What Toyota and Domino’s Pizza Can Teach You about Recovering from a Reputation Nightmare

On the Easter Sunday of 2009, two Domino’s Pizza’s employees filmed themselves sticking food up their noses and then putting it on a sandwich that was to be delivered to a customer. The duo filmed themselves taking part in other bizarre acts with the food, violating several health-code standards. The video was published on YouTube where it went viral instantly.

What started as a silly game on a slow work day, quickly turned into a reputation nightmare for one of the largest fast food franchises in the United States. By Wednesday, the video had more than one million views on YouTube. Five of the 12 results on the first page of Google for “Dominos” were references to the video, and discussions about the franchise had spread throughout social media.

It was a mess. In just a few days, Domino’s Pizza reputation was badly damaged. The video had such a great impact that the perception of Domino’s quality went from positive to negative in the blink of an eye.

However, Domino’s is a big company with a large online marketing budget. It had the resources and the know-how to recover from the disaster. But, how about a small business? How can a small or local business rebuild their brand after a reputation disaster?

Here are five lessons you can learn from Domino’s online marketing mess.

1. Open a Line of Communication with Your Customers

When everything falls apart, it could be pretty tempting to go into hiding and wait until the scandal subsides. However, that’s not the best way to handle a reputation disaster.

Instead of waiting until everything calms down, you should open a line of communication with your customers and your stakeholders. Let them know you have taken measures to adjust the problem and you are doing everything you can to make things good again.

As soon as Domino’s found out about the video, it started talking to its most relevant audiences. There were a lot of Twitter mentions from users wondering if the company knows about the video and if they are taking action, so most of their strategy was focused on social media. But, they were communicating with everyone, from the people commenting on the video on YouTube to several websites and mainstream publications.

Another example of how important communication during a crisis is comes from Toyota. Back in 2009, the Japanese automotive manufacturer was hit by one of the biggest recalls in history. Although it was later proven that Toyota didn’t hide anything and no defect affected the cars, the company’s reputation was badly damaged. When the crisis struck, the first thing Toyota did was to communicate with its customers and dealers. They were completely honest and explained to them that some things had gone wrong, but they are working hard to fix the problem. The CEO apologized publicly and assured customers that the company is committed to working transparently to solve the problem. Customers appreciated the company’s honesty and effort to contact each of them individually. In fact, they fully supported Toyota during that period.

2. Own Up to the Mistake

In 2014, Shutterfly sent out an email newsletter targeted at new moms. Unfortunately, they sent the message to their entire email database. Most people found the mistake entertaining. However, those experiencing fertility problems didn’t find the error funny at all. The company received thousands of messages condemning their action. Within hours, Shutterfly sent out a message apologizing for the mistake. They didn’t make any excuses or tried to put themselves in a better light. They owned up to their mistake and promised it would never happen again.

3. Make It Good Again

Apologies are good and very much necessary, but they don’t have much substance. So you need to show commitment in repairing the negative fallout. Ask yourself what the brand should offer as compensation to the customers who were affected by your mistake. For instance, if you produced a product that broke in some way, you should offer a refund or replacement.

4. Identify Your Friends

One person can influence nine other individuals who in turn influence the next 90 individuals. That’s the 1:9:90 rule and it can help you recover from a brand crisis. Your goal is to reach out to the nine. Get ahold of your loyal customers, business partners, and fans and use them to initiate a dialogue with the local community.

5. Improve the Brand

One of the things Domino’s Pizza didn’t anticipate was the power of social media. The video had all the necessary ingredients to go viral – it created controversy, it involved a major brand, and it was disgusting. Another thing that Domino’s underestimated was the attention they will get from the media. Before they realized the nature of the scandal, it was already spreading like wildfire.

The company improved its online marketing strategy to be better prepared for future events. They now have a chart that tracks every online mention and discussion about Domino’s Pizza. The company also improved its social media strategy, and it’s now very appreciated for its online activity.

Toyota, for instance, focused on its core values to move past the crisis. They even created a video using real customers to show that the brand is dedicated to quality. After the crisis, the company created a guidepost so that everyone at Toyota can make decisions according to company’s values. The guidelines emphasized the brand’s core values: quality and safety first, innovation and contribution to society.

You can’t control everything. Bad things will happen. Someday, a bored employee will do something stupid like sticking food up their noses. Or, maybe you’ll be the one who commits a mistake that wreaks havoc your reputation. It can even happen to the best of us. But it’s how you choose to handle the reputation crisis that makes all the difference in the world for your small business.