The Fail Trail - Understanding Crisis Communications

THE FAIL TRAIL How far does public opinion shift in a PR crisis, and how long does it take to recover? CASE STUDY 1 CASE STUDY 2 CASE STUDY 3 Nestlé Domino's United tok CENSORED Two snotty employees outrage customers by filming themselves violating health codes. United Airlines baggage handlers break guitar. The owner isn't reimbursed so records a song about it, which becomes a viral sensation with 1.4 million views in 4 days. stlé tries to censor a Greenpeace video criticizing their use of a non eco-friendly supplier, causing activists to flood their Facebook page with negativity. SUDDEN SPIKES In each case there was a big spike in online mentions at the time of the crisis. Domino's United G.EL Nestlé Crisis Crisis Crisis Time Time Time POSITIVITY PLUMMETS A drop in positive sentiment toward the brands was detected. 60% Nestlé Pre-Crisis Average 19.49% Domino's Pre-Crisis Average 9.99% United Pre-Crisis Average 1.69% Nestlé Domino's 50% United 40% 30% 20% 10% 0% -10% -20% -30% Time DISTANCE TO FALL The brands with the most positive sentiment pre-crisis had further to fall. Nestlé Domino's United 36.21% 21.23% 13.2% distance to fall RESCUE REMEDIES Nestlé's attempt to deal with a crisis through censorship made matters worse. Domino's responded with an apology video and legal actions against the employees, which led to a quick return to positive sentiment. FORGET ABOUT United gave away a Starbucks gift card on all domestic flights, causing a spike in positive sentiment. YOUR LUGGAGE, HAVE A COFFEE THE ROAD TO RECOVERY How a brand responds to a crisis can affect how quickly positive sentiment recovers Nestlé Nestlé Pre-Crisis Average Domino's Pre-Crisis Average United Pre-Crisis Average Domino's United Crisis 2 3 4 Time (weeks) Nestlé took 50% longer to return to their pre-crisis average, possibly due to their lack of response, while Domino's was the most proactive and recovered the fastest. ALTERIAN Historical data analyzed by Alterian over a six month period. www.alterian.com/socialmedia % Positive sentiment