The Redbox price increase: a different story

In some instances, there are clear benefits to being the second to do something. In the instance of the recent Redbox price increase, Coinstar (the parent company of Redbox) benefited from Netflix's missteps.

Here are some differences in how Coinstar communicated its recent price increase:

• Shifting of blame: Who better to blame than the pariah of the day -- banks? Coinstar said that "rising operating expenses, including new increases in debit card fees" was the main reason behind the rise in prices.
• Relatively minimal percentage increase: Coinstar increased prices by 20 percent, compared to the up to 60 percent increase that Netflix imposed. Coinstar also kept daily rental prices intact for Blu-ray Discs and video games.
• Smooth transition: From Oct. 31 to Nov. 30, the Redbox DVD rental price stays at $1.00. Additional rental days are $1.20.

While Coinstar's stock slumped 7 percent in the day following its price increase announcement, I doubt that there will be the same impact on business that Netflix has suffered.

Tips on engaging in social media in regulated industries

Because social media moves at the speed of a tweet, it can be downright difficult for organizations in regulated industries such as financial services or healthcare to participate effectively. With some planning and incremental steps, though, successfully participating in social media can be a clear reality and success.

Here are some tips on engaging in social media in regulated industries:

1. Start by listening. Listening to social media conversations does not break any rules or regulations, and provides insight into trends of topics.
2. Develop cross-organizational support. Obtaining buy-in from departments ranging from legal to compliance to IT can smooth the road to social media engagement.
3. Prepare key messages ahead of time. Just as in the preparation of talking points for traditional media, having key messages approved in anticipation of specific topics will allow quick social media responses.
4. Develop accelerated approval times. Social media moves at the speed of a tweet, yet content needs to go through appropriate approvals – just faster.
5. Train your organization. From executives to day-to-day contributors, provide an education on the importance and intricacies of social media.
6. Remember that social media is a casual dialogue. Stilted language is out of place in social media. To comply with regulatory language requirements, consider linking to disclosures from tweets.
7. Move beyond numbers in measurement. Numbers can provide some insight, but more meaningful indicators of success include consumer sentiment, engagement (comments and feedback), and development of new business relationships or the expansion of current ones.
8. Develop a social media policy. Having a policy in place that includes the dos and don’ts of participation will make all stakeholders more comfortable. For instance, The Financial Industry Regulatory Authority requires that firms keep records of all communications on social media sites by their registered representatives and that those who participate in social media are properly trained and supervised. And to comply with the Health Insurance Portability and Accountability Act, employees in the medical industry need to be sure not to reveal patient information.

These tips are from an article that I wrote with Jared Roy for PR News Digital PR Guidebook, Vol. 3. Read the full article.