The Power of A Negative Experience

In light of last weeks post that highlighted yet another powerful review site ( Google + Local) I think it's an appropriate time to take another look at the importance for every business regardless of size, age, market or reputation to the impact of  poor customer experience and the inevitable level of customer dissatisfaction that typically ensues from these experiences.

Over the years there have been many studies done on this topic but perhaps the best known and widely quoted is the TARP study.  In it, it was found that out of every person who receives a negative customer experience and complains about it, another 25 people who get a similar experience don't.

Now as frightening as this statistic is, the story just gets worse. Consider that each of the twenty six people who have received this poor service or experience on average goes and tells around ten people who in turn go and tell another five people.

Do the maths on this and you'll see that for every complaint you actually receive, around 1300 people will know about it. In reality if you are lucky the one complainant will be early on before so much damage is done, and if you're unlucky it may come much later in the piece before you can start to address the situation and fix what ever has gone wrong.

Perhaps that is enough data to scare every one in business and motivate them to consistently deliver true and meaningful levels of customer service and support.  But in closing if you need one more little spur than here it is.  The TARP study was done in 1999 some 13 years ago.

So tell me what particular modern day phenomenon did't exist then that most people have access to today. Answer:  Social Media. The perfect tool to eviscerate any business failing to achieve adequate standards of customer care and comportment.  Perhaps Wednesday Addams said it best with her now famous line:
 "Be afraid, be very afraid".

Until next time, good luck and good marketing.
Regards,
Daniele.