Managing social media crises with your customers: The good, the bad, and the ugly

Social media (SM) are transforming the ways in which customers communicate with firms following service failures. While there is a positive side to this phenomenon, there is also a negative side, which can lead to serious social media crises. In light of this duality, the current article addresses the good, the bad, and the ugly uses of SM in the customer complaining process. Herein, we identify six different types of SM complaining situations. The good represent opportunities: (1) when customers complain to the company online immediately after a first-service failure, or (2) when consumers publicize extraordinary recoveries. The bad involve risks: (3) when customers discuss a failure without complaining to the firm, or (4) when consumers reach out to online third-party complaint intercessors. The truly ugly represent the peak of online threats and public crises: (5) when customers spread negative publicity through user-generated content SM following a double deviation, or (6) when competitors respond to this content to steal customers. As a takeaway for managers, we formulate specific recommendations to deal with each type of online complaining. (C) 2014 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.