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How Social Media Makes Or Breaks A Company In Crisis

Updated: Mar 27

By: Henry J. Schumacher



Every day we are confronted with information on companies that allegedly did things wrong, from data breaches to cyberattacks, from bribing to unfair competition, from paying the wrong taxes to damaging the environment - and so on…


Important is to understand for top management, that a contributing factor of customer loyalty involves how a company responds to crisis situations.


With the proliferation of social media, news of a crisis can spread quickly, impacting consumer perceptions and company reputations. Companies must adequately prepare themselves for how to handle difficult brand situations, or else risk losing customers and esteem.


Crisp's 2019 Crisis Impact Report, released recently, surveyed 2,000 consumers in the US and UK to determine how brand crises affect consumers. More than half (53%) of respondents said they expect brands to respond to a crisis within an hour, indicating the importance of rapid response from brands. Responding quickly can be difficult though, as news travels faster than ever via social media. Consumers are more likely to share news of a brand's crisis on social media (40%) than they are face-to-face (29%), the report found. Nearly half of respondents across age groups (47%) cited social media as the preferred channel for receiving a response from a brand about a crisis.



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