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Web Business by Ken Burbary

Digital Marketing, Social Media, Web Technology

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Dominos Learning Painful lessons about the Social Era

April 15th, 2009 · Comments · Business, Social Media, Twitter

Dominos, the pizza maker, became the latest victim of a viral video drive-by brand massacre. Yesterday, 2 employees from an individually owned franchise posted several disgusting videos on YouTube. To say the videos are inappropriate would be an understatement. One of the videos shows a staff member putting cheese up his nose before using it on the pizza he appears to be preparing for a customer. It gets worse from there. You can watch for yourself:

What did Dominos do?

Some good. Some missed opportunities.

Once they became aware (more on how long this took later), the company worked to get the videos removed from the original hosting provider (doesn’t matter, as they have since been uploaded to other sites). Dominos then responded with email communications from Tim McIntyre, Vice President of Communications. He indicated how repulsed he was, and described that their security team was going to look into the matter to identify which store and responsible individuals.

Email from Tim:
We just got off the phone with the franchise owner, who was absolutely dumbfounded by this. He has told us that he will be terminating their employment effective immediately. We suggested that he call them and get a written statement from them, asking them to “explain” (to the extent anyone can, really) their actions. We are also seeking legal counsel to see what kind of action we can take against them for damage to the brand.

You are welcome to use anything I’ve sent to you in the past 24 hours. I do want to thank you for bringing this to our attention…I just wish it hadn’t been posted so prominently on your web site…while it was certainly fair game, it does hurt the company and the thousands of people we employ in this country whether it’s intended or not.

Regards,

Tim McIntyre
Vice President, Communications
Domino’s Pizza, LLC

The company is in damage control mode, operating reactionary during a crisis. While they are taking some of the steps you would expect a brand to do under the circumstances (like terminating the employees and filing criminal complaints with local authorities), they are still missing the opportunity to repair some of the damage done with their customers.

Consumers expect a human response, not messaging

I’ve described before how the social era has changed consumers expectations about how brands interact with them. Consumers want to see and hear the company’s responses from trustworthy employees. Crises like this are no different. In fact, it matters even more. Of course the corporate communications group will be involved in responding (and they should be), but what about the affected store manager? the individual franchise owner? the other employees that work there? Dominos is missing the opportunity to make consumers BELIEVE their side of the story because it isn’t human enough. The work that Scott Monty did last last year during the Ford Ranger Station controversy is a prime example. If consumers were to hear the message from some of the others Dominos employees I mentioned above, it could can help make a real connection, reasonate, and build trust. So make it personal. Make it believable. Make it REAL.

Consumers expect brands to be paying attention

Digital Marketers and Social Media professionals often talk about the importance of listening aka online brand monitoring. Think of it as your brand radar or reputation protection. Had Dominos been engaged in doing so, they mostly likely would have learned about this event sooner, and been in a better position to deal with it. How do we know they weren’t monitoring? We cannot be certain, but ancedotal evidence suggests they have no online brand radar in place (they failed to respond to several attempts by consumers who notified them via email and their website). So it appears the company learned about the event from individuals online reporting it, not because they were listening.

Hopefully they learn how important it is to have an ongoing social monitoring program in place. Consumers expect them to do so. And the benefits of doing so, could have prevented some of the damage, and allowed them to respond individually to consumers who were talking. Pay attention to online conversation. It matters more than you think. Don’t believe me? Go read what people are saying about Dominos now.

http://search.twitter.com/search?q=dominos

This isn’t insignificant. Don’t allow your hard work building a brand get decimated overnight. Put the right steps in place to proactively listen and respond in a human voice that matters. If not, the negative perception and experience from consumers can translate to lost revenue. Dollars and cents.

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  • Dominos, other than the franchise store owner or anyone else, is clearly dumbfounded by the whole thing and hopefully with this incident, other companies can pick up a few lessons, which two of them is already listed above.

    Immediately after the incident, the company went all out in trying to remove the videos and seek legal advice etc. but how about the consumers or customers? I mean, these things don't leave our heads once we watched the video and the company is not addressing anything to us.

    Perhaps a press conference might be held in "near future" to explain everything but shouldn't it be better to utilize the media where people got the ugly news from? Why should you address things slowly using traditional media when the bad things are continuously spreading like wildfire on the Internet?
  • Ken - great stuff as usual. You'd think after this example, and many others, that companies would understand better the importance of social media monitoring. That doesn't appear to be the case though as we keep hearing about companies, like Dominos, that miss opportunities to squelch problems before they begun HUGE.
  • Hey Ken,
    We all appreciate your following and report of this. I am pretty angry over the whole ordeal. I know how hard, and how difficult and how much work it is to build and maintain a Brand, and while we do not have a brand such as Domino's to see this happen infuriates me.

    We can all be critical as to what they should have done and at what speed, but I applaud them for their actions. They are now on twitter, perhaps now they will have a community blog and they acted pretty swiftly for a large corporation.
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    Dominos Learning Painful lessons about the Social Era | Web Business by Ken Burbary [link to post]

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    Insightful post by @kenburbary about Domino's reaction. "Consumers expect a human response--not messaging" (Amen) [link to post]

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    RT @markshaw: What can Business Learn from the #Dominos experience: [link to post]

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    RT @gavinmcgarry: Domino's Pizza's bad brand lesson. Here is the video (the two have been fired) and the PR response [link to post]

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  • I feel that the initial reaction by Domino's is status quo. At the same time, I do not feel that they should make any harsh business decisions or changes based upon this isolated event.
    Yes, they should begin to leverage different avenues and Social Media tools to improve their current position and change the perception, but what they can not do is have a knee-jerk reaction. These types of reactions can further damage the business.
    Taco bell with the thumb, McDonald's with the scalding coffee............the fact of the matter is that their is stupid people out there, everywhere and businesses can not react with immediate changes with every situation.
  • Awesome post. That location of Domino's is also missing promotional opportunities, as well. They could easily reach out to the local community, inviting people to come and talk to them, sponsor an anti-hunger outreach program, etc., not to mention Free Pizza day, etc.

    I know the traditional PR strategy is to "duck and cover" when a crisis hits, but I think there's nothing as trust-building as radical, personal transparency. Crises are always opportunities for engagement. Hosting a chat on twitter, since that is where the conversation is already happening, would be great. Eliciting comments and suggestions about product and service in such a setting might be powerful.
  • Really great post. I agree in addition to leveraging social networks, any media outlet would have let Tim and his team personally address the situation to personalize, compliment, and perhaps even reiterate his email. After all, the masses were already aware of it. Consumers want the apology to feel genuine and to know that Dominos will be going to great lenghts to ensure that their next meal will be made by people, and a company, that care about their customers, quality, and brand.
  • Its truly amazing to me how stuff like this blows up and spreads like wildfire. It looks like Dominoes doesn't know how to respond beyond their standard emergency damage control. If I were in their shoes, I'd get the VP on a flip cam, film the store manager, film the store employees. Like you said, get their human reactions and response to what happen. There is still time. Every company has a champion; this is Dominos perfect opportunity to really step up and shine.
  • lisawilberding
    You hit it right on Ken. Messaging on the corporate biz site (not even on their consumer site) does not cut it. This is not personal at all. I also don't care that these two employees were fired. That doesn't ease my trust for Domino's. I need reassurance that stricter regulations are going to be put in place (surveillance cameras in the kitchen, testimonials from REAL employees who care about the product and their jobs).

    Sure, this could happen at any fast food or pizza franchise, but unfortunately they got caught and consumers are going to remember this incident when choosing where to order the pizza. It's unfortunate but a harsh reality to the Domino's corporate communications team. Time to jump on the SM bandwagon, but is it too late? Even Amazon and Motrin were hit hard lately, so it will be interesting to see what social media programs Domino's will implement after this crisis. As of yesterday I don't believe they even have anyone on Twitter...
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