Column on Crisis Communication

PREPARE YOUR COMPANY TO COMMUNICATE IN A CRISIS

By Roger Rosenbaum

“Thank you for suing us,” is how Taco Bell recently responded to a lawsuit filed by a ticked-off customer claiming the company’s beef recipe was full of filler.

Taco Bell President Greg Creed fought back with the unconventional ads and a YouTube video that quickly set the record straight. Creed deserves credit for looking customers straight in the eye and saying,“I want you to know the truth….I want you to have all the facts.”

The video clarified the situation by saying the recipe included 88 percent beef--fully inspected by the U.S.D.A. “What’s the other 12 percent?” he asked in the video.

“It’s our secret and I am going to tell you,” said Creed.

The video (http://www.youtube.com/watch?v=ah05FEWcJWM) then listed all the ingredients. Taco Bell bought full-page ads in newspapers with nationwide reach proclaiming: “Plain ground beef is boring.”

Creed asked rhetorically,"who makes chili with unseasoned ground beef?" The lawsuit suit alleged that Taco Bell’s meat only had only 35 percent beef. 

Taco Bell also bought online advertising and key word searches. Creed said in the Wall Street Journal,” "We will spend whatever it takes to restore our reputation.”

Taco Bell’s slightly risky strategy turned the story around. The media, public relations professionals and customers applauded the honesty and the story turned from the claim to the response.

The rapid social media response is a stark contrast to the textbook crisis communication blunders made by BP in the wake of last year’s gigantic oil spill.

More than setting the record straight, Taco Bell’s honest human response might actually lead to greater customer loyalty and increased sales.

Effective responses to a crisis capable of crimping company cash flow should be a concern to businesses even in the Hudson Valley. The event does not need to be catastrophic in order to dramatically impact work flow, employee morale, sales, reputation and customer loyalty. It can be perceived, misconceived or even fabricated.

Rosenbaum Media has worked with clients caught in the middle of a massive snowstorm, tense contract negotiations, threat of a class-action suit and a single customer complaint leading to a wave of negative media coverage.

Just like Taco Bell, our responses included high-quality video showing a wide variety of stakeholders the client’s perspective and response.

One example I am proud of is the video shot at a hospital news conference that led to the rapid end of tense contract negotiations with one of the largest health benefits providers in the country.

Reaction to a crisis needs to be carefully planned, yet timely and accurate. These days, news travels fast in social media circles and around-the-clock news cycles. A company’s reputation can be tarnished in twenty minutes after a post is made on Twitter or Facebook.

Trying to hide or ride out a wave of negative news can be bad for business. The once-common default defense, “no comment” does not serve the company, the media or customers. 

Tips:

-Gather and brainstorm with key team members in marketing, PR, executive decision makers, finance and legal;

-Avoid trying to “spin” a story;

-Stick with known facts;

-Present one single source of accurate information;

-Open lines of communication with members of the media;

-View the situation from a multitude of angles—who, how and why does the situation impact customers, employees, suppliers, board members and in some cases stockholders;
-Consider long-term legal and financial impact of incident and response;

-Strongly consider how the message might create legal liabilities in the future;

-Embrace the online and social media community to set the record straight if media coverage paints an inaccurate picture;

-Show how the situation impacts and benefits real people and

-Watch and make sure that staff fatigue over a long period of time does not lead to mistakes or sound bites that bite back.

Taco Bell’s sarcastic response is not for every company. Serving up a timely and accurate response must be. It’s just good, smart business.

Roger Rosenbaum is president of Rosenbaum Media Group, a company that integrates high-definition video into PR, marketing advertising and social media campaigns. Rosenbaum received awards for reporting from the Associated Press and New York State Broadcasters’ Association. Rosenbaum Media has locations in Albany, Rhinebeck and New York City. He can be reached at 845-943-5366 or info@rosenbaummedia.com

Clinton Wedding Ushers In New Era in PR

Public Relations and the news business will never be the same after Chelsea Clinton tied the knot in the Hudson Valley town of Rhinebeck.

A fastidious wedding planner worked for months under the radar planning the now famous lavish wedding for 500 at the former Astor Estate. Part of that work included creating an almost airtight veil of secrecy surrounding the event. Never in my 25 years in newsgathering and PR I have I seen this kind of message or story control.

A local newspaper publisher broke the story of the rumored event. Rumors of the summer event snowballed. Soon satellite trucks and camera crews from national news organizations rolled into the village. News hounds came hungry for news bites and the potential of a scoop on an international story.

The bad news: No one was talking with facts that could be confirmed. A firm “no comment” became commonplace response from shop owner to restaurant owner. It was like an entire town and village of 10,000 got high-level media relations training overnight.

Rhinebeck has a history of low-key treatment of celebrity-types. Or, maybe it was the rumored $1 million non-disclosure agreement allegedly given to contractors, vendors and companies working on the wedding. Even this plausible rumor was later proven to be false.

Village of Rhinebeck Mayor Jim Reardon couldn't even confirm that the wedding would take place the weekend of July 31. He did confirm doing nearly a dozen interviews with international media outlets leading to what he called multimillion dollars worth of exposure for Rhinebeck. "We could not afford what Madison Avenue would have charged us for this exposure," the Mayor told local YNN reporter Beth Croughan.

I joined the army of members of the media covering the event and shot footage for Entertainment Tonight’s show The Insider.

Without facts, the buzz grew bigger and bigger. The story went from being called “wedding of century” to “wedding of the decade” and finally “Wedding of the Season”. Some media outlets treated each classification downgrade like The Weather Channel reports on downgrading a large storm.

A vacuum of facts presented a fascinating scenario to me. The media had to follow the event not like a news story, but more like an unfolding reality show. The key difference had to do with the Clinton’s indifference to media coverage.

The media was not in the drivers seat.

Chelsea and Hillary Clinton kept a low profile--as they are certainly entitled. It was an historic event--the wedding of a first daughter where the mother of the bride is a sitting secretary of state.

A new band of citizen journalist armed with high quality cameras and smart phones amplified the family’s silence. Media outlets found themselves competing with locals for key shots and interviews.

This became evident when President Bill Clinton got out of a Secret Service motorcade to munch on lunch at Gigi’s Restaurant. Crowds grew as residents texted friends, posted photos on Facebook and posted tweets on Twitter.

For the first time, residents could distribute local news (text, photos and video) via smart phone faster than well-funded media outlets with giant satellite trucks. The difference--the information was sent to friends, family and co-workers inside social circles and not to large broadcast audiences.

Some news organizations and websites now rely on this ad-hoc band of citizen journalists often referred to as crowd sourcing. Even I fell into the gray area of citizen journalist when I posted footage to CNN’s iReport for which I was not paid. http://ireport.cnn.com/docs/DOC-469442 and http://ireport.cnn.com/docs/DOC-474592

Now anyone can capture an event. The ability to tell a memorable story separates pros from amateurs. This interesting scenario poses opportunities and threats for businesses and PR pros. More people can create content, but there is more content that is uncontrollable. Another angle: if national media crews won’t cover your story perhaps there are ways to create content to build buzz on your own.

Media relations strategy now must include content development and harnessing the power of consumers and customers.

On July 31^st, the village of Rhinebeck became the most watched community in the world. The story and how it was told are now history.

MAXIMIZE YOUR MESSAGE in 2010
By Roger S. Rosenbaum

2010 signals the start of the digital decade when public relations, marketing and advertising merge, are moving from traditional silos to a hybrid structure with a wide range of tools and strategies.

In weak economic times public relations remains a cost-effective choice for all types of businesses. Richard Edelman emphasizes this point in a recent article in "The Economist" magazine.

"PR is 'the organizing principle' behind many business decisions,” said Edelman, head of the world’s largest independent PR firm.

Another PR industry executive agreed. “PR firms are beginning to encroach on territory that used to be the domain of advertising firms, a sign of their increasing clout," said Global CEO of Ogilvy Public Relations World Wide.

This is not news to seasoned PR pros who know the growing value of PR compared to the ROI of traditional advertising. Yet, navigating the new maze of traditional, online and social media is not as clear-cut as it seems.

Just because a PR firm has been churning out press releases since the advent of the printing press does not mean they can compete with a digital-savvy firm ready to develop effective campaigns with fluidity and continuity.

Here is a case study: the specific details have been omitted to maintain client confidentiality.

Recently, a metro New York City hospital called on Rosenbaum Media to videotape a news conference asking for an insurance company to negotiate in better faith on a contract impacting 50,000 customers. We were hired to provide a synopsis of the event for regional media. The main news outlet in the region had just put its health reporter on furlough.

The footage was shot, edited and uploaded on location within hours of the event. It showcased real people caught in a contract negotiation between the hospital and a health benefits provider.

Rosenbaum Media used several PR tactics. With a looming contract deadline, we wrote a news release that was published by a regional media outlet and produced a 3-minute video that a hospital official later said was instrumental in changing the course of the tense negotiation.

According to the client, traditional print-based advertising created a groundswell of support for the hospital and its news conference; the video changed the outcome of the negotiation.

Sometimes the most effective approach is to “broadcast” a message on multiple channels. Other times, a direct and targeted communication achieves the desired result.

Simply firing off news releases does not cut it in the Digital Age. Elements of planning and strategy are growing more important. Some of the best campaigns integrate print ads, radio, TV, social media for the greatest impact.

Even tools from marketing are important in PR. A tried and true marketing exercise——strengths, weaknesses, opportunities and threats analysis (SWOT)——can be an effective basis for mapping out an effective PR strategy.

Marketing comes into play with PR when clients are seeking to increase sales and short-term growth. Some clients will use PR for brand awareness but others just need to increase foot traffic.

Traditional silos of marketing, pr and advertising become blurrier as end-users enjoy the power of being their own information and entertainment program directors. This trend is not going to stop even as social media platforms evolve.

In some senses, everything is changing. In other senses, nothing is changing: solid thinking, planning and strategy are necessary even if marketing, PR and advertising are co-mingled in one silo.

Savvy businesses are wise to look to PR for its ability to build brand awareness and motivate customers to take action toward a predetermined outcome.

2010 marks a year when messaging can spread like wildfire——both good and bad. Content and news is omnipresent. Soon with special equipment your home cable TV programming can be received on your iPhone.

During uncertain economic times, growth comes from savvy thinking on strategy, timing and budget. As the January 14th article in "The Economist" magazine points out even in bad times, PR can be very good for business.

Column run by PR Bull Dog....

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Issue Date: Daily 'Dog - December 30, 2009, Dominos Vs. Tiger Woods: Social Media Turnaround Campaign Offers PR Lessons By Roger Rosenbaum, President, Rosenbaum Media Group LLC In 2009, Dominos Pizza became the victim of a social media PR smear when employees mishandled food and uploaded footage of the half-baked idea to YouTube. In a day, hundreds of thousands watched the mess on YouTube. In my opinion, the corporate response shot back via YouTube video was weak and watched by a much smaller audience. Instead of being once burned, twice shy about social media, the pizza chain delivered a hot new social media campaign. In the opening of the video, Dominos CEO Patrick Doyle confronts customers: "There comes a time when you know you gotta make a change." Feedback from customers online and in focus groups blistered the brand with criticism. Instead of running from it, the company showcases the customer complaints in the video. "Pizza. Where's the love? Cheese, sauce . . . fresh ingredients. It doesn't feel like there is much love in Dominos pizza," complained a cranky consumer. Another focus group participant piped in, "Dominos pizza crust to me is like cardboard." Yikes! This type of public admission of product flaws is a bold move that most CEOs could not stomach. Dominos' CEO comes across in this video as a change agent rather than a mealy mouthed executive willing to accept the status quo. Doyle gets points in my book for publicly professing his love of pizza: "You can't lead a company like this—unless you love food. I love pizza," said Doyle in the cutting-edge video. It reminds me of a slogan at a company I once worked for: "Get wired or get fired." Some companies give lip service to customer service. Careful thought and consideration to customers' opinions is so basic, yet so often ignored. Critics will say that Dominos showed weakness, in that they have not been offering customers their best product. The truth is, I don't expect Dominos to make a better pizza pie than my favorite local pizzeria. Al at Village Pizza in Rhinebeck, New York won't accept a bad customer experience. He makes his own connection with customers going table to table to check in on how fresh the food tasted. When Dominos Pizza is a convenient option, I want to think of them as better than just mediocre. New product launches and shifts in company commitment can be risky business. Just think of how many versions of Coca Cola have been introduced over the years. Some have succeeded, most have fizzled. Here is some food for thought: Are companies afraid of—or confused by—their customers? To me, you can't go wrong by listening to customers with genuine concerns. Consumers are so often fed spin, BS and disingenuous marketing. There is often a disconnect between external messaging and real customer experiences. Don't tell me my call is important to you and then keep me on hold for 20 minutes. Customers want to be treated with respect and feel that their patronage matters. For example: One of the reasons I love doing business with FedEx is because it feels like they care about my business as much as I do. The Dominos video also serves as a case study in getting out in front of an issue and dealing with it head on. In 2009, the media ate up small and large issues ignored by companies and celebrities. Tiger Woods landed himself in a trap by not immediately confronting the crash and subsequent slow-leak bombshell announcement of his extra marital affairs with models and waitresses. Sponsors—who usually back a brand that brings in money—have clearly backed away from the golfer who apparently drove into late-night trouble. "Late Night" host David Letterman looked into the camera and told viewers his side of the story. Letterman basically shut the situation down by deflating rising interest in his extra marital affairs. Telling the truth (facts that can actually be verified) has great power in changing perceptions. It has been said that it is not the crime that causes the most damage—it's the cover up that sometimes follows. What is clear is that Dominos is eyeballing every inch of their pie and the people with the power to purchase them. They are also reviewing the commitment of the company started decades ago. No one can afford lukewarm connections with customers in an uncertain economy. This campaign has me thinking, "Why can't other industries and companies think this way?" New times require new ways of thinking. Instead of looking for bailouts, more companies should be looking for their bootstraps. It will be interesting to see if this campaign helps Dominos' sales figures rise. If Doyle is wise, he will issue an equally powerful follow-up video in a few months saying: "Our customers talked to us—and we listened." Social media makes two-way communication real, rapid and relevant. There is no question that there will be replies and satire from customers and competitors. The power and reach of social media to direct customers making minute-by-minute purchasing choices is a marketer's dream. It requires constant monitoring, strategy and proactive response. Sweating the details is a reality of PR and marketing in the Digital Age. Earlier this year, I met with a boutique PR firm in New York City. God only knows what is going to happen to the "old school" firm when the traditional press release becomes old news. Dominos' CEO is right on target: There does come a time when you know you gotta make a change. Roger Rosenbaum is president of Rosenbaum Media Group LLC, a digital communications consulting company. RMG specializes in PR, digital video and social media.

Landed Old Rhinebeck Aerodrome on CNN...

THE DOMINO'S EFFECT: NATIONAL PIZZA MAKER GETS BURNED BY VIRAL VIDEO

If you want to observe the raw power of social media or how a hot viral video can spread over the Internet then Dominos pizza will serve as an unsavory case study.

Two Dominos franchise employees shot a video in a store kitchen, where according to print reports, they stuffed cheese not in pizza crust but in nasal passages. Within a day, that half baked idea ended up becoming a viral video viewed by one million people on YouTube.

The video provided an unsavory look at food preparation and broke the unspoken promise that prepared food will arrive at your table or door without being mistreated.

While the actions in the video violated good taste and common sense, the pair charged with the incident say none of the food used in the video was delivered to customers.

The video certainly violated company policy and local health codes, but it should be a wake up call to companies large and small that responses to a wide variety of social media activities need to be delivered in thirty minutes or less.

This situation should cause companies of all sizes to pause and examine proactive and reactive social media strategies. Blogger, Facebook, My Space, Twitter have seeped into mainstream marketing, advertising and PR. Actor Ashton Kutcher now has the bragging rights of being followed by 1 million on Twitter, which he triumphantly reported as being more than CNN has.

The New York Times quotes a Domino's spokesman. “We got blindsided by two idiots with a video camera and an awful idea.”

The New York Times reports that Dominos top brass got alerted to the online food fiasco from a blogger. Later, Dominos created a Twitter page to help put some shine back into the Dominos brand. Some members of the online community live by the golden rule.

In response to the alleged hoax cooked up by franchise employees, Dominos U.S. CEO Patrick Dolye shot back with his own YouTube video. http://www.youtube.com/watch?v=7l6AJ49xNSQ

The was video watched by only a third of those who watched the alleged video hoax. "It sickens me that the actions of two people could impact our great system, where 125,000 men and women work for small businesses owners around the U.S. and in 60 countries," Doyle said in the video.

There is no question that social media--relating to individuals or communities rather than in outdated broadcast models--has come of age.In the Digital Age, social media gives consumers their own printing press. With YouTube and sites like Magnify.net they also have their own broadcasting towers.

Small groups of bloggers can chase down corporate greenwashing and attack multimillion-dollar companies with Pitbull-like power. Online communications need to be monitored and shaped in ways that internal and traditional external communications are distributed.

Unilever Chief Marketing Officer Simon Clift recently outlined five key strategies for marketing in today's digital landscape. In the AdAge article, Cliff said that customers are not morons they are the ones defining your brand. http://adage.com/print?article_id=135943

It is a whole new world where customers can control communications--good and bad--about your company. It is unfortunate, but some companies are just getting on board with a solid, yet static website. Those just accepting a Web 1.0 site are far behind.

In the Web 2.0 world, Dominoes brand was "hijacked" leaving Dominoes execs scrambling to respond to the situation. "This was an isolated incident. The two team members have been dismissed and there are felony arrest warrants out for their arrest. The store has been shut down and sanitized from top to bottom. There is nothing more sacred to us than our customers' trust," said Doyle in his response video.

Most customers can see through the unsavory actions of two individuals YouTube video. In the short-term, the alleged hoax might leave a lingering mess in subconscious minds of customers. You have to give Dominoes credit for a rapid response to a unexpected nightmare.

However, the one mistake the YouTube response made was not directing Doyle to look into the camera. His message would have been delivered more effectively if he looked viewers straight in the eye. That is the kind of talk he needed to have with his customers for effective “brandaid” damage control.

Rapidly, rebuilding brand loyalty is not a pie in the sky goal for Domino’s, whose reputation up to this point has been squeaky clean.

Just in case sales slip, Domino’s may want to fire back against the social media smear with ads that show pizza makers scrubbing up for work like a heart surgeon. Or, show the pizzas being made in a high-tech clean room next to computer chips.

Chances are, however are they will want to put this incident behind them and continue focusing on the companies smart (and timed right) big taste bailout package promotion. It has all the right ingredients to become a successful campaign.

Roger Rosenbaum is a digital and social media strategist. He can be reached at info (at sign) socialmedia.biz.

Column in PR Bulldog (See by 50k PR Pros)

Issue Date: Daily 'Dog - June 26, 2008

Do You Have Imagination for Innovation? PR Practitioners Must Now Conduct R&D

By Roger Rosenbaum, President, Rosenbaum Media Group

Savvy PR professionals are finding themselves at a crossroads. For half a century, the news release has been the mainstay of our business to reach the public through members of the media. A whole new world of Web 2.0 digital tools strategies and distribution channels to reach target audiences are emerging.

The growing options pose an interesting proposition for sole practitioners, as well as small and large PR firms. For many firms, traditional pitch and follow–up for press play is a tried and true method of getting media coverage for clients. Some clients are happy with this approach, cost and the potential results.

While Web 2.0 and world of social media is absolutely wonderful, clients who foot the bill must be on board with the costs and benefits. We must be able to understand, use and sell new PR options.

So what are you doing in your business to bring digital PR to your clients? Who in your firm is scouting new technology that can benefit new and future clients? Put simply: Developing an "imagination for innovation" leading to new products and services is essential in a competitive field where there is growing competition as well as easy access to Web–based automation of news release distribution.

Research and development is often associated with manufacturing—and not with service businesses. But firms of all shapes and sizes cannot afford to ignore changes in technology. Digital PR allows for greater control of the content and in some cases less control of where the content goes. However, a key component of digital PR is that the flow of information can be tracked and provide a more interactive way for clients to develop relationships with target audiences.

The options are vast and growing. Case in point: The Hudson Valley Center for Innovation (HVCFI) is the type of client who is willing to embrace technology in reaching out to communicate with entrepreneurs, mentors, board members and members of the media.

In April, HVCFI's Entrepreneur's Breakfast Seminar was offered as secure, live webcasts to these audiences. These seminars are a mixture of educational and news opportunities that allow a potential worldwide audience. By collaborating with technology provider CallEveryOne.com, my company was able to set up the live webcast and allow reporters to attend virtually. The we cast led to solid coverage by a regional news columnist. It was an important vote of confidence for the presenter and the client.

The HVCFI webcast also included a remote guest speaker who was linked in via a Verizon wireless data card. The whole process gave me flashbacks to my days in the control room producing live TV and in the field when the station satellite truck rolled up to a crime scene to beam the scene back to the newsroom.

There is no question that there were bumps in the road with the HVCFI webcast production and it was not network quality, but the reality is that it does not need to be. Costs in equipment were just a small fraction of what a satellite truck costs.

This is not to say that I have turned my back on the benefits of mainstream media or the impact that an independent evaluation can have for a client. I shot footage that aired on The Weather Channel, which is seen in 80 million homes. http://www.rosenbaummedia.com/pr4resorts7/pr4resorts.html

For another client, it took me a year of pitching to get Connecticut's number one news station to cover a client story. Here is the story: www.youtube.com/watch?v=4Qts2L0Qx–4.

Following the airing of the story, I took the YouTube link and sent it to all NBC affiliates in the tri–state area. I got a call from WNBC with interest in the story. They have yet to drive up to Litchfield County to cover the story, but showing editors that a story exists can be stronger than a paper news release. The YouTube link resulted in coverage by Home Living Connecticut magazine.

As PR professionals, we must embrace an imagination for innovation. We must be willing to invest in new ways to cut through the junk mail, voice mails and indoor/outdoor advertising.

To grasp the value of a service, most clients want to see how it works. New does not always mean expensive. For one client, my company purchased a newspaper Web banner ad at a cost of $300 a month. This ad linked to a countywide client's Web video content. The ad helped my client reach 50,000 Web video hits during a one–month period using user–generated website Magnify.net.

Even with the latest and greatest technologies to help deliver our message, the message itself must either be compelling, entertaining or educational. Storytelling remains a key skill for all of us. We must stretch and expand the impulse to cut and paste brochure copy and present it as a news release. It must look and feel like a story to journalists without being overly promotional.

While research and development may not pay immediate dividends, it must be done in order to stay competitive in a rapidly changing world. To ignore the need to innovate may be as detrimental to your company as it is to your clients.

Traditional PR and digital PR can work independently or in the same universe. The one thing you can count on is some interesting partnerships between firms operating in traditional and digital worlds. To spread the word about innovative partnerships, I would recommend the best of both worlds—a traditional news release as well as a live webcast.

Roger Rosenbaum is president of Rosenbaum Media Group LLC, a New York state–based digital marketing communications consulting company. RMG specializes in raising the visibility and profitability of clients through digital PR and Web 2.0 services, and operates www.realestatepublicity.com. Roger can be reached at: info@rosenbaummedia.com.