XM Radio’s Crisis Plan: Going Dark and Hoping No One Was Listening?
This week’s XM satellite radio outage is interesting in a number of ways. XM chief execs have a vested interest in remaining squeaky clean prior to their proposed merger with satellite radio competitors Sirius. They have the advantage of observing how RIM poorly handled BlackBerry outage in two countries and to learn from that. The discounts they’ve offered customers for the outage is generous. Critically now, they must fully appreciate the real take-away: that XM radio is a utility, not a luxury. As such, they need to deal with outages just as expeditiously and to communicate as widely as the water, telephone, and electric companies.
Because these luxuries have become utilities, providers will be held to the higher communication standards that public utilities are. Businesses whose services have become utilities must have a communications plan ready to go.
There are two main areas where XM Radio could have done a better job:
1. Lack of communication: Despite having their customers’ telephone numbers, e-mail addresses, and other contact information for marketing purposes, they didn’t have a plan in place to use those resources to communicate anything other than a sales message. Even traditional broadcast media outlets—like radio and television—could have helped spread the word to customers. Americans are quick to forgive, but hold a grudge when they feel they’re being ignored.
2. Their message missed the mark: Finding an apology on the XM web site requires clicking a link innocuously titled ‘XM Service Updates’ at the bottom right-hand corner of the site’s home page. Once you’re there, this is what you see:
XM Radio Resumes Normal Levels of Service
XM Satellite Radio has resumed normal levels of service for customers who experienced outages or significantly degraded service starting yesterday.
The problem occurred during the loading of software to a critical component of the satellite broadcast system, which resulted in a temporary loss of signal from one of the company’s satellites.
After you turn on your XM radio, please allow five to ten minutes to reacquire the XM signal.
XM apologizes for any inconvenience this has caused.
What is the first rule of corporate communications? Think like a customer (not an engineer). This apology doesn’t show that XM understands the discomfort caused its customers. It certainly doesn’t tell customers how vitally important they are to XM Radio.
This outage was a short-term issue without fatal or long-term consequences for the company. It can be a helpful shot across the bow that helps this powerful new medium perceive itself and its relation to its customers differently.
Outages will occur. Expectations have been increased. Be transparent, be quick, and be communicative. It’s what your customers now expect.
