The reputational impact of an organizational crisis is more than just a general loss of trust in a brand; there is usually a significant negative economic and operational loss. Research from several sources shows that amounts to an estimated “hit” of $537 billion a year in the United States alone. For example:
- A 20% jump in the cost of hiring and retaining staff
- A loss of approximately 18% in revenue for B-to-C businesses when they lose two stars in consumer online ratings after a blight on their reputation
- Often a dramatic drop in product sales
With that in mind, the price tag for proactive crisis response, communications, and reputation management planning is relatively low-cost insurance. Various surveys indicate that anywhere from 40-50% of organizations do not have up-to-date crisis communications plans, or any plan at all.
You can take a first step in determining if you are crisis ready by taking CommCore’s free and confidential online crisis assessment.