For social-media companies, a disconnect with users is a recipe for disaster. When that disconnect stems from what is perceived as an invasion of privacy, immediate action needs to be taken -- or the company can start packing its bags, because it won't be around long.
The very thing that makes social media companies successful is their stickiness. The more people that join, the more valuable the company becomes. But the flip side of this is that once users start fleeing, it can snowball out of control quickly.
Twitter (NYSE: TWTR ) recently got its first chance as a public company to prove that it understands its customers and is willing to listen to feedback. Following a change in the company's blocking function for users, many aired their complaints. In fact, #RestoreTheBlock was trending on Twitter's service almost immediately after it publicly released details of the change.
In the video below, Erin Miller and Motley Fool contributor Brian Stoffel discuss how Twitter responded and why it's a good sign for investors.
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