It seems as if a new company faces a new crisis on a daily basis. The reality is in today’s social media environment even a single person being offended can result in a communications nightmare.
The overriding key to handling any crisis is to be prepared for it before it happens. Trying to deal with a crisis during the crisis could be compared to nailing Jello to a tree. It won’t work.
Every business needs to take the time and develop a crisis communications plan. The first question should basically be “How would we handle it if _____ happens?” A plan won’t cover every possible crisis but should work out details such as who will be your spokesperson, what media will be contacted, how will you communicate with employees, etc.
Two current crises on the radar involve Starbucks and Yeti, maker of high-end coolers and tumblers. Starbucks overreacted to its crisis when two minority customers were arrested for not buying anything, while YETI pulled a program from the NRA and failed to respond for days until customers started destroying their products.
First, Starbucks. After the arrest and subsequent publicity Starbucks’ CEO immediately went into hyper-drive. He flew to Philadelphia and personally apologized to the two individuals (and worked out a financial settlement). The store manager was immediately vaporized.
The CEO did a groveling apology video and also announced the company will close more than 8,000 stores for several hours to conduct racial bias training for its 175,000 workers.
The move will likely cost the company millions of dollars in lost business and productivity. This comes on the heels from a company that was ridiculed for its earlier program of “Race Together” where it expected its employees to discuss race issues with customers. One would have thought employees had received race training at that time.
Unfortunately, according to Fortune, Starbucks has never articulated to its own employees exactly what its policy is regarding people who take up table space, WIFI, restrooms and electricity and don’t buy anything.
Fortune noted, “such judgments are generally left to store managers or individual store policies.” So this crisis could arise again if not specifically addressed.
While we have stressed that boycotting the NRA is not a wise decision by any business, YETI did just that by reportedly saying it would “no longer sell products to The NRA Foundation.” The decision was a head-scratcher since YETI owners and NRA members seem to go hand-in-hand.
The backlash was swift. Some folks actually posted videos of YETI products being destroyed (LINK). Destroying YETI’s overpriced merchandise (up to $1,300 for a cooler) makes a strong statement.
Unfortunately, it took YETI three days to respond to its crisis. It noted on Facebook that “we were offering them an alternative customization program,” and not dropping the NRA. The response was about three days too late. The crisis train had left the station.
The NRA even took the YETI battle to another level when it told members not to destroy YETI merchandise, but to put an NRA sticker over the YETI logo (LINK).
“Don’t blow up your YETI cooler. Don’t shoot your YETI cooler full of holes. Don’t chain your YETI cooler to the back of your pick-up truck and drag it down the highway. Don’t glue a toilet seat to YETI cooler. Don’t hang your YETI cooler in a tree and beat it with a baseball bat,” said an NRA spokesman, adding, “Let a sticker make your statement.”
Communicating in a crisis is an inexact science at best. In these instances, Starbucks has seemed to come up with a feel-good program that doesn’t address its core problem.
On the other hand, YETI failed to respond fast enough, and its image continues to take a hit with its core customers who happen to be NRA members.
(UPDATE: After nearly a month of silence on the topic, Starbucks has announced that anyone can come into their stores and sit at tables, use the restroom, WIFI, etc. and not have to make a purchase.)