7 steps to help you deal with a business crisis

Most companies sooner or later face a problematic situation. It could be a series of bad reviews, a defective product release, or a management scandal. Such incidents can severely damage the reputation of the company. But don't panic: by acting wisely, you will cope with the crisis and retain customers.

1. Assign a response team

It is important that the organization responds quickly and speaks with one voice. If different employees start giving public comments, the situation will only get confused for outside observers. Determine who will deal with customer reviews and who will deal with the press. Inform all employees about this. In this case, people will understand who to forward requests to, who to contact for comment. This will save you time and hassle that would have to be spent clarifying unofficial statements.

Share detailed information regarding the crisis only with the response team and the official representative of the company. If the press needs to explain some technical aspects, appoint someone who understands the matter as a delegate.

Ideally, the response team should be composed of more than full-time staff who are familiar with the problem. Also try to find outside experts who can see the situation from the outside. Reach out to those who have been in your industry longer than you. They will give practical advice or suggest a way out.

2. Identify affected parties and contact them

These could be your clients, investors, or other stakeholders.

Let's say there is a problem with your product. In this case, clients need to be told why this happened and how you will correct the situation. For example, you can refund a purchase, exchange a defective product, or pay compensation for inconveniences. If products contaminated with hazardous substances come on sale, explain how to properly dispose of them.

People can forgive and forget the mistake, but they will not forget how you behaved in a crisis situation.

The sooner you apologize and admit your mistake, the sooner you can be forgiven. And the sooner you deal with the problem, the sooner they will stop mixing you with the dirt on social networks.

3. Formulate an official message

Only voice the facts - no assumptions, guesses and speculations. If you have doubts about what to say and what not, seek the advice of a lawyer. Do not hide information, otherwise it will later turn against you. The likelihood that the press will unearth it is very high, and this will further damage your reputation.

Explain the situation and describe what the company has done or plans to do to resolve it. Do not shift the blame onto others and be reticent in expressing your emotions. Don't be rude, even if something is said about you that is unfair or offensive. If your company has many followers on social media, make a personal apology from the head of the company.

In any case, do not disavow with the phrase "No comment". It is, of course, slightly better than fiction in response (this is a completely unacceptable option), but it is easy to mistake it for an excuse. It may seem that you want to hide something or ignore the problem. If you don't have enough information yet to give a clear answer, say so: “We are aware of the problem and are currently conducting an internal investigation. We will give a detailed answer as soon as we have more data."

4. Use social media correctly

Try to calm the audience down, don't add fuel to the fire. Take a three-pronged approach:

Hearing. Follow the discussions in your groups and your brand mentions. Listen to opinions.
Involvement. Participate in discussions. At least in order to simply say: "We hear you and are grateful for your response."
Transparency. Do not under any circumstances delete comments with criticism, it will not bring anything good.

Complete silence on your part will only fuel controversy. As much as you would like to postpone an explanation until the moment when you have complete information about what happened, do not do it. Even a simple reassurance that you are aware of the problem and are working on a solution will help. This will show that you are in control.

5. Listen carefully to what is being said about you

Naturally, it is unpleasant to listen to criticism, but this is what needs to be done now. Resolving a crisis is like a delicate negotiation (only in this case you are trying to negotiate with a faceless, nameless group of people). And the first principle of negotiations is to listen carefully to the interlocutor.

Sometimes, paying attention and apologizing is enough to turn an irritated customer into a satisfied customer. And sometimes a person just needs to be listened to. It is possible that this will prevent the flight of customers.

6. Follow the development of events

It is very important to assess how much your brand has suffered. According to SEO agency MOZ, a company risks losing about 20% of potential customers if there is at least one negative mention of it on the first page of search results.

Understanding what others are saying about you is a key component of rebuilding your reputation after a crisis.

So check review sites and social media for negative content. Monitor keywords related to your brand. See what competitors and influencers are writing. This will help to quickly identify new issues and concerns and quickly resolve them.

7. Take a lesson from the situation

When the crisis is over, review your actions. See how well your team handled the situation. Discuss what could be done differently. Decide what needs to be changed to prevent similar occurrences in the future.

Don't get hung up on negative press reactions. The news life cycle is very short, and gradually the storm will subside. Don't let this distract you from your business. Focus on rebuilding your reputation - this will turn the conversation about your brand in a positive direction.