Layoffs and cutbacks are taking place among some of the nation’s most hallowed brands and corporations. Current economic crises only further demonstrate that no person or corporation is truly safe. It is not my intention to spread the already growing economic fears of many, but realities must be faced in order to more wisely execute sound strategies in the future. Coming to terms with the reality that your business is not immune is the first step towards implementing a successful online reputation management strategy.

What could Circuit City have done to avert this crisis? Honestly, I don’t know. There are hundreds of factors I am unaware of. But how the company handles this crisis can make or break its future. Call it spin, call it PR, call it whatever you like. But how you present sensitive information to the public is crucial to your reputation.

Based on the online chatter I’m seeing, it does not appear that Circuit City is handling this crisis well enough. A seasoned reputation manager is needed to help them monitor chatter, respond properly, and disclose information strategically.

Keep in mind one simple fact: a company executing online reputation management wisely will not be noticed for doing so. If an organization appears to be trying too hard or not trying at all, that’s when you know a gap exists in their strategy.

Take a brief look through Google News results for “Circuit City”. Monitter what’s being said about Circuit City on Twitter. Review blog posts via Technorati. Or use your professional monitoring tool (I recommend Radian6 or Sentiment Metrics) and see what’s happening across all social channels. Thus far, you will see a complete lack of proper reputation management. You SHOULD see corporate representatives answer questions, clarifying terms, and allaying fears. You REALLY SHOULD have seen a better release of said information regarding layoffs. Circuit City should have positioned themselves as making an environmentally conscious or waste conscious decision. They could also have released the news in a different fashion after having contributed some sort of positive impact on a local community to balance the news. Something should have been done to avoid the simple, devastating news of continued collapse.

This is how you know reputation management is vital. The release of information and the handling of the conversation that follows paints the public’s permanent perception of your brand. What happens next with Circuit City? It’s too soon to tell, but competitors like Best Buy will profit from CC’s lack of strategy.

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