Revolutionary Measures

Why leaving social media is bad for JD Wetherspoon

Received marketing, and indeed business, wisdom is that the future is digital. And that has lead to brands stampeding onto social media and devoting increasing amounts of time and money to engaging with their audiences there.

So the news that pub chain JD Wetherspoon is quitting Twitter, Facebook and Instagram seems to fly in the face of good marketing practice. Chairman Tim Martin has been vague on the reasons why it is leaving, citing the amount of time it is taking (as well as head office, its 900 pubs all have their own accounts), the addictive nature of social media, misuse of personal data and the trolling of MPs and public figures on social media.

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But reading between the lines it is more about a lack of engagement and impact from its strategy. It has 44,000 followers on Twitter, over 100,000 on Facebook and more than 6,000 on Instagram – a relatively low number for such an enormous, UK-wide organisation. It hadn’t been that active – the announcement that it was leaving Twitter was its first message in April for example, and most Facebook content was just reposted from Twitter.

However, not doing something well and not doing it at all are two separate things and I believe that the main reason that Wetherspoon’s is stopping social media is that isn’t really embracing the power of the platforms. It is true that most consumers are unlikely to be avid followers of their local branch of a chain pub – after all you’d not interact that much with your local supermarket, but they’ve not used it to create a buzz about local events or what they are doing. Therefore, it is logical to stop, rather than just going through the motions – and reap the news headlines and profile that the decision creates.

However, done well social media can deliver big results – even for 100% offline businesses like Wetherspoons. Here are three of the biggest:

1. Create a community
Why do people go to pubs? It is all about socialising, meeting people and enjoying yourself. After all, if you just want to drink it is cheaper to do it at home. Successful local pubs are all about creating a community – it doesn’t have to be on the level of Cheers, where ‘everybody knows your name’, but it is about interacting. Social media does the same thing in the online world – so not being present means you are not nurturing your punters when they aren’t in the pub.

2. Keep the influencers informed
Wetherspoon says that news will still be available via its website, but in today’s environment most journalists and influencers get their news through social media. They raise questions and start debates, and Wetherspoon won’t be there to take part in them. No doubt its PR people will be there lurking, but that is not the same – and failing to have an active account doesn’t look good to those journos who live their lives on social media.

3. People don’t want to change channel for customer service
Consumers want to interact with a brand on the channel that is most convenient to them at that time. And that is quite often social media – they don’t want to switch to calling or emailing customer services, as Wetherspoon now recommends they do. So therefore complaints will go unanswered, visible only to other consumers, without Wetherspoon getting involved. This impacts brand reputation, particularly of individual pubs, and further damages engagement.

I don’t know how much time and money Wetherspoon was spending on social media, and it could well be that it isn’t getting the return it is looking for. But shooting the messenger, rather than changing the message isn’t a long term strategy to compete – as Wetherspoon may well find to its cost.

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April 18, 2018 Posted by | Marketing, PR, Social Media | , , , , , , , , , | Leave a comment

Talk Talk – how to turn a crisis into a PR disaster

Last week’s announcement from Talk Talk that its website had been hacked and customer details (including bank account information) had potentially been stolen has turned into a disaster for the company. The stock price slumped by over 10% and MPs have called for an inquiry into whether the firm’s failure to encrypt data put customer information at risk.TalkTalk

Could things have been handled differently – and would they have changed the reaction of both the public and the media?

Firstly, it is worth re-stating that Talk Talk has been the victim of a crime. Initial fanciful rumours that the perpetrators were Russian Jihadis now look wide of the mark, with the police instead arresting a 15 year old boy from Northern Ireland, but the fact remains that its site was hacked. Additionally some of the press coverage has been incredibly sensationalist, with lurid stories of customers having their bank accounts cleared out by fraudsters, even though they were not necessarily linked to the hack itself.

However there are two questions that any business involved in crisis management needs to answer – did it meet the expected standards before the incident, and did it then deal with the situation in a way that reassured customers and other stakeholders?

I’d say that the response to both of these is a No. For a start, failure to encrypt customer details (at a time when people like Apple encrypt everything) is a glaring security hole that should have been filled. But as a PR person I’d point out five ways they’ve not managed the crisis well:

1          Telling press before customers
The first thing most customers knew about the hack was when they turned on the news or listened to the radio. The reason given by chief executive Dido Harding for making contact through the media, as opposed to directly speaking to customers, was that the sheer number of subscribers made this impossible. Talk Talk should have done both – customers wanted a direct response rather than just hearing about it on Radio 4.

2          Incomplete information
You can’t blame Talk Talk for initially overstating the scale of the attack – it obviously needed to get the announcement of the hack out as quickly as possible, rather than laboriously go through all its account details to see what had been compromised. And the story about the afore-mentioned Russian Jihadis came from other sources. However it didn’t provide a full picture to its customers early enough. I’m an ex-Talk Talk customer, and left six months ago – yet nowhere on its FAQ did it say anything about whether my details were at risk. Much later on Talk Talk admitted that ex-customer information could also have been hacked, but it demonstrates that the entire response was not well thought through.

3          Failure to stay on top of the story
After its initial apology, the story seemed to be going Talk Talk’s way, with pundits talking about the growing threat of cyber crime, and the company’s clear advice to change passwords being repeated across all media. But then the story changed, with the initial hack being downplayed and the press focusing on the failure to encrypt data. As Jacques de Cock of the London School of Marketing pointed out, it seemed to share its customers’ panic, rather than taking decisive action. The agenda shifted against Talk Talk, positioning it as culpable in its own downfall and not having a handle on what was going on.

4          Poor reputation
As I mentioned, I’m an ex-Talk Talk customer, and I found it a frustrating and unhelpful organisation to deal with. I kept getting regular sales calls, with agents trying to upsell me from my basic package and when I moved home it made me honour a month’s notice period on my contract – even though it said it couldn’t provide service at my new address. The impression I got was of an organisation that didn’t care about its customers, except for the money it could make from them, and that cut corners where it could to save a pound or two. Indeed I remember hearing Dido Harding on the Media Show on Radio 4, likening the firm to a clapped-out car being driven over the speed limit down the motorway, hanging onto the competition. Very few telecoms firms deliver good customer service, but I’m convinced Talk Talk’s poor reputation meant that commentators and customers automatically assumed the worst had happened.

5          Lack of empathy
Compounding customer annoyance, Talk Talk yesterday said that it would charge a termination fee to any customers looking to leave, unless they could prove that money had been stolen from their accounts due to the hack. Now, Talk Talk is obviously a business, and releasing all its customers from their contractual obligations could cause a huge dent in revenues – particularly given how badly the crisis has been handled. But the way the message has been delivered smacks of weakness and arrogance – it is almost as if it believes that customers would seize any excuse to leave, yet are stupid enough to forget the whole hack happened when it comes to contract renewal time. The company should have worked out some sort of half way house, allowing customers to shorten contracts or pay a reduced termination fee as a goodwill gesture. It may have cost it more in the short term, but would have been a valuable first step in rebuilding the company’s reputation – and any good publicity would be welcome at this stage in the process.

Handling a crisis in today’s real-time world is difficult. The combination of continuous news, social media and a desire for instant scapegoats means it is impossible to control the story in the same way as in the past. However Talk Talk should have done better – and is now facing the prospect of real damage to its reputation and bottom line by failing to take decisive action or appearing to care about its customers. Every company should take note and update crisis management plans so that they don’t fall into the same trap.

October 28, 2015 Posted by | Marketing, PR, Social Media | , , , , , , , , , | 2 Comments

easyBrand Damage?

Aircraft: Boeing 737-33V Airline: EasyJet Regi...

Like a lot of people I’ve been impressed by the current easyJet TV ads. Celebrating ‘generation easyJet’, the group of travellers that the airline claims was created due to its low fares and wide range of destinations, it is modern, engaging and aspirational. There’s no overt mention of price (in contrast to Ryanair’s pile them high and sell them cheap advertising), and the overall approach is grown up and comparable to ‘proper’ airlines. The message is travel with easyJet to do the things you love.

However in an age of social media and consumer activism advertising can’t trump reality. Two recent easyJet blunders threaten to undo the slick ads, damage its brand and put off prospective passengers.

Firstly, it initially refused to let a passenger who criticised it on Twitter board his flight. Lawyer Mark Leiser sent a tweet after his plane from Glasgow to London was delayed, potentially preventing a soldier on his way to active service reaching his base in Portsmouth. easyJet allegedly said they wouldn’t help pay for him to get to his destination. After tweeting Leiser was pulled out of the boarding queue and told by a manager that he couldn’t get on the plane as ‘you can’t tweet stuff like that and get on an easyJet flight.’ It was only when the manager found out that Leiser was a lawyer that they changed their mind and let him on. easyJet later apologised and denied that it was its policy to ban passengers based on what they’d said. However by then the damage was done as Leiser’s original tweets were shared around the world and then picked up by major media.

A couple of weeks later easyJet managed to leave 29 passengers behind even though they’d passed through the boarding gate and completed check-in (and had hold luggage on the plane). Interestingly statistics from YouGov found that nearly 10% of UK Twitter users heard about the story, showing the power of social media to spread bad news.

Obviously easyJet is not the only airline to suffer at the hands of social media. After BA lost his parent’s luggage, Hasan Syed invested in a campaign of promoted tweets focused on the airline’s target audience, leading to the #BASucks hashtag trending. Eventually BA customer service responded, apologising for not getting back sooner but (I kid you not) the global airline’s social media team only works 9-5. Like easyJet, BA has an ambitious new ad campaign out now, highlighting its “To Fly, To Serve” motto. No news on whether they are going to amend that to “To Serve (business hours only).”

easyJet has invested over £5m in its new ad campaign and I’m sure BA has spent a lot more. But it looks like a classic case of being distracted by shiny things. A much smaller investment in social media and staff training might not look as impressive, but in today’s world may well go a lot further.

October 16, 2013 Posted by | Creative, Marketing | , , , , , , , , , | 1 Comment