managing user-generated content

In general, how should organizations deal with issues posed by user-generated content and other information spread over social media?

As this week’s case helps illustrate, companies need to manage customer relations because the Internet has given consumers a very loud microphone to voice bad experiences. In the case of United, its stock dropped 10% and it lost $180 million after a customer posted a video on YouTube to illustrate his discontent with customer service at the airline, connecting him with more than 6 million people in less than a month.

Although the whole situation could have been avoided with better customer service from the beginning, I think United’s response to Carroll’s video and tweeting helped mitigate some of the bad PR it received. In the wake of its bankruptcy, it’s clear that United divested a lot from its human capital, and the employees that survived several rounds of layoffs were under trained and possibly overworked. United used the video as an opportunity to engage with its customers and employees, and start rebuilding its culture. 

at the same time, social media and user generated content provides an opportunity to identify and engage with loyal customers. This is a benefit because it allows company to build a relationship with their customers and better understand the factors and features that influence their purchase decisions.

in order to diffuse customer complaints and identify loyal, happy customers, companies should monitor and search social sites for mention of their name and become active participants and social peers on these sites. in order to prevent potential complaints from becoming large problems, companies should be proactive and constantly monitor online conversations and mediate when necessary. the United case shows that when a problem is unattended to or doesn't have an equitable resolution, it can be very costly.