What is a brand crisis?
A brand crisis refers to a negative event that surrounds one particular brand or several brands that belong to the same company.
A brand crisis often ignites discussion and speculation from customers, shareholders, press, and regulators about the affected brand and why the crisis occurred. These stakeholders ask questions such as:
Who is to blame?
What is the likelihood of this event happening again?
What is true, and what is a rumor?
What are the implications of this crisis on the future of the overall brand?
Short-term impacts of a brand crisis
Short-term effects include drops in sales along with any costs associated with product recalls or customer compensation.
Long-term impacts of a brand crisis
In the long-term, a brand crisis can drastically damage the brand’s reputation. The brand must earn back consumer trust in order to repair its reputation after a crisis, and this can be quite challenging. A brand crisis leaves the affected brand extremely vulnerable, as it serves as an opportunity for competitors to steal its customers.
How to avoid a brand crisis
While brand crises are often unpredictable, you can reduce the chances of one occurring by monitoring customer feedback and news in real-time. This lets you detect sentiment trends as they emerge and address issues instantly before they spread like wildfire. Monitoring online conversations also allows you to predict potential crises and take proactive measures to prevent them.
The BirdEye platform lets businesses monitor and respond to customer feedback and brand mentions across review sites, social media, blogs, discussion forums, and news articles. Deep text analytics reveal trending topics the moment they emerge, allowing businesses to take swift, decisive action to correct problems. Staying in tune with customer feedback is the best way to avoid a brand crisis and protect your brand reputation.