How to Lose Loyalty in 10 Days: Lessons from the Facebook Fiasco

This month marks my first Facebook-less month. Like more than 35,000 other users who have signed up to do so, I closed my Facebook account on May 31. For someone like me who rarely participates in movements of any kind, Facebook has elicited in me an usually intense negative feeling. This has not always been the case, however. I had started as an early adopter of Facebook, partially due to the privilege of having a .edu email address as a university professor. In those early days, I was an avid advocator of Facebook and marveled at the revolution it would bring to the social landscape. What happened then? In a few years, I had turned from a Facebook lover to a Facebook hater. Reflecting on my own journey, I realized that there are important loyalty lessons here for businesses to learn.

Quit Facebook Day

Don’t Forget Your Roots

Like many media companies, one unique aspect of the Facebook business model is that the end users of Facebook are not the same people who pay the bills for Facebook. Facebook started as a social network intended to connect people and eventually grew into a business model deriving revenues from advertisers. Nobody blames Facebook for wanting to make money. After all, it is a business and it has to make money to survive. What Facebook did wrong, however, was to make every business decision based on money AND at the cost of its roots, the millions of end users. Continue reading “How to Lose Loyalty in 10 Days: Lessons from the Facebook Fiasco”

Real Life Disappointment with Second Life — the Sequel

My previous blog documented my disappointment with Second Life’s public relations. Here is an update on the situation. The day after my blog appeared, I received both a voice mail and an email from the lady at Lewis PR (her name should have been Kristin, not Christen as I had thought at the last writing). According to her email, she had attempted to send the requested information to me via two emails. But I assume both emails were lost in transition, because they were not in my inbox or junk folder. When I called back to Lewis PR, someone did pick up the phone this time. When I said my name, he was apparently aware of who I am. He sounded courteous and helpful on the phone. Since the information that was sent to me was already something I knew and not quite what I had hoped for, he even told me that they would consider putting the information together internally, as it would be eventually useful for the company itself as well.

Overall, I am glad that the situation was resolved successfully. I had heard about the power of customer complaints on the Internet. In fact, a fellow blogger and PR specialist Michelle Rogerson had documented such a situation with PBWiki. But it is not until I have experienced it personally that I truly feel and believe in the power. So what are the lessons learned from this whole event?

  1. As Rogerson’s blog pointed out, a company should actively monitor the blogsphere (and I would add the websphere in general) for customer opinions. They are very valuable market research information that has been enabled by today’s participatory Internet.
  2. Ignoring negative feedback carries grave consequences. But dealt with properly, negative feedback can turn around and become a blessing to a business. This is analogous to service recovery in the services research literature. No one is expected to do everything right 100% of the time. If recovered properly, a service failure may actually lead to higher customer satisfaction.
  3. Email as a communication channel can be unreliable sometimes. Therefore, for important customer/public requests, companies should follow up through other channels of communication (online or offline). This would help avoid ill-will and negative word-of-mouth from happening in the first place.

Real Life Disappointment with Second Life

A recent real-life encounter with Second Life turned out to be a big disappointment. For an academic research project, my co-author and I were looking for a list of real-life brands that have a presence in SL. The natural point of contact seemed to be SL’s press inquiries: Lewis PR. Being a geek, I tried email first. More than a week (or a year by Internet standard) went by, and no response. So I digressed to the more traditional way of telephone. Luckily, I reached a lady named Christen from Lewis PR. After explaining the situation to her, she said she would send me something related to what we were looking for. I was reaching the point of happiness and almost convinced myself that telephone is the tool to use when you really want to get things done. But not so fast! A few days later, I still did not receive anything from Christen. I called again, afraid that she might have written down the wrong email address. I only got her voicemail and left her a message with my email address and multiple phone numbers. After another few days, it’s still dead silence from the other end. Repeated calls to the contact number resulted in nothing but her voicemail (this is the curse of Caller ID technology).

It makes me wonder: is an academic project too ivory-towerish to deserve proper attention from SL or Linden Lab (the company behind SL) or Lewis PR? I did mention to the lady that the project will eventually turn into a journal publication. Is that not worth the same efforts as compared to, say, a prominent article in New York Times? I teach Integrated Marketing Communications (IMC). One of the main principles of IMC is that no matter whom a firm is communicating with, whether it is customers, internal employees, or the general public, the firm should always keep a consistent brand image. The fun and cutting-edge image of SL in my mind certainly does not match up with the disappointment and ill-will I felt during the recent encounter.

Ironically, the following quote from the SL marketing team was featured prominently on Lewis PR’s front page:

“It really does feel like our marketing team has four more members — I sometimes almost forgot that the LEWIS team isn’t actually part of the Linden Lab.” — Catherine smith, director of marketing and brand strategy, Linden Lab

Maybe that is the reason why we did not hear anything from Lewis PR. They are spending too much time functioning as Linden Lab internal employees and not giving enough attention to real-life external audiences…PUBLIC relations. Alas!