Skype and Relationship Marketing
How Skype Handles Relationship Marketing
in a Crisis: And What You Can Learn From It
by Terry L. Brock
By now you’ve heard about the recent outage that hit Skype and its over 200 million users recently. The system went down for 36 hours meaning it was almost impossible to use the service anywhere in the world. I experienced this just as I was about to demonstrate it to a business group where I was planning to discuss the advantages of Skype!
A crisis reveals the true metal of a company or an individual. It reveals what the inner strengths and weaknesses are. Many have cited the excellent response that came when Johnson and Johnson had the crisis with tampered Tylenol tablets in the 80’s. J&J could have tried to cover it up. Instead, they turned that tragedy into a coup for the company by quickly pulling all Tylenol from stores until the problem could be fixed. Yes, it cost J&J millions and they lost a lot of money over it. But the long-term benefits were enormous for the company. The public saw their strong commitment to doing what is right, even in the face of business loss. J&J is more respected today as a result. Doing the right thing pays off.
Back to our friends at Skype, they had a serious problem on their hands last week and it seems they could have responded better. Responses were limited largely to their own website material and carefully-controlled PR efforts. Relationship Marketing is about connecting with customers at times like this. Being open and accessible are critically important in crisis times. Statements on a company-controlled Blog alone are not sufficient.
Recently I had the honor of seeing Skype’s headquarters in Tallin, Estonia where I got to see the nature of this company. They have a definite high tech flair complete with genius people, great working conditions and value on results, not just activity. It is an ideal company to work for in many respects. You can see the video I did with Villu Arak at http://www.terrybrock.com/articles/RTW-MAY-JUL07-3.htm and learn about the Skype culture more (video starts with scenes from Stockholm Sweden).
Villu detailed comments at the Skype official blog which you can read at: http://heartbeat.skype.com/ . The company made a valiant effort to restore confidence among its more than 200 million users worldwide. The personal message from Niklas Zennström, CEO of Skype, was posted on the Skype home page (www.skype.com).
I think their efforts are good, but could go farther. This great service and great company could help address concerns by providing more in-depth help. I have yet to see an interview anywhere in the press with Skype personnel about this issue as of this writing. Also, Niklas Zennström himself could have a video explanation on the Skype site which could help increase the human touch. When a CEO comes on camera, is real and genuine with nothing to hide, it only helps credibility and helps customers know there are real human beings who care behind a corporate behemoth.
On a practical side, I find the benefits of Skype continue to be outstanding and provide a strong competitive advantage for small business. Some of these include: 1) Free. Yes, free audio communication worldwide is what Skype is known for. 2) Video is free. This leverages technology to enhance Relationship Marketing and gives you the ability to connect more effectively with customers and prospects. 3) Conference calls are free (Skype and regular phone numbers). Yesterday I did another conference call using Skype and it worked beautifully. We had both Skype-based and phone-based participants and all were understandable. The difference was that those using Skype came across incredibly well. 5) SkypeOut saves huge phone bills when you’re on the road. 6) The new SkypePro bundles several services into a handy pack ideal for the international business traveler who wants a competitive advantage. 7) Skype’s unlimited US and Canadian phone calling option will save a lot if you call Canada often.
So what are the practical applications from this outage for you and me in our businesses?
First, have a well-defined backup plan for your own business. Balthasar Gracian, a Spanish Jesuit priest advised to have in “double measure” the necessities of life. This is most important in communication for your business. Have back-up plans for back-up plans Since communication is so vital for business, it is wise to have 3,4, even 5 alternative forms of communication. Remember, any technology will eventually go down. It is just a matter of when. Prepare for that.
Think about it. Things break. This is the way the world works. Prepare during the times when things are working well for outages. How will you operate if your ISP goes down? What if you can’t get access to the Net through your normal means? What if your cell phone doesn’t work? Thinking through these possibilities and making proper plans in advance is very smart business.
Second, when your own crisis hits, go out of your way to be candid and prompt. Tell customers what happened and keep them informed. Johnson and Johnson did it right with the Tylenol scare. Rudy Guliani did an excellent job communicating after the attacks in September 11, 2001. Companies and individuals have a chance to show their best in a time of crisis. Prepare for yours now.
Yes, Skype had a major glitch---the worst they have ever experienced. It essentially shut down their system for 36 hours. In the Internet Age and need for instant communication, this is a horrible experience. However the company continues to move forward, provide new and improved products and services and now, correct for major outages.
________________________________________
Terry Brock is an international marketing coach and columnist who helps businesses market more effectively, leveraging technology. He shows busy professionals how to squeeze more out of their days using time-honored rules and practical technology tools. He can be reached at 407-363-0505, by e-mail at terry@terrybrock.com or through his website at www.terrybrock.com.
Copyright © 2007, Terry Brock, All Rights Reserved Internationally. No portion may be reprinted or used in any way without prior written permission.
in a Crisis: And What You Can Learn From It
by Terry L. Brock
By now you’ve heard about the recent outage that hit Skype and its over 200 million users recently. The system went down for 36 hours meaning it was almost impossible to use the service anywhere in the world. I experienced this just as I was about to demonstrate it to a business group where I was planning to discuss the advantages of Skype!
A crisis reveals the true metal of a company or an individual. It reveals what the inner strengths and weaknesses are. Many have cited the excellent response that came when Johnson and Johnson had the crisis with tampered Tylenol tablets in the 80’s. J&J could have tried to cover it up. Instead, they turned that tragedy into a coup for the company by quickly pulling all Tylenol from stores until the problem could be fixed. Yes, it cost J&J millions and they lost a lot of money over it. But the long-term benefits were enormous for the company. The public saw their strong commitment to doing what is right, even in the face of business loss. J&J is more respected today as a result. Doing the right thing pays off.
Back to our friends at Skype, they had a serious problem on their hands last week and it seems they could have responded better. Responses were limited largely to their own website material and carefully-controlled PR efforts. Relationship Marketing is about connecting with customers at times like this. Being open and accessible are critically important in crisis times. Statements on a company-controlled Blog alone are not sufficient.
Recently I had the honor of seeing Skype’s headquarters in Tallin, Estonia where I got to see the nature of this company. They have a definite high tech flair complete with genius people, great working conditions and value on results, not just activity. It is an ideal company to work for in many respects. You can see the video I did with Villu Arak at http://www.terrybrock.com/articles/RTW-MAY-JUL07-3.htm and learn about the Skype culture more (video starts with scenes from Stockholm Sweden).
Villu detailed comments at the Skype official blog which you can read at: http://heartbeat.skype.com/ . The company made a valiant effort to restore confidence among its more than 200 million users worldwide. The personal message from Niklas Zennström, CEO of Skype, was posted on the Skype home page (www.skype.com).
I think their efforts are good, but could go farther. This great service and great company could help address concerns by providing more in-depth help. I have yet to see an interview anywhere in the press with Skype personnel about this issue as of this writing. Also, Niklas Zennström himself could have a video explanation on the Skype site which could help increase the human touch. When a CEO comes on camera, is real and genuine with nothing to hide, it only helps credibility and helps customers know there are real human beings who care behind a corporate behemoth.
On a practical side, I find the benefits of Skype continue to be outstanding and provide a strong competitive advantage for small business. Some of these include: 1) Free. Yes, free audio communication worldwide is what Skype is known for. 2) Video is free. This leverages technology to enhance Relationship Marketing and gives you the ability to connect more effectively with customers and prospects. 3) Conference calls are free (Skype and regular phone numbers). Yesterday I did another conference call using Skype and it worked beautifully. We had both Skype-based and phone-based participants and all were understandable. The difference was that those using Skype came across incredibly well. 5) SkypeOut saves huge phone bills when you’re on the road. 6) The new SkypePro bundles several services into a handy pack ideal for the international business traveler who wants a competitive advantage. 7) Skype’s unlimited US and Canadian phone calling option will save a lot if you call Canada often.
So what are the practical applications from this outage for you and me in our businesses?
First, have a well-defined backup plan for your own business. Balthasar Gracian, a Spanish Jesuit priest advised to have in “double measure” the necessities of life. This is most important in communication for your business. Have back-up plans for back-up plans Since communication is so vital for business, it is wise to have 3,4, even 5 alternative forms of communication. Remember, any technology will eventually go down. It is just a matter of when. Prepare for that.
Think about it. Things break. This is the way the world works. Prepare during the times when things are working well for outages. How will you operate if your ISP goes down? What if you can’t get access to the Net through your normal means? What if your cell phone doesn’t work? Thinking through these possibilities and making proper plans in advance is very smart business.
Second, when your own crisis hits, go out of your way to be candid and prompt. Tell customers what happened and keep them informed. Johnson and Johnson did it right with the Tylenol scare. Rudy Guliani did an excellent job communicating after the attacks in September 11, 2001. Companies and individuals have a chance to show their best in a time of crisis. Prepare for yours now.
Yes, Skype had a major glitch---the worst they have ever experienced. It essentially shut down their system for 36 hours. In the Internet Age and need for instant communication, this is a horrible experience. However the company continues to move forward, provide new and improved products and services and now, correct for major outages.
________________________________________
Terry Brock is an international marketing coach and columnist who helps businesses market more effectively, leveraging technology. He shows busy professionals how to squeeze more out of their days using time-honored rules and practical technology tools. He can be reached at 407-363-0505, by e-mail at terry@terrybrock.com or through his website at www.terrybrock.com.
Copyright © 2007, Terry Brock, All Rights Reserved Internationally. No portion may be reprinted or used in any way without prior written permission.
posted by Terry Brock @ Thursday, August 23, 2007
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