Categorization of Brand Backlash Storms

While brand backlash (one example of a Groundswell) from social media tools are certainly an impact to the reputation of companies and how their consumers react, there are many different levels of severity from each.

First, see this list of brands that were punk’d from social media, I’ll add some categorization to each of them as I can best gauge in coming days.

To help gauge the differences, I’ve constructed these categories of brand backlash storms (leaning on the Hurricane categorization)

Category 1: Consumer revolt and use social media tools (Twitter, Blogs, YouTube) to tell their story, the brand doesn’t flinch, and there is no mainstream media coverage. Examples: A weekly, if not a daily occurance.

Category 2: The backlash extends beyond just social media tools (Twitter, blogs, YouTube), the brand makes changes based on consumer feedback, and coverage extends to mainstream media and press. Examples: Louis Vuitton brandjacked, Exxon Mobile’s Twitter experience.

Category 3: Consumers use social media tools to spread backlash and there is considerable mentions from mainstream press. the backlash is more severe resulting in significant changes from the brand (hiring, firing, processes, policies or new teams put in place). This becomes a case study for social media books and is often discussed in social media culture. Examples: Dell Hell, Comcast Cares, Kryptonite Locks, Wholefoods CEO.

Category 4: Number three plus short term financial impacts to the brand resulting in reduction of sales, revenue, increased costs, or impact to stock price less than 30 days. Examples: Apple Stock temporarily sinks from blog rumors.

Category 5: Number three plus brand backlash from social media tools resulting in long term financial impacts to the brand including reduction in sales, revenue, increased costs, and most importantly, stock price lasting over 30 days. In the most extreme cases, it causes closure of the business or bankruptcy. Examples: None.

I hope this puts things into context when we see brand backlash incidents occur.

31 Replies to “Categorization of Brand Backlash Storms”

  1. @Bill Seaver:

    I do think that Motrin over-reacted to the swift social media ire.

    While I love social media and am very fond of the empowerment it brings, I am very concerned about consumers abusing that power. I think this Motrin example is a case in point.

    In a world that is already excessively PC, will companies become beholden to the whims and emotions of every long tail consumer, lest they be reproached with the force of social media? I don’t think its fair or in the public’s interest.

    Social Media is a powerful weapon that needs to be used properly. Using social media to uphold the RIGHTS of consumers, and to ensure a fair balance of power between corporations and the public is a noble use. To use it to express how you feel about a company’s policy or marketing message is also fair game; however, to use it to bring a company to their knees for a fairly benign (perhaps lame) marketing message is overboard, and corrupts the otherwise good nature of social media.

    The great irony here of course is that the very people who are now reproaching Motrin are giving it more organic national attention than Motrin could have generated itself; and not in a definitely negative way. What would happen if Motrin bucked back?

  2. PS – I think an important corollary to the point I was trying to express above is this:

    What happens when consumers feel differently about a marketing message or corporate policy?

    The problem is that people who take offense are much more likely to express their ire through social media, where the people who enjoyed the same content are less likely to organize. Companies therefor, are only getting some of the feedback, and reacting only to the stronger emotion, more active emotion.

    If you look at the YouTube comments, a lot of people are saying “whats the big deal.” But that’s not the voice that getting organized or being heard. Again, this has to do with the problems of political correctness, improper use of social media, and forcing companies to conform to the whims and sentiments of every long tail player. Doesn’t sounds like fun.

    Jeremiah, what do you think?

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