Posts Tagged ‘investor relations’

Eight Easy Ways to Damage Your Brand Image, Lose 1 Million Customers and $8 Billion in Market Cap the Netflix Way

Monday, September 26th, 2011

Blowing up the Brand

Posted by Tom Gable

Recent analysts reports, coverage in the major media and the Twittersphere are being less than kind to Netflix and its two recent corporate announcements: raising prices by 60 percent; and coming back two months later to apologize while announcing the split of the company into two (Netflix and Qwikster). In looking at it from a strategic planning and PR perspective, the best companies incorporate image as a part of corporate strategy, especially when one has built such a strong brand. They do things right and also do the right things. Netflix appears to have advanced toward bursting its own brand bubble through eight easy steps:

  • Raised prices seemingly without much consideration for the existing customer base, its needs, wants, expectations
  • Went for a big number rather than incremental increases
  • Provided a rationale that didn’t ring true and made many long-term customers feel betrayed by the brand
  • Did it all top down and one-way in a CEO voice rather than human voice
  • Didn’t join the conversation; didn’t use social media to actively engage its many audiences
  • Waited a couple of months to apologize and then do it with an amazing lack of sincerity
  • Seemingly as an afterthought, changed a successful business model to confuse customers, analysts, and the stock market
  • Gave competitors openings to attack, reposition the company, declare pricing advantages

And if you are really successful, here’s what you can expect: 50 percent drop in stock price and market capitalization, enmity versus admiration, lack of support in the financial community (buy and sell side analysts), a zillion Twitter and Facebook comments, a Hitler meme or two, and confusion among consumers on how to order and from whom when you split the company, create a new brand name and dilute the brand image.

David Pogue, columnist for The New York Times, parsed the apology:

“Ah. O.K., good. We’ve seen this movie before. Corporation bumbles, apologizes, makes things right. Business schools take note. Life goes on. But this time, Mr. Hastings did not follow the formula. He only pretended to. He goes on to say that the new higher prices will stick — and, worse, Netflix is about to break off its DVD-by-mail feature into a completely separate entity, called Qwikster.”

The PR and marketing blogs offered good insights.  Mr. Media Training cited six reasons why the apology failed.  Liz Goodgold, of Redfirebranding, provided four ideas Netflix should have used before going down the primrose path to greater profits.

In summary, another NYT story delved into the reasons for raising prices (to generate more income for acquiring content from the major studies for streaming). The “self-inflicted” wounds could have been avoided with better planning for an integrated and strategic evolution of what were in actuality major change initiatives at Netflix.

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Posted in Authentic PR, Brilliant Counsel, Client Service Results, Crisis PR, Horizon Management, In the Beginning, Social Media | Comments Off

Crisis PR — The Lightning Round in Dealing with a Badly Babbling Blogosphere

Sunday, January 2nd, 2011

Disaster Landing!

Posted by Tom Gable

What happens when bad conversations bubble up in the blogosphere and elsewhere about the quality of your client’s product, services, science, people, culture, character and customer service, among other things? For Gable PR, we had two very different experiences recently that indicate a core truth about public relations and issues management when conducted at the speed of light: fast, fact-based, non-emotional but human responses based on intrinsic core values of the organization win; non-rational responses that don’t deal with the issues fail.

I am probably restating the obvious to most PR professionals, but our approach and tools used may provide additional creative resources to some. Read on.

In one instance, a prominent blogger took issue with the scientific foundation of our client’s work, which generated many negative comments about the client. The client chose to take an aggressive stance and question the sources of the blasts, rather than deal solely with the content and trying to change the direction of the conversation with new data on the basis for their science. The debate deteriorated rapidly into dueling comments on the blog about things other than science, nasty tweets and links to previous issues the client had gone through in a previous business 20 years ago! The negative conversations careened along for two weeks when the client stopped responding; it could have ended in two days. And through the wonders of the Internet, it is all searchable, which doesn’t add much to the client’s credibility when it tries to raise money and the analysts start doing their due diligence.

In the other instance, a medical device company set aside ego and took an analytical, clinical look at complaints about one of its products, thanked everyone for the input and promised to move quickly to remedy any shortcoming. The client focused on doing the right thing, in addition to doing things right. The result: a fast end to the negative conversation and a 180-degree switch by some critics to becoming fans.

Gable PR used an emergency issues management check list for both clients. The results varied, as noted above. Each had a Crisis PR Plan, with extensive details. But this “lightning round” list might prove helpful for a PR firm helping its clients or an internal staff putting its organization on the right track – fast!

Speed of Light Crisis PR Check List

  • Source of the communications, legitimacy
  • Issues being raised
  • Internal analysis of accuracy, validity, magnitude of the issues and conversation; duration, desired end-point
  • Analysis of potential impact on reputation of the brand, company, people, technology, etc.
  • Beyond communications, are internal changes needed to the organization, product, service, culture and core values?
  • If analysis indicates the fundamentals of the organization seemingly aren’t lined up with the outside audiences, how to move toward better alignment?
  • Launch issues management and Crisis PR plan if required, to include response strategy, core values, messaging, tools, tactics and timing (in some cases, you don’t have to respond immediately, especially when the attacks are emotional and personal)
  • Set goals for moving the conversation
  • Add resources to the Crisis PR team if needed, including outside experts
  • Respond in a sincere, human voice and work to build trust
  • Conduct minute-by-minute tracking, analysis of trending in tone, content
  • Adjust the response strategy and tactics as facts and circumstances indicate
  • Continue to evolve the internal culture and organization as needed
  • Celebrate success!

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The Elevator Pitch: Connecting with Investors, Media in 60 Seconds or Less

Thursday, September 9th, 2010

Make it Quick!

Posted by Tom Gable

Elevator pitches are finely crafted and rehearsed monologues that in 30 to 60 seconds create a positive picture of you, your organization, the market or need it serves, points of differentiation and vision for the future, with a goal of capturing the interest of your audience and leading to positive next steps. The concept had its roots among entrepreneurs in the Silicon Valley who struggled to set meetings with venture capital and angel investors who were besieged with proposals. Since time was at a premium and real meetings hard to secure, how to connect during brief encounters in public spaces?

Rumor had it that some oft-rejected entrepreneurs spent most of their days riding elevators in the office buildings where the VCs nested along Sand Hill Road. They also hung out at favorite local breakfast and watering holes in hopes of making the quick pitch. Even the most hard-hearted and rude VCs might pay attention for 60 seconds.

The goal: engage, entice and quickly get to the next level, whatever that may be (meet, interview, call, present, date). The challenges: keep it short, focused, passionate, incisive and compelling. The biggest mistakes include taking a great concept and making it boring with too much detail and little pictures (like a bad slide show of your vacation to every national park in the eleven western states), not doing homework on the audience and using jargon it doesn’t understand, dropping below 30,000 feet, not establishing the big vision of future value and failing to ask for the order. So in crafting your pitch, assume short buildings.

Elevator pitches also can be a handy tool for making a short introduction to a speech or program, preparing for a job interview, making a public relations pitch for media coverage or other situations where you need to communicate big ideas quickly (e.g. speed dating, fast-pitch contests at venture and angel group meetings, cocktail party chatter, etc.).

The following outline can serve as a starting point and creative trigger for crafting your own elevator pitch. It evolved from working with different start-ups, venture capitalists, analysts and the media over the year to hone down to these essential elements:

TAG LINE/SOUND BITE – The opener – an instant picture or quick summation of your positioning. What you do, what you stand for, to what effect and why it’s important. One sentence is best. Practice with people who don’t know what you do and keep honing this one sentence (two at the most) until it rings like Shakespeare.

PROBLEM, SITUATION ANALYSIS – What exists – the pain or problem you solve?

DYNAMICS AND OPPORTUNITY – Quick historical overview of how it got to this point, how the challenge has been addressed, what is the sweet spot for your company or organization (keep it to three important points, no more!).

WHAT (solving the problem) – Your company (or organization) has been working X years to plan for and develop D, E and F to solve the problem, take advantage of the market opportunity and grow and succeed over the next Y years.

OVERVIEW FROM 30,000 FEET – The macro view, the big picture of how your great concept (science, disruptive technology, new category, etc.) comes together and will grow market share, sales, traffic, profits, benefits to the community, whatever – the BIG PICTURE vision of future success rather than technical details and features.

SO WHAT (Benefits) – You will succeed because of the creative planning, results and ultimate value you deliver. Create a mental picture of the benefits to science, patients, customers, the world. If there is a good case history, even early stage clinical trials or beta testing results, cite the proof of principle in a sentence or two.

THE TEAM – The team includes executives with national credentials in A, B and C. It has a combined ZZ years in the industry, has built MM, helped YY other companies or institutions grow and knows the market and how to provide an expanding array of products and services to help it succeed (make it relevant to the big picture). Investors in particular need to have faith in the team.

THE CLOSE (call to action as the elevator door opens) – “We have the people, the plan and the commitment to succeed. I can provide incredible detail that I believe will convince you to invest, interview, buy, etc. How about a follow up meeting? This week or next (try to nail something specific)? Where would you like to meet? What else can I provide?” Ask direct questions that take it to the next step.

And even if the answers are “no” or “no way,” you’ve taken a step in the right direction – eliminating one option and perhaps getting valuable input for the next iteration of your elevator pitch so you are better prepared for the next pitch on your road to glory.

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New Research Shows Positive Reputations Enhance Corporate Results

Monday, May 10th, 2010

Head of the Class

Posted by Tom Gable

The Reputation Institute just released its annual Reputation Pulse, which measures the corporate reputations of the largest U.S. companies based on consumers’ trust, esteem, admiration, and good feeling about a company while also gauging perceptions across seven rational dimensions of reputation.

The survey named Johnson & Johnson as the most reputable U.S. company first for the second consecutive year, followed by Kraft Foods, Kellogg, The Walt Disney Company, PepsiCo, Sara Lee, Google, Microsoft, UPS and Dean Foods. AIG finished 150th out of the 150 companies included in the survey. (more…)

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60 Seconds to Glory: Outline for Crafting the Essential Elevator Pitch

Sunday, March 21st, 2010

Make it quick!

Posted by Tom Gable

Elevator pitches are finely crafted and rehearsed monologues that in 30 to 60 seconds create a positive picture of you, your organization and vision for the future, with a goal of capturing the interest of your audience and leading to positive next steps. The concept had its roots among entrepreneurs in the Silicon Valley who struggled to set meetings with venture capital and angel investors who were besieged with proposals. Since time was at a premium and real meetings hard to secure, how to connect during brief encounters in public spaces? (more…)

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The Elevator Pitch: Reaching VCs, the Media and Others in 60 Seconds or Less

Monday, June 15th, 2009

Posted by Tom Gable

In the halcyon days of the late 1990′s Internet boom, venture capitalists were receiving thousands of business plans a month for creating the next zillion-dollar commercial use of the Web. Most of the plans were scanned and dumped in minutes. Phone calls asking for a meeting or even minor feedback were not returned. The joke (perhaps with a bit of fact included) was that desperate entrepreneurs would ride the elevators in buildings housing the VCs in hopes of a chance encounter, leading to development of the so-called elevator pitch.  Guy Kawasaki and his colleagues at Garage Technology Ventures even conducted seminars to help the uneducated and unconnected learn how to craft plans and pitches.  Their advice on the elevator pitch: assume short buildings and fast rides.

Over the years, teams at Gable PR have worked with a variety of start-ups in crafting their pitches. In thinking about short buildings and fast pitching, we found the elevator pitch structure to be a good discipline in also preparing for media interviews, getting attention during the first 30 seconds of analyst presentations or speeches, or being ready for chance encounters at a trade show with a potential partner or financier.  The following provides easy steps for crafting a pitch that runs 60 seconds are less, about right for a short ride:

TAG LINE/SOUND BITE – The opener – an instant picture or quick summation of your positioning. What you do, what you stand for, to what effect and why it’s important. One sentence is best. Practice with people who don’t know what you do and keep honing this one sentence (two at the most) until it rings like Shakespeare.

PROBLEM, SITUATION ANALYSIS – What exists – the pain or problem you solve?

DYNAMICS AND OPPORTUNITY – Quick historical overview of how it got to this point, how the challenge has been addressed, what is the sweet spot for your company or organization (keep it to three important points, no more!).

WHAT (solving the problem) – Your company (or organization) has been working X years to plan for and develop D, E and F to solve the problem, take advantage of the market opportunity and grow and succeed over the next Y years.

OVERVIEW FROM 30,000 FEET – We have done it: the macro view, the big picture of how your great concept all comes together and grows market share, sales, traffic, profits, benefits the community, whatever – the BIG PICTURE vision of future success.

SO WHAT (Benefits) – You will succeed because of the creative planning, results and ultimate value you deliver. Create a mental picture of the benefits to science, patients, customers, the world. If there is a good case history, cite the proof of principle in a sentence or two.

THE TEAM – The team includes executives with national credentials in A, B and C. It has a combined ZZ years in the industry, has built MM, helped YY other companies or institutions grow and knows the market and how to provide an expanding array of products and services to help it succeed.

THE CLOSE (call to action on the elevator) – “We have the people, the plan and the commitment to succeed. I can provide incredible detail that I believe will convince you to invest, interview, buy, etc. How about a follow up meeting? Where would you like to meet? What else can I provide?” Ask questions that take it to the next step!

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