When a consumer hears about a negative shopping experience from a friend, it is likely to prevent them from setting foot in that store altogether. The Customer Dissatisfaction Study conducted by the Verde Group and Baker Retailing Initiative at Wharton found that negative WOM influences future patronage up to five times more than the person who experiences the problem first-hand.
Other key findings include:
* 31% of consumers tell one or more friends about the problems they experience in a store.
* On average, consumers tell four other people about their negative shopping experience.
* Almost 50% of shoppers said they avoided a particular store in the past because of someone else's negative experience.
Source: Verde Group and Baker Retailing Initiative at Wharton, "Customer Dissatisfaction Study"
Get the report (PDF download)From WOMMA's Word of Mouth Research Blog
Source: http://www.womma.org/research/studies/hearing_about_a.htm
About Me
- Jeffrey Summers
- I am the expert you call when you need to learn how to increase top line sales, lower your operating costs, increase your profit margin, hire and train better managers and staff, evolve your operation into more and better ways of doing business, buy or sell a restaurant, improve your service, engineer (or re-engineer!) your menu, market your business better and less expensively, keep yourself from going nuts because you have no life anymore, open more and better restaurants, don't want to have to give up your first born child to pay a consultant and have more fun! My mission is to enhance the quality of life for my clients by providing the best products and services to help them achieve their personal and professional goals. I take great pride in my clients, my company, my commitment to service and the products I sell. I am a recognized expert in the hospitality industry with over 24 years of success at planning and executing strategies for delivering dramatic results, a former "GM of the Year" for 2 major, full-service, franchises, an Award winning Multi-Unit Executive with 2 of the largest restaurant chains in the U.S., published author, husband and father of two.