An insider’s playbook to PR crisis mitigation

In today's digital-first world, a brand's reputation can be reshaped—or shattered—within moments on social media. Platforms like LinkedIn, Instagram, and X (formerly Twitter) offer a direct channel for communication and branding, enabling organisations to share their vision openly, introduce new products and services, and transparently announce changes. With this, businesses are keeping pace with the rapid growth of users on these platforms.

An October 2023 knowledge paper by Amaha and FICCI, ‘Beyond the Scroll’ mentions that 61.4% of the world's population uses social media. This rapid expansion further makes it an essential tool for brand visibility and engagement. Yet, with this power comes the risk—uncontrolled use can quickly spiral into a PR crisis, turning what was once an asset into a brand's biggest vulnerability.

Examining the Ola crisis

A social media controversy erupted when Indian comedian Kunal Kamra shared a photograph on X, showing multiple dust-covered e-scooters outside an Ola showroom. The situation intensified when Ola CEO Bhavesh Aggarwal responded, suggesting he would pay Kamra to assist the company if he was genuinely concerned. If not, Aggarwal told Kamra to ”shut up” and allow Ola to address the ”real customer issues”. This exchange ignited torrential tweets from other dissatisfied customers, amplifying the outcry.

Do indian consumers have a voice?
Do they deserve this?
Two wheelers are many daily wage workers lifeline…@nitin_gadkari is this how Indians will get to using EV’s? @jagograhakjago any word?
Anyone who has an issue with OLA electric leave your story below tagging all… https://t.co/G2zdIs15wh pic.twitter.com/EhJmAzhCmt

— Kunal Kamra (@kunalkamra88) October 6, 2024

The ongoing feud attracted significant attention on social media, with users criticizing Aggarwal's dismissive tone and raising concerns about the potential damage to Ola's brand reputation. The impact extended beyond social media, as the company's stock dropped 9% on October 7, 2024, highlighting the direct link between social media controversies and market performance.

This incident underlines the sensitivity needed when managing social media crises, as these platforms can quickly magnify any issue. Equally important is the behaviour of leadership, which can shape the brand's reputation, as negative interactions can tarnish a brand's image and lead to major financial consequences, as seen in Ola's stock drop.

This scenario demands a strong crisis management strategy. For example, companies can catch potential problems early by regularly monitoring social media sentiment before they snowball into bigger issues. Moreover, actively engaging with customer concerns is not just a nice-to-have—it's a must. By acknowledging issues honestly, brands can foster trust and demonstrate their commitment to finding solutions.

Handling social issues

Brands need to understand the value of aligning with their core audience, particularly when addressing social issues in branding. While companies run numerous campaigns over time, those that stand out are the ones that genuinely reflect the brand's values, as audiences are quick to detect any lack of authenticity. In today's environment, where social issues evoke strong responses, any misalignment or perceived insincerity in a campaign can lead to significant backlash.

For instance, in April 2023, Bud Light took a bold approach by collaborating with transgender influencer Dylan Mulvaney for a social media promotion. However, the campaign quickly met with backlash from several conservative groups and public figures, leading to widespread calls for a boycott. Many critics on social media perceived the campaign as politically charged or as Bud Light aligning with divisive social issues.

As if to make the matters worse, Bud Light initially gave a subdued response to the controversy, leaving both supporters and critics dissatisfied. As a result, in the ensuing three months, Bud Light experienced a 28% decline in sales, highlighting the campaign's lasting impact on consumer behaviour.

This incident signifies the importance of data-driven choices in influencer marketing and the need for alignment between senior management and marketing teams during a crisis. Brands are less likely to miss the mark when creative directors green-light campaigns based on data and genuine audience insights—rather than personal preferences.

While building loyalty, brands should remember that consumers may feel alienated when companies stray from shared values. For those brands that resonate deeply with their audiences, a thoughtful approach can make all the difference.

Spelling magic with great PR

A PR crisis isn't just about campaigns, promotions, and social media drama; it can spring up anytime a company shakes things up with its brand, products, or operations. This is especially true during significant changes like rebranding. In this scenario, negative feedback or events can lead to a loss of consumer interest, resulting in reputational damage and market value declines.

Take Twitter's rebranding to X, for instance. The shift sparked criticism, many questioning why and when this change was necessary. Elon Musk framed the rebranding as part of his vision for X to become an ‘everything app’, aiming to evolve beyond social media into realms like e-commerce and financial transactions. However, this vision didn't sit well with the audience. Concerns also arose about Musk's management style and whether he could effectively navigate the complexities of the social media landscape.

The fallout was significant—Twitter's value reduced from $ 5.7 billion in 2023 to just $ 673.3 million in 2024. That's a staggering decline! It illustrates how crucial it is to handle brand changes carefully.

Effective PR crisis management could have made a profound difference here. First, engaging with key stakeholders—loyal users and industry experts—before the announcement would have provided valuable insights and shaped a more informed decision. Rather than implementing a sudden overhaul, a phased approach could have facilitated a smoother transition, allowing users to adjust gradually.

A good example is Dunkin' Donuts, which opted to drop ‘Donuts’ from its name to modernise the customer experience. The company ensured the rebrand still resonated with its audience, as the name ‘Dunkin’ continued to evoke thoughts of doughnuts for many customers.

The essentials

There are certain precautions a business can take to manage any crisis effectively. Monitoring social media sentiment and responding promptly to feedback would be a good start. It shows that the brand values its audience's opinion. Reinforcing the brand's core values throughout the process could remind users of their original connection with the brand.

Having a dedicated crisis communication team would facilitate quick responses and consistent messaging. Finally, conducting a post-launch evaluation to assess user response and market impact would inform ongoing strategies, ensuring that the brand better meets audience expectations, moving forward.

- Danish Malik, co-founder and CEO, Boomlet Group