How do you handle customer service issues in the age of social media?

I think it's important not to think that just because it's social media there's a different set of rules to employ in the way that a company engages with its customers. Yes, social media does have some unique characteristics which you need to be mindful of, but if you fundamentally don't put your customers at the heart of what you do, whether you engage with them via Twitter or the phone makes little difference. Forget the toolset for the moment and think how you would approach any problem or crisis when it arises. Once you have an understanding of how you as a company would approach it, then start to match the response to the tools that you have at your disposal to inform your customer about what is happening. If your company is not open, then whether you use Twitter or email, you will fundamentally have a closed approach to your customer. So, my advice, look at what type of company you want to be first, and then worry about the toolset after that.