Only three months ago, Facebook went public with aspirations to reach new heights in stock prices, just as GM announced it was pulling marketing dollars from Facebook Ads. As if that wasn’t enough, news quickly spread that Facebook-founder Eduardo Saverin dropped his US citizenship as a way to avoid paying US taxes. That didn’t go over too well with American investors and Facebook stock has been dropping ever since. As of yesterday, Facebook lost about 50% of it’s stock value. Ouch! Is this a case of bad luck or poor strategy? Let’s just say that for such a giant social site, Facebook has repeatedly missed the boat on making friends.
Facebook has made a series of changes over the past several years, which it imposed onto loyal users. Remember the controversy and then lawsuits over Facebook tracking user activity without their knowledge or permission? And then Facebook launched timeline as an optional layout that would eventually be mandatory. Recently, many reluctant Facebook fans were forcefully switched over to the new Timeline layout. What a slap in the Facebook!
Facebook seems to have forgotten that Facebook users made it the successful platform it has become. This is a critical mistake that is coming back to bite Facebook. People are no longer forgiving of Facebook, and businesses are starting to realize that Facebook is not the best place to interact with consumers. Facebook’s fanbase is not LIKING this at all.
In order for Facebook to recover from all this bad publicity, first it must start valuing all the people who make it a fun place to hang out. Facebook also has to start listening to users and respond to what THEY want. It only takes a few minutes of searching groups to find discussions of what Facebook should and shouldn’t change about it’s site.