3. Grapes Team SP2 2010 Bad news spreads more quickly via the Internet See our video examples from YouTube of how customers of United Airlines, Toyota and Starbucks used social media to vent their anger. Customer Service in Internet Commerce
4. Grapes Team SP2 2010 Example: United Airlines Close to 9 million hits to date. Stock fell 10% in first 4 hours of video release wiping $180 million of share price. Company lack of understanding of social media and slow to respond. Customer Service in Internet Commerce
5. Grapes Team SP2 2010 Similar issues with Toyota and Starbucks. However, Toyota responded immediately with apology via YouTube video. Customer Service in Internet Commerce
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Editor's Notes
Good customer service is central to any business strategy regardless if the company is a traditional bricks and motar, a new e-business company or a mix of both. In terms of Customer Service and Internet Commerce it is about utilising all aspects of the Internet to communicate with customers this includes using email, telephone, live chat room – this in particular allows business provide real time assistance to web site visitors- to postings on socials network sites. One key difference to traditional companies is that data can be collected efficiently about customers to provide them with products and services they really want. Validation at order entry point will ensure that getting it right the first time will ensure it is right every time.
But one thing is certain, bad news can spread rapidly over the Internet. Here we have a couple of examples of how disgruntled customers voice their experiences about customer service using YouTube. In the first example about how united airlines broke a passangers guitar the impact was far reaching. It has received close to 9 million hits, stock fell 10% in the first four hours wiping $180 million off the share price. This equated to replacing 51,000 guitars. A massive saving had they listed to the problem in the first place. In the second example – Toyota – a customer suspected maintenance people were stealing coins from his car when he left it in for service, to catch them out the installed a camera in his car and true enough he had the evidence and posted it on YouTube for all the world to see. In both cases the companies had to respond with postings on social networking sites as well as there own sites to try and counteract the negative impact. However, the damage was already done. In united airlines case their reponse video only received 100,000 hits compared to the 9 million the disgruntled customer received
I had a mixed bag of experiences whilst I was relationship hunting on RSVP. I was a member for a little over 18 months, with contacts ranging from no response, tentative first and only meetings over coffee to some excellent experiences. I have just done a quick search under Negative RSVP reviews and its interesting the amount of negative comments that abound. RSVP have their own feedback site, however it is moderated so only positive or neutral comments. Sites such as http:// www.datingsitesreviews.com/article.php?story =Why-More-Negative-Dating-Reviews- Positiv provide an insight into some of the negative comments – interestingly they appear to be made mainly by men, not sure what that means J OK my specific thoughts. In the main (over 80%) of women that I interacted with painted an inaccurate picture of themselves. I was mid 40’s at the time, looking for women aged 35 to 45 for a short or long term relationship. Some specific’s, a lot of photo’s that where several years old or in one case of someone else. Word pictures that may have been highlighting key areas that were lacking at face to face meetings. Meetings that had been agreed to and I enjoyed coffee on my own, in one case I had purchased tickets to a show that I saw on own. Expectations that where voiced during phone discussions that didn’t turn into fact, short term relationships where (1 specifically will always haunt me) the individual was looking for a readymade father for her children. It certainly gave me a better appreciation, and a bit of cynicism, for those that where ‘really’ looking for what they wanted. Aside from the emotional cost, a roller coaster ride at times, was the dollar cost. The joining fee, $10 from memory, to the cost of a ‘kiss’ to actually converse with a potential ‘friend’. I have tried to place a dollar value to this over the past couple of days and it would be in the low hundreds specifically for RSVP I feel, not including any associated costs mentioned below. Not a lot for an individual, however when matched against the total members of RSVP, it would be consiberable. This does not take into account the add on sales that RSVP attempt to on sell as enhancements. An additional intangible cost is the value that can be attritibted to the value of RSVP by its drawing together of individuals and the spending that is associated with this. IT – Bandwidth, ISP costs and actual infrastructure. Hospitality – meals, coffee through to accommodation Travel – cab, public or own transport Telephony – handsets and call costs (plus the actual replacement cost of mobile that was turned into a frizbee...) There is also another emotitive side to RSVP, that of enjoyment and fun. Not all of my interactions ended in grief or angst, as I have several fond memories and meet some lovely ladies. As a business, RSVP meet (and at times exceeded) my expectations. I was aware of the value I was getting for my $ spend and I was OK to attempt to spend my emotitive capital in a virtual commercial sense.
An so – in terms of customer service being one part of the fundamental economic basis to Internet Commerce we – the grapes group - see it as a vital and necessary part. It can assist companies in providing superior customer service by taking advantage of data collection and validation tools, and by incorporating websites and social networking sites into public relations strategies thus providing quicker and more effective response, particularly in times of crisis management.
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