What’s an (Angry) Facebook Fan Worth? Ironman’s Customer Dis-Service Debacle.
Wednesday, November 17th, 2010What’s a fan worth? Easy: $10. Read on for details.
Though the word “ironman” is often used to indicate a particular race distance – 140.6 miles of swimming, biking, and running – or as a metaphor for a physically daunting effort it is, in fact, a trademarked term. A brand. These generic uses show that, on a smaller playing field, it is as dominant as Google and Coke. As such, the events and products stamped with its mark command a premium. Their events sell out, often in minutes, a year in advance.
The corporation that owns Ironman, WTC, recently announced an “Access” program that would allow 1,000 to register early for races. For $1,000. Race entry itself is around $600 and is not included in the Access fee. Access is merely a privilege; a purchased pass to the front of the line. A recent New York Times article – Triathletes, 40-Somethings, Going for Youth – estimated that the average triathlete spends $22,000 per year on the sport. The triathlon community is an affluent one … but not a stupid one. The uproar was loud, instantaneous; the program was so misguided that it demonstrated a fundamental disconnect from their customer base.
Their Facebook page was deluged with critical commentary, 330 comments to the original announcement alone. Their logo, which many people proudly tattoo on their bodies after finishing races, was lampooned:

And their CEO issued a public apology along with a retraction of the sold out program.
So, what’s a fan worth? Their 90,000 “fans” were worth approximately $10 each: $1,000,000 in Access program fees were refunded.
One interesting twist is that the story didn’t die with retraction and apology; few consumers bought their stated motivation for the program. WTC claimed the program was intended to help athletes: they could get into the races they wanted and not register for multiple; since people weren’t registering for multiple races, there would be more space available in previously sold out races. The problems regarding race entry are real and resonate with consumers; their connection to Access rung false. Setting aside the class system problem – many options for the bourgeois, none for the proles – there are simpler solutions, such as offering refunds and reselling the spots, that look a lot less like greed and a lot more consumer centered. The fanbase is now attacking them over a disingenuous explanation. Snowball effect or avalanche?

Again, WTC is called to task for being tone deaf.
So why should we care? What does Ironman have to do with our marketing efforts, let alone search? Monitoring conversations at any point in the process would have put them in touch with consumer sentiment: it’s easy to find old tweets complaining about the expense of Ironman (see below) or after the retraction showing that nobody bought his rationale.

WTC was in touch enough to identify the problem but too self-absorbed to put forth a customer centered solution. Search and the direct connection it provides to the customer push us to constantly become more externally oriented: what are our customers looking for, what experiences can we provide that will increase their loyalty? Furthermore, search as a tool for generating insights, particularly in the form of a social media monitoring program, provides large scale de facto focus groups. Our customers tell us, in droves, every day what they desire, what they think about our products and services, how we can better meet their needs. Social media aggregates the power of individual voices: we can embrace this and all the new opportunities it provides us as marketers; we can gnash our teeth and rail against it, waxing nostalgic about the good old days when we could broadcast our message, take it or leave it; but we can’t turn a deaf ear or blind eye.
Hopefully WTC got the lesson: ignore customer conversation at your peril.
