Most Brand Crises Are Self-Inflicted-and How To Avoid Them

After 40 years working in journalism, public relations, and crisis communication for a single corporation (a global franchise brand), I find myself these days in front of a university classroom. I was invited to teach at my alma mater specifically because of my decades of experience. And while I do share many of experiences in the class, “Crisis Management in Public Relations,” recently I have spent countless hours researching crises at other brands in other industries. I have long believed that most brand crises are self-inflicted.

Now I’m convinced of it. Let’s start with a look at an abbreviated list.

The company is always right. You likely read that twice because it’s the opposite of what most companies claim to be their golden rule: “The customer is always right.” But when you make it difficult for a customer to reach you or have them encounter a “virtual assistant” that can’t grasp their issue—or worse, create other roadblocks to solving their issue (ever been caught in a perpetual loop on the phone or on a website?)—you are letting them know you’re not really interested in helping them.

Hidden fees. You see this all the time, from airlines to ticket brokers, from car rental companies to delivery companies. Companies advertise attractive prices to lure customers. However, as customers go through the purchase process, they discover service fees, technology usage fees, “convenience” fees, and so on… in some cases adding up to 50% to the advertised price. No wonder the federal government is looking to require companies to provide a “total cost” to their advertised prices. Transparency is so much better than bait-and-switch pricing.

Raising standards on loyalty programs. For many retailers, loyalty programs are an essential part of their growth. But loyalty goes both ways: for customers to keep coming back to you, you can’t keep moving the goalpost when it comes to the rewards you offer them. Recently, an airline introduced an “enhanced” version of its popular loyalty program and claimed it was based on customer feedback. But instead of recognizing miles flown in addition to money spent using their branded credit card, loyalty points were going to be based on spending only—and the levels of spending required to reach milestones were significantly increased. Backlash, in the form of real customer feedback, had them backtracking within weeks.

But wait, there’s more!

Not all internally created crises are policy-related. Here are four more examples.

Brand hubris. For brands that cannot accept responsibility for anything that goes wrong this also can be filed under “The company is always right.” One company that comes to mind here is a world famous leisure/athletic clothing line, targeting women. During one troublesome year, it was discovered that its yoga wear became “see-through” whenever the wearers bent over. Instead of addressing a fault in the manufacture of the clothing, the CEO suggested that “some women’s bodies just aren’t made” for their products. Ouch.

Bad hires. Hiring is a challenge for almost every business. The difficulty comes when you hire anyone who walks in the door, without a good interview process or a meaningful way to verify references. A fully staffed operation with one toxic personality is far less productive than a smaller team of people pulling in the same direction. Before hiring, verify references. If your company delivers products to people’s homes, consider pre-employment background checks. Expensive and potentially controversial, they are good ways to get a sense of a candidate’s character.

Lack of training. It’s reported that an average of 33% of new hires quit within the first month. What’s more astounding is that 90% of new employees consider quitting during that same period! Two reasons: 1) they don’t get a realistic preview of what the job is really like, and 2) they don’t get enough training to feel competent in their new role. Hiring is difficult and training is time-consuming. But not investing in your people enough to make them feel confident that they’re doing it right is a recipe for disaster.

Mistreating employees. Mistreatment comes in many forms, from excessively low compensation to harassment, from micromanaging to outright abuse. It’s another cliche that “People don’t quit jobs, they quit bosses.” But what of those who stay? In some cases, the aggrieved employee finds a way to fight back. Some of them screw up operations. Some steal merchandise or cash. Some mistreat your customers. It all rolls downhill.

What you can do

Quite a distressing list. But there’s good news, too. All of this is in your control, especially if you are an independent franchise owner. As such, you create the culture in your business and determine how you operate. You determine who you hire and how you train and treat them. You can set the standards for customer service in your business.

You are in the best position to determine the threats that lurk within your business, and one of the first places to look is in the mirror.

Tim McIntyre spent more than 35 years working for a company that eventually became the largest practitioner in its category. The insights in this article come from more than 40 years of experience in journalism, communications, public relations, and crisis management. Looking for an honest assessment of your vulnerability to a crisis? Need a workshop for your leadership teams or franchisees to help them understand their role in crisis prevention? Check out his “What Could Go Wrong?” page at www.tmcommsllc.com for a list of scenarios companies can face.