Vodafone or Vodafail
“VODAFONE faces compensation payments to up to 4 million customers after confirming it is investigating a security breach that has put billing and call records on a publicly accessible website protected only by passwords that change monthly.” The Sydney Morning Herald – Vodafone liable for privacy breach
So we ask : To what extent has Vodafone damaged their brand image and what damage control are they doing online?
Trust is the cornerstone of all relationships. In our recent Digital Pulse Study we discuss the importance of not being careless with customer information, and how the repercussions of such an act could damage relationships and in turn, a brand’s value. A key finding from the study, is the increased awareness Australians have towards sharing their information particularly with regard to the risks involved in providing certain private details. While in some cases this may be more of an requirement than an option, like when you sign up to become a Vodafone customer, you must share personal identity information even if you’re uncomfortable with it – which makes the leaking of this information even worse.
To quote one of the comments in the Vodafone blog under the release “Vodafone Customer data security” a customer called Mike wrote:
“That’s not good enough. For a company of your size, you *have* to ensure you follow the privacy act to the LETTER.
No security breach is acceptable and I intend to add this to my TIO complaint. I don’t feel safe as a customer if you cannot comply with federal / state privacy acts and cannot keep my details secure.”
The statement above captures the overall customer sentiment created by the breach, this event also has also drudged up unhappy clients’ pet name for the mobile telecommunications provider – being, Vodafail which is used extensively on the Vodafone AU Facebook page and Twitter as well as having its own dedicated consumer-created website.
On the face of it, Vodafone are treating this problem seriously, they have reacted promptly with press and radio statements from the CEO on the lines of ‘bring the full force of the law’. They are also handling it very well digitally, albeit a slower reaction than their offline communications. Other improvements that could be made is placing the announcement in their main header section on their website, as opposed to prioritizing it below product and service pushes, and making it more then just a regular blog post due to its severity. Overall however they have managed to use their social media channels effectively by engaging consumers in conversations through their corporate blog, Facebook page and Twitter.
So, will the way in which Vodafone has handled this crisis mitigate the damage done or have they breathed more life into their evil alter brand ego – Vodafail?
UPDATE: 13 January 2011 – Customer Care “Out of Order”
According to the Daily Telegraph, Vodafone has been ‘ignoring’ customers e-mails and calls using the excuse of ‘technical difficulties’, and refusing to provide alternative contact information once clients got through. It seems that the e-mail address was removed from the site and only reinstated once the Australian Communication Consumer Action Network and Daily Telegraph began making some inquiries. Vodafone 0 – Vodafail 20.
