A rate hike and service split sent many Netflix customers running into the arms of its competitors. The share price dropped significantly, and the CEO of the company attempted an online apology to quell discontent among remaining customers. Many corporations have made errors in the past that led to similar results. Crisis communications experts use these as case studies to show what works and what doesn’t for owners and CEOs trying to assuage consumer worries and keep them buying the company’s products or services.
The maneuver by Netflix’s CEO offers a great lesson for businesses put in a similar situation. Whether you head a multinational corporation or own a small business on Main Street, it’s worth taking a closer look at this case. Expert assistance, such as that offered by Reputation.com, can also help you avoid strategic blunders in responding to customer complaints.
What Went Wrong?
According to crisis specialists, communications with customers during a crisis of confidence should follow a simple formula. The most effective response is crafted to include an explanation of what went wrong and a synopsis of efforts made to improve the situation. The Netflix message and video explained the problem, apologized for springing the changes on customers and utterly failed to correct the problem. In fact, the apology made it worse by introducing the split of Netflix into a separate streaming and DVD rental service that was accessible through different websites.
Surveying the Damage
Efforts to improve customer relations should start with an understanding of their concerns. The Reputation.com reviews tool lets you access every mention of your company across the Internet, including news articles, forum comments and blog posts. Reputation.com goes further by providing access to IT specialists and marketing experts. You will have plenty of help in crafting an apology and building a positive reputation with the selection of a Reputation.com reviews package.