In the world of public relations, it is generally known that a PR crisis is almost inevitable in any industry. Because we are humans and are bound to make mistakes, our interactions with the public will not always be positive. In fact, there is an entire sector of public relations that is dedicated to dealing with crisis management, because it is such an inevitable part of our lives.
However, a crisis in the Web3 or crypto space is quite unique because the sectors themselves are new. The ways in which people may respond to controversy, and how businesses in this space can navigate them, can differ significantly. If you ever find yourself dealing with a PR crisis in the crypto or Web3 space, here are a few ways to go about this.
Assess the Damage
When it comes to surviving a PR nightmare, you never want to act without knowing all of the facts. You can stand to make the situation worse if you respond without knowing the full information, as you risk offending your audience, spreading misinformation, and much more. So the first thing you want to do is assess what exactly the PR crisis is about. If you put out an ad, and this is being criticized, you should be able to define exactly why it is being criticized.
There have been instances of companies putting out apologies for an incident, only to create even more backlash. So, go to the source of the backlash, whether it is on Twitter, Instagram, etc. Look through the comments and find out all the complaints. Once you have this information, you can identify all the parties being criticized, where the criticism stems from, and how much the public will need to move past the incident.
Wait it Out (Sometimes)
One of the reasons we suggest you assess the damage is that it helps you determine whether or not you need to respond to the crisis in the first place. Crypto and Web3 crises are not created equal in that while some need extensive action on your part to be addressed, some can simply be ignored. There have been instances where a crisis or public backlash will occur, and the parties affected simply wait for the outcry to die down, after which it is never referenced again. If the issue in question is very minor and doesn’t need to be addressed, you risk prolonging its lifespan by addressing it directly. So, wait it out depending on the severity.
Speak to Your Audience
In a situation where the backlash is that severe, and you do have to take action, it might be a good idea to speak to your audience. Because the crypto sector heavily relies on communities, people generally do not like it when businesses they engage with ignore their complaints. In some cases, you’ll need to put out a public statement directly addressing the issue.
It is important that if you take the step to put out a statement, you should be as clear as possible. This means stating exactly who you are apologizing to and for what. If you choose this route, it’s important to put out a statement at the right time. Putting out a statement right as the complaints are beginning might help, but it might also seem like a silencing tactic. Ideally, you should put out a statement within 24 hours of the incident occurring, so it seems genuine.
Offer Compensation
In some cases, you might be able to offer some restitution or compensation to the affected parties. Say your exchange was hacked, and some people lost money. A good PR move would be to announce that you are refunding customers who lost their money in the hack. This will not only help to tackle criticism, but will also frame your business in a good light. Before you do this, however, make sure you speak to internal teams within your company, including the financial team, and make sure this is actually feasible. If it is, you should proceed with it.
Address the Problem
Unless your business intends to grow entirely from controversy, you do not want to continuously have PR crises to deal with. So, you should address whatever issue caused the PR crisis in the first place and look for ways to address it. For example, it might have been a marketing campaign that featured a controversial influencer. In that case, you should have an active list of influencers who are not to be used for campaigns to avoid it happening again.
If the PR crisis was due to a statement from an executive, you should put the measures in place to make sure that your team sees every interview before it is published. Always look at crypto and Web3 PR crises as a way to learn more about your business and improve them for the future.
Learn From Mistakes
We’ve touched on the importance of learning from the Web3 and crypto PR crises. Your company can face challenges, but it is also important to learn from those of others. At any given point, there is always some company or public figure that is being criticized online for something and keeping on track with this means you know what not to do. If a company has been criticized for using specific wording in a campaign, you automatically know not to do it. The same goes for things like public statements, business models, and much more. Stay on track of these by following news within your industry and also having your PR team keep their ears to the ground on social media. By doing this, you are less likely to fall victim.
Conclusion
Crypto and Web3 PR crises might be somewhat inevitable parts of doing business, but that doesn’t mean they cannot be navigated. So, we offered ways to deal with crises you’re already experiencing, learn from those that have happened in the past, and avoid any future ones.