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The Cost of Word of Mouth Can Be $180 Million

August 16, 2010 · 70 comments

Photo Credit Passport Newsletter Blog

Photo Credit Passport Newsletter Blog

Social Media has tilted the balance of power forever. Where Corporations could once simply ignore consumer complaints, that is much more risky now that we can spread our views virally – especially if the injured party has musical and video capabilities.

Thanks to a comment left by Glenn Friesen, I visited his Twitter account, found him very interesting, checked out his latest Tweet and found this exceptional example of how consumers can now get their voices heard.

The MyCustomer Customer Relationship Management Blog shared the music video of the song United Breaks Guitars written by musician Dave Carroll because his valid customer complaints were not taken seriously.

The video below went viral on YouTube. It has already been viewed over 9 million times and according to the MyCustomer story caused a $180 MILLION 10% drop in United Airlines stock value.

What should have been an easily handled complaint turned into a Brand Nightmare for United Airlines – all because they ignored their responsibility to make good on intentional carelessness of their employees witnessed by the public.

Their attitude is what caused Dave to go to such lengths to expose their “complete indifference”. In his blog he wrote:

“This stopped being about compensation when the airline flatly refused to consider the matter and once the first video was released the rest I committed to telling the rest of the story which is why I refused United’s attempt at compensation when it came 7 months after my “threat” to do the videos.”

THE REST OF THE STORY

The video might have been the end of it, but the positive response from the public was so large that Dave expanded his commitment and made three music videos and ended up with a large online following on YouTube and Twitter.

The second United Broke My Guitar video has already been seen over 1 million times and the third original United Breaks Guitars song and video can be seen on Dave’s site.

Harvard Business Review Case: United Breaks Guitars: “Within one week it [the first video] received 3 million views and mainstream news coverage followed, with CNN, The Wall Street Journal, BBC, the CBS Morning Show, and many other print and electronic outlets picking up on the story.”

That is NOT the end of the story though. Dave started Right Side of Right to enable consumers to “more effectively share stories and seek out possible solutions” and for “finding ways for us to work with companies that truly want to deliver better experiences for their customers and who are striving to be on the “Right Side of Right“.”

In their blog there are examples of both bad customer service and companies doing the right thing, such as Air Cananda wheelchair incident where the airline took responsibility, found a 24 hour repair shop and then offered to fulfill a dream held by the injured party to make up for the trouble.

Dave is working to create a better world by offering tips for how to constructively respond when you are on the receiving end of bad customer service. When you are frustrated with indifferent companies, follow Dave’s advice:  Don’t get mad – get creative!

Special mention to Taylor Guitars for recognizing the wisdom in making right what United Airlines would not: they gave Dave not one but TWO Taylor guitars – and thanks to Dave’s videos received a huge increase in visibility. They don’t appear t o have a blog but they are on Twitter.

Like Dave’s music? Want to support Right Side of Right? Click on the image below to listen to more of Dave’s music.

Perfect Blue Deluxe Edition - Full Album Download (MP3)

Perfect Blue Deluxe Edition - Full Album Download (MP3)

Dave Carroll/Perfect Blue Highlights to date

* 2 Nominations: Pop Recording and Male Solo Recording of the Year: East Coast Music Awards (ECMA)
* Winner: Inspirational Recording of the Year 2008 NS Music Awards
* Nominated “Contemporary Singer of the Year” Canadian Folk Music Awards
* Nominated “Best Male Vocal” Hollywood Music Awards
* Nominated Best Canadian Artist (outside Ontario): Ontario Independent Music Awards
* Finalist in John Lennon Songwriting Competition, Unisong International Songwriting Contest, UK Songwriting, Independent
Singer Songwriter Awards

Related Products

* Sailors Story Full Album Download (MP3) $9.99
* The Neighbourhood Full Album Download (MP3) $9.99
* Among The Living Full Album Download (MP3) $9.99
* Perfect Blue Deluxe Edition – Physical CD $16.99
* Perfect Blue Full Album Download (MP3) $9.99

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{ 64 comments… read them below or add one }

Amy DUI Defense November 16, 2010 at 7:26 pm

In the customer service business, it’s unfortunate that the customer is always right- no matter how wrong you think they are. Keeping your cool, being collected and trying to satisfy them while not doing harm to your company is a hard art, but it’s one that constantly needs to be reminded.
Amy DUI Defense would love you to read ..YouTube SEO Cheat Sheet For PubConMy Profile

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Vanessa November 10, 2010 at 2:26 am

Yeah that was right, it’s really important to build a distict reputation in our clients, because their great experience will be used as buzz marketing for our service or on products offered. Word of mouth is truly a powerful marketing tool.
Vanessa would love you to read ..Pinellas Drug Charges – St Petersburg Lawyer Arrested On Charges Of Trafficking In OxycodoneMy Profile

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Armil at Minneapolis Hotels October 30, 2010 at 7:17 am

In business customers is the greatest factor in the success of a business. so learn to value your customer and so as your business.

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Armil at Minneapolis Hotels October 29, 2010 at 1:17 pm

I agree with Alessandra. They should remember that customers are always right. they should satisfy there customer on there needs.
Armil at Minneapolis Hotels would love you to read ..Live Music this Weekend at the BistroMy Profile

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John
Twitter:
October 29, 2010 at 11:10 am

Twitter: @GuitarZonline

This video was hillarious! However, I can’t imagine what I’d do if someone broke my guitar! This is really sad the way United Airlines has reacted! Shame on them!
John would love you to read ..Intermediate Guitar LessonsMy Profile

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Alessandra who writes about wedding planning October 27, 2010 at 12:24 am

Those companies don’t value their customers that much and they paid the price. Companies should have a tight relationship between their customers and should always treat them with great care. If they lose their customers, they also lose a part of their business.

Reply

Raj who writes about ielts
Twitter:
October 24, 2010 at 11:43 am

Twitter: @cognitive46

Power of social media has proved itself in unique way.Each verse of song has its definition in itself.

Reply

Glenn Friesen
Twitter:
October 20, 2010 at 4:49 pm

Twitter: @glennfriesen

Thank you for the link love and introduction in your post. I’m humbled. :D
Glenn Friesen would love you to read ..The Social Customer Manifesto RecommendedMy Profile

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growmap
Twitter:
October 21, 2010 at 4:34 pm

Twitter: @GrowMap

Hi Glenn,

We’ve been pondering that interesting addition to the top of your blog today. I hope you’ll become a regular reader and consider joining our blog collaboration (see link in CommentLuv).
growmap would love you to read ..Join Bloggers Supporting Bloggers NOWMy Profile

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Claire who writes about Minneapolis wedding photographers October 15, 2010 at 12:56 am

Those type of companies got what they deserve. Customers shouldn’t be treated that way. Those companies should know that their customers are also their boss in such a way. If customers don’t get the respect and service that they deserve, then why would they be loyal to the company at all? Companies should also keep in mind that without the customers, they won’t be in business at all.

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Fineh who writes about Polk County DUI Attorney October 10, 2010 at 1:43 am

With the use of social media, word of mouth is truly one powerful tool in buzz marketing where in can be have positive or negative effects on your business depending on how the customers reacted on your product or services. Therefore, it is always important to consider customers’ wants and demands.

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Alex who writes about Star Sapphire September 28, 2010 at 3:04 am

I too have had musical instruments slammed by airlines. Not United though. I think its the luck of the draw with the general amount of baggage they have to handle. I feel sorry for the handlers, they probably don’t get paid enough, it’s hard work and after you’ve heaved a million suitcases, it probably all becomes a bit of a blur.
You could venture that Taylor guitars profiteered from this one a bit – but anyway the nugget here is that it’s truly inspiring that someone can stand up to the icewall of a giant corporation and break it down. It’s become quite commonplace it seems for big corps to show disrespect to the individual, and it’s good to know people aren’t powerless.

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Phil who writes about Live Karaoke London September 27, 2010 at 2:03 pm

Hopefully that teaches those big cheeses to respect their customers. I hope it hits them hard.

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Dorothy who writes about Orlando DUI September 22, 2010 at 2:47 am

I truly agree with you, socially media can now be used to spread our concerns and thoughts to the public. Therefore, it is really important to take care our customer’s trust and loyalty because word of mouth is truly powerful nowadays through the use of social media where in every consumers can now be heard. Competition in the business world is truly intense that is why it is essential to create a good reputation and apply creativity and innovation to the products endorsed to our target market in order that consumers would spread good news to their fellows.

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Tax Benefits September 21, 2010 at 1:01 am

I agree about one of the commenter said that it is So important in the success of your business to maintain a positive image both on and offline, but in this case, more in the online space.
Tax Benefits would love you to read ..Hello world!My Profile

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Investment Property Canada September 19, 2010 at 8:01 pm

Word of mouth is very powerful, both positively and negatively. Of course, we should always strive to gain positive referrals… that’s my goal. It can have a tremendous impact on our success

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Steve September 13, 2010 at 12:51 pm

The power of one standing up and being accountable again has proven its value, great work on exposing United.
It would be woinderful to see our politicians put under this kind of exposure when they don’t live up to their promises and out right lie to us.
Thank you for leading the way!

Reply

Nick Stamoulis
Twitter:
September 13, 2010 at 7:58 am

Twitter: @NickStamoulis

So important in the success of your business to maintain a positive image both on and offline, but in this case, more in the online space. To keep consumer trust and admiration, you have to gain it through positive consumer experience.

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Larry who writes about Buy Kayaks August 31, 2010 at 11:39 pm

Yeah, let’s make this world a better place! One act of random kindness can change the world to a better one.

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COMMODITY TRADING COURSE January 18, 2011 at 4:03 pm

The idea of pay it forward does work. Larry has the perfect point.

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ncspeeding2010 who writes about Charlotte Speeding Ticket Lawyer August 27, 2010 at 2:34 am

It is true that 80% of my customers rely on word of mouth to bring new customers and so one should be doing just like that tactic mentioned from the post. But I believe also in traditional advertising. Though it cost highly, but I think it is somehow effective in some circumstances. However, when trust is involved, higher percentage rely to word of mouth advertising. Nice sharing here. Sounds interesting to talk about.

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Corporate Mentalist August 27, 2010 at 1:13 am

Great post! This is a brilliant example of the power of social media.

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