The Airline Industry Wants to Steal Your Luggage* and Other PR Missteps

     *No, the airline industry doesn't really want to steal your luggage.

     But it does sound like the fly guys are playing fast and loose with your hard earned cash  The government is now asking airlines to refund baggage fees whenever your luggage doesn't arrive in a "timely manner".  Sounds fair to me.  When you pay to have a bag shipped you expect it to arrive with you.  Sometimes "mishandled" luggage doesn't turn up for days or weeks.  The Air Transport Association of America, the industry group that represents most major airlines, claims automatic refunds for delayed bags will increase costs and lead to higher prices for passengers.  Can you hear it?  It's the unmistakably grating sound of of bad PR.

     Full disclosure: a major US carrier once sent my luggage to Idontknowwhere, USA- leaving me on a Caribbean cruise ship dressed in slacks, loafers and a sports coat.  The cruise line gave me flip flops from the spa, a couple of T-shirts, and that's what I had to wear for 3 days.

     Almost all the airlines charge $15, $20, $25 or more for each piece of luggage you check.  If you get to your destination and your bag does not- most airlines will not issue a refund- although a few will give you a "credit".

     According the the FAA's web site, US airlines mishandled more than 138,000 bags in February.  Just for fun, let's say all 138,000 bags were misplaced- meaning that they'll show up eventually.  Assuming the airlines charged just $15 per bag- that's $2,070,000.  Spread over an entire year that's a bit under $25 million.

     You could argue that the no refund policy makes airlines look a little greedy- and a little anxious to "stick it" to their customers.  Remember, these are the people who've brought us flight delays, overbooked planes, passengers trapped on the tarmac for hours and let's not forget full body scans.

     Hey airline industry- do you have any idea how much it costs for a national ad campaign?  It's a lot.  Here are some of the headlines from the "No Luggage, No  Refund" stories that are making the rounds.

• The Seattle Times:Air travelers might finally catch a break

• Bloomberg Business Week: Gov't wants airlines to repay fee after losing bag

• Philadelphia Inquirer: Refunds proposed for delayed baggage

• Washington Post: Airline lose your suitcase? Government says you should get your checked-bag fee back

• Detroit Free Press: New rule could require airlines to refund bag fee if luggage is lost

      Know what all those news stories have in common?  They all  give the appearance that the airline industry thinks it's okay to charge for a service and then not deliver.  Even better, all those stories suggest that the airline industry is essentially refusing to do the right thing.  I'm betting that if you had to pay for all of this negative publicity it would cost a lot more than $25 million.  But I hear the major airlines will earn $5 billion dollars this year- so they must know what they're doing...

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Copyright 2011

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What's Your Good Name Worth?- Price Points in PR

   You've probably heard that top executives with Transocean awarded themselves hefty bonuses- citing 2010 as "the best year in safety performance in our Company's history".  Transocean is the company that owned the Deepwater Horizon drilling rig.  That rig exploded in the Gulf of Mexico, killing 11 people.  Predictably, the safety bonus announcement generated a firestorm of negative publicity.

     Transocean later apologized for the "insensitive wording" in a SEC filing about the bonuses.  I just checked the Transocean web site- and found a news release announcing that Transocean's Senior managers are "voluntarily donating those safety bonuses to the Deepwater Horizon Memorial Fund."  I think that's a creative use of the word "voluntarily".  At least the bonuses, about $250,000, will go to the fund that benefits families of the 11 people who died.  If only those executives could donate to a fund that restores your reputation.

     What I don't get is how often I have to write the words "tone deaf"?  How could anyone think declaring 2010 a "safe" year was a safe move for Transocean?  Didn't they read the papers?  At what point do you say, "everyone hates us anyway, so we might as well get paid a bundle"?  If you look up the most infamous professions the oil industry is no doubt gaining ground on used car salesmen and attorneys.

     All this got me to thinking about executive salaries.  So I googled "executive greed".  I found a New York Times article that included a study by two professors, Lucian Bebchuk of Harvard and Yaniv Grinstein of Cornell.  According to Bebchuck and Grinstein:  from 2001 to 2003... (executive pay) totaled roughly 10 percent of corporate profits at public companies.

     I don't even want to know what 10 percent of corporate profits might total.  Let's just agree that it's an obscene sum of money.

     I also found an Amazon.com ad for a book titled- "Executive Greed: Examining Business Failures that Contributed to the Economic Crisis".  Ironically, the book is selling for $65. 

     According to CNNMoney.com's list of 20 top-paid CEOs  The 2010 winner is Philippe P. Dauman.  Dauman collected $84 million as the head of Viacom.  At the bottom of the top 20 list is Robert J. Stevens who made $19 million running Lockheed Martin.  Coming in at number 20 Stevens must be some kind of executive slacker.

     Has anybody noticed there was a terrible recession awhile back?  Millions of Americans are out of work- reporting zero earnings.  Yet, at the same time all these CEOs amassed small fortunes.  I'm not going to rail about inequity.  I'm not going to complain about ethics.  That's not the point.

     I'd think some of these brilliant top executives would exploit the pay issue- and turn it into a public relations bonanza.  They could cut their pay and tell customers they're lowering prices until better times return.  Remember when Lee Iacocca set his salary at one dollar?  A few years later, after Chrysler rebounded, Iacocca was the top-paid CEO.  Just saying...

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Nothing Too Big For This Small Boy- How YouTube & Twitter Helped Make National News

     Here's a cute story about a small New Jersey boy who has big dreams. It's also about a big politician who understands social media.  Five-year-old Jesse Koczon is the star of a YouTube video that's become an instant classic.  In one emotional scene Jesse sobs that he's "too small to be governor of New Jersey".  Take a look. 

     Jesse's video generated over 176,000 hits in less than a week.  But it also generated a lot of buzz because New Jersey Governor Chris Christie got into the act.  The Guv sent this tweet to  Jesse:

@GovChristie Governor Christie

Don’t worry Jesse, people gave plenty of reasons why I couldn't be Governor, though being too small wasn't one of them

     For those not familiar with Governor Christie,  the reason that being small wasn't a problem is that he can politely be described as "husky".  So, the little kid gets a personal message from the Governor and everybody's happy.  But it doesn't end there.

     Yesterday,  Governor Christie signed a proclamation making Jesse honorary governor for a day.  Jesse's twin brother, Brandon, was named honorary lieutenant governor.  During a private moment Jessie and Governor Christie had a talk- about taxes. And that led to a pretty funny exchange in front of reporters.

Governor Christie: Didn't you and I have a talk back there about property taxes?

Jesse: "Of course I did."

Governor Christie: "And what did I tell you?"

Jesse: "Don't raise them." (laughter)

Governor Christie: "And if you do raise them, what happens?"

Jesse: I won't be Governor for that long." (more laughter)

     You can see the exchange because the Governor's staff posted video to YouTube.

     This story is now being carried by all kinds of media outlets.

     The takeaway: Governor Christie could have ignored Jesse's video.  But instead, the social media-savvy politician used Twitter to respond.  And now, in the middle of a budget/economic crisis there's a feel good story coming out of the New Jersey Statehouse.  Clearly, Christie gets social media- his official web page features links to Facebook and YouTube.  He has more than 35,000 followers on Twitter.  And it's not just for show.  Governor Christie is using social media to get his message out there. Here are just a couple of recent Tweets I found.

GovChristie Governor Christie

Tune in to @ABC @ABCWorldNews tonight to catch my interview with Diane Sawyer

GovChristie Governor Christie

@Rachel1019 I sent your issue to the state treasurer for investigation & follow up

GovChristie Governor Christie

@JaneyJusticeXXX U know nothing. My parents were middle class, both worked. I pd 4 my own college & law school. Sorry so uninformed & bitter

GovChristie Governor Christie

Just left Nino's Reataurant in Harrison. Best Sicilian pizza in NJ. 

     You don't have to be a politician to see the value you get by using social media to interact with your customers.  Whether you're a politician or a company or a public relations pro- when it comes to social media you can lead, follow or get out of the way.  Just be careful you don't get voted out of business.

Update: Since this was first posted the original video of Jesse has been removed from YouTube- citing a copyright claim by Disney Enterprises.

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Copyright 2011

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Aflac Quacks the Social Media Code

     By now you've probably heard about Gilbert Gottfried and the Aflac duck.  For those who missed it, Gottfried was the distinctive voice of AFFFFFLLLAAAAACCCCCC! for more than a decade.  Sadly, the loud-mouthed comedian tweeted some insensitive "jokes" in the aftermath of Japan's horrific earthquake/tsunami.  (I won't repeat the jokes.  If you need to read them you can find them yourself on the internet.) Talk about tone deaf- a massive tragedy isn't something to joke about.  For what it's worth, Gottfried later used Twitter to apologize.  As it turns out, Aflac does big business in Japan- so it was no surprise when Gottried was fired.  Thanks to those entertaining commercials you probably know Aflac insurance is for people who are hurt and can't work.  Ironically, Gottfried has hurt himself and he's not working at Aflac anymore.

     But that's not the point.  What's noteworthy is how Aflac is using social media to make lemonade out of Gottfried's raspberries.  The Aflac duck has its own Twitter page- @aflacduck which includes a link to raise money for Japanese quake/tsunami victims. The insurance giant is also holding an open casting call- to find a replacement duck voice-over artist.  Clever.   This is getting a lot of attention in the media.  A quick glance on-line reveals stories in dozens of media outlets- from ABC News to Zimbio.com. As they say, it's the kind of press you just can't buy.  Aflac invites everyone to "take a Quack at it" (being its spokes-duck).  You can apply at QuackAflac.com and at Monster too.  Here are the directions courtesy of Aflac:

"How would the Duck sound- informative, frustrated, happy, surprised, angry?

Feel free to add grunts, groans, and mutterings,
but no words other than "Aflac.

Include whatever you think
the Duck should sound like.

Be creative and show us if you've got

what it takes to be the next Aflac Duck."

     Published reports say Aflac has already gotten more than 28,000 applications.  Casting calls will be held Thursday (March 31) and Friday (April 1) in New York, Los Angeles, Chicago, Atlanta, Las Vegas and Austin.  You can also send an audio file directly to Aflac.  Do you suppose any TV cameras might be invited to those auditions?  Film at 11:00.  And get this: Aflac's Facebook page is now liked by 242,184 people.  Out of curiosity, I checked some other insurance companies.  State Farm Insurance has 67,512 Facebook likes.  Allstate Insurance has 27,301.  And talk about putting it all together- a recent Aflac tweet directs people to Aflac's Facebook page- where they'll be posting audio of some duck voice audition finalists.

     Lessons Learned:

1) Tragedies are not humorous.  Seriously.
2) Social media can reach a large audience quickly- but as Gilbert Gottfried found out that can be a really bad thing.
3) Social media mistakes can and will happen as we all learn to handle this ever-changing technology.
4) Aflac could have been frustrated, surprised and angry by Gottfried's unfunny attempts at humor.
5) Instead, Aflac saw an opportunity in disguise- and it's called social media.
6) Creative crisis management can help "insure" your company's reputation.

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Copyright 2011

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PR Fallout From Japan - An Extreme Case of Crisis Management

    The tragic chain events in Japan has opened up a Pandora's box of public relations troubles.  Is Japan's government telling victims what they need to know?  Is there too much confusion?  Is there a crisis management plan? Or are Japan's leaders simply overwhelmed by the multiple disasters?  Realistically, It's hard to know what's happening in the midst of chaos.  Japanese Cabinet Secretary Yukio Edano has emerged as a prominent spokesperson.  His name is a global trending topic on Twitter.  But some critics also question whether Edano is telling the truth.  I've seen some interviews with Japanese quake/tsunami/nuclear victims who don't know whether to trust what the government is telling them.  What could Japan do better?  I think, given the scope of the disaster, this remains an open question.

     The Nuclear issue has to rank as the greatest challenge in terms of PR.  Every day there's a new report about radiation spikes.  Increased radiation levels in spinach, milk and tap water has a lot of Japanese people worried.  A report in the Christian Science Monitor indicates that public support for nuclear power has fallen sharply.  A Gallup Poll taken last March showed that 62% of Americans supported nuclear energy.  Today, a USA Today/Gallup survey shows that support dropping to 44%.

     Early on, Japan recommended evacuations for residents living within a 12 mile radius of the damaged reactors.  But at the same time U.S. officials were warning Americans living within 50-miles to move.  Is the U.S. being more cautious or is Japan downplaying the dangers- perhaps to avoid sparking mass hysteria?

     News outlets are running lots of stories questioning the safety of nuclear plants in the United States.  What if it happened here?  I'm sure it's no coincidence that The Today Show was given an "unprecedented" look inside a nuclear plant in Louisiana.  Operators told The Today Show their plant was extremely safe.  At the end of the story, reporter Tom Costello pointed out that his radiation monitor registered a zero- no radiation exposure despite his being taken to the area where spent nuclear rods are stored.  Balance that against a new Associated Press report-  revealing there are nearly 72,000 tons of radioactive nuclear waste in the United States.  And there is no plan to store that waste permanently.  We're told nuclear waste can remain dangerous for years- tens of thousands of years.

     As the tragedy in Japan unfolds the nuclear industry may have to grapple with even more negative news reports. There are sure to be renewed calls for greater scrutiny, better safety measures- and even the end of nuclear power.  Obviously, the industry is working hard to give reporters its side of the story.  But I'm not sure if I see a "Crisis Management" plan at work.  If American nuclear plants are safer than plants in Japan- that could be the focus of a major PR campaign.  The nuclear industry may also need to take concrete action.  It may be time to come up with a plan to dispose of all that radioactive waste.  If plants can be made safer- perhaps now is a good time to address the issue.  I think the people in charge of the nuclear energy  industry need to be proactive.  If U.S. plants are safe, those executives need to help Americans understand we are not facing unnecessary- and unknown- risks.  It's clear that everyone in Japan knows the risks are very real indeed.

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Copyright 2011

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Jennifer Aniston's Sex Tape Goes Viral

     Forget about Friends.  Jennifer Aniston is getting noticed for her performance in an entirely different arena.  Not surprisingly, the racy title is not entirely accurate.  Jennifer's sex tape is less about sex than it is about going viral.

    You might have noticed that Aniston is the face of a marketing campaign for smartwater- a company that sells upscale bottled water.  On its web site smartwater proclaims itself, and I quote, "the water with all the answers... a zero calorie, vapor distilled, electrolyte-enhanced water."  (So you know it's good!).

     The JAST (Jennifer Aniston Sex Tape) was made with one singular mission- to go viral.  I'm not sure that I believe it myself, but YouTube says JAST has pulled a staggering 5,053,172 views since it was posted on March 7th.

     How, you may ask, did smartwater attract so much attention?  Here's the recipe.  Take one bottle of water, add one attractive and irreverent pitchwoman, and then make fun of all the viral videos you've seen in the past.  As I mentioned, it's all done with the brazen intention of going viral.  There are puppies, (lots and lots of puppies) dancing babies, dirty dancing (don't ask), and notably, Jennifer Aniston kicking a man in the crotch. The actual video appears below.

  And now you know why this really is called The Jennifer Aniston Sex Tape.  JAST has already been written up in the New York Daily News, Huffingtonpost, CBS News, etc. etc., and almost every on-line piece includes a link to the video (see above).  It would seem that smartwater is the toast of the viral town.

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Copyright 2011

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Celebrity-Style Public Relations - What Charlie Sheen Can Teach Us About Personal Branding

   I really wanted to write a negative spiel about Charlie Sheen- it's just so bizarre.  Forgetting, for a moment, his recurring drug/alcohol/anger issues... This is a guy who lives with not one, but two, young girlfriends he calls "goddesses".  And Sheen is now embroiled in a child custody dispute.  On top of that, Charlie's essentially been kicked out of his $1.8 million per episode TV sitcom job. Sheen's been spouting off about the "Tiger Blood" running through his veins and says he's addicted to "Winning" (whatever that means).  Is it any wonder that Charlie's publicist just quit?

     But wait a minute.  I just googled Charlie Sheen and he's at the top of the charts with a bullet.  A couple of days ago, Sheen joined the Twitterverse.  His profile states, and I quote, 

"Born Small... Now Huge... Winning... Bring it...! (unemployed winner...)"

     And he's apparently set the record for attracting one million followers in just 25 hours and 17 minutes.  As I write this Mr. Sheen has 1,587,548 friends.  For the record, that number includes me.  I sent Charlie a tweet asking for comment.  I'm still waiting.  But with enough friends to fill every major league baseball stadium it may take Charlie a little while to get back to me.  (By my count the total seating for MLB ballparks is 1,309,961)  Oddly enough, Charlie has only friended 26 of his followers.  I hope he adds my name to the short list- because this blog post really needs a comment from that Tiger-blooded bad-boy actor.

     A lot of people are convinced that Charlie is a total psycho- and he just may be one.  But there's no doubt that he's a genius at generating PR buzz.  He's appeared live on NBC's today show almost every day this week.  I imagine People Magazine is working on a special edition featuring a "Charlie Angels" centerfold.  As I understand it, Sheen may turn the twitter thing into an advertising-based revenue stream.  Everybody is talking about Charlie.  Everybody has an opinion.  His Q-rating is taking off.  Maybe Charlie doesn't need a publicist after all.

     And for those of you keeping score at home it took me about 90 minutes to research and write this post.  Most of that time was spent adding up the seating capacity for all those ballparks.  And in that 90 minutes, Charlie Sheen's list of Twitter friends rose to 1,598,687.  That's an increase of 11,139.  By any standard those numbers are P.R.  Pretty Ridiculous.

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Copyright 2011

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