One of the core functions of a business or any other organization for that matter is the ability to communicate with stakeholder and the public, and “stakeholders” don’t get much bigger than your customers, who invest their time, trust and resources to consume your product and keep you in business. Nigerian businesses often treat this core organizational function, that is even more so in today’s influencer centric era, when Social Media is the primary means of information dissemination. Long gone are the days when people had to wait for the morning newspapers and night news to get information, information dissemination is now instant and people driven, which means that companies can no longer afford to leave the job of communicating their business to chance, believing that a couple of press releases and rejoinders here and there will fix any attempted damage.
Erisco Foods Ltd, a prominent Nigerian food processing company, recently found itself embroiled in a public relations nightmare that sent shockwaves across the nation. The controversy stems from the arrest of a female customer, Chioma Egodi, who gave a negative review of one of the company’s products, Nagiko Tomato Mix 1, via a post on her social media platform. What should ordinarily have been a minor customer complaint snowballed into a full-blown crisis that has ignited a firestorm on social media, leading to calls for a product boycott and legal intervention by regulatory bodies.
While this is still a developing story, with threats and counter threats to sue and be sued from Erisco and the customer in question, the issue represents a broader cultural issue in Nigeria and how certain authority figures have not fully evolved mentally to the new normal.
An Innocent Social Media Post and an Arrest
The incident began when Chioma Egodi, a dissatisfied customer, took to social media to express her disappointment with Erisco Foods’ Nagiko Tomato Mix 1, sharing her negative experience with the product, alleging that it did not meet her expectations, due to excess sugar content. In a rather swift reactionary move Erisco Foods’ CEO, Chief Eric Umeofia got her arrested by the Nigerian Police and transferred to Abuja.
The social media backlash was swift and fierce, with outraged Nigerians expressing their displeasure over the company’s actions. The incident gained significant traction, with the hashtag #BoycottErisco trending on various social media platforms. The Federal Competition and Consumer Protection Commission (FCCPC) confirmed Chioma Egodi’s arrest, further amplifying the public’s anger, with FCCPC Director-General, Babatunde Irukere, making it clear that they would take necessary actions to protect consumers’ rights and maintain their reputation.
A Counter Reaction
In a move reminiscent of trying to lock the farm gates after the animals have fled, Erisco foods tried to salvage the situation when their CEO appeared on a national TV station to try and clear the air. Chief Eric Umeofia, Erisco Foods’ CEO, accused a powerful syndicate of orchestrating a “false and malicious” social media campaign against his company, claiming Egodi was actively working to destroy his business. However, this counterattack only added fuel to the fire, as it was seen by many as an attempt to deflect responsibility and evade accountability.
Effective Crisis Communication Strategies
The Erisco Foods Ltd controversy serves as a stark reminder of the importance of effective crisis Communication in managing and mitigating reputational damage. The crisis also bears the hallmarks of typical Nigerian cultural relationship with authority. Traditional Nigerian society, with its hierarchical and monarchical structures, which ascribes near absolute respect for authority figures, is almost unrecognizable compared to the one in which the urbane and ‘woke’ GenZ live in.
Rather than the reactionary track it chose, Erisco could have better managed the situation, by being more proactive and less defensive in its communications. The average Nigerian business is yet to come to grips with the fact that the present influencer driven communications landscape, means that marketing and communications is a core function of production not an afterthought while trying to gain market share. The business world has moved out of the ‘production push’ model where companies produced and pushed their products on the market, to a ‘demand pull’ model where the customer has taken his place as king.
The most dominant companies in the world today are those that have come to understand that customer needs are core of the product development and distribution. The likes of Amazon, Google, Apple, Microsoft, Facebook and Nike have achieved world dominance by developing distribution models that incorporate communications with the customer to give them insights into the minds of the customer. Customers are converted into fans and evangelists that help to spread the gospel of these brands to other customers.
Erisco could have done better, but their reaction reflects the norm rather than the exception among Nigerian businesses. Only few Nigerian entrepreneurs are able to transition from what I like o call a ‘practitioner/owner’ mindset to become Chief Executive Officers, working on their business rather tan in the businesses. The job of the CEO ought to be about building a brand that consumers can trust so much so that they become advocates thereof rather than chasing imaginary syndicates out to destroy their businesses. A CEO would have known that it is sacrilegious in today’s world to push a product without building anticipation in the customers through education and communication on what sets the brand apart and how it fits into the aspirations of the individual customer for a better life.
In a world where popular Youtuber “Mr Beast” owns a two-year-old chocolate brand that sold 100million bars of chocolate, Nigerian brands must evolve to participate in the conversations happening in the minds of the customer rather than trying to force feed them a narrative that would not have been needed if they were forthcoming in the first place. An effective communications strategy, peopled by professionals who understand the language currency of the day, is no longer a luxury but a necessity. A savvier communications team would have saved Erisco the weak attempt to push a narrative of noble intentions to save the Nigerian economy, which gained it no meaningful traction. The company could have turned the original post into marketing mileage, assuming they had failed to put in efforts to educate the market before introducing the product.
Todays customer is not interested in making a few already rich people richer in the name of “local production”, they are interested in being part of a community and culture where certain products and services help to enhance their experiences of the world in full colour. Monitoring customer sentiment is no longer a side dish in the customer experience serving but the main course. Companies must mine social media to know how their offerings are perceived by the market to help them make improvements in how they are produced and distributed. Customer is no longer just a department in companies, but the primary duty of every single member of staff from the security man at the gate to the man on the factory floor and even those who go out to interface with the market.
The Erisco Foods Ltd controversy serves as a cautionary tale for companies on the importance of handling customer complaints and crises with sensitivity and professionalism. In today’s digital age, where information travels at lightning speed on social media, missteps in crisis communication can have severe consequences. By adopting a proactive, customer-centric approach to crisis management, companies can better protect their reputation and rebuild trust with their audience. You cannot alienate the very customers your business is meant to serve and then run for cover under import bans and government interventions that do not engender competitiveness, limiting their growth potential and speed in a globalized world.
Basah Mohammed is a Communications and Business Development Consultant and CEO of Brandswift Nexus.
The post Navigating A Communications Disaster: The Erisco Foods Ltd Controversy -By Basah Mohammed first appeared on Opinion Nigeria.
