Online Reputation Management Case Studies

It takes many good deeds to build a good reputation, and only one bad one to lose it.” - Benjamin Franklin

For corporations, online reputations are steadily becoming absolutely critical, as they will soon dictate how much you can sell, the level of employee you can recruit, and will even impact your ability to attract investors. It is absolutely crucial that you begin managing your online reputation- and you must begin now.

From simply expanding the reach of your organization to promoting your personal expertise in a field, social technology is a vital tool, which if managed properly, can enhance your personal and your organization’s online reputation and latent potential like never before .

United Airlines and Online Reputation - When disgruntled passenger, Dave Carroll, tried unsuccessfully for months to both call and email United Airlines about baggage handlers breaking his $3500 guitar, he took his complaint (in song form) to YouTube. In 2009, the infamous video “United Breaks Guitars” spread like wildfire, receiving over 1.5 million views in just four days, and is now reaching the 45 million views mark.

Due to the power of social media, and the aftermath of the airlines’ damaged online reputation, they suffered great financial loss. The Times of London reported in July 2009 that, "...within four days of the song going online, the gathering thunderclouds of bad PR caused United Airlines' stock price to suffer a mid-flight stall, and it plunged by 10%, costing shareholders $180 million. Which, incidentally, would have bought Carroll more than 51,000 replacement guitars."

Pampers - Pampers, a Proctor and Gamble subsidiary, garnered national media attention in April 2010, when mother and customer, Rosana Shah tried to complain about a diaper rash caused by Pamper’s new “Dry Max” technology in two of their diaper lines.

When Shah felt that Pampers did not take her complaint seriously, she took her story to Facebook. In a matter of weeks her anti-Pampers site had close to 10,000 members, leading the Consumer Product Safety Commission to launch an investigation, and causing a backlash among costumers nation-wide, even globally, in some instances. Mothers everywhere were calling news stations, complaining on Twitter and MySpace, and uploading gut -wrenching videos and pictures of their baby’s diaper rashes all over the Internet.

Parents everywhere were expressing their outrage at the once most trusted brand of diaper manufacturers in the world, thereby injuring Pampers’ previously positive online reputation, and branding the P&G company as a cautionary tale.

Poor management of Pampers’ online reputation meant the loss of customers and money as they tried to compensate angry moms from around the world, and as their stock plummeted.

Pepsi - Pepsi learned the importance of their online reputation when they changed the look and label on their Tropicana Premium Orange Juice, replacing the beloved straw-in-the-orange, with a glass of orange juice. Responding quickly to consumers’ boycotts and complaints on a variety of Social Networking sites, Pepsi, in less than two months, reverted to its traditional packaging; gaining the cola company a positive reputation for knowing how to properly use social technology.

Pepsi recently took another hit, when, during an online marketing contest, they reportedly broke their own rules by editing a celebrity’s entry, giving her an unfair advantage. “To Pepsi's credit, though, the company has responded quickly, and with the sort of openness that's essential for success in the new social media sphere."

In addition to responding immediately, Pepsi neither tried to hide the event, nor quiet consumer complaints. Instead they posted their mistake on Facebook and on their blog, with links to the original complaint, allowing consumers to have all of the information and enabling them to discuss the event as they desired.

It is this sort of online management that will continue to keep investors, customers, and top-list employees interested in Pepsi

The bottom line is this: it is no longer viable for an organization or even a person to exist without a solid online presence. However, the key is balance. You and your business have a legitimate desire for privacy, which is healthy and necessary. Yet, at the same time, you must establish an online reputation if you want to get noticed.