'A reputational crisis can hit at any time,' Chamber CEO says as survey reveals 4 in 10 Black Country businesses are unprepared if their brand comes under fire
More than four in 10 businesses in the Black Country are unprepared for a reputational crisis which could seriously damage them, new figures reveal.
The figures from the Black Country Chamber of Commerce show some 43 per cent of firms have either never considered what to do if their brand comes under fire or are not prepared for it.
Just 16 per cent of the firms which responded to the survey said they had a crisis plan ready while 40 per cent said they were ‘somewhat prepared’.
The findings were revealed at the Chamber’s latest Quarterly Economic Survey (QES) event.
The new survey also revealed budget (63.5 per cent) and time constraints (45.9 per cent) were preventing proper crisis planning and that just eight per cent of businesses sought professional help from external agencies to help them manage their brand.
It also revealed more than 53 per cent of businesses relied on an in-house team to manage brand communications and that posting on social media (83.6%) is the most common way Black Country businesses use to build brand and reputation, with LinkedIn (79.2 per cent) and company websites (60 per cent) being the platforms which primarily drive brand awareness.
Dr Kareem Sani, of the University of Wolverhampton, was joined by James Garrison of 8848 Communications Ltd, Rebecca Cottingham from Eighty3 Design and Kishan Pattni of Freeths for a panel discussion about the findings.
They examined the steps needed to develop a comprehensive crisis management plan which would protect a business from reputational damage when it found itself in the spotlight.
Panellists stressed the importance of using social media strategically to build company brand and developing an authentic, personal voice, but emphasised that it was just one part of the marketing mix in addition to PR, email marketing and website content.
They also underlined the value of word of mouth and the importance of understanding product positioning and market segmentation.
Sarah Moorhouse, Black Country Chamber of Commerce chief executive, said the event raised a number of important issues.
She said: “A reputational crisis can hit any business at any time, and it is essential that plans are in place for how to deal with it well in advance. There will simply not be time when you are in the middle of a storm to plan effectively.
“This is not a luxury or a nice to have. Any business can be undermined overnight by a crisis which ruins their brand so it really is vital to plan ahead and prepare for such an event.”
Public affairs advisor Jan Jennings-Edwards, also presented the chamber’s QES data for quarter two which showed business confidence in the Black Country has taken a knock.
Fewer businesses are seeing an increase in sales and economic uncertainty means that many are pausing investment. Key concerns continue to be around taxation, inflation and competition.
