Reference no: EM133343116
Was the crisis response and communication effective? Compare and contrast alternative digital communication efforts and provide alternative recommendations.
Crisis One
Staples is an office store that has been struggling to stay in business in recent years. The reason that this is the case is due to the fact that they fail to adapt. There seems to be an issue with how they are using their digital marketing. They are challenged with allowing their customers to be comfortable with online shopping. Staples proactively invites both online and in-store customers to leave reviews post-purchase, in a way that fits seamlessly into their customer journey. Making sure that customers are happy while shopping there is the primary goal, especially when they have been seeing a decline for some time now. The firm noted that office supplies stores as an industry have suffered "consistent revenue declines" every year going back to 2005, due both to competition and the digitization of work itself. During the pandemic, most office stores saw an increase in revenue since so many people were home. This was not the case for Staples, since they actually saw a decline during this time. This was credited to the fact that many people were using online services, which wasn't the best method of shopping at Staples. A weak online presence in this digital world is a massive weakness for the company. Talks of combining with other office brands have come as an option, but it doesn't seem to be able to save them. With competitors like Walmart, Amazon, Target, and more, we can see that the necessity for businesses like Staples is starting to phase out. If they are able to master their online marketing and sales, they will be able to make a huge comeback.
Crisis Two
Shopping today can be hectic, the consumer must leave their house and step into the elements, possibly fight traffic and for a parking spot. Finally, get into the store and wait in line to pay and got back out, and do the traffic again to get home. Companies that have made the jump into direct and digital marketing which involves engaging with select customers to build lasting relationships and to get an immediate response from the customer. The convenience of the efforts of digital marketing to the customer is that they can shop from the comfort of their home. When a company gets hit with a crisis an immediate response by the company to connect with the customers is critical. If the company takes too long to own the problem, they risk losing the customer's faith and market shares.
Cracker Barrel a country store and restaurant faced what some would call a crisis when a manager was fired, and her husband took to social media to blast the company. Although the majority would think that crisis management calls for an immediate response by a company. Cracker Barrel remained silent choosing to stay off online marketing channels and it proved to be effective. Even though social media was in an uproar sales held. This next example was outside the ten-year requirement but is worth mentioning. In 2010 Toyota had to recall over 8.8 million vehicles for safety defects in which the accelerator would jam and it had already caused multiple deaths. Initially, Toyota remained quiet but realized they were failing miserably in handling the crisis. Toyota began to focus its marketing on its proven safety record and its reputation, plus management became more visible and answered sincerely (Bhasin, 2011).
A company, when faced with a crisis, is immediately on the clock for crisis management. To speak or remain silent can prove devastating to a company. The reputation of a company helps its effort in times of crisis. Building customer value proves to keep customers loyal but silence may be the undoing of that loyalty in this day in age with direct and digital marketing tactics a company can communicate and handle a crisis before it flares out of control.