Marketers Rushing to Haiti’s Aid Hit Twit-Storm of Misinformation
CHICAGO (AdAge.com) — Marketers, be careful what you give — and how you communicate that gift.
In the aftermath of the earthquake in Haiti, Kraft, AT&T, UPS and others engaged in a well-meaning one-upsmanship of cash gifts, in-kind donations and matching programs to provide assistance in the country’s hour of need. But in some cases, consumers inflated the marketers’ generosity and, in others, spread misinformation about their gestures, forcing some well-intentioned brands to explain and adjust their goodwill strategies.
For example, UPS, which announced one of the more-ambitious donation programs — $1 million in cash and in-kind donations to relief organizations — was surprised to hear via Twitter that it was also offering free shipping to Haiti for any box with a postage fee of $50 or less.
American Airlines offered extra bonus miles for consumers making donations to Haiti, 250 miles for a $50 gift, or 500 miles for a $100 gift. American Eagle also sent planes on Wednesday, Thursday and Friday with 30,000 pounds of water, food and supplies each day. But many Twitter users believed the airline was flying doctors and nurses to Haiti free. That left the company scrambling to set the record straight by telling its nearly 23,000 followers free flights weren’t on the table — which ran the risk of diminishing its original generous offer.
Like American, UPS used the same social media that helped spread the fire to put it out. “I’m so glad we’ve been working on our social-media strategy,” said UPS spokeswoman Ronna Branch. “It’s been quite beneficial today that we’ve been able to communicate with consumers. We’re posting on Twitter, and people are using Facebook to repost, and we can direct them to the blog where we can communicate.”
Unfair punishment
“It’s a terrible crisis, but a time when companies can step forward and build their brand as being as helpful as possible,” said Tim Calkins, a marketing professor at the Northwestern School of Management. “But you’ve got to be sincere, and you’ve got to be quick so that what is said is consistent with what you’re actually planning to do.”
One marketer was even penalized for being too swift with its gesture. AT&T was quick with an offer to let people text in donations that would be billed later to their accounts. But when the other carriers launched the same offer the following day, AT&T’s message got lost, leading many Twitters to jump to the conclusion AT&T wasn’t participating and vent their ill-targeted frustration via social media. The confusion eventually subsided, and AT&T spokesman Steven Schwadron, citing mGive numbers, said that consumers had texted $9 million to Haiti by Thursday evening. More than $4.2million of it was from AT&T customers.
Coca-Cola and Nestle Waters North America each pledged $1 million in bottled water and other beverages. Alcoholic-beverage giant Diageo committed to airlifting 45,000 pounds of medical supplies and other non-perishables. American Eagle took 90,000 pounds of supplies over a three-day period.
In some cases, what initially seemed like a generous donation was usurped by higher ones from competitors as word spread on social networks. Wells Fargo was one of the first financial institutions to step forward with a gift of $100,000. But as the death toll rose, Citigroup pledged $2 million. Chase, Morgan Stanley, Jeffries and Bank of America all ponied up $1 million. And in addition to its $1 million donation, Jeffries donated all net commissions Friday. Including volunteered salaries from the firm’s 2,500 employees, the firm expects to raise $5 million.
Sufficient size
“You want to make sure that your gift is comparable with others, or greater,” Mr. Calkins said. “But you certainly don’t want to put out something that’s too cheap, because that can go the other way.” That’s particularly dangerous for banks, which are expected to begin reporting record 2009 bonuses this week.
Kraft also deftly upped the ante as the week went by, starting with a $25,000 donation, and following up with what’s expected to be $500,000 from the company’s foundation and an employee match. Most other package-food companies finished the week with a $250,000 donation and matching pledges, or less.
Some marketers found a way to help Haiti and save money in the process. Cash-strapped United Airlines, which recently emerged from bankruptcy, gave $50,000 from its foundation, but allowed consumers to donate their miles. Hilton, through its Hilton Honors program, will give $25 for every 10,000 loyalty points returned, or roughly for every $1,000 spent. While that valuation is easy to criticize, a Hilton spokesman said “there’s been great feedback to the program so far.”