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Crisis Communication in theYouTube age

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Julian Matthews
Julian Matthews

Why companies need to leverage on social media in their investor relations strategy. More info at <a href=http://www.trinetizen.com>trinetizen.com</a>

BusinessTechnologie
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The Asia Business Forum, March 24-25, 2008, JW Marriott, Kuala Lumpur, Malaysia Crisis communications in the YouTube Age Presented by Julian Matthews, Director, Trinetizen Media Why you need to leverage on social media in your investor relations strategy
 
 
Case study 1: Dell laptop explodes at Japanese conference ,[object Object],[object Object],[object Object],[object Object],[object Object]
Dell to recall 4 million laptop batteries ,[object Object],[object Object],[object Object],[object Object]
Good news, get it out fast Bad news, get it out faster
Sony delays response, problems deepen… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ThinkPad explodes in LAX airport “ So we're waiting for a flight in the United lounge at LAX, this guy comes running the wrong way, pushing other passengers out of the way and quickly drops his laptop on the floor. The thing immediately flares up like a giant firework for about 15 seconds, then catches fire…,” posting on Gizmodo.com, Sept 16, 2006
Crisis escalates, spreads virally
Sony finally responds… ,[object Object]
Dell’s Response ,[object Object],[object Object],[object Object],[object Object]
Sony’s crisis post-mortem ,[object Object],[object Object],[object Object]
Sony execs’ bow not deep enough? “ We want to put this behind us. I take this problem seriously and I want to finish the replacement program as quickly as possible for the sake of our users and corporate customers,” Corporate Executive Officer Yutaka Nakagawa, Oct 24, 2006 Oct 26, 2006: Battery snafu leads to massive loss Sony posted a 94 percent loss for its July to September quarter. Net profit dove to ¥1.7 billion (US$14 million) from ¥28.5 billion (US$240 million) a year ago.
The Internet train has left the station
Social Media ,[object Object],Many ways to snack: Blogs, podcasts, RSS, wikis, social networks, mobile networks, YouTube, Twitter. Amplifies virally: Two-way, lean-forward media, searchable, archivable, infinite replay, timeshifting Growing influence: 24/7, places higher expectations on speed, transparency and accountability
The Internet circa 1993
Internet in 2008
Case study 2: Kryptonite Bike Lock Fiasco ,[object Object],[object Object],[object Object]
Blogger posts video online
Mainstream media picks up story
Source: Fortune
 
Ingersoll-Rand Endures Kryptonite's US$10 Million Hit ,[object Object],[object Object],[object Object]
Slippery slope of investor adulation
Eg. of local companies in crisis ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Managing a crisis in YouTube age
Feed the shark, before it feeds on you
Use social media tools ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Blogs double every six months
Japanese and English, leading languages
Companies blogging internally or externally HP IBM Intel Lockheed McGraw-Hill Merrill Lynch Microsoft Mitsubishi Motorola New York Times Nike Oracle Pepsi Radio Shack Raytheon Shell Starbucks Sun Microsystems Texas Instruments Time Warner Toys R Us Wells Fargo Yahoo! Apple Computer Avon Boeing Cisco CitiGroup Dell Disney FedEx GM Google Halliburton Hitachi Data Systems
Dell sets up IR blog
Dell’s IR blog ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Link: http://dellshares.dell.com
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Make your online IR section count
CEOs are blogging Bob Lutz, GM http://fastlane.gmblogs.com/ Jonathan Schwartz, Sun http://blogs.sun.com/jonathan/
ROI of Blogging* ,[object Object]
http://www.tengkuzafrul.com/
 
Blogging can be an IR tool ,[object Object],[object Object],[object Object],[object Object]
Why blog? ,[object Object],[object Object],[object Object],[object Object]
“ In the world of the Internet, you don't own your brand. Your customers and your users own your brand,” David Sifry, founder Technorati, leading search engine for the blogosphere
Links: http://www.facebook.com/group.php?gid=4629441044 http://www.shoesshoesshoes.com.my Using Facebook to reach global customers, Personal Money Mag, March 2008
Ung Yiu Lin, shoe entrepreneur “ Before Facebook I relied solely on emailing our catalogues…with files being too large and slow to download. We are start-up and we do not have a big budget for marketing. Facebook allows us to reach out to overseas customers for free.” Jonathan Teoh, trulylovingcompany.com “ Facebook allows people the freedom to voice their suggestions and grouses, and we can respond to feedback in a transparent way. While this may sound scary we gain immediate insights on the sentiments of our products.” Chris Tan, lawyer, Chur Associates “ Legal services are commoditised and as a small firm we need to stand out among the big boys. So we must be different. We use it to communicate our brand values in a personal way. ”
Summary: social media and IR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Crisis Communication in theYouTube age

  • 1. The Asia Business Forum, March 24-25, 2008, JW Marriott, Kuala Lumpur, Malaysia Crisis communications in the YouTube Age Presented by Julian Matthews, Director, Trinetizen Media Why you need to leverage on social media in your investor relations strategy
  • 2.  
  • 3.  
  • 4.
  • 5.
  • 6. Good news, get it out fast Bad news, get it out faster
  • 7.
  • 8. ThinkPad explodes in LAX airport “ So we're waiting for a flight in the United lounge at LAX, this guy comes running the wrong way, pushing other passengers out of the way and quickly drops his laptop on the floor. The thing immediately flares up like a giant firework for about 15 seconds, then catches fire…,” posting on Gizmodo.com, Sept 16, 2006
  • 10.
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  • 13. Sony execs’ bow not deep enough? “ We want to put this behind us. I take this problem seriously and I want to finish the replacement program as quickly as possible for the sake of our users and corporate customers,” Corporate Executive Officer Yutaka Nakagawa, Oct 24, 2006 Oct 26, 2006: Battery snafu leads to massive loss Sony posted a 94 percent loss for its July to September quarter. Net profit dove to ¥1.7 billion (US$14 million) from ¥28.5 billion (US$240 million) a year ago.
  • 14. The Internet train has left the station
  • 15.
  • 18.
  • 22.  
  • 23.
  • 24. Slippery slope of investor adulation
  • 25.
  • 26.
  • 27. Feed the shark, before it feeds on you
  • 28.
  • 29. Blogs double every six months
  • 30. Japanese and English, leading languages
  • 31. Companies blogging internally or externally HP IBM Intel Lockheed McGraw-Hill Merrill Lynch Microsoft Mitsubishi Motorola New York Times Nike Oracle Pepsi Radio Shack Raytheon Shell Starbucks Sun Microsystems Texas Instruments Time Warner Toys R Us Wells Fargo Yahoo! Apple Computer Avon Boeing Cisco CitiGroup Dell Disney FedEx GM Google Halliburton Hitachi Data Systems
  • 32. Dell sets up IR blog
  • 33.
  • 34.  
  • 35.
  • 36. CEOs are blogging Bob Lutz, GM http://fastlane.gmblogs.com/ Jonathan Schwartz, Sun http://blogs.sun.com/jonathan/
  • 37.
  • 39.  
  • 40.
  • 41.
  • 42. “ In the world of the Internet, you don't own your brand. Your customers and your users own your brand,” David Sifry, founder Technorati, leading search engine for the blogosphere
  • 43. Links: http://www.facebook.com/group.php?gid=4629441044 http://www.shoesshoesshoes.com.my Using Facebook to reach global customers, Personal Money Mag, March 2008
  • 44. Ung Yiu Lin, shoe entrepreneur “ Before Facebook I relied solely on emailing our catalogues…with files being too large and slow to download. We are start-up and we do not have a big budget for marketing. Facebook allows us to reach out to overseas customers for free.” Jonathan Teoh, trulylovingcompany.com “ Facebook allows people the freedom to voice their suggestions and grouses, and we can respond to feedback in a transparent way. While this may sound scary we gain immediate insights on the sentiments of our products.” Chris Tan, lawyer, Chur Associates “ Legal services are commoditised and as a small firm we need to stand out among the big boys. So we must be different. We use it to communicate our brand values in a personal way. ”
  • 45.