Eshin Direct

New Facebook Revolution

What went wrong with Facebook? It grew rapidly as a popular site with fun features and cute little widgets that everyone seemed to like¹. I, for one, advocated it to as many folks as I could find just short of becoming a Friend Whore². With the redesign of Facebook (which incidentally, I do actually like), and with no way of going back to the old version, a lot of people are in uproar about the next generation FB.

I think this is symbolic of what Mark Zuckerberg is getting wrong with Facebook. Here’s are three reasons why Facebook is getting it wrong.

Brand Loyalty vs. Brand Bondage

In principle, Facebook performs a great service and we all have stories of reuniting with old friends, meeting new people and generally engaging in social porn. However, I suspect most folks Facebook gains as much negative brand equity as Microsoft. Social networks aren’t as locked as they were five years ago and with API tools available to facilitate an easy migration to another service available, moving over might not be a problem. Friendster found this out the hard way I think when Facebook came on the scene.

Ignoring Your Audience

Well, perhaps Zuckerberg doesn’t exactly ignore his audience with 4 out of 6 ever blog posts addressing issues that has users out with their knives for Facebook³. The point is that Zuckerberg and Facebook should realize that it really isn’t their Facebook anymore. Its the users. Sure, in terms of stock ownership, the data, the equipment, it’s all Zuckerberg’s. But the heart and soul comes from its users in the form of emotional investment, time commitment and experiential stories to tell. Users feel they are a part of owning the brand and spend energy on the site, giving them the feeling that they should be allowed to have a say in the direction of the brand and service.

Or at least they should be given the perception that they have that say. The greatest democracies on earth help to build that illusion quite well.

Selling Out Your Customers

All companies must make a profit or die. We all know Microsoft does it and we hate them for it. But even the well-loved brands do it. Google does it. Apple does it. So why not Facebook? It’s as much about handling who you treat your customer’s information and time investiture as it is about establishing trust. Grudgingly, we accepted ads in the sphere of Facebook. We accepted less the idea that every cute application that we signed up for required our personal information. And we definitely don’t like the Facebook terms of service⁴ that they force on unsuspecting users⁵, who often do not realise that by using Facebook grants the company an unlimited license to do anything with their content except claim ownership.

Mark Zuckerberg also didn’t score any points in a BBC documentary called Facehooked⁶ where when directly asked about corporate social responsibility issues, he looked rather sheepish and ran off stage, belying the immaturity of someone who comes into so much power at a young age.

On a final note, Facebook should be wary of its current brand equity with its users. I’ve mentioned Microsoft before as an example but I think it serves us well to remember it here again. While Microsoft may dominate the market, it is clear that many are switching to alternatives that might not be as good as the products the big M offers but it’s worth it, just to be away from them. And with each defection, the death of a brand comes closer as those pioneers of switching start the revolution going and you end up with viable (and profitable) alternatives being developed.

Zuckerberg should take note. That’s if he isn’t too busy working on Facebook: The Movie.

1. Although how useful some of them were is questionable. No, I don’t want a pet egg. [↩]
2. Friend Whore – To link excessively to people you have the briefest of contacts [↩]
3. http://mashable.com/2008/09/18/zuckerberg-responds-to-new-design-criticism/ [↩]
4. For an alternative take visit http://www.legalandrew.com/2007/07/21/facebook-and-the-law-8-things-to-know/. [↩]
5. Okay, not completely unsuspecting since as I logged in today, I was presented with the full terms of service before I could enjoy the new Facebook [↩]
6. http://news.bbc.co.uk/2/hi/business/7151690.stm [↩]