In today's interconnected world, a company's reputation can be made or broken with just a few clicks. Charlie Pownall's book "Managing Online Reputation" delves into the challenges and opportunities that businesses face in the digital age when it comes to maintaining their image and credibility.
Introduction
The internet and social media have revolutionized the way companies interact with their customers and the public. While these platforms offer unprecedented opportunities for marketing and engagement, they also expose organizations to new risks. A single negative comment or viral post can quickly spiral into a full-blown PR crisis, potentially causing lasting damage to a brand's reputation.
Pownall's book serves as a comprehensive guide for businesses navigating this complex landscape. It offers insights, strategies, and real-world examples to help companies protect and enhance their online reputation. Whether you're a small business owner or a corporate executive, understanding the principles of online reputation management is crucial in today's digital-first world.
The Double-Edged Sword of Online Campaigns
The Risks of Social Media Campaigns
One of the key themes in Pownall's book is the potential for online promotional campaigns to backfire spectacularly. He illustrates this point with the cautionary tale of Qantas Airlines' ill-fated #QantasLuxury campaign.
In November 2011, Qantas launched a Twitter campaign asking customers to describe their ideal luxury flight experience using the hashtag #QantasLuxury. The winner would receive a free first-class flight. However, the campaign quickly went off the rails as disgruntled customers seized the opportunity to air their grievances about the airline.
Instead of glowing descriptions of luxury travel, Qantas found itself inundated with sarcastic and critical tweets. Users complained about everything from cramped seating to flight delays. One particularly biting tweet read, "My idea of #QantasLuxury is being under five feet tall so I can actually stretch out on a Qantas skybed."
To make matters worse, the campaign inadvertently dredged up past issues, including a serious incident from the previous year when an A380 aircraft caught fire outside Singapore. While no passengers were injured, the memory was still fresh in many people's minds, and the hashtag provided a perfect platform to bring it back into the spotlight.
The situation spiraled further out of control when mainstream media outlets, always on the lookout for juicy stories, picked up on the Twitter fiasco. The BBC and the Sydney Morning Herald, among others, reported on the backfired campaign, amplifying the negative publicity far beyond Qantas's social media followers.
This case study serves as a stark reminder of the unpredictable nature of social media campaigns. What was intended as a fun, engaging promotion turned into a PR nightmare, highlighting the importance of carefully considering potential negative outcomes before launching any online initiative.
The Power of Social Media for Small Players
While the Qantas story illustrates the risks, Pownall also emphasizes the immense potential of social media for smaller organizations and individuals. The democratizing nature of the internet has leveled the playing field, allowing entities with limited resources to reach vast audiences.
One striking example Pownall provides is the terrorist organization ISIS. Despite being a fringe group with minimal resources, ISIS has leveraged social media to spread its message and grow its influence. The group controls an app called "Dawn of Glad Tidings," which keeps supporters updated on ISIS activities and uses their social media contacts to further propagate their message.
ISIS's social media strategy is surprisingly sophisticated. They coordinate thousands of supporters to post and repost specific messages at strategic times, manipulating algorithms to ensure their content appears in trending topics. A 2014 study by the Brookings Institute found that ISIS's online presence included around 70,000 active Twitter accounts supporting the organization.
While this is an extreme and disturbing example, it underscores the potential reach and impact of well-coordinated social media campaigns, even for organizations operating outside the mainstream.
On a more positive note, Pownall highlights how the internet has empowered activists and non-governmental organizations (NGOs). He cites the example of Oxfam's successful campaign to raise awareness about discriminatory practices in the cacao industry. By leveraging online platforms, Oxfam gathered support from 100,000 people and pressured major companies like Nestlé and Mars to provide equal pay for female employees in developing nations.
The book also tells the story of Molly Katchpole, a graduate student who used the online petition website Change.org to challenge Bank of America's plans to introduce a new five-dollar monthly fee for debit card users. Katchpole's petition garnered 300,000 signatures and convinced 21,000 customers to close their accounts, ultimately forcing the bank to abandon the fee.
These examples illustrate how the internet has given individuals and small organizations the tools to effect real change and challenge even the largest corporations.
Navigating Online Crises
The Importance of Fact-Checking
In the fast-paced world of social media, companies often feel pressured to respond immediately to potential crises. However, Pownall stresses the importance of gathering all the facts before reacting.
He illustrates this point with the case of FedEx and the infamous "computer-throwing" video. In December 2011, a video surfaced on YouTube showing a FedEx employee carelessly throwing a package containing a computer over a fence during delivery.
FedEx's PR manager, Shea Leordeanu, recognized the potential for the video to go viral and damage the company's reputation. However, instead of rushing to respond, she took a measured approach. Her first step was to verify the video's authenticity and identify the customer involved.
This process took over 24 hours, during which time Leordeanu and her team carefully analyzed the video for clues about its location and circumstances. Only after confirming the video's legitimacy did FedEx respond publicly.
Leordeanu used Twitter to issue an apology on behalf of the company, offer to meet with the customer, and provide a new PC. She also announced that the employee had been appropriately disciplined.
While FedEx's reputation did take a hit from the incident, the measured and factual response helped contain the damage. By taking the time to verify the facts, FedEx was able to respond with confidence and credibility, avoiding the potential pitfalls of a hasty or ill-informed reaction.
Balancing Employee and Customer Interests
Another crucial aspect of online reputation management that Pownall explores is the delicate balance between addressing customer complaints and supporting employees. He uses the example of Applebee's to illustrate how mishandling this balance can exacerbate a crisis.
In January 2015, Pastor Alois Bell dined at an Applebee's restaurant in St. Louis. When it came time to pay, Bell crossed out the suggested 18% tip on the receipt and wrote a message stating that she gives God 10% of her money, so why should Applebee's get 18%?
A waiter at the restaurant, frustrated by the pastor's actions, posted a photo of the receipt on Applebee's Facebook page along with a sarcastic comment about hoping Jesus would pay for his rent and food. The post quickly went viral, sparking a heated debate online.
Applebee's initial response was to apologize to the pastor and remove the Facebook post, citing company policy that prohibits sharing guest information, including receipts. They then fired the waiter who had posted the receipt.
However, this decision backfired spectacularly. Many people sympathized with the waiter and felt that firing him was an overreaction. The public backlash against Applebee's intensified, turning what could have been a minor incident into a major PR crisis.
Pownall argues that Applebee's error was in focusing solely on the customer's concerns without considering the broader public reaction. By firing the employee, they inadvertently positioned themselves as unsympathetic to workers struggling with low wages and difficult customers.
This case study highlights the importance of considering all stakeholders when managing an online crisis. Sometimes, standing by an employee in the face of an unreasonable customer complaint can actually enhance a company's reputation for fairness and good treatment of staff.
Dealing with the Media
The Delicate Dance with Journalists
Pownall dedicates a significant portion of his book to discussing the complex relationship between companies and the press. He emphasizes that while businesses need journalists to promote and review their products, this relationship can be fraught with tension and potential pitfalls.
The author uses the example of Tesla and its run-in with New York Times journalist John M. Broder to illustrate the dangers of mishandling media relations. In January 2013, Tesla invited Broder to test drive their Model S car, hoping for a positive review in the prestigious newspaper.
However, Broder's article, published in the Sunday edition of the Times, was far from the glowing endorsement Tesla had hoped for. While he initially praised the car's technology, Broder went on to describe how the cold weather caused the battery to fail, leaving him stranded on an exit ramp in Connecticut.
Tesla's CEO, Elon Musk, reacted swiftly and aggressively. He took to Twitter to accuse Broder of improperly charging the battery and taking unauthorized detours during the test drive. Musk even released data from the car's logs to support his claims.
This aggressive response, however, proved to be a mistake. By publicly attacking a respected journalist from one of the world's most influential newspapers, Musk put Broder on the defensive. The situation quickly devolved into a series of attacks and counterattacks, with neither side willing to back down.
Pownall argues that Musk's approach was fundamentally flawed. Instead of making personal accusations on a public platform, he should have stuck to the facts and kept the tone constructive. Even better, Musk could have reached out to Broder privately to discuss what went wrong during the test drive. This approach might have led to a more balanced follow-up article, rather than a public feud that damaged both parties' reputations.
This case study underscores the importance of diplomacy and restraint when dealing with the press. Even when a company believes it has been unfairly treated, aggressive public responses often do more harm than good.
Crisis Management: Speed and Sincerity
The Importance of Quick Response
One of the most critical aspects of online reputation management, according to Pownall, is the speed of response during a crisis. He emphasizes that in the digital age, where information spreads at lightning speed, a delayed response can be just as damaging as no response at all.
To illustrate this point, Pownall discusses the case of Malaysia Airlines and its handling of the disappearance of flight MH370 in March 2014. When the flight went missing at around 2:40 a.m., social media immediately lit up with concerned posts from the public. The hashtag #PrayforMH370 quickly became a top trending topic on Twitter.
However, Malaysia Airlines remained silent for hours. They didn't release an official press statement until 7:24 a.m., nearly five hours after the flight's disappearance. Even worse, their social media response was further delayed. It wasn't until 8:13 a.m. that the airline posted a link to their press statement on social media platforms.
This delay in communication was a critical error. In the absence of official information, speculation and rumors filled the void, making it much harder for the airline to control the narrative once they did respond. Moreover, the lack of immediate concern expressed for the passengers and their families came across as callous and indifferent.
Pownall contrasts this with a more successful crisis response by KitchenAid. In October 2012, an employee accidentally posted an offensive tweet about President Obama's grandmother from the company's official account. The tweet was quickly deleted, and KitchenAid's executive Cynthia Soledad immediately issued a personal apology to President Obama, taking full responsibility for the mistake.
This swift and sincere response helped to de-escalate the situation and mitigate potential damage to KitchenAid's reputation. The contrast between these two cases highlights the crucial importance of speed in crisis management.
The Power of a Sincere Apology
Another key element of effective crisis management that Pownall emphasizes is the power of a sincere apology. He argues that when mistakes are made, a genuine and heartfelt apology can go a long way in repairing damaged relationships with customers and the public.
Returning to the Malaysia Airlines example, Pownall points out that not only was their initial response delayed, but their first communications lacked any form of apology or expression of concern for the passengers and their families. It wasn't until more than four weeks after the incident that the airline issued a formal apology for the tragedy.
This delay in apologizing compounded the damage to the airline's reputation. By the time the apology was issued, public sentiment had already solidified against the company, making it much harder to rebuild trust.
Pownall contrasts this with examples of effective apologies. He cites the case of JetBlue Airways, which in 2007 faced a major crisis when an ice storm led to the cancellation of over a thousand flights, leaving passengers stranded for days. JetBlue's CEO, David Neeleman, quickly issued a heartfelt apology, taking full responsibility for the company's failures and outlining specific steps they would take to prevent similar incidents in the future.
This sincere and proactive approach helped JetBlue weather the crisis and even strengthened their reputation for customer service in the long run.
The author emphasizes that for an apology to be effective, it must be:
- Timely: Issued as soon as possible after the incident
- Sincere: Genuinely acknowledging the mistake and expressing remorse
- Specific: Addressing the particular issues that occurred
- Action-oriented: Outlining steps that will be taken to rectify the situation and prevent future occurrences
By following these principles, companies can turn potential PR disasters into opportunities to demonstrate their commitment to customer satisfaction and ethical business practices.
Leveraging Online Platforms for Positive Engagement
The Power of Corporate Blogs
While much of Pownall's book focuses on managing crises and negative publicity, he also emphasizes the importance of proactively building a positive online presence. One tool he strongly recommends is the corporate blog.
A well-maintained corporate blog can serve multiple purposes:
- It provides a platform for the company to share its own narrative and perspective on issues.
- It allows for more in-depth communication than social media platforms like Twitter, which have character limits.
- It can be used to showcase company culture, values, and behind-the-scenes glimpses that humanize the brand.
- It serves as a hub for thought leadership content, establishing the company as an authority in its field.
Pownall cites the example of Google's official blog as a model of effective corporate blogging. Google uses its blog to announce new products, explain policy changes, and share insights into its company culture. This transparency has helped build trust with users and the tech community at large.
Moreover, having an established blog can be crucial during times of crisis. It provides a owned media channel where the company can provide detailed explanations, supporting evidence, and ongoing updates about a situation. This can be particularly valuable when dealing with complex issues that can't be adequately addressed in a tweet or press release.
Empowering Employees as Brand Ambassadors
Another strategy Pownall advocates is empowering employees to act as brand ambassadors on social media. While this approach carries some risks, the potential benefits in terms of authenticity and reach can be significant.
He points to companies like Dell and IBM, which have implemented social media training programs for their employees. These programs educate staff on best practices for social media use and encourage them to share company news and insights through their personal accounts.
This approach can:
- Increase the reach of company messages through employees' personal networks
- Provide a more authentic and human face to the brand
- Boost employee engagement and pride in the company
However, Pownall cautions that this strategy requires clear guidelines and ongoing training to ensure employees understand the responsibilities that come with representing the company online.
The Future of Online Reputation Management
In the final chapters of his book, Pownall looks ahead to the future of online reputation management. He predicts that as technology continues to evolve, new challenges and opportunities will emerge.
The Rise of Artificial Intelligence and Big Data
One trend Pownall foresees is the increasing use of artificial intelligence (AI) and big data in reputation management. He suggests that AI-powered tools will become essential for monitoring online sentiment, predicting potential crises, and even automating responses to common issues.
However, he also warns of the potential pitfalls of over-reliance on technology. While AI can process vast amounts of data quickly, it may miss nuances or context that a human would catch. Therefore, he advises a balanced approach that combines technological tools with human insight and judgment.
The Growing Importance of Visual Content
Another trend Pownall highlights is the growing dominance of visual content on social media platforms. With the rise of platforms like Instagram, TikTok, and YouTube, companies need to be prepared to manage their reputations not just through text, but through images and videos as well.
This shift presents both challenges and opportunities. On one hand, visual content can spread even more quickly than text-based posts, potentially amplifying both positive and negative messages. On the other hand, it provides companies with new ways to tell their stories and connect with audiences on an emotional level.
Pownall advises companies to invest in visual storytelling capabilities and to be prepared to respond to crises that may emerge in visual formats.
The Blurring Line Between Personal and Professional
Finally, Pownall discusses the increasingly blurred line between personal and professional identities online. As more people share aspects of their personal lives on professional networking sites like LinkedIn, and as employees become brand ambassadors on their personal social media accounts, managing the intersection of personal and professional reputations becomes more complex.
He suggests that companies will need to develop more nuanced policies around social media use, balancing the benefits of authentic, personal engagement with the need to protect the company's reputation.
Conclusion
In "Managing Online Reputation," Charlie Pownall provides a comprehensive guide to navigating the complex world of digital brand management. Through a mix of case studies, practical advice, and forward-looking analysis, he offers valuable insights for any organization looking to protect and enhance its online reputation.
Key takeaways from the book include:
- The power of social media as both a promotional tool and a potential source of reputational risk
- The importance of fact-checking and measured responses during crises
- The need for quick, sincere, and appropriate communication when issues arise
- The value of proactive reputation management through tools like corporate blogs and employee advocacy programs
- The evolving landscape of online reputation management, including the impact of new technologies and changing social norms
Ultimately, Pownall's message is clear: in today's digital age, managing online reputation is not just a task for the PR department, but a crucial aspect of overall business strategy. Companies that master these skills will be better positioned to thrive in an increasingly connected and transparent world.
As we move further into the digital age, the principles and strategies outlined in this book will only become more critical. Whether you're a small business owner, a corporate executive, or an individual looking to manage your personal brand, the insights in "Managing Online Reputation" provide a valuable roadmap for navigating the complex world of digital reputation management.