Protecting Brand Reputation Through Crisis and Reputation Management

March 5, 2024

A brand's reputation is one of its most valuable assets. Decades of diligent work building customer trust and credibility can be ruined instantly by a mismanaged crisis or negative publicity. In today's hyperconnected digital landscape, brands must be prepared to protect their reputation when disaster strikes.

A brand's reputation is one of its most valuable assets. Decades of diligent work building customer trust and credibility can be ruined instantly by a mismanaged crisis or negative publicity. In today's hyperconnected digital landscape, brands must be prepared to protect their reputation when disaster strikes. Effective crisis and reputation management are vital to navigating treacherous situations while maintaining public trust.

Crisis Management - Preparing for the Worst

Crisis management involves developing strategies and processes to prepare for, respond to, and recover from unexpected events that threaten brand reputation and business continuity. The foundations of crisis management include:

Risk Assessment - Thoroughly evaluating potential vulnerabilities across business functions, such as supply chain disruptions, cybersecurity threats, product defects, or leadership scandals. Identifying the likelihood and potential impact level of each risk informs strategic priorities.

Crisis Communications Plan - Outlining response protocols, stakeholder mapping, designated spokespeople, draft reactive statements, and scenario plans provide a strategic framework for navigating crises. Ensuring the plan aligns with brand values and incorporates stakeholder perspectives is crucial.

Training and Simulation - Conducting simulations of various crisis scenarios equips leadership and personnel to implement response plans rapidly and effectively. Post-simulation debriefs assess performance and identify capability gaps.

Monitoring and Early Warning Systems - Tracking digital listening data, customer complaints, and other early indicators enables brands to detect emerging issues and intervene before they escalate into full-blown crises.

Quick acknowledgement, transparency, and decisive corrective action are paramount when a crisis hits. Brands like Johnson & Johnson have demonstrated such responsiveness during product tampering scandals, replacing inventory nationwide within days and regaining public trust through CEO engagement. Post-crisis, an after-action review should inform enhancements to crisis protocols and broader risk management practices.  

Reputation Management - Cultivating Trust Daily

While crisis management is reactive, reputation management proactively monitors, shapes, and protects brand reputation through ongoing communication and engagement. Core facets include:

Listening and Analysis - Monitoring digital conversations, news media, reviews, and surveys provides real-time insights into brand perception across stakeholder groups. Sentiment analysis and competitive benchmarking inform reputation strategies.

Issue Anticipation - Tracking trends in consumer values, sociopolitical movements, and emerging risks helps identify potential hot-button issues before they ignite. Brands can then refine messaging or community engagement to get ahead of problems.

Relationship Building - Consistent engagement with customers, employees, regulators, and other stakeholders through targeted campaigns nurtures trust in the brand. This accumulated goodwill provides resilience during crises.

Storytelling and Promotion - Strategic content creation and distribution shape narratives about the brand. Spotlighting sustainability initiatives, for example, boosts reputation as a responsible corporate citizen.

Online Image Management - Since search results shape first impressions, brands must optimise positive owned content while responding to negative pieces. Burying damaging content through new stories and reviews is preferable to deletion requests.

Localised reputation management across regions, languages, and cultures is essential for global brands like Starbucks, as social issues diverge across markets. Regular sentiment pulse checks guide outreach priorities and engagement tactics.

Integrated Crisis and Reputation Management

While crisis and reputation management have distinct approaches, effective brand guardians take an integrated strategy encompassing proactive and reactive components. Some best practices include:

Unified Leadership - Having designated teams for daily reputation stewardship and crisis response fosters specialisation. However, a joint oversight council ensures alignment on brand objectives and coordinated action during emergencies.  

Consistent Messaging - Adopting core narratives centred on ethical business practices, transparency, and customer-centricity provides a lodestar to guide all communications, whether promoting achievements or responding to events.

Multichannel Coordination - From mainstream media interactions to community engagement on next-door.com, brands must ensure a cohesive presence across digital, social, broadcast, and grassroots channels.  

Proactive Relationship Building - Strong consumer connections established through reputation management buy goodwill and benefit of the doubt during crises. Taking purpose-driven stands on social issues also boosts credibility.

Crisis Scenario Planning - Gaming out crisis simulations through a reputation management lens helps identify brand vulnerabilities and shape response protocols. Post-crisis updates to reputation strategies should reflect lessons learned.

The integration of crisis and reputation management under strategic brand guardianship enables organisations to pull the most appropriate levers based on the situation. After United Airlines' excessive force scandal, CEO Oscar Munoz's mismanaged public response exacerbated the spiralling crisis. However, the company recovered through decisive policy changes and consistent messaging about lessons learned – saving brand reputation through integrated crisis and reputation management.

Navigating Crises in a Social Media World

While traditional media often fuelled past crises for brands, social media has transformed today's landscapes—information cycles in minutes across Twitter, TikTok, and Instagram, with controversies exploding overnight. Consumers also expect rapid brand responses on social platforms. Brand guardians must account for modern crisis dynamics:

Social Listening - Monitoring key platforms provides instant insight into emerging backlash and discussion trends. Tools like Sprinklr allow nuanced tracking across regions and languages.

Influencers - Criticism amplified by influential social accounts generates cascading damage. But counter-messaging and coordination with friendly influencers can mitigate impacts.

Misinformation - The virality of false information and conspiracy theories on social media can quickly spiral. Brands need rapid-response protocols to intercept misinformation spread.

Dialogue - Social provides a channel for real-time consumer engagement during crises. Responding constructively to critiques instead of just pushing brand messaging demonstrates accountability.

Visual Storytelling - Social videos and visuals showcasing brand values and restorative actions after crises help reshape narratives.

For brands like Peloton, social can rapidly fan flames during equipment failures or safety incidents. However, the same platforms allow brands to take ownership of lapses and rebuild trust through authenticity and transparency. Social crisis and reputation management is a balancing act.

Case Study - Starbucks' Crisis and Reputation Management    

Starbucks provides an illustrative case study on integrated crisis and reputation management:

Proactive Reputation Building - Through fair trade sourcing, community outreach, and sustainability commitments, Starbucks cultivated its brand identity as an ethical, progressive company.

Crisis Response - When a viral video showed two black men arrested at a Philadelphia Starbucks location in 2018, Starbucks responded decisively, closing 8,000 stores for racial bias training. CEO Kevin Johnson apologised publicly and settled with the men privately, mitigating backlash.

Post-Crisis Reputation Efforts - Starbucks continued strengthening its reputation for diversity, equity, and inclusion through initiatives like its 2025 diversity goals, community grants, and sustainability projects.

Ongoing Social Media Engagement - During the crisis, Starbucks addressed angry social media commentary constructively. The company maintains active social accounts globally, promoting its community programs and values daily.

Through crisis preparation, decisive response, and purpose-driven reputation stewardship, Starbucks demonstrates how modern brand guardians can protect corporate reputation, even while confronting magnified social media scrutiny.

Protecting your most valuable asset

Ultimately, integrated crisis and reputation management comes down to understanding the interdependence between proactive cultivation of trust and reactive crisis response. When crises strike, the reservoir of goodwill established through reputation stewardship provides credibility that helps brands survive. And the lessons from navigating crises feed back into ever-improving reputation strategies. With vigilance and care, brands can build resilience despite today's volatile environment. Robust crisis and reputation management ensure that no matter the situation, the brand comes first – protecting the company's most valuable asset.