Verizon’s $2 Fee and Lessons for Social Media
Verizon’s decision to drop it’s $2 ‘convenience fee’ speaks to the growing strength of the consumer and the impact of social media. On Verizon’s Facebook wall its holiday posts were met with complaints about the $2 fee. As in politics, social media is a powerful tool for the people. Verizon hasn’t been alone this year in reversing poor decisions; Bank of America reversed their debit card fee and Netflix reversed their launch of Qwikster. In all 3 cases the companies increased their fees while not providing any new consumer benefit. Poor decisions in business are not novel but the strength of the consumer reaction is far stronger than in the past. Social platforms amplify consumer reaction and give the press additional content for their stories. If social media had come 10 years earlier I wonder if airlines would have baggage fees.
Fortunately social media isn’t a curse for businesses; it can be just as much a tool for them as it is for consumers. In good times businesses can use social media to gather brand advocates who will speak for them when things go bad. The credibility of a brand advocate can be equal to millions in media spend during a crisis. Businesses can also use those same brand advocates to test out ideas before launching them. Historically the ‘consumer dialog’ was one-sided in favor of the brand. This has shifted. Businesses can respond first by sincerely entering the dialog, and second by nurturing and supporting their loyalists. Tools for building brand advocates are generally in an experimental stage but they are a big part of social media’s future.
