The Impact of Social Media Crisis: Causes, Consequences, and How to Manage Them

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In today’s digital age, social media has become an integral part of our lives. It has revolutionized the way we communicate, do business, and access information. With billions of people using social media platforms such as Facebook, Instagram, and Twitter, it has become a powerful tool for individuals and businesses to connect with others and build relationships. However, with great power comes great responsibility, and in recent years, we have seen how social media can also cause chaos and damage, leading to what is known as a social media crisis.

A social media crisis is a situation where a brand or individual faces negative publicity or backlash on social media platforms due to a controversial post, public outrage, or any other issue that goes viral. These crises can have severe consequences for individuals and businesses, including tarnished reputations, loss of customers, and financial losses. In this article, we will delve into the causes of social media crises, their consequences, and most importantly, how to effectively manage them.

Introduction to Social Media Crisis

In recent years, we have seen numerous examples of social media crises that have caused significant damage to individuals and businesses. One of the earliest and most notorious cases was the 2017 United Airlines fiasco, where a passenger was forcibly removed from an overbooked flight. The incident was captured on video and shared on social media, leading to widespread public outrage and boycotts of the airline. This situation not only resulted in a loss of customers but also had a severe impact on the company’s stock prices.

Social Media Crisis - Introduction

Recently, there have been many instances of social media crises that have had substantial negative effects on individuals and businesses

A more recent example is the 2020 Papa John’s controversy, where the pizza chain’s founder made racist remarks during a conference call. The incident went viral on social media, leading to a significant backlash and calls for boycotts of the brand. As a result, Papa John’s faced a decline in sales and had to rebrand itself to distance from its founder’s actions.

These examples, along with many others, highlight the power of social media and the potential consequences of misusing or mishandling it. Therefore, it is essential for individuals and businesses to be aware of the causes of social media crises and how to effectively manage them.

Why Social Media Crises Happen

There are various reasons why social media crises occur, some of which are within our control, while others are not. Let’s take a closer look at the causes of social media crises:

Misuse of social media by individuals

Social media has given everyone a voice, and unfortunately, this includes those who use it for negative purposes. Cyberbullying, rumormongering, and trolling are some ways individuals misuse social media, leading to crises. These behaviors can cause significant harm to the person being targeted and also impact the reputation of the individuals involved.

One of the most infamous cases of cyberbullying on social media was the 2014 Gamergate controversy. It started as a dispute between a female game developer and her ex-boyfriend but soon turned into a larger issue of misogyny and harassment of women in the gaming industry. This situation not only caused distress to the individuals targeted but also led to a debate on ethics in gaming journalism.

Mishandling of social media by businesses

The rise of social media has also brought new challenges for businesses in terms of managing their online presence. With the pressure to maintain an active presence and engage with customers, businesses sometimes make mistakes that lead to social media crises. Some common mistakes include insensitive posts/ads, lack of authenticity, and poor customer service.

In 2018, skincare brand Dove faced backlash for an ad that showed a black woman turning into a white woman after using their product. The ad was deemed racist and caused widespread outrage on social media, leading to boycotts of the brand. Similarly, in 2019, luxury fashion brand Dolce & Gabbana faced a severe backlash for releasing an ad campaign featuring a Chinese model struggling to eat Italian food with chopsticks. This incident sparked the BoycottDolceGabbana movement, resulting in the brand’s products being pulled from major retailers in China.

These examples show how even well-established companies can make mistakes on social media that have significant consequences. Therefore, it is essential for businesses to understand the platform they are using and be mindful of their online activities.

Consequences of Social Media Crises

The impact of a social media crisis can be far-reaching and long-lasting. Ignoring or mishandling a crisis can have serious consequences for individuals and businesses, including:

Damage to reputation

A social media crisis can tarnish an individual or business’s reputation in a matter of hours. In today’s digital age, news spreads quickly, especially when it comes to controversial or negative information. People tend to share and engage with content that evokes strong emotions, such as anger, disgust, or shock. Therefore, a single tweet or post that goes viral can cause severe damage to an individual or brand’s public image, making it difficult to recover from.

One example of a damaged reputation due to a social media crisis is United Airlines’ UnitedBreaksGuitars incident. After the airline forcibly removed a passenger from an overbooked flight, he posted a video on YouTube singing a song about his experience, which went viral and received millions of views. The incident garnered widespread media attention and resulted in a decline in the company’s stock prices and a loss of customers.

Loss of customers

In today’s competitive market, customers have many options to choose from, and a social media crisis can push them towards your competitors. A study by Sprout Social found that 86% of consumers would stop doing business with a company after a negative experience on social media. Moreover, with the rise of cancel culture, people are quick to boycott or call for boycotts of brands that they feel have wronged them in some way.

Papa John’s is an example of a brand that saw a decline in sales due to a social media crisis. After founder John Schnatter made racist remarks during a conference call, people started using the hashtag BoycottPapaJohns on Twitter, leading to a significant backlash against the brand. This incident resulted in a decline in sales and forced the company to rebrand itself.

Financial losses

The consequences of a social media crisis can also be felt financially. If a crisis damages a brand’s reputation and causes a loss of customers, it can lead to significant financial losses. In addition, managing a crisis can also be expensive, especially if it requires hiring external PR or crisis management consultants.

In 2017, Pepsi faced backlash for a tone-deaf ad featuring Kendall Jenner handing a can of soda to a police officer during a protest. The ad was accused of trivializing serious issues such as police brutality and sparked outrage on social media, causing a decline in the company’s stock prices. Moreover, Pepsi had to pull the ad and issue an apology, which also incurred additional costs.

How to Effectively Manage Social Media Crises

It is crucial to have a plan in place to manage a social media crisis before one happens. Here are some steps you can take to effectively handle a social media crisis:

Have a crisis communication plan in place

Preparation is key when it comes to managing a crisis. Having a crisis communication plan in place can help you handle the situation more efficiently and minimize the damage. This plan should include:

Identifying potential crises

The first step to preparing for a social media crisis is identifying potential risks or issues that could cause one. This could include controversial products or services, sensitive topics, industry-related controversies, or any past incidents that may resurface.

Designating a crisis management team

A crisis management team should consist of individuals from various departments who have expertise in crisis communication, public relations, and social media. This team will be responsible for developing the response strategy, monitoring social media conversations, and engaging with stakeholders during a crisis.

Developing a response strategy

The response strategy should outline how your brand will address the crisis on social media. It should include guidelines for acknowledging the issue, apologizing (if necessary), providing updates, and managing the crisis in a transparent and timely manner.

Respond promptly and transparently

In the event of a social media crisis, time is of the essence. Delaying a response can escalate the situation and make it difficult to regain control. Therefore, it is essential to acknowledge and address the issue as soon as possible. This shows that you are taking the situation seriously and are willing to take responsibility for any wrongdoing.

If an apology is necessary, make sure it is sincere and genuine. Avoid using vague or generic statements and provide as much information as possible without compromising legal or ethical boundaries. Moreover, it is crucial to keep stakeholders informed by providing regular updates as the situation unfolds.

Monitor and engage with social media conversations

During a social media crisis, people will be talking about your brand, and it is essential to monitor and engage with these conversations. Social listening tools such as Hootsuite, Brandwatch, and Mention can help you track mentions of your brand on social media and respond to concerns and questions. It is also essential to show empathy and understanding towards those affected and address their concerns.

Best Practices for Preventing Social Media Crises

While it is impossible to predict and prevent all social media crises, there are some best practices that individuals and businesses can follow to reduce the likelihood of a crisis happening:

Know your audience and platform

Different social media platforms have different audiences, and it is essential to understand who you are targeting and tailor your content accordingly. For example, if your target audience is older adults, you may want to use Facebook over Instagram, which has a younger user base. Moreover, different platforms have their own unique cultures and norms, so it is crucial to familiarize yourself with these before posting anything.

Social Media Crisis - Know your audience and platform

Various social media platforms cater to distinct audiences, making it crucial to identify your target demographic and customize your content accordingly

Be authentic and genuine

In today’s world, where authenticity and transparency are valued, it is essential for individuals and businesses to be real and honest on social media. Brands that come across as fake or inauthentic are more likely to face backlash from consumers. Therefore, it is crucial to be genuine in your communication and avoid any controversies or scandals that could damage your reputation.

Invest in social media crisis preparedness

As mentioned earlier, having a crisis communication plan in place is crucial for effectively managing a crisis. However, it is also important to invest in regular training for employees on how to handle social media crises. This will ensure that everyone in the company is aware of the protocols and knows what to do in case of a crisis. Regularly reviewing and updating the crisis communication plan is also recommended to ensure its effectiveness.

Case Studies: Successful Social Media Crisis Management

While social media crises can have severe consequences, we have also seen examples of brands handling them effectively and turning the situation around. Let’s take a look at some notable cases of successful social media crisis management:

Social Media Crisis - Case Studies

Although social media crises can lead to significant consequences, there are also instances where brands have effectively managed them and successfully reversed the situation

Wendy’s and #NuggsForCarter

In 2017, a teenager named Carter Wilkerson sent out a tweet asking Wendy’s how many retweets he would need to get free chicken nuggets for a year. The brand responded, saying 18 million, and thus started the NuggsForCarter movement. Despite not reaching the goal, Carter’s tweet became the most retweeted of all time, leading to widespread media attention and positive publicity for Wendy’s. The brand embraced the situation and even donated $100,000 to a charity of Carter’s choice.

KFC and chicken shortage crisis in the UK

In 2018, KFC faced a crisis when a change in suppliers led to a chicken shortage in its UK restaurants. This resulted in hundreds of locations closing down temporarily, leading to a public outcry on social media. However, instead of ignoring the issue, KFC acknowledged the situation and used humor to address it. They released an ad with an empty KFC bucket that read “FCK,” along with an apology for the shortage. This response was well-received by customers, and the crisis was managed successfully.

Starbucks and racial bias incident

In 2018, two black men were arrested at a Starbucks in Philadelphia for sitting in the store without ordering anything. The incident sparked outrage on social media, leading to calls for boycotts of the coffee chain. Instead of staying silent, Starbucks CEO Kevin Johnson took swift action, issuing a public apology and announcing plans for racial bias training for employees. Moreover, the company closed down over 8,000 stores for a day to conduct this training. This response was applauded by many, and Starbucks was able to bounce back from the incident relatively quickly.

Domino’s Pizza and viral employee video

In 2009, two employees of Domino’s Pizza posted a video on YouTube showing them tampering with food orders and engaging in unsanitary practices while making pizzas. The video went viral and caused significant damage to the brand’s reputation. However, Domino’s responded quickly and transparently, posting an apology video on YouTube and launching an online campaign to address customer concerns. The company also worked with local authorities to identify the employees and take appropriate action. This response helped rebuild the company’s image, and it was able to regain its customers’ trust.

Conclusion

In conclusion, social media crises are a reality of our digital world, and it is crucial for individuals and businesses to be prepared to handle them effectively. By understanding the causes, consequences, and best practices for managing and preventing social media crises, we can reduce the chances of being caught off guard and mitigate any potential damage. Remember, prevention is always better than cure, so it is essential to have a solid crisis communication plan in place and invest in regular training and updates to avoid any negative repercussions.

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