Social media can lead to problems, threaten success

Interesting lessons to be learned as a vendor tiptoes the line between success and disaster: A vendor (nowhere near the engineering software/PLM world) sent out an email announcing the imminent release of a new product. With permission, this email was posted on a bulletin board frequented by buyers of similar products — an interested target audience. The vendor was reluctant to answer the maelstrom of questions raised on the board, saying that all would be made clear at the official product launch a few days later. But a discussion ensued anyway, as people posted wishes and rumors about the new product. Finally, D-day: a product launch event at which the vendor announced last-minute changes in response to the chat on the bulletin board. On D-day plus 10, no product had been received as the vendor was overwhelmed with orders, had to put prospects on a wait list, engaged a fulfillment house to organize cancelled vs new orders … A perfect storm of good things that caused disaster. It’s unclear if the vendor will recover or how profitable this product will ultimately be.

This is a great example of how social media marketing can have totally unanticipated consequences. Perhaps a more savvy entrepreneur would have realized that emails can quickly become viral, or known enough to monitor the chat, or more accurately assessed her ability to make last-minute changes. We’ve all been involved in the rush just before launch: who has the time to monitor something as seemingly innocuous as an unaffiliated bulletin board?

But it’s absolutely critical and it’s clear that this entrepreneur, at least, will have learned a few hard lessons:

1. Know who the influencers are and where they can be found. The problem started at the bulletin board (bboard), with an innocent posting of an email. Seven hundred postings over 60 pages and thirty-six thousand (yes, 36,000) viewings later, the entrepreneur is in the midst of a PR nightmare.

2. Once you know where to look, look often to see what’s being said. As the storm built, it would have been a good idea to assign someone to monitor the bboard, collect issues and coalesce responses.

3. Reply in a way that is respectful of the bboard’s rules (some do not allow vendors to post directly) but ensure that your responses are made known. Perhaps set up an informational page on a site not affiliated with the bboard to make sure that there is one source of accurate, controlled information and ask the bboard’s moderators to post the link.

4. Prior to the launch, the entrepreneur had said product would be shipped on launch day. As a result, the bboard has seen daily postings of “Has yours arrived yet?” messages. The uncertainty and let-down have led a number of posters to say that they are canceling their orders, building a negative wave that could lead to more cancellations. The entrepreneur should have made every effort to get the product out as promised; had that truly not been possible, emailing buyers a new ship date would have been a good second choice, and a statement on the website giving new shipping info a distant third.

5. Be aware that buyers who frequent bboards are tech savvy enough to check other media as well. Look at Twitter, for example, to see what’s being said about the product, ship dates, receipts, etc. Set up an account to tweet official replies and defuse rumors.

6. Realize that once the email got “out there”, your business hit a crowd mentality. Crowds panic easily, follow leaders and act impulsively and emotionally. Crowds can be tiny or huge — behaviorists say it doesn’t matter — but their reaction is completely out of your control, so preventative measures take early are all you really have.

It’s unfortunate that this product got such a rocky start. It will have to be exceptional to erase the negative impression many of these early adopters now have, backed up by customer service that delights all who contact the company. These people will be the ones posting reviews on bboards, tweeting and discussing the product and the vendor — at least until the next hot thing comes along.

What do you think? How would you advise this entrepreneur? Email me at monica AT schnitgercorp DOT com.