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December 16, 2013 Experts Corner

Crises, crashes, crumbles in 2013

Andrea Obston
By Andrea Obston

It was another good year for those of us who look for lessons in crisis management in the daily news stream. In short, 2013 provided a living laboratory for the study of the good, bad and ugly in crisis communications.

Two executives took the cake in 2013 for opening their mouths and inserting their feet, over and over again. Abercrombie & Fitch CEO Mike Jeffries found out the hard way that nasty does not die courtesy of the web. In May, a 2006 Salon interview found new life on the internet. In that interview, Jeffries suggested that the teen retailer's clothes were only for the thin and attractive.

The interview got new life in a May “Business Insider” blog post. It spawned a social media frenzy and a YouTube video that garnered millions of views. As the furor continued, Jeffries finally issued an apology, which read, in part, ”While I believe this seven year old, resurrected quote has been taken out of context, I sincerely regret my choice of words was interpreted in a manner that has caused offense.” He also claimed that A & F was an “aspirational brand” that “targets its marketing at a particular segment of customers.”

In other words, “Sorry you're so thick-skinned and unattractive that what I said hit home and bothered you.” When in doubt, trash the customers. That's an interesting PR strategy. The brand has not recovered. Last month it reported a quarterly loss for the seventh straight quarter and some shareholders are pleading for Jeffries ouster.

The lesson: A real apology requires a display of honest contrition and an understanding of what and why you need to change.

Then there was billionaire Chip Wilson's attempt to make things right after news of the company's see-through yoga pants. During a Bloomberg TV interview, Wilson was asked about customers who were complaining that their $60 yoga pants were “pilling.” Wilson poured gasoline on the fire by defending Lululemon's black Luon material and putting the blame on customers' body shapes.

“Quite frankly, some women's bodies just actually don't work,” he said. “It's about the rubbing through the thighs… (and) how much pressure is there.” Wilson's follow-up apology for that little gaffe came in a moist-eyed YouTube video. In it, he said “I'm sad. I'm really sad for the people at Lululemon who I care so much about who have had to face the brunt of my actions.” It somehow overlooked an apology to the customers he offended. Reaction was quick. One tweet said: “I fully accept that Lululemon's pants are not flattering on my body. So I wear brands that are. Problem solved.”

The lesson: Dis your customers and expect them to respond in kind.

Paula Deen may be proving that a little time away from the grill of public scrutiny pays off. She's been laying low since a controversy erupted earlier this year over her alleged use of racial slurs. In the summer, her racially insensitive remarks surfaced in a race discrimination lawsuit. The blowback caused her to lose much of her TV and food empire. And, while the judge later threw out the discrimination claims, the incident significantly damaged her $17 million business empire as sponsors like Food Network, Smithfield Foods and Walmart fled. After badly executed apologies by Deen and her son, (and the hiring of famed crisis manager Judy Smith) Deen has laid low. But that's about to change in 2014 when she has something of a coming out party planned with a live appearance in New York.

The lesson: Sometimes it's best to step away from the controversy, let it cool down for a while and then come back doing what you do best — your job.

The New England Patriots followed the getting-back-to-business lesson well this summer as they sought to recover from the murder charges against their star tight end Aaron Hernandez. On June 18, police searched Hernandez's home in connection with an investigation into the shooting death of a friend, Odin Lloyd. Only two days later, Hernandez was “barred” from Gillette Stadium. On June 26, the Pats released Hernandez, less than two hours after he was arrested.

The Patriots removed all Hernandez memorabilia and merchandise from the team's official pro shop and allowed fans to trade-in Hernandez jerseys .

The lesson: You need to see, acknowledge and act on a crisis with an understanding of who your target audience is and what they want from their relationship with you.

Andrea Obston is president of Andrea Obston Marketing Communications in Bloomfield.

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