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The Kryptonite Bike Lock Fiasco

Published on Nov 18, 2015

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PRESENTATION OUTLINE

THE KRYPTONITE BIKE LOCK FIASCO

Photo by JeepersMedia

KRYPTONITE BIKE LOCK COMPANY

  • Founded 1972
  • Bike locks were substantial improvement over locking technology
  • Typical lock $50

ISSUES

  • 2004 Video "how to" open lock using Bic pen
  • Story demonstration moved to other media
  • Unexpected public relations firestorm with potential customers
  • Company became benchmark of failure to respond to criticisms
Video made by bike enthusiast, Chris Brennan

Company's call to action became slow
Photo by IvyMike

GOALS AND STRATEGIES EMPLOYED

  • Comprehend
  • Converse
  • Connect
  • Convert
Kryptonite will...

Comprehend by listening to customer to understand how to fix the problem.

Converse by coming up with a solution for existing customers.

Connect with published judgement about the company's response.

Convert by explaining about their crisis management to their listeners.
Photo by utnapistim

CALL TO ACTION

  • Announced lock exchange program
  • Contact authors of Naked Conversations
  • Set record straight to social media about their crisis response
Because of the video spreading to potential customers, the company Comprehended by listening and engaging to fix the problem in a professional manner.

The company Conversed by announcing a lock exchange program with existing customers to fix the lock's vulnerability.

The company's head of public regulations, Donna M. Tocci Connected with the authors of Naked Conversations to set the record straight about the company's example of what not to do in the face of a crisis.

The company Converted by telling the authors about their crisis management that the only response the company would have done differently would have been posting to the website earlier. They couldn't have done anything else other than that.

RESULTS

  • Lock exchanges made weeks later
  • Kryptonite still followed by negative publicity
  • Accusations of the conflict unaware until reached to national media
  • Experience changed the way Kryptonite will approach social media
Kryptonite still followed by negative publicity by the Bic-picking scandal. Search engine results still show videos of how to defeat a Kryptonite lock using a pen. Instead of researching the conflict is resolved, some customers leave with the impression that the conflict hasn't been dealt with.

Experience changed the way Kryptonite will approach social media in the future.
Photo by FutUndBeidl