MIT Sloan Management Review

Do customers identify with the brand? The appropriate communication strategy also depends on whether customers identify strongly with the brand. In fact, customer identification is one of the best forms of insurance against the possibly devastating effects a crisis can have for an organization. Identified customers show loyalty to their brand, share values with it and feel emotionally attached to it. 6 In contrast, customers who do not identify with the brand will devote less attention to examining carefully whether the information is true — they will tend to believe an accusation on its face, especially if it comes from a credible source. Further, they are more likely to think that the problem may also affect other parts of the brand or the company. 7 However, if the transgression is very severe, identification might not buffer against the ill effects of a crisis, and the brand image takes a hit even among identified customers. 8

The Communication Arsenal Having established the key questions about the situation, a manager can then select the appropriate communications approach. The Crisis Communication Network summarizes the decision tree that is the basis of our framework. (See “Crisis Communication Network,” p. 60.) Just as a mechanic shouldn’t reach for a hammer when the task at hand is to drill a hole, managers need to assess their situation accurately before picking a weapon from the communications arsenal. And as the Crisis Communication Network makes clear, these approaches are best used in various synergistic combinations.

Come Clean If the brand is truly at fault and the crisis is severe, the only viable option is for management to apologize quickly, express sympathy with the aggrieved parties and accept responsibility. In this era of enhanced transparency, vigilant media and citizen journalists, trying to cover up a real transgression is futile. The goals are to reduce customers’ perceptions of the brand’s responsibility and intentionality, and to make clear that this will not happen again. Accepting responsibility is often inhibited by legal considerations; however, management has to weigh the long-term effects of brand damage against potentially shorter-term monetary damages due to litigation, which might be unpreventable anyway.

We have studied the effects of brand and company communication in different critical situations and settings by conducting more than 34 experiments in the United States and Germany. The consumers who participated in our research were either recruited from an online consumer panel, by mall intercepts or on university campuses. In all, nearly 3,500 people took part in the experimental studies. We also reviewed relevant research articles in the fields of crisis communication, consumer behavior, psychology and brand management published by other scholars between 1949 and 2009.

From the data gathered in our own research and via review of the relevant literature in the field, we were able to determine what situational factors moderate the effectiveness of crisis responses and what communication strategies are most effective to protect brand image and customer trust in different crisis situations. This resulted in a comprehensive crisis communication framework that helps managers to navigate a crisis by providing guidelines on what strategy to choose depending on whether the transgression is real; whether it is severe; and whether customers identify with the brand. By choosing wisely from the communication arsenal, managers can positively influence customers’ perceptions of brand responsibility, intentionality, veracity and persistence.

and, if possible, all at once. Steadily trickling information serves as a constant reminder of the crisis and aggravates negative perceptions of the brand. Transparency is essential. All the efforts undertaken to contain the situation, as well as the regulations and safety procedures that will prevent similar accidents from happening, have to be communicated. This information has to be clear, understandable and free of jargon.

In a severe crisis, the company’s top manager has to step up and serve as the first spokesperson. Crisis communication has to help consumers make sense of the event and affirm that management is dedicated to preventing these types of events from occurring again. If this information is made compelling, customers may even end up with stronger attitudes toward the brand than they had before the crisis hit. 9

While words of apology and sympathy are necessary, they may not be sufficient. Corrective action may be necessary as well. After all, consumers may be influenced by what a company says. But even more, they are influenced by what it does and whether it lives up to its words. In severe crises, giving those affected by the situation clear and understandable instructions on how to handle the situation and where to get help is essential. In the case of a product recall, this involves detailed instructions about how to get the product replaced or fixed, as well as corrective action.