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Sorry Doesn't Have to be the Hardest Word: Three Tips for Effective Apologies
By: Jessica Hartman | 09/20/2011
I'm sorry
That phrase is typically reserved for the playground, NOT corporate America, but I would argue that those two words are just as important in business as they were after I got caught throwing rocks at my older brother (surely that wasn't just me!).
As you've probably heard by now, Netflix has been having some pretty serious issues due to a surprise price increase for their services. The spike in price caught customers off guard, and the CEO eventually responded with an apology for "messing up."
Individuals using Nike+ have been experiencing a plethora of issues using the site and its compatible devices (I can speak from personal experience to that one). A couple of weeks ago, Nike's VP and GM of Nike Running posted an apology to customers via Facebook and sent an email to users.
So, does an apology from a "top dog" in a company really mean anything? I say yes!, if done correctly. When a corporation makes a mistake, or anyone for that matter, it's important to remember three key points:
1. Just apologize already! A late apology can do more harm than no apology at all. Toyota learned this the hard way when the company's CEO apologized in early 2010 for issuing millions of recalls way too late in the game.
2. Be sincere. Humility goes a long way. When Netflix's CEO apologized earlier this week, he didn't beat around the bush. He used phrases like, "I slid into arrogance based upon past success..." and "I should have personally given a full justification to our members..." He didn't make excuses.
3. Back it up. Share what you're going to do about it, but don't overpromise. The apology Nike Running's VP and GM issued promises improvements including increased login speed as well as a brand new, faster and easier-to-use platform. I'll let you know how that goes.
What do you think? Do corporate apologies really mean anything? Do you have any good or bad examples of corporate apologies to share?
Posted in Issues and Crisis Management
comments
Nathan Allen says:
Wed, September 21, 2011 at 4:11:pm
The Netflix case/apology took up a good chunk of the discussion in one of my classes today. The consensus was that we weren’t really sure how much the apology helped considering the majority of the public is concerned with having to pay more. However, Netflix definitely could have done a better job at breaking the news.
I completely agree with tip #3. It is one thing to issue an apology (when warranted) and not change anything. In my opinion, it means a lot more when an apology is issued and a change for the better takes place.
Jessica Hartman says:
Wed, September 21, 2011 at 4:37:pm
Ashlyn-Completely agree. It means very little if the “apologizer” doesn’t see the need for the apology in the first place.
Nathan-Great to hear from you! A price hike is a pretty difficult pill to swallow. Makes me wonder how Netflix could have ever thought a “surprise” was the appropriate methodology.
Julie says:
Wed, September 21, 2011 at 7:54:pm
And a corporate apology is sometimes the best first step in making an issue or a crisis “go away”—because we all remember the companies that don’t apologize (BP, etc.).
Maggie Brandt says:
Thu, September 22, 2011 at 9:48:am
Nathan, I completely agree with you. Not only should a company use an apology to address how it plans to make things better, but they should already initiate some of those plans before the official apology. An apology is that much more powerful when your audience sees that steps have already been taken to right the wrong.
Mihaela Grad says:
Thu, September 22, 2011 at 1:06:pm
Great post, Jessica! Acknowledging a problem through a timely apology can go a long way in protecting a company’s reputation in a crisis. Julie is right in that we remember the CEOs who spoke out too late when something went wrong. At the same time, too many apologies from a company may breed scepticism - instead of aplogizing, it is more important to do things right in the first place.
Jessica Hartman says:
Fri, September 23, 2011 at 3:03:pm
Julie, Maggie, Mihaela-Thanks for your insights. Great discussion! Hopefully corporations are considering similar feedback as they choose when and how to apologize.
Ashlyn Brewer says:
Mon, September 26, 2011 at 9:48:am
I think this discussion really highlights the importance of having a strategic communications professional at the decision-making table. Perhaps Netflix’s price increase was a business necessity, but the public outrage might hurt their business in the long-run even more. “How to tell the customers” should be a consideration before the decision is even made, not something that’s handed down to a comm. team afterward.
Ashlyn Brewer says:
Wed, September 21, 2011 at 10:07:am
I’m a big proponent of a healthy apology to smooth things over, but I feel like many of them insult their customers’ intelligence. I don’t know how many times I’ve heard the phrase “we apologize that some people were offended.” Your tip #2 is so true—sincerity is key!