When Parties Screw Up.. the Latest Example

Political parties,  just like candidates, need to always take care to use public events to build their images, and avoid negative stereotypes about them that could be used by opponents.  For Democrats,  the attack by the GOP that they, deep down, really HATE America, is one they need to be fighting, not reinforcing.  

But in Arizona,  the Pema County Dems this week advertised a July 4 rally in a city park  to protest the overturning of Unlimited Baby Abotions and Legalized Race discrimination in higher education by the US Supreme Court. But the wording of the flyer and name of the event,  "F**k the Fouth" said too much about their real feelings of America. 

The AZ Republican Party and even the AZ Democrats condemned the event poster, tho Dems said the event's orananizers' "anger" about the decisions was justified.

The unaltered tweet, shown below,  was deleted after it hit the media

Similarly, last year, Democrats trashed America in an Orlando, Florida city newsletter meant to discuss Fourth of July events.

4 Ways To Build #Trust With Your Customers [Abbott Media Group]

People will do business with those whom they trust. Public Relations is an effective tool to help you build that trust with your customers.

There are several ways a PR can help you to begin to build trust with your customers and with future (potential) customers. Among the most important of them are Consistency, Courtesy, Care, and Community Involvement.

Consistency is a critically important factor in a business' future success. There's a reason why fast food restaurants, pet stores, hotels, and hardware chains, among others, are so popular. Ideally, they offer consistent service and products in multiple locations. Customers know they can get the same products and services offered for about the same price, wherever they go. For some, that may seem "boring," but customers actually yearn for boring over the alternative: inconsistent service and the inability to get their favorite products.

Public Relations professionals can guide a business to craft and disseminate standard internal policies, graphics and messaging that will help create a consistent experience for customers.

Courtesy is also an important factor in building Trust. If service is offered in a cold manner, or worse, in a rude manner, the bond of Trust between a customer and a business is broken. This is even the case in a long-term business relationship. There's no such thing anymore as a small incident of discourteous conduct. Even one incident in which a customer is treated poorly can ruin a company's reputation in this era of instant online reviews and cell phone videos.

A Public Relations professional can help isolate and identify areas in which internal standards aren't being met, and can, once those are addressed, help repair and rebuild Trust with customers who experienced a lack of courtesy during a business transaction.

Care is shown in a multitude of ways by a business, and customers recognize when it's not there, contributing to a lack of Trust. Products or services offered in a sloppy, slapdash way can instantly signal to the customer that the business doesn't really care about them. Caring isn't a small thing, it's a major thing, and in fact, should be a top concern of any business. If you're not in business to care for the customer, why are you in business? 

Care can be bolstered by proper training and internal messaging that makes it clear that business owners have high expectations of their employees. (Caring generates caring.) PR can deliver those internal messages in a compelling and clear way that leaves no doubt that Care is required from everyone.

Finally, Community Involvement can be a tremendous trust-building tool. While some effort should be made not to alienate a customer base with involvement in overtly political or controversial causes, showing concern for one's community is more than a gimmick to grab headlines.

Instead, it shows that a business is intimately tied to the community in which they do business, and that they care about their customers' well-being, not just as a source of cash. Public Relations professionals can help identify community activities that reflect well on a business and help this involvement lead to stronger feelings of trust with their current and future customers.

For more information about building Trust, visit Abbott Media Group at www.abbottmediagroup.com.

The Robinhood PR Disaster - What They Must Do To Make It Right [Abbott Media Group]

When the lists of 2021 PR disasters in business is written next January, Number One on that list will likely be the Robinhood app debacle of this week that left their reputation in tatters.

THE SITUATION:

The Robinhood app, which allows average investors access to the stock market, buying trades without fees, abruptly froze users' ability to buy shares of some hot-selling stocks, among them GameStop and AMC.

Of course, they were "hot" because the internet, specifically the Reddit online chat boards, had made them so, deciding that these stocks - and they companies they represent - shouldn't actually fail (as the hedge funds had decided they should, and were "shorting" their stock in anticipation of their immanent deaths.)

This caused both stocks to rise "to the moon," as many on Twitter put it, and cost the hedge funds BILLIONS because their bets now were suddenly wrong.

Enter Robinhood, which had tweeted early on in its life, "Let the people trade." That slogan became one of bitter irony when, on Wednesday, upon rumored pressure from Wall Street hedge funds and even the Securities and Exchange Commission, they froze the ability to buy further stocks in these two hot properties (but still allowed sales.)

They posted a message which said, in part, "In light of current market volatility, we are restricting transactions for certain securities to position closing only, including $AMC and $GME."

While other brokerage firms reportedly did the same - including TD Ameritrade and other big names - Robinhood received the brunt of the online firestorm that soon erupted. And in the age of Twitter, the reaction was a tsunami of anger and criticism.

What Chris Buskirk, a contributing writer for the New York Times tweeted was typical:

"$AMC was struggling due to COVID lockdowns. Hedge funds shorted the stock to force bankruptcy.

Small investors saw an opportunity & bought $AMC driving it’s price up. $AMC raised $900 million, saved the business & 1000s of jobs. But they’re the bad guys for saving the company?"

One investor said, "There is no free market. There is only a manipulated market that is built to enrich hedge funds. The "capitalists" on Wall Street are being exposed as a bunch of cry babies who aren't actually that smart. If they were so good, why not compete in the free market??"

The cynicism did not end with investors. Politicians were also    quick to express outrage at Robinhood.

New York Democratic congresswoman Alexandria Ocasio-Cortez called for hearings in Congress about Robinhood and its actions. 

"This is unacceptable. We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I’d support a hearing if necessary."

U.S. Senator Ted Cruz (R- Texas) agreed with the liberal Democrat, tweeting simply, "Fully agree." (Prompting an outburst from Occasio-Cortez, in which she said she would work with other Republicans but not with Cruz, who allegedly, "almost had me murdered three weeks ago." During the Capitol Hill riot.) Whatever.

Republican Congressman Madison Cawthorn was also blunt, tweeting:

"Part of Free Market Capitalism is having a Free Market. Wall Street is pressed because normal, working Americans outplayed them."

Regardless of party differences, this rare demonstration of bipartisanship seems to indicate they will at least be some hearings in the app's future.

For its part, Robinhood tried to stop the bleeding, posting a policy U-turn Thursday afternoon (4:15 pm ET) posting on Twitter and on the app that they would restore the ability to both buy and sell these hot stocks. Vlad Tenev, the Bulgarian entrepreneur who co-founded Robin Hood, tweeting:

"Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and make adjustments as needed."

But things continued to spiral out of control for Robinhood. On Thursday, a class action lawsuit was filed in federal court (the Southern District Court of New York) against Robinhood on behalf of its clients, legitimately claiming loss a millions of dollars due to the inability to buy these stocks as they rose drastically on Wednesday morning, and while hedge funds were not similarly restricted.

Late Friday, Robinhood kept digging a hole for itself, releasing a list of 50 stocks for which they were restricting buys. This prompted the investment site  Seeking Alpha to predict the new restrictions "could lead to big exodus" from the app.

As Inc. columnist Jason Aten wrote: "It takes a long time to build a brand, but not long at all to destroy it. In Robinhood's case, it took less than a day."

PR SOLUTIONS:

So, how does Robinhood regain its reputation as a fighter for the little guy investor? Or can it?

I believe it can, but it must demonstrate in the coming months that it did not respond to pressure from Wall Street, or even the White House which many speculated had occurred.

It has already begun the work it must do, including dispelling rumors that it acted to stop trading on behalf of a hedge fund, Citadel - something which would likely mean the death of the app, if true.

Tenev tweeted,

"As a brokerage firm, Robinhood has many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. 

To be clear, this decision was not made on the direction of any market maker we route to or other market participants."

(The California-based Sequoia hedge fund sought to squash such rumors late Thursday afternoon, tweeting, "Sequoia did not pressure Robinhood to halt the trading of any stocks. This rumor is completely false.")

Over the next few weeks and months, Robinhood needs to act decisively and speak out clearly to restore confidence and trust in its product, and, frankly, the system it works with. Speaking for an entire market is definitely a tall order, and usually not one public relations would need to take on.

But given the tremendous lack of trust that has accrued in such a short period of time (just a few days!) It's one the app must take on.

Hopefully they have a PR team that is instructing the Robinhood application's board that it cannot hide behind technicalities or even the SEC, and preparing them for the Congressional grilling that surely awaits them.

The Robinhood app must take strong, clear actions, and their PR team must then explain those actions in a confident way to investors and customers alike. 

Then, maybe six months from now, the Robinhood app just might still exist.

About That Controversial Gillette Ad - Should Corporations Engage In Social Commentary?

About the controversial Gillette ad, it's beautifully filmed and one could argue that it simply calls on men to step up and do what's right when they see men bullying and belittling women. Great. Long overdue, and there's nothing wrong with that general sentiment.

But the #MeToo movement the ad references often devolves into anti-male hate and a generalization that all men are inherently aggressive by their very nature, and need "fixing." This turns this into a politically-charged ad, and a socially polarizing one.

Should corporations be involved in political ads and "virtue signaling" about social issues at all? From a #PR point of view, these kind if ads can appeal to one side of an issue, but repel others, so they are inherently risky, and divisive.

Gillette, and its parent company Procter & Gamble, likely assumed that everyone would be on the side of not being rude to women, but the perception of the ad as an attack on all men, as some in the Me Too movement have sometimes sounded, seems to be overwhelming this benign interpretation of the ad, leading to a massive #boycottGillette effort, emerging on the social platforms Twitter and Facebook.

We have of course seen this before, as when companies such as 84 Lumber have waded into the immigration debate with a Super Bowl ad featuring illegal immigrants crossing the border.

Gillette now faces a boycott from men, their primary users, while getting praise from women. A dangerous economic strategy, and a warning for other companies that are tempted to wade into divisive political issues.

Stephen Abbott
#AbbottMediaGroup