Archive for August, 2009

Negative Tweets affect Customer Loyalty

Wednesday, August 12th, 2009

Yesterday an article appeared in several newspapers about how angry tweets (on Twitter) can force a company to back off a geographically localized program intended to promote good will. A franchisee of Tim Hortons, a coffee shop competitor of Starbucks, in Rhode Island agreed to provide free coffee for a local program, celebrating Marriage and Family Day. It turns out the sponsors of the program were against gay marriage and this brought out the gay community and those supporting the gay community in droves. A petition was electronically signed by about 2000 followers and angry ‘tweets’ and facebook entries were broadcast, often at the rate of several per minute.

In a recent article by Jerry Langdon on July 30, 2009, called ‘Word of tweet: How it can make or break the box office’, the power of social media to spread word of mouth on a movie review is highlighted. With social media like Twitter, consumers can spread their opinion about the movie to thousands of people, even while the movie is underway, impacting sales dramatically in either a positive or negative direction.

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