Six Crisis Management Techniques for Entrepreneurs

No matter how big or little, even the most well-run companies can find themselves in the middle of an unforeseen PR disaster. Unexpected catastrophes, civil product liability cases, and recalls of hazardous or contaminated goods can all negatively impact a company's sales, financial results, and/or reputation.

A CEO's first instinct during a PR disaster could be to ignore the media and not respond at all. This is not the proper approach to solving the issue, according to public relations specialists who have effectively managed a number of crises using crisis management techniques. On the contrary, they call for a prompt and comprehensive public disclosure.

These six crisis management strategies can assist a business in effectively defusing and amicably resolving crises.

1. Address the Issue Head-On

While each crisis is different, there are broad guidelines that work for the majority of them. Regardless of the crisis, the public and media are curious about what transpired. Customers will want to know what went wrong, why it happened, how to repair it, and whether they can get reimbursed for any losses or difficulties they may have had.

Telling the truth should serve as a guide for dealing with such problems. Declare in public only the facts that are known. Remarks that presume, surmise, or conjecture about any facet of the problem should be avoided. Ensure that all statements are reviewed by legal counsel prior to being made public.

2. Talk to the Press

When a corporation experiences a PR crisis, the media typically gets in touch with the CEO of the company, the spokesman, the public relations department (if any), or a senior management person. Journalists will want particular remarks and justifications that they can use as quotes in their articles.Assign all information requests to the designated crisis management team or person, or to the designated spokesperson.No other employee of the company should be permitted to address the media. To maintain the company's consistent messaging, inside information concerning the issue should only be shared with the crisis management team and/or spokesperson. An expert in the relevant subject should be assigned to communicate with the media if there are technical details that need to be revealed.

The CEO may also provide a taped or in-the-moment interview with the media, during which time all questions will be addressed. Another good way to handle the situation is to do a live TV broadcast or an appearance on a social media channel where you can field questions from customers. Hiring a public relations agency or a specialist consultant in crisis management strategies can also be required. In order to help handle the situation, it might be wise to purchase advertising in broadcast, internet, and social media even if there is a lot of press coverage.

3. Make a Declaration in Public

A public statement ought to address the potential effects of the issue on individuals. This would entail alerting consumers who may have purchased a tainted, recalled, or defective product. In these situations, the business ought to give the customer a refund or a product replacement at a comparable cost. In certain situations, a contaminated product needs to be thrown away and its risks should be explained to the consumers who have already bought it. When speaking with the general public or the media, maintain a composed, sympathetic demeanor. Denying blame or accountability for the state of affairs fuels animosity among the populace and customers. Remember that this strategy differs from acknowledging culpability, which is a matter decided by a court; yet, once more, make explicit public declarations in consultation with legal counsel.

A planned press release can also go into more depth and be longer than a public statement on the crisis. It can be made internally or by an outside public relations or media relations firm. In order to anticipate the questions and answers from the public regarding the issue, the press release may also include a Q&A section. One idea is to present broad information in short paragraphs that are only one or two sentences long and are simple to read and comprehend by using a Q&A structure.

4. Recognize Any Possible Legal Concerns

It is advisable to address legal matters with counsel. Lawyers may advocate for a blanket "no comment" to the media until the legal ramifications of the situation are completely recognized and handled. Insurance concerns can also arise, therefore lawyers should review any relevant policies.

The drawback of the "no comment" strategy is that it frequently results in more media inquiries and a bad public perception. The corporation being sued's inability to comment will negatively affect the jury if and when the crisis leads to the filing of civil lawsuits, or possibly criminal prosecutions.

5. Help Your Clients

The impacted business should anticipate furious and dissatisfied consumers. These are normal responses, and if the business behaves properly, these feelings should gradually subside and be replaced with a fresh sense of brand devotion.

For instance, customers may show up at stores and demand refunds for recalled or defective goods or for services that are affected. To win back clients, the business should have an instant complete refund or replacement policy. Rebuilding consumer loyalty will also be aided by providing affected customers with an extra benefit in the form of a gift card or discount coupons.

After the crisis, drafting a new, more thorough guarantee for goods and/or services could boost customer confidence and perhaps lead to more aggressive sales.

6. Develop a PR-Friendly Marketing Initiative

A business might think about launching a quick digital or conventional media ad campaign to spread the word and reaffirm its message whenever the crisis appears to be abating. It is also advisable to post the PR advertising message on any digital content channel that is accessible.

Among the things to stress in the advertisement are:

The business's guarantee of complete refunds or product replacements for the impacted item

The actions done to stop the issue from happening again

fresh assurances

Fresh incentives to recoup lost revenue, such as extra gift cards and discounts

An expression of regret for any trouble the crisis may have caused

The Final Word

When a firm faces a crisis, the best course of action for reducing harm, preserving consumer trust, and minimizing inevitable sales loss is to respond promptly, honestly, and completely.

But ultimately, sales should be recovered, along with credibility, customer trust, and a repaired public image, provided crisis management principles are put into practice.