Gone are the days when companies could respond to a crisis situation in time for television or newspaper deadlines. The rise of social media has seen several new channels added to stakeholder communications and they have already been tested by major NZ companies this year. One example is Vector’s response to customer’s affected by Transpower’s system fault which led to a blackout in much of Auckland. Vector’s website received thousands of hits in the first few hours of the outage, proving the popularity of online channels for fast information. But the event that stands out as 2010’s first catastrophic crisis, and most media-covered response, is without a doubt Telecom’s XT network crash which left thousands unable to use their mobile phones, even to call emergency services. Issues like these call for fast and effective communication to respond to the questions and demands of customers, shareholders, journalists and bloggers.
Given the speed of the internet in broadcasting news, and the immediate spread of this news across social networking sites like Twitter and Facebook, companies need to communicate instantaneously across several mediums. Traditional channels are still vital to provide further information but it is online media that is key for breaking news. While it is important for companies to communicate using TV and radio it is equally as important to “tweet” the information for the online audience, post online real-time updates on the corporate website and speak to online fan and consumer groups. This platform has increased the pressure and demand for a quick company response but is also incredibly valuable for agency or in-house practitioners dealing with a crisis. The capabilities of Twitter were displayed in Telecom’s use of the channel throughout its XT crisis, responding immediately to the initial crash as well as posting updates and apologies from the CEO. Online media allow organisations to target specific audiences and broadcasts facts during the time when rumours are only starting to emerge – dealing with the original crisis immediately as opposed to its amplified version on the six o’clock news.
The ability of the online audience to gain huge amounts of information at the click of a button means companies need to supply insightful information instead of a statement which skilfully avoids the facts using colourful jargon. Organisations are no longer able to use a “one size fits all” crisis management strategy, instead responding with a unique approach to each issue. Considering all this, practitioners need to be able to offer insight into the customer’s field as well as an understanding of both traditional and new media to respond effectively in crisis. The way a company responds to a crisis either credits or further damages its reputation – the loss of which could cost more than any compensation payout.
