Crisis Communication in Tech is Broken

The Big Idea

_{The What: A TLDR of the idea}

In an increasingly digitized world, it's ironic that tech companies often fail to communicate crises effectively.

The recent Square outage is a high-profile example that underscores a systemic issue: Crisis communication in tech startups is broken.

Poor communication during a crisis can tarnish reputations and lose customer trust, no matter how 'tech-savvy' a company is. This isn't just about PR; it's about holding onto your customer base and safeguarding your bottom line.

Deep Dive

_{The Why: 3 reasons why you should care}

1. Trust in Tech is Fragile 🫡 →

Users entrust tech companies with their data, their business, and sometimes their entire livelihood. One misstep in communication can lead to massive trust erosion.

The Square incident showed how thousands of dollars in sales were lost, and businesses were left in the dark. When trust breaks, it’s often irrevocable.

You're not just losing current revenue; you're also jeopardizing future opportunities and facing the possibility of increased churn rates and lower Customer Lifetime Value (CLV).

2. Virality Works Both Ways 👄 →

Good news travels fast, but bad news travels faster. In an age where social media can escalate issues in real-time, companies can’t afford to be slack in communication.

A poorly handled crisis can go viral, causing irrevocable brand damage. Moreover, if you fumble the ball, you may not even get a second chance to set things right.

With the rapid-fire nature of the internet, your blunders could become memes before you even draft your apology tweet.

3. Opportunity Cost for Leadership 😅 →

Poor crisis communication leaves a void that competitors are eager to fill. Shopify was left without a fulfillment partner due to Flexport’s directional shift.

Companies that handle crises well can assert industry leadership and poach dissatisfied customers from competitors.

This goes beyond just gaining extra customers; it’s about setting a standard in the industry that your competitors will be judged by.

Tactical Advice

_{The How: 3 ways to handle this}

1. Real-Time Response Team ✍️ →

Establish a cross-functional crisis response team that involves not just tech but also PR, Customer Service, and Legal departments.

Equip them with a predefined 'Crisis Communication Playbook' that outlines scenarios, messaging guidelines, and response times.

Make sure this team engages in regular 'fire drills' to be always prepared.

Learn more here

2. Multi-Channel Communication 💬 →

Don’t just rely on one platform (like Twitter) to disseminate information. Use emails, blogs, even SMS to get crucial messages across.

Make sure these are mobile-friendly and easily shareable. Even consider 'dark sites'—pre-built, but hidden websites that can be quickly made live to provide information during a crisis.

Learn more here

3. Transparency Audits 😶 →

Conduct regular audits of your communication channels.

Gauge public sentiment through social listening tools and direct surveys. Be transparent about these findings and make them part of your CSR (Corporate Social Responsibility) report to show accountability.

This isn't just for optics; use this data to refine your approach and preemptively identify weak spots.

Learn more here

Learn More

_{What Next: 3 resources to learn more}