Vodafone's 'painful lesson' in social media

Vodafone's 'painful lesson' in social media

Summary: Vodafone Hutchison Australia CEO Nigel Dews has admitted that the company could have handled social media feedback much better in the early stages of the company's highly publicised network issues late last year.

TOPICS: Telcos

Vodafone Hutchison Australia CEO Nigel Dews has admitted that the company could have handled social media feedback much better in the early stages of the company's highly publicised network issues late last year.

Vodafone Hutchison Australia

(Credit: Josh Taylor/ZDNet Australia)

When users first began reporting to VHA staff in the last few months of 2010 on Twitter and the Whirlpool broadband forum that their calls were dropping out or that they were unable to access the internet through the Vodafone network, staff initially denied there were any network problems and often blamed the devices the customers were using. Often customers were advised to reset their personal settings on their smartphone device.

Dews yesterday acknowledged that the backlash to this sort of feedback from customers had taught the company a "very big lesson" in social media.

"We didn't listen closely enough or early enough to what our customers told us in those forums. Even though we sell unlimited Facebook, it didn't make us an expert in understanding social media," he told ZDNet Australia. "It's a humbling medium. It's an exposing medium and a very exciting one to be a part of."

The telco boss said that the company had originally approached social media as another means of selling; however, now the company had taken the approach of "service first rather than selling first".

"We're making sure the lessons are being learned and the money that needs to be spent is being spent," he said.

Dews said he was personally involved in the "forensic" investigation the telco had undertaken into how the company handled the fallout and said the company would be channelling the "pain" of this incident to ensure VHA becomes a better company.

The telco chief did not disclose the actual number of customers that had left the company in the wake of the network issues, but said there had been a "spike" in the churn rate.

In February, Privacy Commissioner Timothy Pilgrim ruled that although customer information had not been made available on the internet, as was originally reported, the telco was in breach of its privacy obligations for its Siebel customer relationship management system because staff used shared log-ins and passwords. Dews said the reporting of this breach caused many customers to panic, and the company had now moved to improve security measures.

"It's already been well and truly boosted. We had a lot of plans in place and we've accelerated them. A lot of what we had planned to do over the next 12 months has been done and we're planning to do more," he said.

"I think the only way you can re-establish in the minds of customers that their data is safe ... is to do it, and to over do it," he said, again stressing that there was no online access to customer information.

With the company overhauling its 3G network with Huawei, and rolling out a number of new base stations, Dews was optimistic that customers would be happy with the service once again.

"We're like the radio in your car or the TV in your living room. Sometimes you only notice us when we're not there."

Topic: Telcos


Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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  • Would love to ask Nigel why Voda doesn't like spending much in Australia.

    Will get the story of the new nextwork expansion, but still a drop in the ocean.

    They can spend though, when their return is right. India, China, Pakistan, Vietnam here they come.

    They don't think much of Australia though.

    Don't know why they are still here. Have made a lost ever since they got here. Hoped in hell Optus or Hutch would have bought them, and still hoping.

    Doesn't matter how many stations you put up, without the backhaul from the towers, the experience will still be bad.
  • How are Vodafone still even relevant in the Australian marketplace?
  • Im am amazed that vodafone are claiming they have resolved there network issues, In the last month I have been in various parts of QLD, VIC and NSW and there service in most locations is disgraceful. I have several products so it isnt just a faulty USB stick or phone..
  • Let's get something straight Nigel - The Vodafone issues were reported by many, consumer and commercial as far back as June last year. It only reached the media in November after I had had enough of the BS that was being sprouted. To this day, the main 3G issues have not been resolved. There may be congestion on the network, but this is not the cause of the issues that have been reported. Network expansion is a veil for "we don't know what the problem is, but if we upgrade everything, it should go away".
  • I think the only lesson learnt by Vodafone is not social media or customer service. It's finally realising how to 'under promise & over deliver'...which has been the mantra for many successful businesses.
  • 18th Mar 11- I tried to exit Vodafony after 6+ months on almost non-existent data access and patchy phone reception/dropped calls but they can't even let me go without stuffing it up. I have a smartphone that today was locked after porting and won't work as they can't unlock it for a further 10 working days. Their admin is woeful, their service for accessing email and internet via phone doesn't work in most locations around Sydney & all the while they take no responsibility for their failures or wrong information they provide. I will need to buy a cheap phone and not use internet with my new provider to get me over the next few weeks until they fix their issues and let me go. More expensive by me and more problems & frustrating calls on hold with Vodafraud.
  • I've been in Melbourne Sydney and my phone quality with vodafone is twice as good as this time last year. i'm 30 minutes from the cbd and can't moan. they moved me onto the newer network about 3 months ago and i've been very happy with that move. also did the same with my wireless broadband and can't complain for a second with the direction it's gone since.

    Many people out there thaareeextremelyly happy with the network vodafone and the price they pay. i'm one of them.