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Better To Light a Single Candle

Better to light a single candle …
Aug 14, 2006

Two weeks ago, America Online began to dismantle its Internet access business. It was a momentous decision for the company that was probably influenced, at least a little, by a young man from the Bronx.

Vincent Ferrari, 30, works for a cell phone company. He’s also an active blogger. Two months ago, Ferrari decided to cancel his AOL account. He’d heard about AOL’s high-pressure customer retention tactics, so on a hunch, he recorded the call.

John, the AOL customer service rep, didn’t disappoint. He insisted that Ferrari keep the account. Ferrari had to repeat “Cancel the account” 15 times in five minutes before John gave in. The recording shows how not to treat a customer.

On Tuesday, June 20, Ferrari posted the recording on his blog. He also sent an e-mail to the consumer-advocacy site Consumerist.com, which ran an article under the headline “The best thing we have ever posted.”

That’s when all hell broke loose.

Within an hour, Ferrari’s Web server crashed from the crush of more than 200,000 visitors. The next day, with servers restored, he posted a link to the phone call on digg.com, a popular social networking site. The servers crashed again.

On Saturday, the New York Post picked up the story. On Sunday, The New York Times did, also. Ferrari’s servers crashed again. Then, TV networks called. On Tuesday, Vincent Ferrari was a guest on “Today,” which played a three-minute clip of the call. “How did you remain so polite?” an amazed Matt Lauer asked. On July 14, Ferrari was interviewed on “Nightline.”

There were more than 25 media calls in all; Ferrari lost count. More than 1,000 people posted comments to his blog, most critical of AOL. Dozens of copies of the recording turned up on other sites, along with thousands of additional comments from angry AOL customers, many venting frustration with AOL’s customer service practices. It’s hard to know how many people heard the recording, but it was certainly in the tens of millions.

On July 19, Consumerist posted an alleged AOL retention manual, showing scripts and flow charts for heading off customer cancellations. Two weeks later, AOL began to dismantle the group.

AOL remained largely quiet during the affair. It called the Ferraro[sic] incident “inexcusable” and said it fired the rep. A spokeswoman said the decision to shut down the Internet access business had nothing to do with the affair.

That’s probably correct, mostly. But it’s hard to believe a company could withstand an outpouring of customer anger like that without making some changes.

It used to be that an unhappy customer told 10 friends. Today, he or she tells 10 million. AOL was a victim in this case, but really a victim of its own practices. Vincent Ferrari lit a match, and thousands of angry customers turned it into a conflagration. Such is the remarkable multiplicative power of social networks.

Source: BtoB Online

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  • Bill
    I think the only honorable course is to eat crow and come completely clean. Companies are made up of fallible, mortal human beings. Individuals make mistakes, and companies make mistakes. Sometimes these mistakes are huge. I hope AOL high-ups come to recognize, admit to themselves, and then admit publicly, that using "the rogue agent defense" was and is a very rotten thing to do. (The AOL representatives who spoke ill of, and fired, John owe him a personal apology.) And then admit: "Our business model stank. It victimized thousands of people in the process. It also intrinsically promoted things like the rogue agent defense, and other disingenuous denial -- particularly denial of responsibility from those who truly had responsibility. It made our company into something like a cult, where terrible treatment of both customers and employees became acceptable and common. Otherwise nice people became inhumane. It was a scary experience. The best and only thing we can do is learn from it."
  • Bonejob
    Exactly - the whole environment was rank and ripe for something like this to happen. But to blame it all on 'the call' instead of themselves is crazy. I think they are recognizing that after years of issue avoidance and the rogue CSR defense no longer working they have to eat crow. I mean really you can only use the rogue agent excuse once or twice but when you have thousands of customers complaining of the same thing it isn't a rogue agent. I think they were forced 'straight' and so spin it to make it sound like they are evolving again - yes they are making drastic changes finally but all this could have been done alot more proactively and without AOL receiving 2 black eyes and a kick to the groin.
  • Bill
    I appreciated how this article indicated that AOL was "really a victim of its own practices." I hope Jason Calacanis eventually understands this: It was not "the call" that fundamentally brought AOL down, it was "the practices."
  • Hey there Vinny...long time no talk. Dropped by and noticed how your an even bigger star than ever! =) TV even... impressive. Well done and its definitely about time... I went through that with AOL myself years ago!

    Anyway, wanted to say hello... hope life is fantastic. Take Care!

    Jenn
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