management

The Playbook to Recover From a Damaged Image 

By Nathan Buchanan on December 2, 2024

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A magnifying glass over the word crisis.

Most of us have an image we want to uphold in a daily context. We have standards of how we want people to see us, and we reflect judgements and notions about somebody based on factors we feel are important.

If you work for any business, then you know how important identity and reputation are (and no, we’re not talking about Taylor Swift). Still, for organizations, it’s about what people say and how they perceive their brand. If a reputation crisis occurs, it can be devastating and shutting – but there are crisis reputation management techniques you can use to help clients.

But first, what is a reputation crisis? It simply refers to a situation where a company’s reputation is at risk of being damaged and destroyed. A crisis can happen no matter the scale of the business. It could be a data breach, a social media gaffe by a team member or a workplace incident.

A good reputation can help clients attract new customers, retain existing ones and build brand loyalty. But a bad one – can quickly make a business vulnerable to criticism.

Preventing a business reputation crisis is easier than managing one. There are steps you can take to prevent a crisis from ever happening:

  • Focus on quality: Make sure your products or services meet customer expectations. Doing what you say you’ll do can help negative reviews and complaints
  • Be transparent: If something goes wrong, be open and honest with your customers and stakeholders. This can help build trust, and your client can get ahead of the narrative.
  • Monitor social media: Monitor social media channels to see what customers say about your brand. This can help you address issues before they become major problems.
  • Keep an eye on reviews: Review monitoring management is just as important as social media.
  • Have a crisis plan in place: Develop a crisis plan that outlines how your company will respond to a crisis. Knowing what you’ll do beforehand means you’ll always be prepared for any reputation crisis.

If a crisis does occur, there are steps you can take to manage it:

  • Act quickly: Respond to the crisis as quickly as possible. This can help prevent the situation from escalating.
  • Take ownership: Be honest and transparent with customers and stakeholders. This can help rebuild trust and prevent further damage to your reputation.
  • Apologize if necessary: If your client made a mistake, they should apologize and take responsibility for the situation. However, if the organization is at fault they should be the ones who take responsibility.
  • Take action: Take steps to resolve the issue and prevent it from happening again in the future.

Those steps can help prevent and manage a business reputation crisis. It’s vitally important to take proactive steps to protect it.

Crises could arise because of internal factors, too.

  • Poor management: A lack of effective leadership or poor decision-making can lead to reputational damage
  • Employee misconduct: Employee behaviour that is unethical, inappropriate or even illegal can reflect poorly on an organization
  • Product or service issue: If products or services don’t live up to their promises, people will be unhappy. This can severely damage a brand’s reputation, as word spreads quickly online.
  • Financial mismanagement: Poor financial decisions, such as fraud or embezzlement, can lead to a loss of trust in an organization.

And, of course, there are external forces as well.

  • Negative media coverage: Negative media coverage, even when it’s untrue, can damage an organization’s reputation.
  • Social media: Negative information spreads quickly on social media – and there’s even less fact-checking than in media coverage.
  • Economic factors: Economic factors, such as recession or market downturn, can impact your organization’s reputation, especially for more high-cost products or services.
  • Competitor actions: Competitors may engage in negative campaigns (buying fake negative reviews, for example) or other actions that damage an organization’s reputation.

Now, let’s discuss the impact.

A reputation crisis can damage a business’s brand image, reduce customer trust, and lead to financial losses. In today’s digital age, where information spreads quickly, a single negative event can quickly escalate into a full-blown crisis.

Loss revenue: Reputation issues can lead to loss of revenue as customers may stop buying from you. They may switch to your competitors or simply stop buying altogether. This can be particularly damaging if your business relies heavily on a few key customers.

  • Damage to brand image: A reputation crisis can damage your brand image and make it harder to attract new customers. It can also lead to negative media coverage, further damaging your brand.
  • Reduce customer trust: It can also erode customer trust, making it harder to retain existing customers. Customers may question your business practices and wonder if they trust you.
  • Legal and regulatory issues: A reputation crisis can lead to legal and regulatory issues. For example, if your business is found to violate laws or regulations, you may face fines or other penalties.

The fact is that a crisis can happen to any organization. Effective crisis and reputation management can help mitigate the negative impact of a crisis on the organization’s image and reputation.

Reputation management is the process of planning, preparing and responding to a crisis in a way that protects the organization’s reputation. The goal of crisis and reputation management is to minimize the damage caused by a crisis and to restore the organization’s reputation as quickly as possible.

Crisis and reputation management involves four key elements: preparation, communication, monitoring and recovery.

  1. Preparation is important in case a crisis ever arises. The crisis management plan should outline the roles and responsibilities of each member of the team and the steps that need to be taken to respond to a crisis.
  2. Effective communication is critical during a crisis. The crisis management team should communicate a clear, concise, and consistent message to all stakeholders, including employees, client media, or whatever stakeholder applies to them.
  3. It is critical to monitor the situation closely and to be prepared to adjust the crisis management plan as needed. This may involve changing the communications strategy or taking additional steps to mitigate the impact of the crisis.
  4. Once the crisis has passed, you’ll need to focus on recovering your client’s or business’s reputation. This may involve repairing damaged relationships with stakeholders, implementing changes to prevent a similar crisis from occurring in the future, and rebuilding the organization’s reputation.

The best way to handle a crisis is to prevent it from happening in the first place.

  • Establish a crisis management plan: Create a plan that outlines the steps you will take in the event of a crisis. The plan should include a crisis management strategy, a list of key stakeholders and a designated crisis management team.
  • Monitor your online presence: Regularly monitor your online presence, including social media, review sites, and news articles, to gauge how people are reacting to and perceiving your company.
  • Encourage positive feedback: Encourage customers to leave reviews on Google or with other reviewers to get as much positive word of mouth as possible.
  • Train your staff: Train your staff on how to handle a crisis, including how to respond to negative comments, how and when to communicate with stakeholders, and how to follow the crisis management plan.
  • Be transparent: Be honest and transparent in your communications. Acknowledge mistakes and take responsibility.

If a crisis does occur, it’s important to act quickly and effectively to mitigate the damage.

  • Respond promptly: Respond to negative comments or mentions as soon as possible. Acknowledge the issue and provide a solution or explanation – or both.
  • Stay calm and professional: Keep your emotions in check and maintain a professional tone in all communications.
  • Be consistent: Ensure that your messaging is consistent across all channels and that all crisis management team members are on the same page.
  • Provide updates: Keep stakeholders informed of any updates or changes to the situation.
  • Generate positive content: Publish positive content on your website, social media and other online channels to counteract any negative comments or mentions.

We all know a company’s reputation can make or break the business, especially today. A good reputation can attract new customers, retain existing ones, and help you weather any crisis that comes your way. On the other hand, a damaged reputation can lead to a loss of credibility, a decline in sales, and even bankruptcy.

That’s why it’s essential to have an ongoing reputation management strategy in place. Reputation management is not a one-time event but a continuous process that involves monitoring your online presence, responding to customer feedback and proactively managing your brand image.
Here are some reasons why ongoing reputation is crucial for your business.

Builds trust and credibility

When customers trust your brand, they are more likely to do business with you. Reputation management helps you build trust and credibility by ensuring that your brand is seen as reliable, trustworthy, and transparent. By responding to customer feedback and addressing any concerns they may have, you show that you care about their opinions and are committed to providing excellent service.

Increases brand awareness

A positive reputation can help a business stand out and attract new customers. By managing your client’s online presence and promoting positive reviews and testimonials, you can increase their brand awareness and reach a wider audience. This can lead to more traffic to your website, more leads, and ultimately more sales. You can even share Google reviews to get more out of each positive interaction. On the other side of the coin, here’s what to do if your client’s Google reviews don’t show up.

Mitigates the impact of negative reviews

Negative reviews are inevitable no matter how good a business is (think a client has been unfairly reviewed? Here’s when and how to dispute a Google review). However, with ongoing reputation management, you can mitigate the impact of negative reviews by responding promptly and professionally to customer complaints. By addressing the issue and offering a solution, you can turn a negative experience into a positive one and even win back the customer’s trust. Remember, it’s better to respond to and manage negative reviews than it is to turn off Google reviews, full stop.

Protects a business from reputation crises

Reputation crises can happen to any business, big or small. However, with ongoing reputation management, you can be better prepared to handle any crisis that comes your way. By monitoring their online presence, you can detect any negative comments or reviews early on and take action to address them before they escalate into a full-blown crisis.

Ongoing reputation management is essential for any business that wants to build trust, increase brand awareness, mitigate the impact of negative reviews, and protect itself from reputation crises. By investing in reputation management, you can ensure that your brand is seen as reliable, trustworthy, and transparent, ultimately attracting more customers and growing the business.

N.B. This article was edited with the help of AI.

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