Tag: apology PR

What Netflix Can Teach Us About Apology PR

Posted on by Dorothy Crenshaw

Public apologies can be powerful, especially when they come from the top. Even in our crisis-of-the-day era, there’s something arresting about a chief executive admitting he was wrong, or a company making amends to customers.

As a self-appointed “apology PR” analyst, I’m fascinated by the communications strategy, language choices, and delivery of a corporate mea culpa. And all apologies are not created equal. Many are a non-apology, the “We’re sorry if anyone was offended” type of statement that can do more reputation harm than good.

Even more often, the expression of regret comes far too late. Or it’s crafted by lawyers instead of communications pros.

But the now-famous Netflix apology is the first in my memory where the mea culpa caused a far bigger problem than the problem itself. The statement, which was also communicated in a video by CEO Reed Hastings, starts out okay. Hastings acknowledges customer ire and admits to a certain “arrogance” on the company’s part when it announced a price increase in July.

But instead of letting the apology for “poor communication” stand and resolving to do better, or, better yet, offering a make-good for customers, the statement turns into an explanation of its decision to split into two companies and rebrand the DVD business.

It’s an account better suited to a corporate press release or earnings call, not a customer communication. And they had to know that the split into two companies would annoy loyal customers. If they didn’t know, that’s even worse. Maybe that’s where the arrogance comes in.

It’s likely Hastings thought he was making the case for the greater value that its customers would reap over the long term, but he made the classic mistake of focusing on its business issues rather than the customer benefit.

Netflix would have done better to take its lumps after the price increase announcement, which, after all, caused its stock to rise sharply. Then, it should have quietly worked on improving the service, and the selection, around the streaming product, and let its customers discover the value. No apology necessary.

Although its competitors have seized the opening (stay tuned for Blockbuster’s ‘September Surprise’), the Netflix brouhaha will probably die down. Yet, it’s a good reminder of a fundamental principle of apology PR: know your audience. Customers want benefits, not business strategy. If you ignore the “what’s in it for me?” factor, you’re denying your love for the customer. And that means having to say you’re sorry…in more than just words.







A Sorry State: How We Apologize

Posted on by Dorothy Crenshaw

As every PR professional knows, an artful public apology is a staple of reputation management – just ask Toyota, BP, or Goldman Sachs. A cottage industry has been created that’s dedicated to what I call “apology PR.”

But, apologizing is also a key piece of the social CRM toolkit, which communicators are rapidly learning and adopting. Nowadays, customers don’t just get mad, they get online. That’s why I was fascinated by the recent profile on the Southwest Airlines apology team. The group’s mission: to identify situations where passengers are inconvenienced, or worse, and to extend a prompt apology on behalf of the company.

When it comes to making amends, there are cultural challenges, as well as legal and business ones. Some experts contend that the typical American a response to a problem or accusation is to deny or challenge it, rather than to issue a mea culpa. The George Bush philosophy. That might be okay in a personal situation, but, in business, a poorly communicated apology is very damaging.

What’s great about the Southwest apology team isn’t the fact of its existence. But by naming the group, elevating it, and promoting its role Southwest conveys a great deal about its commitment to customer service – and its own brand reputation. It also offers some good lessons for the rest of us about how to say you’re sorry, whether publicly or otherwise.

Don’t delay. An apology that happens days or weeks after the offending incident is far less effective than one that comes within 48 hours. If it’s too late, it may only serve to remind the customer of something he’s already forgotten. In a public situation, it can easily seem the result of media or public pressure, which defeats the purpose.

Be accountable. Of course, there are always going to be circumstances beyond all control, and there are often legal reasons why a mea culpa isn’t advisable. But it helps to acknowledge what a service-oriented company is responsible for, which is doing all they can to ensure a good customer experience. The Southwest story highlights an incident where an obviously disturbed passenger chewed on her seat cushion, then disrobed and ran down the aisle of the plane. For the carrier to make amends for something so clearly out of left field wins extra customer loyalty points.

Explain, but stick to what’s relevant. A neutral explanation that does not offer excuses or point fingers, but serves to share information that the customer might not have had, can be very effective in deflecting anger.

Offer compensation. Here’s where the Southwest apology team has real clout. They offer travel vouchers to inconvenienced passengers. Not all companies can do that, but it sure can go a long way.

Be sincere. The standard “We’re sorry if anyone was offended” doesn’t sound authentic because, once again, it seeks to imply that the other guy’s at fault. A weaselly apology that points fingers or makes excuses is worse than none. Don’t go there.

Apology PR: What We Can Learn From Jim Joyce

Posted on by Dorothy Crenshaw

It’s been a good week for apology PR, but a tough time for most of the apologizers.

Take BP, which can’t seem to stick to a uniform strategy. Just as it prepared to air an apology ad claiming “full responsibility” for the Gulf oil spill, its CEO cemented his reputation as the Joe Biden of the corporate world by uncorking the “I’d like my life back” comment. The quote was instantly seized upon by the press in a reminder of the 11 workers whose lives won’t ever come back. But, what’s frustrating is that BP just can’t seem to commit to a full apology. Every time the words are uttered, it seems to retrench into legalspeak, or, in this case, whining.

Even more instructive was Connecticut Senate candidate Richard Blumenthal’s reluctant mea culpa for misrepresenting his military service during the Vietnam era. It was only after days of pressure from veterans’ groups and a New York Times piece about the five draft deferments prior to his stateside National Guard service that Blumenthal actually apologized for repeatedly saying he had served “in Vietnam.” But, Blumenthal didn’t exactly fall on his sword. His apology was not only late, but weak.

First, he tried to explain his “misstatements” – an irksome euphemism – by tying them to a desire to honor those who did see combat. (I’m not sure how that works.) Then, he ended by saying he regretted “offending anyone.” It was another non-apology that sought to skirt the main issue, which is that he misled everyone about his military record.

Both could take a lesson from umpire Jim Joyce. After the bad call that kept Detroit Tigers pitcher Armano Galaragga from claiming a perfect game Wednesday night, Joyce did the manly thing. He took full responsibility. He apologized. And apologized. And apologized again. No excuses, no bs, no blame to pass around. When asked, he said he had a great visual angle on the play. What’s more, he knew it was no ordinary blunder. “I took a perfect game away” summed up the error and its impact.

Maybe most public transgressions aren’t that simple, but it was refreshing to hear Joyce’s words, and unfortunate that we don’t see that kind of apology more often. “I missed the damn call.” Sometimes it’s all you have to say.

When Fans Attack: How To Defend A Brand’s Reputation Online

Posted on by Dorothy Crenshaw

A social media presence can morph from PR asset to liability in the time it takes to say “brandjacking.” The recent takeover of Nestle’s Facebook page by Greenpeace activists has many brand marketers dusting off their crisis programs.  But the world has changed. How do you defend your brand if, despite good business and communications practices, you become a target? What can you do if your brand is attacked on its own turf, or in a public online forum?

First, anticipate. If your crisis plan was last updated in 1993, or even two years ago, it’s not relevant. Have an online listening post, focus on the most likely criticisms and complaint scenarios, and make sure your messages are current.

Ramp up customer service. Would you put an intern on the phone to handle a client complaint? Don’t do it online either. Make sure your communications team is trained in customer relations, and vice versa. Not every company is ready to jump into Social CRM, but the line between communications and customer service is getting blurrier every day.

Stay calm. When the heat is on, sarcasm and anger are not your friend. Don’t be funny or flippant either. Use of humor is a classic apology PR tactic for an individual under fire, but a corporation should take legitimate customer criticism very, very seriously.

Be transparent. In most attack situations, it’s not worth closing off comments or trying to astroturf your way out of trouble. It rarely works and is often exposed.

Be timely. Nothing pours kerosene on a customer complaint fire like silence. A timely answer, even if not the desired response, is better than the void.

Take it offline. When complaints cascade anonymously, it’s often impossible to deal with them offline. But, on Facebook and other sites where comments are transparent, offline resolutions may be possible, and the complaint chain may be interrupted.

Apologize. If the situation warrants. Though the public apology is being rapidly commoditized, a sincere, factual, and personalized apology beats silence, defensiveness, or apathy.

Use the media. Be ready to produce a response commensurate with the attack – through online commentary, video, and social media news releases.

Look for – and leverage – the opportunity. A negative situation doesn’t always spell lasting damage. In fact, it can be an opportunity to tout positive change, clear up a misimpression, and build customer engagement. No one is more loyal than a grateful customer. If the problem can’t be fixed, a fair hearing can still go a long way.

Wall Street’s Apology – So Far, Just PR?

Posted on by Dorothy Crenshaw

Two former banking executives got another workout last week. So did the “apology PR” movement. This time it was Citibank ex-CEO Charles Prince and former director Robert Rubin. Under the hot glare of cameras – and the even more heated glares from the Financial Crisis Inquiry Commission, each expressed the most sincere-sounding contrition to date on the financial mess.

But, the Wall Street chieftains still have a lot to learn about apology communications. Morgan Stanley’s John Mack offered up a statement of regret in February. Others have released carefully worded apologies, or non-apologies, since most are short on specifics. (An exception is that of former Bear Sterns chief executive James Cayne, who expressed regret and personal responsibility after his firm folded. Losing $900 million of your own cash will do that.)

The bankers might do well to look at JetBlue’s 2007 response to the Valentine’s Day PR storm that nearly grounded the company. Founder and former CEO David Neeleman’s mea culpa might be the perfect corporate apology. It didn’t happen a year later under legal or regulatory duress. It was offered in many forms, from a major media apology tour, to a YouTube video. Most importantly, it was timely, heartfelt, and part of a larger plan to prevent future incidents.

By contrast, the Wall Street apologies are more like the muttered regret of a misbehaving child being dragged through the motions by reproving parents. What I find most amusing is the groupspeak. For an industry known for the healthy egos at the top, there’s an awful lot of royal “we’s” being used. As the Goldman Sachs fraud investigation ripples through world markets, we can expect even more, um, sharing of responsibility, and maybe more creative mea culpas.

Yet, an authentic apology shouldn’t point the finger at subordinates, ratings agencies, interest rates, homeowners, regulators, or anyone else. One of the first rules of crisis PR is to take responsibility. The executive who stops the buck will, paradoxically, see his personal stock go up, liability notwithstanding.

But the most glaring omission here is the eye to the future. That’s what Wall Street really owes Main Street. Not just heartfelt statements of regret. Or admissions of responsibility by top management. Or generous philanthropy. Those amount to nothing if the banking industry continues to oppose basic financial reform measures like, say, those covering derivatives. The buck – and the spin – stops there.