Wednesday, November 4, 2009

Why Social Media can Cut Costs and Save Lives

Consumers have been using social media since the advent of My Space in the middle of the decade to vent about some of the annoyances and challenges of air travel.

Seeing the enormous potential of social media, several airlines in the last year began a massive campaign launching their own footprint into social media taking advantage of this enhanced connectivity. These sites help airlines market their brand while interacting with customers.

Guitar Hero

When United Airlines damaged singer Dave Carroll's guitar and he responded with a YouTube song criticizing the company in July 2009, United's stock prices dropped. However, the use of social media is not about past mistakes but more about the ability to rectify your mistakes through communication and a company's ability to reach its customers.

It is important to note that the airline's stock price had already been falling prior to the success of the disapproving video. Interestingly, once United responded to the criticism--directly to its customers via Twitter no less--its stock prices shot back up nearly 50% in the next several weeks.

Some of this fluctuation can be attributed to the volatile nature of the airlines' stock prices in 2009. What is important to take away, is the airline's embrace of social media--many of these companies are leveraging a strong source of new and existing customers.

Airlines industries have an incentive to fill every seat on a flight. And an enormous base of followers on Twitter provides airlines with virtually free advertising to do just that. When there are empty seats on a plane, some airline companies advertise these as hot deals on their Twitter page--filling otherwise empty seats while building customer loyalty.

The popularity of Twitter and other social media sites lends itself to innovative ways of measuring public sentiment. By codifying the language of tweets related to airline travel e.g. "Jetblue is a great company" Northwest had the lowest percentage of positive tweets.

US Airways has a Facebook page with only 3,000 fans. In contrast, Southwest Jet Blue and Delta have 80,000, 50,000 and 10,000 fans, respectively. The latter have pages that are attractive and colorful, rich in content, and much more open to input from customers. The US Airways page, in contrast, is regulated heavily and only allows the company own posts on the wall.


Click on the images to enlarge them.





Crisis Management

In addition to increasing customer loyalty, social media sites are increasing the airlines' responsiveness, which are especially valuable in times of crises. God forbid If an airline experienced a crash, they quickly transition to crisis communication mode by providing the public with the latest search and rescue information. Friends and family members can also communicate with the airline staff and other stakeholders by posting questions directly or to the entire public via use of the wall.

If we had Twitter during 9/11

Consider the impact that a social media site like Twitter would have had during the 9/11 terrorist attacks.

Now On Pictures and Video

The airlines' social media campaign does not end with Twitter and Facebook. Airlines have been turned on to spreading the idea of sharing their latest commercials and other promotional activity on YouTube. From Southwest's rapping airline attendant to more targeted efforts, these videos provide more opportunities to boost airline brands.

Airlines with Flickr pages share their pictures and allow anyone to comment on photos that have been uploaded by the airline company.

The opportunities for useful applications of social media sites are unlimited.

Imagine misplacing your camera or phone on a plane. Instead of having to make numerous and lengthy phone calls to the company, you could log on to the airline's Facebook page and post your message on the public wall. The site is monitored constantly by company representatives, which means that you will receive a response in a short time.



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