In brand reputation management, strength isn’t just about visibility – it’s about resilience. When a single tweet can spark a reputational wildfire, proactive brand management has never been more critical. And while reputation building and risk management are two sides of the same coin, many focus solely on the former. But true brand resilience lies in mastering both. This article pulls back the curtain on brand risk management techniques that we use with our industry-leading clients to stay one step ahead of potential crises.
Boosting and Blunting
A brand’s reputation can be thought of as a seesaw. On one end, there are shiny marketing campaigns and CSR initiatives, constantly pushing up. That’s the boost. But on the other end, there are potential crises and angry tweetstorms trying to drag it down. That’s where blunting comes in – the ability to cushion the fall when the seesaw suddenly drops.
Most brand managers and marketers spend their days on the boost end of the seesaw, basking in the glow of positive press and customer love. But the savvy ones know that true reputation resilience comes from mastering both the highs and the lows of this precarious playground equipment.
Strategic Pessimism
Focusing on the negative doesn’t mean wallowing in doom and gloom. It’s about being prepared for the worst while hoping for the best. Here are three steps a brand can take to mitigate the impact of the seesaw drop.
1. Know Your Opposition
The saying goes, “Keep your friends close and your enemies closer.” In brand management, it’s more like “Keep your customers close and your detractors under a microscope.”
Case in point: An infrastructure company facing community opposition decided to get up close and personal with their critics. They segmented their detractors, grouping and prioritizing potential opponents to better understand why they opposed this infrastructure. The result? Four distinct segments, each with their own set of grievances and engagement levels.
Research revealed that only two of the four audiences were likely to engage at a local level. By focusing on the two groups most likely to engage, they crafted tailored strategies for each. For one segment, it was all about proactively addressing specific concerns. For another – one with a more conspiratorial view of the world – they focused on choosing the right communication channels, because the message wasn’t going to matter as much as the messenger for this audience.
The outcome? A comprehensive playbook for each detractor group, including:
- How to spot them in the wild
- What makes them tick
- The messages they cared about
- The best channels to reach them
2. Know Your Weaknesses
Nobody likes to dwell on their flaws, but in brand risk management, it is a superpower. Just ask the producer-led marketing organization that got a wake-up call during the COVID-19 pandemic.
They identified over twenty potential issue categories and used research to understand how consumers prioritized those issues. The result? A risk analysis that gave us a clear prioritization of risk not only in terms of consumer awareness, but also by level of concern, allowing us to identify “high alert” and “caution” topics.
To stay on top of potential reputational downfalls, they track this matrix over time. When issues arise to the top, we work together to conduct scenario and message testing for “caution” issues. We have even overlaid their consumer segmentation to understand which problems might push the buttons of their priority audiences.
3. Be Prepared to Respond
If steps 1 and 2 are done right, this part becomes a whole lot easier. It’s like studying for an exam – one might not know exactly what questions will be on the test, but they’ll be ready for whatever comes their way.
While it can be difficult to slow down in a crisis, message testing can be crucial to getting the response right. Whether using PSB’s own Shift Study, a MaxDiff analysis (or our Duo MaxDiff), A/B testing, or good old-fashioned focus groups, the goal is to have an arsenal of pre-approved responses ready to deploy at a moment’s notice.
The Long Game: Why Pessimism Pays Off
- Crisis Readiness: When (not if) a crisis hits, brand managers will be prepared.
- Reputation Resilience: A strong risk management strategy helps brands weather storms that would sink less-prepared competitors.
- Stakeholder Trust: Proactive risk management shows stakeholders that a brand is on top of its game, boosting confidence.
- Competitive Advantage: While rivals are scrambling to put out fires, prepared brands will be calmly executing their well-prepared strategies.
- Cost Savings: Preventing a crisis is almost always cheaper than managing one after it erupts. It’s like reputation insurance – a small investment now can save much more later.
- Improved Decision-Making: The insights gained from risk analysis can inform broader business strategies and operations. It’s like having a crystal ball, but with more data and fewer mystical vibes.
Conclusion? Embrace Your Inner Pessimist
In brand management, it pays to be a pessimist. By focusing on the potential negatives, brands are actually setting themselves up for positive outcomes. It’s like going to the gym – a little pain now means a lot of gain later.
Remember the three pillars of brand risk management:
- Know your opposition (they’re not just haters, they’re information)
- Know your weaknesses (self-awareness is sexy in brands too)
- Be prepared to respond (like a Boy Scout with better PR skills)
By mastering these elements, brands will be ready to boost their reputation when times are good and blunt the impact when things go sideways. It’s not about being paranoid; it’s about being prepared.
Reach out to [email protected] for more information or to discuss your brand’s unique challenges.