Facebook will be fine*
As much as people think everyone is quitting Facebook, in reality, they are not.
The recent revelations that every person on Facebook has had their data scraped (note it was not technically a data breach, but the policies of Facebook that allowed this to happen) have a lot of people understandably upset. It may seem like Facebook is in a death spiral given the coverage it has received.
Yet, as consumers (and I count myself as one too) we “forgive and forget” when it comes to brands with surprising ease. Sure, we get caught up in drama and emotion of the moment, but then we settle back into our routines.
Want some examples?
Netflix and Qwikster
I’ll kick things off with the big brand blunder that I personally participated in. Back in 2011, Netflix has just raised prices on its streaming service to be in parity with the DVD service. Given the increasing amount and quality of the streaming library, this was needed. What wasn’t needed was for Netflix to make a decision that not only went against the brand position (movie enjoyment made easy) but was based purely on what the business thought it should do without understanding the implications for the consumer. That decision was to split the service into two — one for DVDs and one for streaming. To the consumer, this meant two websites, two login/passwords, two Queues to maintain (that was the name for what “My List” has become today), and two line items on the credit card bill. The new service was to be called Qwikster (and was actually supposed to be a logistics-based seller and deliverer of many things, not just DVDs).
Compounding the underly poor reasoning for making this move was the fact that the launch had to be condensed from months to weeks because the press had found out about it early. As you can imagine, it didn’t go well. People were incensed and quit Netflix in droves. In just over a quarter they lost over eight hundred thousand subscribers. Everyone was mad as hell. While the company…