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The Opportunity

  • A global consumer products company wanted to understand the impact of public relations events, such as product recalls, and bad publicity in traditional and social media.

Our Approach

  • Using a case database of hundreds of cases across the world, with dozens of attributes on each case, we joined each case with sales and marketing data for a comprehensive analysis of how a public affairs “crisis” evolves and its impact.

The Impact

Some key findings of the study include:

  • 71% of the time, there is no lasting impact to sales of an event.
  • When there is an impact, we can use econometric models to estimate lost sales.
  • We can classify patterns of how trends develop and evolve over the first few days and weeks of a crisis.
  • Social media “listeners” are unreliable as an early warning system.
  • Opportunities to improve data collection and integration were identified.
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