The Global Risk Environment Looks A Lot Different In The Age Of The Customer

Nick Hayes

Earlier today, we published a report that dissects global risk perceptions of business and technology management leaders. One of the most eye-popping observations from our analysis is how customer obsession dramatically alters the risk mindset of business decision-makers.

Out of seven strategic initiatives -- including “grow revenues,” “reduce costs,” and “better comply with regulations,” -- improve the experience of our customers is the most frequently cited priority for business and IT decision-makers over the next 12 months. When you compare those “customer-obsessed” decision-makers (i.e. those who believe customer experience is a critical priority) versus others who view customer experience as a lower priority, drastic differences appear in how they view, prioritize, and manage risk.

Customer obsession has the following effects on business decision-makers’ risk perceptions:

  • Risk concerns heighten dramatically across several risk types – especially reputational risk. Reputational risk concern more than doubles for customer-obsessed decision-makers, and other risks also see significant increases, including corporate social responsibility (CSR) and sustainability risk, regulatory and compliance risk, and talent and human capital risk.
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Key Lesson From The US Airways #Fail: Marketers Need Help Managing Risk

Nick Hayes

Everyone makes mistakes, but for social media teams, one wrong click can mean catastrophe. @USAirways experienced this yesterday when it responded to a customer complaint on Twitter with a pornographic image, quickly escalating into every social media manager’s worst nightmare.

Not only is this one of the most obscene social media #fails to date, but the marketers operating the airline’s Twitter handle left the post online for close to an hour. In the age of social media, it might as well have remained up there for a decade. Regardless of how or why this happened, this event immediately paints a picture of incompetence at US Airways, as well as the newly merged American Airlines brand.

It also indicates a lack of effective oversight and governance.

While details are still emerging, initial reports indicate that human error was the cause of the errant US Airways tweet, which likely means it was a copy and paste mistake or the image was saved incorrectly and selected from the wrong stream. In any case, basic controls could have prevented this brand disaster:

  • US Airways could have built a process where all outgoing posts that contain an image must be reviewed by a secondary reviewer or manager;
  • It could have segregated its social content library so that posts flagged for spam don’t appear for outgoing posts;
  • It could have leveraged technology that previews the full post and image before publishing.
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