Let’s Talk Crediblity

I believe that consistency and credibility go hand in hand. For a company to maintain their credibility through the public’s eye it must continuously be living and abiding by its mission.

Many times it will only take one mistake to ruin consumers’ trust in a company. Although, if the company has maintained great credibility.

An example of this is seen in the Target data breach which occurred in December 2013. According to the New York Times this massive financial disaster caused Target’s fourth quarter sales to drop 3.8 percent and transactions to drop 5.5 percent compared to the previous year. While sales did plummet, consumers still trust the big box store. Credibility was also restored by the response actions target took such as appointing a new chief information officer and investing $5 million in a cybersecurity coalition.

Not all companies maintain high enough credibility to survive a large blow. BP is still recovering from its company shattering oil spill in 2010 where it reported loosing a third of their company’s value. BP’s lack of transparency and accuracy during the first couple days of the disaster lead to the Obama administration to order the oil company to release all data related to the massive spill (e.g. environmental sampling analysis,  internal investigation reports and details of clean up effort).

Ultimately maintaing great credibility proves to be the best tactic in maintaining a loyal customer base and combating crises.

BP Oil Spill via nytimes.com

BP Oil Spill via nytimes.com

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