… Ecommerce, Internet Security, Economics, and Entrepreneurship

Author: stevewoda Page 7 of 13

Poor customer service goes viral

It should be obvious in a day and age with the Internet, YouTube, HD and video cameras, that poor customer service can be very costly to a company.  However, some of the old dinosaurs are a bit slow on the take.  This entertaining music video, “United Breaks Guitars”, was produced by a country singer who had a terrible experience on United Airlines.

[youtube=http://www.youtube.com/watch?v=5YGc4zOqozo&w=560&h=340]

As I watched the video, I couldn’t help but do a bit of math on the implications of such a viral production.  At the time of this blog post, more than 2.5 million people had viewed this music video on YouTube, and the bottom-line is that these 2.5 million people invested more than 11 million total minutes watching a negative message about United Airlines.  That is the same as 22 million 30 second commercials.  That is some serious negative PR!

I enjoyed the song and the video, and I can honestly say I will have a hard time getting the tune (and the message) out of my mind next time I have to consider United Airlines for a flight.  I am sure that at least half of the people that watched the viral video will have the same image stuck in their heads when they have to make a choice between United and other airlines.

Companies clearly have to get serious about treating their customers like gold, and this needs to start at the top of the organization and filter down to each and every employee.  In the video, Ms. Irlweg, a normal United employee, is singled out as the person that made the final decision on whether to solve this customer’s problem.  Today, she is infamous because of this video, and her decision turns out to have been pretty costly for United Airlines.

I recently purchased an Apple computer, and after a month or two, I had a tech problem.  I brought it into the Apple Store, and within 10 minutes, I walked out with a brand new laptop (with my old hard drive swapped into it).  The problem Apple fixed, for free and in minutes with a brand new laptop, was the type of problem that would have taken me a week to get fixed with Dell.  I was floored!  I could not believe the awesome customer experience from Apple, and at that moment, I officially converted to an Apple fan.  I have literally told everyone about the experience since that amazing customer service experience.

Although it was initially expensive for Apple to solve my customer service problem, I am 100% sure that their investment in me will pay off many times over in the coming months and years because of the positive word of mouth it created.

I am betting that this singer’s negative video on United Airlines will ultimately cost the company hundreds of times what it would have cost to simply solve this customer’s problem.  Can you imagine if United had solved this singer’s problem quickly,
without hassle, and with a smile?  What if they had surprised or
shocked him with their amazing customer service?  Perhaps he would have written a different song. “United Loves Guitars” has a much better ring to it.

links for 2009-07-11

  • The Obama administration is developing an initiative to take money from the $700 billion program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan.
    The new effort — which would represent a striking shift from the rescue program’s original mandate — would direct billions of bailout dollars toward a program that aims more at saving jobs than righting the financial system.
  • Here they are:
    1. We see a lot of ideas, all the time, week in and week out. Most say, if you make an investment in our company, we’ll really be able to make progress on all fronts. Some say, we haven’t had much money to date, but look at what we have been able to achieve with little money in a small amount of time. People that can make progress without money tend to be the ones who make the most progress when they have money.

links for 2009-07-09

  • Over the last decade we have generated new names for hundreds of companies, products and services. Here are some of the shortcuts, thought-starters and mental prods we’ve observed along the way.
    (tags: Brands naming)
  • In a ruling that could fuel debate about online privacy, a federal judge in Seattle has held that IP addresses are not personal information.
    “In order for ‘personally identifiable information’ to be personally identifiable, it must identify a person. But an IP address identifies a computer,” U.S. District Court Judge Richard Jones said in a written decision.
    (tags: security)

links for 2009-07-06

  • t Internet Retailer 2009 in Boston, TheFind announced that it is integrating the VeriSign Secured Seal into their search results. TheFind – who delivers a comprehensive shopping search engine with over 350 million products from more than 500,000 stores – is the first search engine to address online shoppers’ need to trust merchants by incorporating the VeriSign seal directly into its search results.
  • A federal judge on Thursday tentatively threw out the convictions of a Missouri mother for her role in a MySpace hoax directed at a 13-year-old neighbor girl who ended up committing suicide.
    U.S. District Judge George Wu said he was tentatively acquitting Lori Drew of misdemeanor counts of accessing computers without authorization.
    Drew was convicted in November, but the judge said that if she is to be found guilty of illegally accessing computers, anyone who has ever violated the social networking site’s terms of service would be guilty of a misdemeanor.

links for 2009-06-30

  • After weeks of anticipation, Google is finally accepting a limited number of new users into its Google Voice phone system. Google Voice allows you to unite all of your phones under a single number and then use a powerful set of controls to determine how calls are handled. It packs plenty of other impressive functionality, too, including voicemail-to-text transcribing and advanced call-screening.
    (Check out PC World's review of Google Voice)
    At the same time, though, adopting Google Voice as your communications commander introduces some potential negatives, ranging from privacy-related concerns to questions about reliability. Here's a breakdown of five pros and five cons to help you determine whether the service is right for you.
    (tags: google voice)

links for 2009-06-27

  • The Internet agency with key oversight of the monikers behind every Web site, e-mail address and Twitter post named former U.S. cybersecurity chief Rod Beckstrom Friday as its next chief executive.
    The board of the Internet Corporation for Assigned Names and Numbers approved his hiring in a voice vote Friday as ICANN capped weeklong meetings in Sydney, Australia. Beckstrom becomes CEO next Wednesday.
    Beckstrom, who had resigned after less than a year as cybersecurity director amid persistent turf battles, brings credentials in industry, government and diplomacy — but little direct experience with domain names and broader Internet addressing issues, ICANN’s chief mission.
    (tags: domains icann)
  • Why do Americans need to attach creation myths to everything, including the origins of our most visible business ventures? We idealize the lone inventor over the company man, the garage over the office space. We tell the story of Apple Computer not as that of two former Atari and Hewlett-Packard employees launching their own product, but two starry-eyed inventors in a garage, building a dream from scratch.

links for 2009-06-25

  • According to its advocates, cloud computing is poised to succeed where so many other attempts to deliver on-demand computing to anyone with a network connection have failed. Some skepticism is warranted. The history of the computer industry is littered with the remains of previous aspirants to this holy grail, from the time-sharing utilities envisioned in the 1960s and 1970s to the network computers of the 1990s (simple computers acting as graphical clients for software running on central servers) to the commercial grid systems of more recent years (aimed at turning clusters of servers into high-­performance computers). But cloud computing draws strength from forces that could propel it beyond the ranks of the also-rans.
    (tags: Cloud)
  • While Twitter and YouTube have proven strategic for election protesters in Iran, the US Defense Department is “way behind the power curve” on social networking, Defense Secretary Robert M. Gates said last week. Military leaders need to get on Facebook and other social networking sites themselves, to learn how they’re used firsthand.
    “How do we communicate better with [young people]?” Gates asked. “How do we get reactions from them to things that we’re doing? How do we get better plugged in with what they’re thinking?”
    The answer to those questions, in Gates’ view, is to harness social media to enable DOD reach out to the world.

links for 2009-06-23

  • Tuesday is the day for release of the free public beta of Microsoft Security Essentials, Microsoft's security and anti-virus suite. The price is certainly right. Question is, will the program change the security landscape? Bigger questions is whether or not it provides the security your business needs.
    The new security and anti-virus suite, Microsoft Security Essentials, formerly known as Morro will be available for public download tomorrow.
    Assuming Microsoft's servers survive the demand, this beta, which replaces Microsoft OneCare (which wasn't free), should answer questions about the program's anti-virus and general security viability pretty quickly. It's hard to imagine that that this won't be one of the largest beta tests ever, with plenty of the testers being small and midsized businesses and their employees.

links for 2009-06-20

  • Being the technology-savvy group that they are, it is not surprising to find that many venture capitalists and angel investors are on Twitter. In fact, many of them are quite active and have attracted fairly large followings putting them in the upper echelons of Twitter users. So we wondered whether all activity on Twitter by venture capitalists and angel investors translates into or at the very least correlates with them making more investments in startups?
    As our analysis below reveals, we applied many tests to see if there was any pattern/correlation, but the end result, perhaps not surprisingly, is that one doesn’t exist. Irrespective of the test, there was no correlation between any metric measuring Twitter activity and investment levels by VCs and angels. But in our examination, we did uncover a select group of investors on Twitter who we’d classify as Rockstars (9 firms) or Unsung Heroes (14 firms) based on their 2009 startup funding and Twitter activity.
    (tags: vc)

links for 2009-06-18

  • T-Mobile is prepping to announce its second Android handset next week, according to a report from The Wall Street Journal that cites unnamed sources.
    The fourth-largest U.S. carrier did not confirm the report, but has already said it would have Android-related announcements over the summer. The report said the next Android smartphone will be the HTC Magic, but it will be rebranded as the myTouch 3G. The handset is expected to go on sale this summer.
  • Next time you ask your teen to “stop texting,” you may want to think twice. Your teenager may be gearing up for the National Texting Championship – and the fat check that’s bestowed upon the winner.
    In New York yesterday, 22 contestants, 22 years old or younger, stretched their thumbs and prepared to test their texting dexterity at the third LG US National Texting Championship. The contest was sponsored by the mobile-phones division of LG Electronics, based in Seoul, South Korea. The 22 finalists, plucked from 250,000 eager texters, competed against each other over two days. Some of the challenges consisted of texting while blindfolded (a Harris Interactive Study reported that 42 percent of teens say they can text blindfolded) and texting while walking on a treadmill.
    (tags: mobile texting)

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