This is a guest post by Becky Clawson.
Peter Spellman of Music Business Solutions talks about the impact of negative word of mouth in his latest newsletter:
I listened to a story on NPR this afternoon about the negative impact of bad word-of-mouth. Very scary. The basis for the article comes from research by the Wharton School of Business. They found that 1 out of 2 customers has a customer service problem when they shop. Worse is the fact that they then tell friends, family, and colleagues about it and embellish the story in the retelling. The overall result is that 1/2 of those that hear the bad news story won’t shop at those places they heard about. Ouch! Those that improve on the situation certainly create a business advantage.
This is so true–at least as far as I can relate. Last summer, my hard drive crashed, and after searching the Web for a nearby certified store, I found a shop and took it in for repair. They were friendly, informative, and timely in their turnaround. Great. But a few months ago, my hard drive crashed again, and this time, I asked my peers where they recommend. I told them about my prior visit to the local repair shop–no complaints to speak of–but everyone I talked to insisted that I definitely should not bring it back to Shop A. “They’re terrible. They’re always messing things up. Everyone knows that. Go to Shop B.” And so even though I had no bad experiences with the Shop A, I went to Shop B because I trusted that their bad reports were legitimate, and I just didn’t want to take a chance that I might suffer the same. Am I any better off? Who knows. Shop B did an adequate job, so I’m no worse off.
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