Flickr Avoids Bad Word of Mouth by Rewarding Loyalty
A very quick way to generate more word of mouth is to reward customer loyalty. Photo community site Flickr recently unveiled a new fee structure following its acquisition by Yahoo. Instead of raising prices and dropping its free offering, Flickr announced it would immediately double capacity for its free account and reward current Pro users (paying members) with an extra year of service at no extra charge.
THE LESSON: When you're making a controversial move, find a way to preempt negative word of mouth by taking care of your fans first.
More info:
http://blog.flickr.com/flickrblog/2005/04/new_prices_free.html
