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DELL-HELL A SOCIAL MEDIA LEARNING

Dell Hell – A Social Media Learning

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Page 1: Dell Hell – A Social Media Learning

DELL-HELL – A SOCIAL MEDIA LEARNING

Page 2: Dell Hell – A Social Media Learning

Dell Inc.

Dell Inc. is a multinational information technology corporation that develops, sells andsupports personal computers and other computer-related products. Today every Fortune 100company does business with Dell. The company sells personal computers, servers, datastorage devices, network switches, software, and computer peripherals. Dell also sells HDTVs,cameras, printers, MP3 players and other electronics built by other manufacturers

Page 3: Dell Hell – A Social Media Learning

Jeff Jarvis

In July of 2005 Jeff Jarvis of Buzz Machine bought a lemon from Dell. He paid a premium for afour year in-home service plan. Jarvis, when started facing problems with the Dell computer,contacted Dell engineers to fix his computer. On repeated request when they refused to cometo his house and fix his computer, Jarvis got angry and started complaining about it and beganblogging. The other unhappy customers of Dell also joined Jarvis on the blogosphere. Thisgroup of bloggers engaged in open warfare against Dell. Jarvis' widely circulated criticism hadtriggered hundreds of bloggers to publicly complain about service they've received from Dell'stechnical support.

Page 4: Dell Hell – A Social Media Learning

Michael Dell

The blogosphere exposed a customer service problem that had been there all along. Theproblem was not about Jarvis blogging. The problem was that Dell just didn’t care about itscustomers. The impact of the collective blogging was enormous. The blog Dell-Hell by Jarvissingle handedly brought down Dell. He hurt their stock price. He hurt their reputation. Thedamage was so severe that Michael Dell returned to run the company after three years. Dellfocused on improving customer service quality; Dell started engaging with the bloggers andsocial media experts; and it came close to the customer and engaged them in the productdevelopment process.

Page 5: Dell Hell – A Social Media Learning

Campaign – IdeaStorm and StudioDell

To manage the fiasco, Dell started to address the core issues by investing an additional $150million in their customer service operations. In 2006, Dell launched an official customerservices blog. In February 2007 Dell launched IdeaStorm and StudioDell. IdeaStorm allows Dellusers to feedback valuable insights about the company and its products and vote for thosethey find most relevant. StudioDell is a place where Dell users could share videos about Dell-related topics.

Page 6: Dell Hell – A Social Media Learning

Dell’s social media engagement

The idea of social media networking was to address the core issue and engage the customerrather than managing the customers. The seriousness of Dell’s social media engagement isreflected in the chief blogger, Lionel Menchaca, statement when he says “I agree with whatJarvis had to say: instead of trying to control information that was made public, we shouldhave simply corrected anything that was inaccurate. We didn't do that, and now we're payingfor it.”

Page 7: Dell Hell – A Social Media Learning

Dell’s social media engagement

The engaged customer throughout the social media world are the leading voice of computermanufacturers in social media environments. Dell has exceptional social media presence. Atthe nadir of the social media curve 49 percent of blog posts were negative, today it has comedown close to 22 percent. Direct2Dell currently ranked about 700 on Technorati, among thehighest corporate blogs; it gets more than 5 million unique views per month. IdeaStorm isdoing good and over 7000 ideas have been submitted. Studio Dell gets more than 200,000views per month. These figures will keep changing and if Dell is engaged with its customer itcan only go better.

Dell Earth

Page 8: Dell Hell – A Social Media Learning

Dell’s social media engagement

Today, the Dell community has become more engaged and strong. It became customer friendlyto the extent that it started owning their mistakes. Once they also put one of its explodedlaptops on its blog to admit, yes, there is a problem and it caused by the battery manufacturer.What can be better result than the impact? Moreover, the company has done a lot to turn itsbrand around, and it is working.

Page 9: Dell Hell – A Social Media Learning

THANKS