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5 Reasons Why Ignoring Negative Social Media is a Career Ender for a VP of Customer Service

01 Tuesday Nov 2011

Posted by Paul Kiser in Business, Communication, Customer Relations, Customer Service, Public Relations, Social Interactive Media (SIM), Social Media Relations

≈ 4 Comments

Tags

Blogs, Facebook, Foursquare, Netflix, Twitter, United Airlines, Yelp

USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

Despite the overwhelming evidence of the impact of Social Media on the perceived public image of a business, many Customer Service (CS) and Public Relations (PR) executives still handle negative Social Media (blogs, Facebook, Twitter, Foursquare, Yelp, etc.) by ignoring the bad publicity. One can only marvel at the rationale of an executive team in the 21st century, which believes that avoidance behavior of PR problems in the Social Media environment is the best policy.

I would suggest that there are four reasons for this philosophy, which are as follows:

Bad Social Media PR is Bad for Business

  • An outmoded understanding and/or denial of Social Media and its long-term impact on the company’s public image.
  • A belief that negative statements in the Social Media have no cumulative effect and that they will disappear over time.
  • An arrogance by the executives of a corporation that they control their public image by what they say and do and by the money they spend on advertising, not by what individuals outside the company say about them.
  • A belief that by giving attention to someone with a complaint about their company will cause more problems and possibly force the company to admit to their stupidity.
There are five reasons why ignoring negative Social Media is a bad idea and why the CS and PR executives who follow this policy have an expiration date on their careers:
  1. A negative Social Media comment is forever. It doesn’t fade and it doesn’t go away.
  2. A negative blog can and will be found by any Google search of your company. Why would a CS or PR executive let people who search for their company be exposed to everything said by the people who hate you?
  3. Bad comments on Social Media are cumulative. When someone is mad at your company they will search to find other people who feel the same way, and then you have a movement of people who are united against your company.
  4. Waiting to address bad publicity only makes a company look like they are hiding something when they finally do publicly address the issue, which is a lose, lose, loser in damage control.
  5. Once a company wakes up and realizes that ignoring bad PR is a stupid idea, how long will the implementor of that policy have before the company seeks someone who is smarter about handling negative Social Media?

A negative Social Media comment about a company is an opportunity. Everyone knows that major corporations are monitoring the Social Media, so when someone makes a negative comment they know that someone in the company is reading it. A company that contacts the author of the complaint to show concern will, at the very least, prove that the company appreciates its customers. By, 1) addressing the reason for the complaint and, 2) making some tangible effort to offer a reward to the person for bringing the issue to the company’s attention, the complainer will likely become a positive voice for the company’s public image and may even delete the negative blog or comment.

Companies, and their executives, who fail to address negative Social Media comments are risking their future. Netflix and United Airlines are just two examples of corporations that have done too little too late to address public image issues in the Social Media and they are paying the price. How many companies have to become a joke to their customers, investors, and the public before they realize the mistake they are making by ignoring Social Media?

Netflix Member Since 2007…No More

08 Saturday Oct 2011

Posted by Paul Kiser in Business, Communication, Customer Relations, Customer Service, Ethics, Public Relations

≈ 2 Comments

Tags

DVD, DVD Rental, Media, Netflix, price increase, Qwikster, Reed Hastings

USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

I lied today. I had to lie. Netflix gave me no choice. Today I canceled our Netflix membership and afterward they ask me why I was canceling. All the choices for why I was canceling were designed to avoid identifying the real reason I, and one million other former members, have quit. We don’t want to be victims of Netflix investors anymore.

I would have said so in their survey, but Netflix doesn’t even give an ‘Other’ option. That tells me that they don’t want to hear why people are really quitting. I can understand why. It’s easier to tell your investors that every customer is asked why they quit and none of them said, “because you screwed me”…or some more appropriate answer that clearly identifies the unacceptable aggressive profiteering decisions made by Fortune magazine’s 2010 Business Person of the Year, Reed Hastings.

So Long Huckster!

On September 18, Hastings made a rambling, PR spun statement that sort of acknowledged the growing customer anger at Netflix, but then put the blame on the customers. Basically Hastings said that, yes, my monthly service fee was increased over 40% in nine months, and yes, the included streaming video service became an extra fee, and yes, the main supply of premium movies, the Starz Network, has pulled the plug on Netflix, but it was all a big misunderstanding…by the customer. Had he (Hastings) just explained he was going to jack up the fees and split up the service for an extra cost beforehand, all of us silly customers would be happy.

I’m not happy and it has nothing to do with Netflix’s communication skills, or lack thereof. Dramatically increasing prices in the 2011 economy not only shows incredible arrogance and insensitivity, it demonstrates that Hastings and Netflix is completely investor focused. He is positioning the company for profits and corporate bonuses and let the customer be damned. My guess is that the ‘apology’ was geared to appease investors when Netflix stocked tanked a couple of weeks earlier after Starz jumped ship.

I would expect that the next shoe to drop is downsizing. Less customers service, longer DVD turn arounds, and poorer customer service as Netflix looks to shore up profitability by cutting labor costs. Greed is good, and when you’ve sucked the customer’s goodwill dry, then you sell the company. This is a good time for customers to divest their interest in Netflix.

Reed Hastings has the last laugh. When a customer quits Netflix, they cut off service immediately….even if the customer has paid for the next month, so congratulations Mr. Hastings, I guess that makes you the winner.

Original article first published as
Netflix Member Since 2007…No More
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