By now, I am sure that you have seen "United Breaks Guitars," theYouTube video. At last count, it received over 1.5 million views and received coverage by major publications and networks such as  USA Today, LA Times, and CNN. What happened to Dave Carroll and his $3,500 guitar when traveling on United is an incredible story, really. As is typical with most YouTube videos that seem to spread so rapidly, it is quite humorous and terribly entertaining. Unfortunately, it’s also quite tragic, particularly if you are in PR at United, or an executive struggling to maintain business with existing customers in this economy. I guess you could brush this incident off and wonder how many United customers are capable of producing a music video like Carroll’s, but I think most would agree that is not the point.

Of course, United came clean and Carroll got another guitar. Though they responded rather quickly once the video spread – though, almost a year after the incident – I am sure the impact on the perception of their customer service took a very, very large hit on their brand. It is tough enough to maintain a good brand in the airlines industry these days. Who among us have not complained about having to pay for on-flight food or checked-in baggage? Just think what United might have done differently, beyond just agreeing to replace the guitar immediately. Here are a few things I can think of off the top of my head:

1. Look up Carroll’s history with the airlines, see his frequent flyer record, and offer his two free tickets anywhere, perhaps a location he frequents
2. Ask Carroll for feedback immediately on the incident and get his feedback and ideas on how it could have been handled better
3. Invite Carroll to participate with other customers in a process to get feedback on this and other service related issues
4. Offer to double his frequent flyer miles for any trips he takes for the next year

Now, to United’s credit, they did offer to use the video for training purposes, and I believe they are sincere in that offer and will pursue. But even that seems to me to be a wasted effort compared to what they should be doing. This effort goes beyond just for customer service issues. What if United was proactive in engaging their customers about customer service, and constantly seeking input? What if United really opened themselves up to Social CRM? If they truly understood that in this day of low-switching costs that a customer is a terrible thing to waste, would they be able to use Social CRM to drive more loyalty and more revenue? Here are a few things at Helpstream we think Social CRM and Social Business Applications allow a company to achieve, beyond handling customer service incidents like Caroll’s:

1. Get customers to share common experiences and help each other - perhaps another customer could help Carroll navigate his issue more efficiently
2. Get customers to share information on new products and services – could there be a better way to check-in valuables like musical instruments?
3. Get customers feedback in real time on their experiences with products – how was the healthy food item on the menu you tried?
4. Get customers to refer other customers – tell a friend and get extra miles for your flight!

Social CRM is more than just about using social media to help customers resolve their issues in an online and interactive forum. It is about giving customers a space to meet and exchange ideas before an issue even arises. If companies really believe their customers are their most valuable assets, perhaps we will see fewer stories like this in the future.

But I hear Carroll has two more videos in the works…