It took 18 months, hundreds of billions of dollars in Federal loans and a Gallup poll that found consumer confidence in financial institutions at the lowest level since the poll began asking the question 34 years ago, to have banks get into gear and do something about their much-tarnished public image. Apparently the wheels turn slowly with financial institutions…

Here’s how it went: financial institutions continued their staid and true messages of stability and longevity for the first few months of the financial crisis; this was followed by “no message is the best message,” clearly a stance that never works; then messages slowly evolved into a defensive blame game, which quickly turned around into rounds of apologies; and now, finally, recognition seeped in that something needs to be done about re-building public trust of their industry.

It took 18 months and the public remained indignant.  Just consider the arrogance of it all…

According to Nathaniel Popper’s report in the LA Times, some banks are now forging new ground in connecting to the public. The surge in marketing has taken banks into uncharacteristic new territories. Bank of America has staffers responding to customer complaints via Twitter; banks such as Citigroup and Bank of America are having their respective CEOs trotted out to make personal appearances at individual bank branches; uplifting ad campaigns are launched such as Citigroup’s, in which CEO, Vikram Pandit says, “It’s clear that we made some mistakes coming into this environment, and we have to acknowledge that.”  Bank of America has actually moved away from same old traditional ways by adding a new website that centers on public perception of the bank, rather than products or services.

But nothing has really begun to pierce the intense public anger.

Although the recent moves reflect a recognition that a different approach is needed to contend with the public’s ongoing outcry, I project it to be a long road ahead.  For example, just last week in my blog of February 24, titled Chase Bank – The Latest Poster Child For Customer Service Ills, I noted that customers calling the Chase #800 number were getting the same old run around, without change, in their search for a solution to their query.  Announcing management, operations and staff changes, as did Citibank and Bank of America, is not sending any message.  It is simply news and not likely to tweak up the trust factor until the news evolves into a positive result.

Public Relations counselors would do well to encourage financial institutions to take a page out of the original Community Reinvestment Act passed in 1977 (which requires banks to lend in the low-income neighborhoods where they take deposits) and become active in neighborhoods in which they do business, where they would be seen as partners in rebuilding communities. They could also send a strong message of “caring for a community” by taking an active interest in community education; behave as leaders in the communities by partaking in city councils; and become conversant with customers on social media networks. Investing resources into such a program would “buy” them the much-needed trust — sooner than later.

As a direct example, the Los Angeles Unified School District is in deep financial trouble.  Just today it announced a 4,000-teacher/staff/administrator layoff. The implications to the future of education of children are disturbing.  Would it not be a great slot for any of the bigger banks to fill?  What a hero the bank would be…

I have to add that I take exception to the quote in the LA Times report of CEO of Financial Marketing Solutions, Tim Pannell saying, “We need some really genuine, believable pathos — look you in the eye and say, ‘We acknowledge the troubles, we understand maybe we could have done things differently’.”

Pathos may make everyone feel better, but actual customer engagement will effect a change.

You do not want to be Chase Bank these days.

It has just suffered a public humiliation by a single customer whose several requests for negotiating overdraft fees went unanswered by Chase and who, despairing at the lack of response, resorted to waging a YouTube war against Chase’s customer service — or better yet, lack thereof.  In a You Tube video (watch below) Chase was called – evil.

It’s the classic tale of David winning over Goliath, a real vindication for all of us who have, at some point, been rendered completely helpless in trying to solve a need or problem whether banking, retail, warranty or other, via an 800 number, that then asks us to punch in number after number only to get more and more recorded messages that finally leads us to a “thank you for calling, goodbye,” message, without ever solving the problem in the first place.  Or, if lucky, you can leave a message for a supervisor knowing full well that chances of a return call are about the same as becoming famous overnight.

Chase can take an example from companies on the edge of consumer trends that have begun to equate social media with customer service. Those companies ‘get’ that today’s customers view social media as a communication tool for dealing directly with a company’s customer service and have created a platform for dealing with each, in real time.

But it’s not only about Chase.  Southwest got hit recently when film director Kevin Smith tweeted that the airline kicked him off a plane because he was too fat, a photo of which subsequently landed in the mainstream print and broadcast media.  Happily for Southwest, its blog, Nuts for Southwest, addressed the news story giving it a social media bullhorn in which to respond.  But the company did have to publicly apologize.

Clearly, a well-oiled company’s social media effort like Ford’s, does not wait for ignored customers to vent, offering a platform for interaction where the customer can get heard.  In other words, they have “invested” in online conversations with their customers.  Ford also understands that social media is threading its way through not only marketing and sales, but also through research and development and, most importantly in this case, customer service departments.

And then there is Comcast that “invested” in online live chats with a Comcast service representative allowing for an open forum, as well as its online community forum, where customers can get answers from fellow Comcast customers and moderators.

Another company that understands this is Best Buy.  In my blog of July 8, 2009 titled, “Sales, Service And Twitter, An Ideal Threesome” I wrote about Best Buy’s Twelpforce, which was launched on July 19, 2009 with a 500 person sales team that was to engage with consumers by Twittering away, entering into 140-character conversations with those who are both consumed with consumer electronics as well as those who needed answers to product uses or other questions. Best Buy had basically made a “pay forward” move, which now, eight months later, has the service humming away with happy customers.

The Chase video is yet another example of how social media has put the power to undo companies’ reputations in the hands of customers. Not bothering about customer care today is akin to loosing loyal customers tomorrow.  It takes people to react to people…

Recorded messages and 800 numbers are so yesterday.

The story of why a now ex-New York Times business reporter succumbed to plagiarism goes beyond “accidental plagiarism,” as Zachery Kouwe, a 31-year-old business reporter that writes The Times’ Deal Book called it. The public counts on a professional journalist to know better than to lift somebody else’s words and use them as his/her own, more so when it comes from a reporter of the venerable and trusted New York Times.

Anyway, as we all know from the media’s outrage, Kouwe read the signs really well and “resigned” just before he got shown the “door.”

Kouwe’s quite public exit from the Times, certainly rang a warning bell, not only to journalists but to casual bloggers as well, to take note that the driving need to fill uncountable blogs with millions of words, has created a culture of acceptable re-purposing, re-hashing and re-telling of the news from every which angle, in other words, a culture where ‘accidental plagiarism’ can easily happen.

The incident has certainly caused a moment of reflection, forcing a re-evaluation of what is being said, and in whose words it is being said, and for what purpose. I bet every blogger will go back and do some checking…

But what is not acceptable is Kouwe’s comment in an interview with The Observer in reference to the accusation that he had plagiarized in which he said, “I was in complete shock,” and “I was as surprised as anyone that this was occurring.” His lame excuse — that he writes approximately 7,000 words every week for the blog and for the paper and that given the mounds of reporting he does, something is bound to fall through the cracks as he peruses press releases, earnings reports and court documents for his reporting. Which goes directly to my point of the desperate need to fill blogs with whatever…

Here is the funniest mea culpa I have ever heard. A professional journalist that can actually say, “I thought it was my own stuff,” and “it somehow slipped in there.”

Somehow? I think that most journalists know better than Mr. Kouwe that a cut and paste job is never acceptable. But I would advise bloggers who are not held to the same high standards of journalists, that they better slow down, think more as to what to write and maybe choose to write less — and stick to their own words.

Photo by Getty Images.

The first time that Pepsi elects to forgo its past 26 years of advertising on the Super Bowl and selects to spend $20 million for a massive multi-channel interactive social media campaign, it collides with the Annual Trust Barometer from Edelman PR, which reports that peer to peer trust has surprisingly waned in favor of more credible sources.  Not that, at first glance, one has anything to do with the other, except that just when viral marketing seems like a smart strategy, smarter than even Super Bowl advertising, the Trust Barometer’s survey results show that trust in friends and peers as credible sources has dropped by almost half, from 45% to 25%, in the last two years.

And the parameters of the Pepsi Refresh campaign is all about the populous votes of “friends and peers” who will decide as to which ideas or projects Pepsi should fund in grant money in six categories: health, arts and culture, food and shelter, the planet, the neighborhoods and education. It will be the people’s choice as to which of the 1000 ideas submitted are to receive grants that range from $5,000 to $250,000, figures not to be taken lightly.  And the criteria for voting is exactly — what?

How does that work?  “Oh this is cool, I think I will vote for this.” Click. Or, “My boyfriend is really into bands, so I think I will vote for that.” Click.  How about, “I’ll feel good if I vote for the local health clinic.” Click.  Some ideas submitted are more political as in “Help free healthcare clinic expand services to uninsured in rural Tennessee (TN).”  Click.  (I live in rural TN.)  Or I live in Kansas so I vote for, “Build a fitness center for all students in Hays, Kansas community.”

Click. Click. Click.  “And the check goes to…” Every month, Pepsi will award up to 32 grants to projects voted on by the most clicks.

By all accounts the “ Pepsi Refresh” initiative is everything that an ideal interactive campaign can be – creative, innovative, highly engaging and very popular, while building on the brand in a fun and social way.  But I venture to say that the challenge that Pepsi faces, and that other companies are bound to also face, as they delve deeper into social media’s ever-expanding communication opportunities is that at some point, critical thinking will matter.

Look, the “Pepsi Refresh” program should be nothing like an American Idol segment where voters root for the next star just because they “like.”  Nor should it be like clicking on “like” on a photo or comment on Facebook.  In creating a program that allows a populous vote to decide on grants, votes that can make a difference as to whether a school’s music program gets funded or whether an elder care facility expands its programs, Pepsi’s challenge is to go against the very fiber of social media’s whims, set a criteria upon which they can deliberate, and turn the populous vote into a credible one.

Failing that, it is but a game — one that is being played out with a lot of money, with no sense of fairness and with little trust in the voters’ selection.

Any serious and worthy projects submitted should not mistake it for anything else.

As if Toyota does not have enough troubles, along comes Secretary of Transportation Ray LaHood…

Apparently, during testimony before a Congressional panel Secretary LaHood was asked as to what guidance he would give to Toyota owners affected by a series of recalls.  Not one to ever mince words, reminiscent of President Harry Truman’s folksy style, LaHood said, “If anybody owns one of these vehicles, stop driving it. And take it to a Toyota dealer.”

Feels like sound advice to me.  You better believe it that if my car had the possibility of brake troubles the only driving I would do is to the dealer.  Toyota itself has urged drivers of recalled cars to do so.

But unfortunately the media heard only three words –“stop driving it” and a PR storm erupted as those words, now out of context, ricocheted over the airwaves, print publications, news wires and Internet, unfurling an all around  “hissy fit.” Toyota expressed “dismay,” and the Chief of Staff at the White House, Rahm Emanuel, felt obliged to come to Mr. LaHood’s defense, saying that “the President thinks Ray’s been a great secretary,” and adding that “when the Secretary misspoke, he immediately realized he’d said it.”

Misspoke.  LaHood did try to modify his words, saying “What I said in there was obviously a misstatement,” adding that he meant to say, “If you own one of these cars, or if you’re in doubt, take it to the dealer.”

Sounds like semantics to me.  Same message, softer edges…

In any case, this has once again made the case for being scripted in the first place – and sticking to it.

Look, as communication professionals, we agonize about the possibility of a client breaking with carefully crafted messaging that is painstakingly dissected for any potential risks. In the case of LaHood, being in the position of transportation authority, the risk of going “off message” is that his words can further damage the already tarnished Toyota image with consumers and be “officially” seen, per his position, as escalating fears of safety causing even the White House to issue a statement of confidence in the Secretary.  But, damage done.  Backtracking rarely works.

Here’s my advice: change the old adage of “Think before you speak” to “Read before you speak.” Helps to stay on message…

Visit msnbc.com for breaking news, world news, and news about the economy

Today, the agency introduces a new channel on the corporate blog called “Digital Trenches,” which will feature tactical suggestions and guidance on trending digital communications and marketing topics including search optimization, social media, mobile marketing, online media and the blogosphere.