All companies are faced with a crisis at some point or another, a crisis is a situation endangering the company's integrity or reputation, a situation occurring mostly due to unfavorable or negative coverage in the media.

A good reputation ranks among the most valuable assets of each company. It not only increases the value for shareholders; it also wins the loyalty of customers and consumers.

In a crisis the Company must make sure that every touch point is aware of the crisis, and most importantly is aware of the message that must be communicated to the customers and media. This ensures ongoing loyalty and averts the perception in the customer’s and media’s mind that a crisis exists (ultimately minimising any damage or perceived damage to the company’s reputation i.e. their most valuable asset).

In case a crisis appears, the organisation or company shall face enormous difficulties unless its management and communication oriented employees do not collaborate intensively to produce a crisis communication plan.

Depicted below is a high-level diagram, which indicates the various touch points that must be notified in a crisis and who must be advised as to what message must be communicated, ensuring one-version-of-the-truth.

As Corporate Reputation Management specialists, Vuma are experts in managing crisis situations and crisis communication.

The Vuma Crisis Management team will:

• Respond to any crisis immediately (within 15 minutes)
• Co-ordinate the Crisis Management Teams
• Develop crisis management plan
• Implement crisis management plan
• Compile the relevant messages for all touch points
• Alert all touch points
• Roll-our communication messages
• Liaise with print and electronic media
• Monitor crisis 24/7
• Manage entire crisis to resolution
• Measure impact of crisis had it not been averted by Vuma

High Cost of Crisis Mis-Management

It's well known that a single dissatisfied customer usually tells from 5-15 other people about their dissatisfaction. And some of these speak to others. That means that losing even one customer can result in negative word-of-mouth involving up to a hundred or more people. Losing many customers because of dissatisfaction can result in thousands of potential customers getting a negative earful about your business. Clearly, few companies can afford this.

Many companies have determined the cost of getting a new customer. When taking into account the cost of advertising and marketing promotions, it may take anywhere from R800 to R1000 or more, depending on the industry, for every new customer and it certainly will take even more to win back a lost customer.

If you have not a chosen a Crisis Management Partner, or if you are currently utilising an ineffective system, you will experience over time, if crisis behaviors are not contained and managed properly, they will increase dramatically.

Crisis situations do not just "go away". On the contrary, when aggression and disruption are not handled properly, they are likely to occur more often.

In the case of South African Airways, due to  a strike and the poor handling of related communication, their market share dropped by a massive 20%.

Vuma’s food for thought:

”what is the point of throwing millions at your advertising driving acquisition of new clients and brand building, if one event that enforced a crisis can literally bring your company to its knees.”

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