Ain't Nothin' Worse than Bad Word of Mouth

64% -- more than half -- of all shoppers will never shop at a store again after hearing a friend's negative experience. That's the key finding of the Customer Dissatisfaction Survey from the Verde Group, Consumer Contact, and the Baker Retailing Initiative at Wharton. "If businesses want to stop the bleeding from negative word of mouth," said Wharton's Dr. Stephen Hoch, "It's clear that they need to invest in ensuring that each customer experience is first rate."

Other key findings include:

• 31% of all customers who have a bad experience will tell at least one other person.
• On average, shoppers will tell four other people about their negative experience.
• As negative experiences are retold to others, they are often embellished and can become up to five times as damaging as the original story.

Law firms should take note - every instance of client dissatisfaction has the potential to negatively impact loyalty and ultimately, the bottom line. With this latest study, we now know that negative word of mouth is so powerful that it can deter potential clients from ever retaining the firm again. But there is hope, according to Paula Courtney, President of The Verde Group.  By taking steps to better understand the problems their clients experience, law firms can begin to immunize themselves against negative word of mouth.