1
© 2011 Dow Jones & Company, Inc. All rights reserved.
How to Measure Your Brand’s Reputation During and After a Crisis?
Martin Murtland, VP & Managing Director Factiva for Communicators 18 April 2012 PR Measurement Conference
2
© 2011 Dow Jones & Company, Inc. All rights reserved.
Outline
• Timing is everything
• Case Studies: – Netflix – Goldman Sachs – Costa Concordia
• 3 Big Changes due to Digital
3
© 2011 Dow Jones & Company, Inc. All rights reserved.
3
Reputation
“It takes 20 years to build a reputation
and five minutes to ruin it.”
4
© 2011 Dow Jones & Company, Inc. All rights reserved.
Secret to Being Nimble and Smart?
5
© 2011 Dow Jones & Company, Inc. All rights reserved.
5
Timing is Critical... Anticipate
Issue Identification
Interest Group Formation
Legislation Administration Enforcement
Impa
ct o
n Fi
rm
Time
Impa
ct o
n Fi
rm
Time
Adapt to change Affect development of issue
Compliance & damage control
Strategy Focus:
Levi Strauss – Created policies & not focused on by activists Nike – Did nothing was attacked by activists & had to focus on damage control Apple – Foxconn and Apple to increase wages & working conditions as a consequence of Fair Labor Association report
Example: Working Conditions of Suppliers
6
© 2011 Dow Jones & Company, Inc. All rights reserved.
Case Studies: Safer to Learn from Someone Else!
1. Netflix 2. Goldman Sachs 3. Costa Concordia
7
© 2011 Dow Jones & Company, Inc. All rights reserved.
Netflix: There’s No Business Like Bungled Communication
8
© 2011 Dow Jones & Company, Inc. All rights reserved.
How Does the Popcorn Taste Now?
-10
-8
-6
-4
-2
0
2
4
6
8
0
50
100
150
200
250
300
350
Jul 5 Jul19
Aug2
Aug16
Aug30
Sep13
Sep27
Oct11
Oct25
Nov8
Nov22
Dec 6 Dec20
Jan 3 Jan17
Jan31
Feb14
Feb28
Mar13
Insi
ght M
edia
Inde
x
Stoc
k Pr
ice
Stock Price and Dow Jones Insight Media Index Score
Stock Price Media Index
Media Index Score has Recovered
Stock Price still not as Tasty
Analysis by Dow Jones Insight
9
© 2011 Dow Jones & Company, Inc. All rights reserved.
Goldman Sachs: Why I Am… Starting a Media Storm
Source: YouTube
10
© 2011 Dow Jones & Company, Inc. All rights reserved.
An Op-Ed Goes Viral Social Media Reaction Press & Web Reaction
Blogosphere and Twitterati jumped in
Spike in coverage vs. peers
Unfavorability spiked
Increase in stories around regulation and clients
11
© 2011 Dow Jones & Company, Inc. All rights reserved.
Words & Names Catch the Bug, Too… Sticks & Stones
• “Greg Smith” became prominent • “Muppets” and “evil empire”, too
Analysis by Dow Jones Insight
12
© 2011 Dow Jones & Company, Inc. All rights reserved.
Coverage “Fever” Spikes, Price Declines
• Media “pile on” for surge in stories, posts, Tweets, videos • Goldman Sachs stock price declined 3% but since recovered • Will “names” hurt them?
Source: Factiva
13
© 2011 Dow Jones & Company, Inc. All rights reserved.
13
Issue Life Cycle: Timing is Critical... Anticipate
Issue Identification
Interest Group Formation
Legislation Administration Enforcement
Impa
ct o
n Fi
rm
Time
Impa
ct o
n Fi
rm
Time
Adapt to change Affect development of issue
Compliance & damage control
Strategy Focus:
14
© 2011 Dow Jones & Company, Inc. All rights reserved.
Costa Concordia & Carnival: Charting a Disaster
Source: Guardia di Finanza/Associated Press
15
© 2011 Dow Jones & Company, Inc. All rights reserved.
Carnival Share Price: Rough Waters
Carnival stock falls after tragedy
Quality of coverage is showing gradual recovery
16
© 2011 Dow Jones & Company, Inc. All rights reserved.
Cruise Industry: Navigating Heavy Seas
Royal Caribbean also saw price decline
Positive media coverage helped stock recover
17
© 2011 Dow Jones & Company, Inc. All rights reserved.
Traditional Media: Taking the Helm
• Traditional news dominated coverage
• Unlike other disasters, social media coverage was NOT a driver
18
© 2011 Dow Jones & Company, Inc. All rights reserved.
Is Social Media the Whole Story?
Source: The State of News Media 2012 by Pew Research Center
19
© 2011 Dow Jones & Company, Inc. All rights reserved.
Scouts Motto “Be Prepared”
• Define reputation goals & drivers
• Measure it and set a baseline
• Present goals & metrics to C-suite – Pre, During & Post crisis – During: more frequent and add
recommendations
• Ensure crisis playbook covers digital e.g. response site
Photo Source: Wikipedia
Pre-crisis level
20
© 2011 Dow Jones & Company, Inc. All rights reserved.
Use Metrics to Guide Your Response
Photo Source: Wikipedia
“I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who.” Rudyard Kipling (1865-1936)
21
© 2011 Dow Jones & Company, Inc. All rights reserved.
3 Big Changes Due to Digital
Changes due to digital What to do? Media faster & more fragmented • Tools to filter content but not panacea
• Dynamic metrics to keep pace with media • Track trends & industry players • Know influencers & channels to respond to & in • Experiment, learn & train
Dialogue + Message delivery • Invite and engage in dialogue during crisis • Listen and adjust messaging (resonate) • Not just press releases & scripts • Build relationships with influencers now
No secrets… need to be more transparent
• Align business practices to positioning • Be sincere and authentic • Use medium of detractors
22
© 2011 Dow Jones & Company, Inc. All rights reserved.
Questions?
Factiva Solutions for Communications Professionals
The Conversational Corporation
www.theconversationalcorporation.com Trends & best practices in PR, Media evaluation & Social media
