Press Room

Public relations practitioners have known for some time that influential voices in cyberspace, particularly through platforms like Facebook, Twitter and YouTube, condition public opinion. Used effectively, these voices can become warning signs for looming disasters or brand champions who evangelize to their often vast networks their fondness for your products.

A case in point: Comcast quelled what may have been scores of angry customers by using Twitter to explain why a Stanley Cup broadcast went dark in late April. Turns out a lightning storm caused the power outage, which Comcast was able to fix quickly. The rapid explanation via Twitter and reposted in news groups and discussion boards created accepting customers, rather than hostile ones.

Or consider how Twitter was used more systematically during Hurricane Ike in September, 2008. The Red Cross used the hashtag “#ike” to connect concerned citizens with real-time updates and to push information out to employees and volunteers about evacuations, shelter locations and food and water distribution sites. Without a social media channel, this kind of real-time communication to people who desperately needed information would not be possible.

On the other hand, with “cyber-news” traveling at the speed of light through social media, unchecked information or misinformation can do material damage to a company’s reputation.

Officials at United Airlines, a unit of UAL, had no reason to believe that its stock was about to collapse 75 percent on September 8, 2008. But when a six-year-old Chicago Tribune report detailing United’s 2002 bankruptcy was mistakenly reposted to the Florida Sun Sentinel Web site, the inevitable downward spiral began.

An investment firm, believing it had stumbled across breaking news, posted a summary of the story to the Bloomberg News blog. Within five minutes UAL shares dropped from around $12 to less than half of that, settling at $3 a share before authorities froze trading. All because of a single, reasonably innocent blog post that caught United unprepared.

More recently, Domino’s Pizza learned just how quickly cyber-pranksters can damage a brand and stock price. The now infamous YouTube video suggesting over-the-top non-hygienic practices by employees was seen by over 750,000 people and written about by hundreds of bloggers – all before Domino’s delivered a response. Domino’s stock dropped 10 percent in the first week after the video was first posted.

The lesson? In times of crisis, companies can’t wait to build a plan around how they communicate with traditional media. The word is often out, and the damage done, long before print, radio and television will cover the issue. Even on-line versions of traditional media will not be able to keep up with the mercurial flow of information throughout cyberspace.

So how can corporate executives risking these debacles get a decent night’s sleep?

1. Establish a team, either in-house or with a public relations agency, to advise about and manage your response.

2. Know where your customers and other stakeholders congregate on the Web.

3. Identify and employ a monitoring system to understand what they’re saying about you and your customers.

4. Respond using similar social media channels as well as more traditional channels as warranted.

5. Be sure the response is in an authentic, personal voice rather than corporate-speak.

6. Acknowledge those who praise your company or products and effectively address those who criticize you, either directly or through your best customers.