Thursday, April 16, 2009

Amazon Steps on Its Own Tail


Amazon.com is a prime example of using the Long Tail theory as a business model. Amazon sells a lot of unique products to niche markets instead of focusing on selling a few popular products to the masses. However, recently the company stepped on its (long) tail when books categorized as "adult material" (including LGBT themed books) were removed from sales rankings and search results. Whether an unfortunate decision or accidental 'glitch,' Amazon's blunder incited outrage that spread like wildfire across the internet.

While Amazon is icing its tail, marketers should take this as a lesson learned and as a reminder to never underestimate the power of the consumer. Consumer communities and social media can escalate an issue before you've even had time to blink. Prevent situations like this by listening to your customers and being proactive. If they are taking time to report issues to you directly, these issues should be investigated and addressed quickly to prevent discontentment. Slow action and sub-par responses infuriate customers. In Amazon's case, one blogger encountered the issue as early as February and posted a timeline of his effort to get the issue resolved.

You can't always expect customers to come to you with issues. Therefore, you must be proactive and monitor Web chatter about your company. Consumers are more forgiving to companies that are trustworthy and authentic. If you uncover an issue and can't fix it immediately, be honest and open with customers and let them know what you're doing to control the situation.

What are your ideas and best practices handling issues and complaints in a social media world?

--Marina Molenda

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