Transcript of the episode – https://www.youtube.com/watch?v=rRu4YEemE5c

KN: Good evening. This is Katarzyna Nawrocka, welcoming you to ‘Loyalty Programmes by Night’. I suggest we spend this evening discussing effective PR. Joining me is Barbara Krysztofczyk – a media coach and PR specialist.

BK: That’s right.

KN: That’s all correct. Before we move on to this main topic from the relevant perspective – that is, from a crisis management perspective – I wanted to ask you: how long have you been working in PR?

BK: I’ve been working in PR for 15 years now. As for media training and crisis management training, I’ve been doing that for thirteen years, so I’m lucky.

KN: We’re going to be talking about PR in the context of a crisis, but we all know that we should have such a strategy in place within our company, but before we talk about how to do this and how to prepare properly, perhaps we should discuss what a crisis actually is for our brand, what it means and how it manifests itself.

BK: A crisis is a situation that risks having a negative impact on our brand’s image in the long term. And what’s interesting is that very often a crisis isn’t directly linked to what actually happens, but to how we react to it. Because whether consumers choose to stay with the brand or switch to the competition depends on whether the brand responds appropriately to a difficult situation.

KN: So our reaction is very important, because…

BK: The most important one.

KN: The fact that the crisis has already arisen and that we are at its epicentre is one thing, but whether we react at all – or how we react – is what matters most to us and to our brand.

BK: Yes, that’s the most important thing, because consumers are willing to forgive and are open to doing so if they see that we, as a brand, recognise our mistake. We feel embarrassed about it and promise to do better. However, if that humility isn’t there, and if there’s no respect for the consumer, well, then we’re in trouble.

KN: Basia, can we talk about the stages of a crisis? Because I suspect that the first stage is when we realised that the crisis was already here. But what happens next?

 BK: You know, the first stage usually actually occurs once a crisis has broken out, but it should really take place before the crisis breaks out. Because, when it comes to the discipline of crisis management, the first stage is actually preparing for a crisis. Because these days, in the age of social media, for many – for many brands – the question regarding a crisis isn’t whether it will happen, but when it will happen.

KN: And are you ready for it?.

BK: Exactly. That’s why you need to be prepared, and that’s the first stage. The second stage is precisely when the milk has already been spilt – when there’s a crisis – and that’s when you have to manage the crisis as it stands. And the third stage is the recovery stage: repairing one’s image and regaining the position one held before the crisis.

KN: In other words, as business owners, CEOs and PR professionals, we cannot afford to think that this crisis will not affect us; and even if we are lucky enough for it not to, we should still have a strategy in place to protect ourselves against it, or to respond effectively once it does strike.

BK: That’s right. I can’t think of a single company that hasn’t faced a crisis.

KN: All right, but we’re on a programme about loyalty schemes late at night, so I’d like to ask you, as an expert, whether you see loyalty schemes as one of the ways to emerge from, or help in emerging from, such a crisis?

BK: Yes, it’s a brilliant tool that can be used at all three of these stages. For example, once a crisis has already erupted – particularly when we’re talking about consumer brands, fast-moving consumer goods – such crises are most often linked to a problem with the product itself: an issue with the quality of the product or the service. And now, such a manufacturer has an obligation – not a privilege – to inform consumers that the product in question is faulty. Especially if, for example, the product could pose a threat to their life or health. And now, if we have a loyalty programme – for example, a mobile one – then within that loyalty programme we know exactly whether a specific consumer has purchased that defective product. Consequently, we can communicate precisely about that product to that specific consumer. And so, firstly, this means we do not have to send out a broad communication; we do not inform all consumers, those who

KN: We’re getting to that.

BK: Exactly. So this is a kind of targeted communication – very effective and very important – because during a crisis, it’s also crucial to fix what’s already gone wrong wherever possible, but not to tell everyone around you, „Hey, listen, we’re in a crisis, look, look at me”, right? If it’s possible to keep it within such a small circle, that’s a brilliant strategy, and a loyalty programme would be a fantastic tool for that. Because, as I said, we can send a specific message. And moving on, when it comes to internal communication, for example, because many, many companies use loyalty programmes to boost sales staff motivation. And in such a situation, you can also communicate directly with sales staff via the loyalty programme to inform them to keep an eye on that specific product. And that’s also very important. When it comes to crises and their causes, product defects are one of the main causes, but another very important cause is negative information – fake news, slander and online rumours. And the third is the company’s own mistakes. And note that in all three of these areas, ensuring that the company’s staff – particularly the sales representatives – are properly informed is crucial. Well, just think about it. Imagine you’re a shopkeeper and a sales representative from a company facing a crisis comes to you. What do you do? You check it out. You ask them: „Listen, Kasia, this crisis you’re having – what’s it all about? Go on, explain it to me – what’s the situation like?” So this shopkeeper has to be an ambassador for good communication during this crisis.

KN: Yes, but when carrying out this sort of check, it’s very important to consider whether we’ve already built up a strong enough relationship with that shopkeeper for him to trust us. That he’ll believe this crisis won’t affect our working relationship. That we’ll come through this, and that, yes, it’s worth it.

BK: Exactly. And what you’re talking about is a matter of preparing for a crisis. And at this first stage – before anything has actually happened – the loyalty programme plays a very important, very important role when it comes to strengthening relationships. Well, look – there’s this pyramid of consumer engagement. It shows that at the very bottom of the pyramid are people who’ve simply heard of our brand and are aware it exists. Then they become interested in it, then they try it out, then they start using it, then they become loyal, and finally they’re big fans, yes. And a loyalty programme helps us move through the different stages and maximise engagement, so that as many people as possible are at the very top of that pyramid, and so that their engagement is greater. And the greater their engagement, the less likely consumers are to turn away from the brand and go to the competition in the event of a crisis.

KN: Because they trust us more.

BK: Exactly.

KN: And even if this crisis seems serious, we have a business partner who has been working with us on these terms for so long that they trust us to come through this crisis without them suffering any harm.

BK: That’s right. We simply have a relationship built on a different level. We’re at that stage where we feel special and treat each other in a special way. And this is where the principle of reciprocity comes into play. Since we, as a brand, treat you in a special and unique way, you’ll also treat us, as a brand, in a special way and be a little more understanding when we face a problem.

KN: As we’ve already mentioned that a loyalty programme can be a very useful tool when preparing for a crisis, perhaps we could offer some advice on how to develop such a strategy. How to prepare for this crisis, for a crisis.

BK: There are a few key elements to proper preparation. Loyalty schemes are one such element that should be included in a crisis plan. It’s a strategy – a sort of ‘thick tome’, if you like – in which managers and company boards prepare for various crisis scenarios. The scenario-based method is used here, where we map out what might happen and set out how to respond. In this manual, we also set out, for example, what the composition of the crisis management team should look like, and so on. It serves as a crisis ‘bible’ for a given brand or company. In addition, it’s worth organising media training sessions to help people communicate with the media and with consumers via social media, etc., during a crisis. Furthermore, it’s a good idea to hold crisis workshops where crisis simulations are carried out.

KN: Let me ask you about these training courses and workshops, because I mentioned right at the start that you’re a media trainer – so can we assume that’s exactly the sort of training you provide?

BK: I do both: I prepare people for media communication, but I also run crisis management workshops where we practise various scenarios and analyse how a crisis management team should function once a crisis has broken out.

KN: All right, so we know this crisis is happening. We know we have to acknowledge it and we have to respond. We also know that we shouldn’t announce to the whole world that it only affects a specific target group. But how else should we respond? How can we respond to protect our brand?

BK: There can be many different responses. Because what you mentioned – keeping the crisis as contained as possible – is the first stage of crisis management. However, once it has spread widely, then we have to communicate widely. And at that point, we must also adopt an official communication strategy, which involves either holding press conferences or issuing crisis statements. There are also certain guidelines on how to communicate and what words to use. As part of crisis management activities, a very important element is to give consumers a sense of redress. Because they feel wronged in some way; they feel betrayed by the brand. And just as in personal relationships, if we lose trust… If a friend hurts us in some way, and we lose trust in them as a result, we expect them to make amends and say, „Listen, you know what, so because of this, I’ll give you this, this, this and that”. And this is where a loyalty programme can come into play once again.

KN: We’re talking about compensation.

BK: Yes, exactly. We’re talking about compensation. So, for example, if certain customers specifically bought a product that was at risk, they could receive extra points as part of the loyalty scheme. Or all customers could receive some sort of benefit under this scheme. A competition could be organised specifically to demonstrate the brand’s humility and its awareness that it owes us something as consumers.

KN: I am able to believe that it is possible to emerge from any crisis. Of course, it has to be done properly. You need to have a strategy and proceed with caution, but can we emerge from the crisis even stronger, can we rebuild our relationship with the customer and strengthen our brand?

BK: Yes, we can. And this is a very common scenario, because if a brand responds correctly, the saying „a friend in need is a friend indeed” applies here just as much to the brand as it does to people. If a brand faces such a crisis and responds well, demonstrating that it is responsible, aware, able to communicate effectively and treat its consumers with respect, then they will reward it with even greater loyalty and trust. Therefore, yes, this is possible and common, provided the crisis is managed appropriately. And now, at this stage of emerging from the crisis and restoring the brand’s image, loyalty programmes can also be utilised. Both in internal and external communications. And now, let’s return to our example of those sales representatives. Let’s imagine we had a faulty product that has now been repaired. We have a new product being launched onto the market. Often, as part of loyalty programmes, sales representatives have tasks on their mobile phones that they must complete when they visit a shop or a customer. For example, they must say hello, check the shelves and tick them off. And if they complete all the tasks within the programme, they receive a specific benefit. For example, you could add a task: „Explain that the product is now OK. Explain that we’ve replaced the faulty product with a new one. Have a chat with the shopkeeper”. Yes. And we then have a guarantee that, even at this final stage of the communication process, our post-crisis communication will be highly effective. And that’s one way of doing it. But a loyalty scheme can also be used for consumers. For example, you could include the product that was faulty – and which has been recalled – as part of a competition. It could be a prize in a competition, or customers could earn extra points for purchasing that product. The aim is precisely to ensure that these positive emotions become associated with the product once again.

KN: So today’s episode is all about the good news, because if we’re well prepared for a crisis, we’ll probably come through it. We might even come out of it unscathed. And to top it all off, it turns out that loyalty schemes are very helpful in PR, especially in crisis PR.

BK: Yes, they’re very useful, if you know how to use them.

KN: Thank you very much for today’s episode, as we’ve looked at a lot of PR tools – tools that will help us get through this crisis – and I’m really pleased that a loyalty scheme is one of them.

BK: I’d also like to thank you for the interview, and I’d like to thank all our listeners for tuning in to our episode.

KN: See you in two weeks.