Lead Through Crisis; Don’t Spin!
What is Reputational Elasticity?
Papa Johns, FOX News, Roseanne Barr, the Donald, Starbucks – all embroiled for different reasons. While Starbucks has had its challenges, with its most volatile crisis sparking in Philly just this past year, let’s go back a few years during a time that Starbucks had to make another withdraw from its reputational piggy bank. In 2012, Starbucks found itself taking a major PR hit in the United Kingdom. The gourmet coffee shop chain faced a huge public outcry, including a well-orchestrated boycott for not paying enough taxes despite making enormous profits. According to media reports, using a clever—and perfectly legal—dodge, Starbucks had paid only £8.6 million in taxes since opening its first store in the UK 14 years earlier. The figure seemed ridiculously low, especially when it was revealed the chain had amassed £3 billion in sales over that time. Boycotts and protests took place at over 40 locations. The chain was hammered unmercifully on social media. Facing a fierce level of competition in the industry, Starbucks saw its sales drop. Soon enough, it offered to pay even more in taxes than required. And as the months went by, it desperately spent inordinate amounts of time and money repairing its sullied reputation. The lesson in all this? Reputation matters. It’s estimated that over 60 percent of market value is based on reputation alone (Weber Shandwick). Reputation is one of the most important, yet often underestimated, aspects of doing business today. When a crisis occurs, time and money are spent very quickly, not only dealing with the situation at hand, but defending and then repairing the reputation as well. The fact is, consumers have access to more information about the products they buy and the companies they support than ever before. A simple product search reveals much more than company-controlled data on a website, and certainly more than the information provided on product packaging. Recent reviews, newspaper articles and historical information about the product on the Internet all influence the reputation of its company. Which brings us to the term “reputational elasticity.” Elasticity of Demand is an elementary economic concept that describes a consumer’s willingness to buy a good or service when the price of the good or service increases. Reputational elasticity is a product of demand, and it is in direct proportion to how many choices an organization’s stakeholders (consumers) have. In the coming weeks, we’ll take a closer look at reputational elasticity, what it means and how it impacts the marketplace.
Six Simple Steps to Begin Your Marketing Strategy
By Andrea Lynn, Marketing Communications Manager For many, the concept of creating a marketing automation strategy can be mighty intimidating! We all vaguely know we need one…hopefully someone is posting on social media and placing some ads, right? Effective marketing goes far beyond piecemeal efforts; to fully activate your channels, it takes true engagement, oversight and strategic thinking. Where to begin? By following these six simple steps, you’ll be well on your way to developing and implementing a true marketing strategy: Create measurable goals. What are your business goals? Be SMART. A S.M.A.R.T. goal is defined as one that is specific, measurable, achievable, results-focused, and time- bound. Keep your business goals simply written and clearly defined. Accountability is key! Assess your audience. Who is your business trying to reach and what is the call to action? Your message points should be tailored to each market and tied back to your business goals. Check out the competition. What are your competitors doing to achieve similar results? Pay attention to the marketing platforms they use – are they active on social media? If so, what channels? Are they in the news? Is their message consistent across social media, PR and their website? Create core messaging for your brand. When crafting your message, keep it short and easy to understand. Personalize it. It is important to connect with your industry’s audience. Remember, the most important message is the message received! Make your message worth sharing. Nowadays, the “human interest” factor is more important than ever, particularly in the news and within relation to social media algorithms. Why should your audience pay attention to YOUR message? Bring value and tell your story with relevancy. Not a sales pitch! Pick your platform. With ever-evolving technology, it is impossible for most companies to have a presence everywhere. Focus on the platforms that will help you influence your audience. For example, if you’re targeting C-suite professionals, LinkedIn will be a valuable marketing tool. However, if you’re looking to reach the media, you should use Twitter and email, and consider creating a press release…but, that’s another blog! I hope these steps begin to shape your thinking about laying the foundation for your company’s marketing strategy. If you need help, please feel free to contact me at andrea.lynn@fallstongroup.com or 410.420.2001. You can learn more about Fallston Group’s strategic marketing & PR services by clicking here.
Top Tips to Improve Company Safety & Security
By Frank Barile, Safety & Security Director of Fallston Group Being a leader in today’s business world is not easy. There are many things you need to worry about outside of business growth and profitability; safety and security is one of them. The first order of business leadership is to provide a safe place to work, both physically and emotionally. What are three simple things you can do to actually make your employees safer? We recommend you adhere to the acronym, SCAR. What does it mean? Quite simply, SCAR stands for: See the world around you — in today’s world we are distracted, and when we are distracted we are much more vulnerable. Pay attention to your surroundings at all times as your environment provides many clues about your level of safety. Control Access — as a business owner, you must be aware of who’s coming in and out of your building. Make sure your doors are secured, and all access points are tightly controlled. Restrict access — locking your interior doors and cabinets is an easy way to ensure not everyone has access to private areas within your business. Making sure your employees are properly credentialed, and that those credentials are displayed at all times, will help ensure violators can be easily identified. By following these three easy tips, you’ve already improved your company’s security! Want to take business safety and security to the next level? Schedule a conversation with our team by calling 410-420-2001, emailing info@fallstongroup.com or learn more about our services here.
One Crisis Espresso, Please!
by Rob Weinhold, Chief Executive of Fallston Group Social media attack, bad press, investigation, litigation, data breach, sex scandal, economic downturn, discrimination, mismanagement and, tragically occurring with greater frequency, active shooter situations…the list goes on and on. Life comes at you fast, and there’s one irrefutable certainty: the issue isn’t “if,” but “when” crisis will come knocking on your door. Crisis came pounding on Starbucks’ door recently, with sonic, viral velocity. When two black men were arrested in a Philadelphia Starbucks, chief executive officer Kevin Johnson didn’t pass the buck or glide over the incident as an unfortunate misstep. He promptly said, “I own it. This is a management issue, and I am accountable.” He went on to call the arrests “reprehensible.” But what does being accountable mean? After observing hundreds of organizations in crisis over the years, many opt to provide lip service and simply make it through the next day’s news cycle until some other company assumes the daily crisis crown. In fact, many leaders say and do nothing…a spiraling disaster. Note Fallston Group’s mantra: “If you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told!” Johnson is choosing to tell the organization’s story, and often. Starbucks has given a strong response since the start of their crisis. Leadership is visible, on message, on many media platforms and passionate – their primary and secondary spokespeople are believable and appear staunchly committed to long-term change. Both Johnson and founder and chief executive, Howard Schultz, are withdrawing huge sums from their reputational piggy bank. By the way, Starbucks is a $22 billion company and so far, stocks have remained steady. This is a function of true leadership and aligned marketplace confidence. I firmly believe reputation equals trust, trust equals valuation. Starbucks’ leadership announced the closure of all 8,000 company-owned stores in the U.S. on May 29 to train 175,000 employees about racial bias. The best decision was engaging training guidance from former Attorney General Eric Holder and a key member of the NAACP. Even though Starbucks already has a very capable, diverse board, leveraging its outside network is a critical, effective strategy – inclusion enhances credibility. However, training is just the first step. The initial training should be followed by routine assessment, policy development, rigorous ongoing training and modeled behavior. All these elements must be coupled with inclusionary leadership development and decision-making. It’s about long-term organizational change. Crises cost time, money, customers and ultimately, your career. After decades helping people during life’s most critical times, I’ve come to realize that crisis is not to be feared. In fact, crisis can be a growth strategy. And growth doesn’t always show up in a stock price…in this case, this incident will be the springboard for a more equitable corporate setting and inclusionary customer experience. Once stabilized, crisis should not be relegated to the rear-view mirror with an exhale of relief. It is an opportunity to continue to climb the chairlift; this is where real substantive change is created. Remember: reputation equals trust, and trust equals valuation. When you understand this key component of leadership, crisis is no longer just something to “get through.” It is a unique opportunity for you to guide your company to a more brilliant and prosperous future. Everyone will be watching, Starbucks…so far, you are doing the right thing. But, don’t fall off the chairlift! To learn more about crisis & issue leadership offerings at Fallston Group, click here or contact us at 410-420-2001.
Patrick Seidl Joins Fallston Group as Strategic Communications Coordinator
Fallston Group, the Baltimore-based, global reputation agency, is pleased to announce Patrick Seidl has joined its team as strategic communications coordinator. Seidl brings five years of marketing, communications and fundraising experience as well as a background in planning and executing large-scale events. In his new role, Seidl will support Marketing Communications Manager, Andrea Lynn, in the company’s marketing and public relations work for clients nationwide. “Patrick was impressive from the moment our team first interacted; I’m very happy he chose Fallston Group. His passion for people and sense of mission will carry through in his new position. We are looking forward to integrating Patrick into the daily work flow and utilizing his unique skill-set to over-deliver on client goals. He will make an immediate and valuable difference,” says Fallston Group Chief Executive, Rob Weinhold. Prior to joining Fallston Group, Patrick was communications and development coordinator for the Maryland Court Appointed Special Advocates (CASA) Association, a statewide nonprofit that trains community volunteers to advocate for victims of child abuse and neglect. While there, Seidl was responsible for all the organization’s internal and external communications activities and provided marketing and public relations support to 15 local CASA programs serving children throughout the state. Previously, Seidl interned at the Boys & Girls Clubs of Metropolitan Baltimore’s executive office in Baltimore. An Anne Arundel County native, Seidl holds an undergraduate degree in family & human services from Towson University with a concentration in nonprofit management and a minor in business administration. He is a member of the Baltimore Public Relations Council and currently resides in Mount Vernon, Baltimore. For additional information about Seidl or Fallston Group’s services, contact Marketing Communications Manager Andrea Lynn at 410.420.2001 or by email at andrea.lynn@fallstongroup.com.
Demystifying Cyber Risk: Executives, Champion Your Cyber Risk Management
Written by Mike Volk, Cyber Specialist at PSA Insurance & Financial Services Effective cyber risk management involves every part of an organization. Cybersecurity policies guide employee behavior and shape culture. Cybersecurity training helps employees — from IT staff to administrative professionals to C-suite executives — understand and protect the organization from cyber threats. Technology helps enforce policies and provides essential defense and detection capabilities. But the success of any initiative on this scale — one that impacts the entire organization —will succeed or fail based on the vision and engagement of executive leadership. Developing and implementing an effective cyber risk management strategy is a vital element of your business’ success. Yet, for many leaders interested in improving cyber risk management, getting started can be one of the hardest parts. One crucial aspect of this strategy is ensuring compliance with ISO 27001, a globally recognized standard for information security management systems. Adhering to ISO 27001 compliance not only helps in mitigating cyber risks but also establishes a structured approach to safeguarding sensitive information, enhancing your organization’s overall cybersecurity posture. Today, I’ll provide foundational information on the nature of cyber risk. My goals is to help you and your Information Technology team be on the same page when discussing cyber risk and how it can potentially impact your business. Then, in an upcoming post, I’ll provide best practices you can follow to begin a cyber risk review, which will help you better understand your unique cyber exposures and aid in creating a high-level cyber risk profile for your organization. What Is Cyber Risk? Cyber risk is typically portrayed as a mysterious hacker hiding in the shadows, breaking into your network and infecting it with malware. In reality, your organization’s cyber risk is comprised of a variety of factors — some that are unique to your organization, and some that are pertinent to all businesses. The diagram below provides a simplified visual representation of a cyber risk equation that helps define cyber risk. Figure 1. Cyber Risk Equation Why Is Cyber Risk Different from Traditional Risk? The complex nature of cyber risk makes it unique compared to traditional risks. For example, one familiar risk category for most organizations is their physical property. On any given day, it is possible that your property could be destroyed by a fire, flood, storm, vandalism or other incident. In this instance, there is a maximum loss value associated with the property, making the risk linear and relatively predictable based on historical data and other known factors. In contrast, internet-connected technology creates a risk model that is fluid and unpredictable. By “plugging in,” each business, person, device becomes a node in a complex global system. In this system, cyber risk has the potential for exponential growth that is difficult to plot on a graph or predict with historical insurance models. For example, if the network of an organization is infected with a virus, it is possible that the virus could damage the enterprise’s network and spread to every vendor, client, individual or other third party that is connected to the infected network. The virus may also allow a criminal to steal money or sensitive data, leading to other financial and legal implications for the business. Physical damage, such as a building burning down, could be devastating and may impact other nearby buildings. However, it is not possible for the fire to spread to the buildings of every third party that interacts with your business or lead to other unpredictable consequences like those a business might experience after a major data breach. Effectively managing cyber risk is now a cost of doing business. It is important that decision makers begin building a baseline understanding of cyber risk, why it is challenging and how it impacts the organization. It’s also important to acknowledge that managing cyber risk is not free, and it requires a time commitment. Smart leaders are beginning to understand this reality and are facing the challenge head-on. The good news is that with the right information and approach most leaders have the skills to guide the holistic cybersecurity strategy for their organization, even if they are not technical experts or directly involved in implementation. As a leader, simply placing an emphasis on cybersecurity as an enterprise priority is a good place to begin. Armed with a foundational understanding of cyber risk, a cyber risk profile specific to the organization, and the right internal team and external partners, every leader can help reduce risk and position the organization to be more resilient in today’s complex technology-driven environment. In an upcoming blog post, we’ll outline the steps your organization can take to get started with a cyber risk review. In the meantime, if you have questions about how to increase your organization’s cyber resiliency, contact me at mvolk@psafinancial.com. Information contained herein is generic in nature and provided by sources believed to be reliable. It is for informational purposes only and is not guaranteed as to accuracy, may not reflect our current opinion, and is not intended to replace the advice of a qualified professional. All rights reserved. No reproduction in whole or in part is permitted without the express written consent of PSA. PSA Insurance & Financial Services, its affiliates and employees are not responsible for the content of other web or social networking sites. PSA Financial Advisors, Inc. is a Registered Investment Advisory firm located at 11311 McCormick Road, Hunt Valley, MD 21031, and may only transact business in those states in which they are registered or exempted from registration. Contact our office at 410 821-7766. To protect your privacy, do not send personal information via the internet.
A BUSINESS GUIDE TO TWITTER
Twitter is an online platform that allows users to broadcast a short message to other users across the globe. It has become a primary resource for online news and social networking and primarily caters to a male audience. As a social network, Twitter relies on the basic concept of followers. The more people you follow, the more diverse your news feed. For businesses, the more followers, the larger the audience of influencers and decision-makers you can reach. So, you can see why Twitter is such an attractive platform for business. Before your company starts Tweeting, Fallston Group wants you to know some of the basic rules of the road and best practices to make the most of your audience interaction. How Does It Work? Twitter allows users to engage by providing a platform for sending and receiving short messages. Think of it as the highlight reel on ESPN. Instead of reading an entire article, you can quickly scan your ‘feed’ and determine what is of interest to you. Many Tweets include a hyperlink so you can easily read more if you so desire. Users find someone or something of value and begin ‘following’ them. From that point forward, they are able to see the Tweets that person or company sends out. Insight. Since Twitter is a popular platform for customer feedback and complaints, it can provide unique insight into how your customers (and your competitors) are thinking or behaving. There are also a variety of platforms that can ‘listen’ to social media feedback for you and compile data for consideration. Zero Cost. After you establish a following or audience on Twitter, it costs nothing to broadcast a message to them. So, it’s an easy way to keep customers updated, promote brand loyalty, create engagement or launch a new product. Want to get started your company started on Twitter? Fallston Group has created “A Guide to Social” with quick tips for preparing, posting and promoting your content on social media! Download your free guide today or contact Fallston Group directly.
HOW EFFECTIVE IS YOUR SOCIAL MEDIA?
When your business utilizes social media to reach your target audience, you’ve taken an important first step. But, how effective is your social media? Is one platform working better than another? Do you have more engagement with certain posts? Why or why not? Fallston Group is here to help with four tips that can help you monitor and track your social media efforts so you can spend your time more effectively! Engagement. How engaged is your audience? Do they like, share or comment on your posts? Is your message meaningful? Are you providing your target audience value? Measuring the engagement of your interactions is critical to your social success. Reach. Analytics can help you evaluate how many people potentially saw your posts. This could include your fans or followers as well as the number of impressions or times your post appeared in a newsfeed. One of the most important analytics you should be monitoring is the amount of traffic that is being funneled to your website and/or landing pages from social media. There are a variety of tools available to help you gather analytics. In addition, firms like Fallston Group can help you analyze the data and adjust your social marketing plans accordingly. Leads and Conversions. If you’re spending money on any type of marketing, you want to understand the Return on Investment (ROI). So, your CRM should be able to help you understand how and where your best leads and sales are coming from. Customer Satisfaction. When you’ve done a great job, social media provides an easy way for customers to praise or review you. This not only builds credibility but can enhance your SEO efforts as well. Although social media can provide an easy way for disgruntled customers to complain as well, consider this an opportunity for you to show them, and other customers, how quickly and effectively you resolve customer complaints. Does your company need help navigating the world of social media? Fallston Group has created “A Guide to Social” with quick tips for preparing, posting and promoting your content on social media! Download your free guide today or contact Fallston Group directly.
IS SOCIAL MEDIA IMPORTANT FOR MY BUSINESS?
The statistics change day by day, but roughly 9 out of 10 companies are now using social media for marketing purposes. Understanding social media marketing, including which audiences use which platforms and the best ways to engage them, is a critical part of an effective digital marketing strategy. In this article, the experts at Fallston Group provide insight as to why it’s more important than ever to create an effective social media strategy for your company. What Do the Numbers Say? In today’s social world, buyers are heavily influenced by social media. More than 80% of Gen Z (the children of baby boomers, loosely defined as those born between 1995-2014) are influenced by social media, as are 74% of millennials. So, you may say, my target audience is older than that. Well, Generation X (those born in the 60s & 70s) are not too far behind at 58%. The numbers show the influence–but what does it mean for your business? Reviews & Ratings. When a consumer buys a product or service online, there is so much information available to help them make informed decisions. They can view the feedback of other customers on the product or company. They can peruse the track record and service history. So, social media plays a vital role in interacting with those customers and creating good experiences. Websites. Back in the day, when someone walked in your store, every effort was made to close the sale before they walked out. The same is true of your website today. Social media is a tremendous way to increase traffic to your website. Once you get them there, it’s just as important to create strategies to convert that engagement. Branding. Social media creates a huge opportunity to create brand awareness and increase brand loyalty. By providing companies the ability to talk directly to your customers, you create a relationship and establish trust – something old formats like direct mail or telemarketing never accomplished. Maximize the power of social media for your company! Want to get started but need help? Fallston Group has created “A Guide to Social” with quick tips for preparing, posting and promoting your content on social media! Download your free guide today or contact Fallston Group directly.
