Too many companies fail to see the impact that quality customer support can have on the bottom line, and that mistake can often be very costly. That especially comes to light when a dramatic event threatens the company’s fortunes.
Every company claims to care about its customers, yet sometimes there is a breakdown of trust. It happens even to big brands. Volkswagen lost a gigantic amount of money after reports surfaced that the company systematically cheated on diesel emission tests.
The automaker was fined a whopping US$18 million while also losing more than 20 per cent of its stock market valuation. Another car company saw its shares drop by nearly 30 per cent in 2019 when Tesla Motors (owned by Elon Musk) faced problems with batteries in its Model S car that resulted in a few vehicles catching fire.
Failures of this kind are not limited to the auto industry or multinational brands and can be found in practically every line of business. The real question is how to avoid them.
Let’s step back and consider what constitutes a customer relations crisis and how a company can respond to it. In today’s world, people have high expectations from their favourite brands, and the competition is relentless.
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Not only that, customers expect to receive information directly from the source through various interactive channels, particularly when something important happens. Whenever the company receives some bad press from an external source, customers (and investors) will look for reassurance to remain loyal. How a company responds in the immediate aftermath of a crisis can largely determine whether any damage sustained in the process will remain permanently.
Fortunately, there are some very good strategies that can be used to this end. The first step is to acknowledge the issue and reach out to customers, trying to own up to the (possible) mistake and outline the steps forward. Repairing the actual damage is very important.
Volkswagen ended up committing another €6.5 billion towards service costs for any customers who were affected by the scandal, but Tesla Motors’ example demonstrates that repairing public trust is just as important.
The message of responsibility needs to be broadcasted very clearly through multiple platforms and backed up with a firm recovery plan. Timing is essential since it doesn’t take long for the ominous rumours to spread across the globe and inflict serious damage on company valuation and long-term revenues.
As 9listed.com told, social networks offer a lot of tools that can help to extinguish, or even better, prevent any negative publicity. Some of the measures that can help in this sense include investing in a good customer support solution and building a strong online profile before any crises.
When you are keeping the communication channels open, you are much better prepared to react if something unforeseen comes up. You need to pay good attention to customer feedback and try to build your strategy based on key points found through research.
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