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The Paula Deen Effect and your Business – The Perils of Influencer Marketing

July 2, 2013

rsvpmn-logoToday I contributed a guest blog/article to RSVP MN Magazine. Here is the post also a link to the post on their site:

The Paula Deen Effect and your Business – The Perils of Influencer Marketing

By Christopher Lower, Co-Owner and VP of PR, Marketing, & Social Media for Sterling Cross Communications

For many years we have come to learn of the power that celebrity influencers have on businesses. It’s one of the hottest terms in marketing today: Influencer Marketing. Businesses are looking for that lift that can be achieved when a person with a huge audience on multiple communications channels speaks fondly of your service or product and endorses it to their audience. In the most wildly successful cases, it became a phenomenon called the “Oprah Effect” due to the frenzy of business activity a company would receive when mentioned on the popular Oprah Winfrey show by the host herself.

On the negative side of the spectrum would be what has been happening in current events and could be ascribed as being victim to the “Paula Deen Effect”. In this case, the person of influence has become associated with a negative event and has triggered a wave of impact across several businesses that were connected to her, either as a direct working relationship, or in an endorsement relationship. Because of her negative online reputation, and current public perception of her, any brands that are tied to her are suffering. There has been a massive wave of companies scrambling to distance themselves from her brand, many of whom have been intrinsically tied to her popularity in the past.

To be completely fair, Ms. Deen isn’t the only influencer to have a negative impact on brands when a scandal has been tied to their reputation. How easily we forget those like Lance Armstrong, Tiger Woods, and so on.

This current case is only greater proof of how important the public perception of your brand and reputation is online. It affects the bottom line, and can impact the stock prices in public companies. It could be your greatest weakness and many companies don’t even know how they can protect and defend their online reputation.

Because of the nature of social media users to have an extremely short attention span, people are more willing to perceive what they find on search engines to be the true nature of your business. You are what Google says you are. Sadly, you are also only as good as the latest and highest search engine ranked review.

As “The Deen Effect” demonstrates, you are also affected by the online reputations and perceptions of those people associated with you. These range from your vendors, suppliers, resellers, channel partners, employees, board members, and anyone else that impacts your brand. Their negative reputations can harm you online as well. You may not have “celebrity” endorsements, but you do have influencers inside and attached to your company. You no longer can afford to not monitor your own company and brand, and it would also be beneficial to monitor the reputations of those associated with your brand where you rely upon them to conduct your business.

Many businesses are scrambling to put together teams that can respond to these new crises situations. These issues may occur across multiple communication platforms in an instant, and can go globally viral in seconds. Traditional PR professionals who don’t have both the crises communications skills and a mastery of social and mobile technologies are obsolete. Using interns to solve the problem is fine for their knowledge of social media tools, but inadequate to deal with the crises communications. You need a team experienced in both that can respond immediately 24 hours a day, every day.

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