Brand Backlash and having a "Frank" Conversation

Recently Jeremiah Owyang of Forrester posted about the various Categories of “Brand Backlash” that have occurred in the social media space:

“Category 1: Consumer revolt and use social media tools (Twitter, Blogs, YouTube) to tell their story, the brand doesn’t flinch, and there is no mainstream media coverage. Examples: A weekly, if not a daily occurrence.

Category 2: The backlash extends beyond just social media tools (Twitter, blogs, YouTube), the brand makes changes based on consumer feedback, and coverage extends to mainstream media and press. Examples: Louis Vuitton brandjacked, Exxon Mobile’s Twitter experience.

Category 3: Consumers use social media tools to spread backlash and there is considerable mentions from mainstream press. the backlash is more severe resulting in significant changes from the brand (hiring, firing, processes, policies or new teams put in place). This becomes a case study for social media books and is often discussed in social media culture. Examples: Dell Hell, Comcast Cares, Kryptonite Locks, Wholefoods CEO.

Category 4: Number three plus short term financial impacts to the brand resulting in reduction of sales, revenue, increased costs, or impact to stock price less than 30 days. Examples: Apple Stock temporarily sinks from blog rumors.

Category 5: Number three plus brand backlash from social media tools resulting in long term financial impacts to the brand including reduction in sales, revenue, increased costs, and most importantly, stock price lasting over 30 days. In the most extreme cases, it causes closure of the business or bankruptcy. Examples: None.”

So what do all of these categories mean to clients? They represent the negative ROI of messages or actions taken by a brand, that elicit strong opposition on the web and possibly (but rarely) effect financial statements. Regardless of whether our clients are engaged in social media, these types of incidents can occur. With the recent Motrin fiasco, social media was not the root of displeasure with the online community, it was a single repurposed 30 second spot. The point is, as long as an advertiser is pushing out a message on any platform, there will be another massive platform for consumers to talk about it (the web). Traditional media may not have had to face that reality decades ago, but it certainly does now.

So does this mean that we need to recommend all clients pursue a social media campaign to counteract the potential negativity that may brew around their brand online? No. The strategy for each campaign will vary depends on the goals and we need to make sure we use the correct tools to accomplish them.

What it does mean however is that we should be encouraging our brands to develop real and long term relationships with the online community in a non-sales driven environment (whether with the help of the agency or not). In the end, it will make things easier for all parties because no one wants to have to push out last minute campaign trying to undo a bad situation or have to take down work that so many people spent hours on creating.

Look at Comcast as an example. This is a company that is absolutely notorious for bad customer service. That being said, their shining light comes in the form of a guy named Frank who is the voice behind “Comcast Cast Cares” Frank has worked hard to reach out to people on twitter and the blogosphere to make sure they understand that their voice is being heard. Frank is probably only appeasing 5% of the population that is displeased with Comcast, but that 5% is the LOUDEST segment. They are the same people who made Motrin take down their website on Sunday night and the same people who will create hundreds of pieces of negative brand sentiment on the web that will last forever. If all of our brands can establish the same kind of relationship that Frank has, they will be doing themselves a big favor when the time comes to neutralize Categories 1 through 5 from above.

Having a “Frank” is not a fail safe by any means, but it’s a good resource and outlet to have when the time requires it. If consumers of social media don’t have an outlet to talk to, they will talk to EVERYONE. If a brand establishes a sizable following with bloggers, then their response to negative situations will be heard. If the relationship was cultivated the right way, and that brand is a respected one in the social media space, then hopefully all those people will come to your aid and make their small yet loud voices heard in a positive way on the brands behalf.