Three steps to handling company disasters

Bad things happen to good companies. BP certainly didn't intend to leak millions of barrels of oil into the Gulf of Mexico, but it did. The company's brand took a major hit as a result, and it's still working to this day to improve customer perception.

Crises – whether it's an event as catastrophic as the BP oil spill or as simple as a client being charged too much for a product – are a part of business. They can have a significant impact on an organization's reputation. In fact, the White House Office of Consumer Affairs found a dissatisfied customer will tell between nine and 15 people about his or her experience with the company.

This fact has been exacerbated by social media. A single tweet about a bad experience can be shared from one friend to another, and if a consumer's complaint is egregious enough, it could eventually be viewed by hundreds or even thousands of his or her peers.

Dealing with crises is a crucial part of managing any small business brand. Entrepreneurs need to be prepared to handle any situations that arise and nip them in the bud before they can explode into a bigger issue. Having a plan that small business owners can follow through on can help mitigate these issues, as MarketingProfs notes.

1. Anticipate potential disasters

No one knows a company's products better than the business owner. After working with their goods or services in such an intimate way, they should at least be able to determine some of the common complaints or issues consumers may have. This will help entrepreneurs formulate preemptive plans to deal with crises.

"Have a preliminary strategy ready before you need it. The more prepared you are, the easier it will be to execute your strategy calmly and confidently when the need arises. As you plan, think about all the tools in your toolbox," the news source suggests. "Define and group your key stakeholders by the type of information you will need to communicate to them."

2. Love your customers where you can

If a brand has a lot of customer sentiment built around it before a crisis, it will be better able to persevere through the storm. On the other hand, a company that has done little by way of its enthusiasts, they will be less sympathetic. Businesses need to embrace their customers and reinforce how much their input means to the organization's operations.

"Thank and reward loyal consumers for their patronage. Look for opportunities to rebuild your brand's image – locally, regionally and nationally – via, for example, special events, or social media contests that both educate and engage your customer base," MarketingProfs adds.

3. Find a way to restore confidence

A big blowup will likely shake consumers' confidence with a business' product. Finding a way to restore that confidence is crucial to reengaging them.

"For example, consider replacing a faulty product for free or sending incentives, such as coupons or samples, via mail, newspaper inserts or polybags or various digital media," the website recommends. "Create a call-to-action that offers exclusive value and savings to maximize impact."

While BP's reputation is still tarnished from the event, it took bold steps to show consumers it was trying to make things right. For example, it launched a website detailing the cleanup operation and purchased several keywords relating to the spill, so that microsite was the first thing people saw. Taking initiative is key.

How has your business handled crises? What have you done to restore your small business brand afterward?

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