Lewis Green has written an excellent article at Marketing Profs that deals with word of mouth (WOM) and the things we do that generate WOM buzz - be it positive or negative.  Green builds toward a conclusion that I think every one of us should remind ourselves of from time to time:

When we ignore bloggers, when we don't respond to e-mail (or snail mail) within 24 hours, and when we put telephone callers on hold, the message we send is we don't really carry about our customers. […] To my fellow marketers, I recommend that if we don't have the budgets and the staff to actively participate in conversations with our customers, don't launch new tools that you will ignore.

His point here is that if our customers don't think we care about them, they're going to tell their friends, families, co-workers, etc.  We often forget this aspect of marketing and reputation management because we focus on ad campaigns, PR, search optimization, and other forms of marketing that we can directly control.

You've heard what "the studies" say, right?

• Consumers are likely to tell twice as many people about a bad experience as they will tell about a good experience
• People typically embellish and exaggerate stories about bad experiences because they are upset
• About 50% of consumers will avoid spending money at places that they've heard bad things about from their friends and family members

It's basic psychology.  When people have a bad experience, they get mad.  When people get mad, they are physiologically and psychologically filled with energy.  One of the best ways for them to expend that energy is to raise their voice to the rafters.

Why do you think consumer-generated reviews are so popular and influential?  The Internet has made it possible for people raise their voices into much higher rafters.  In fact, the study we examined in that linked article found that about 70% of consumers value the information in consumer-generated reviews while only about 30% said the information provided by companies was credible.  50% said they used those same consumer reviews to help make spending decisions.

As Green pointed out in his Marketing Profs article, it's unwise to roll out new services and products if you're already putting people on hold, delaying email responses, and otherwise ignoring your customers.  Not only is it just bad business, but it sends a very bad message about your customer service… and that message will spread.

For example, I used to buy all of my computers from one company.  I won't say who… but suffice it to say, I loved their products.  Their customer support used to be first-class as well.  But as they grew and expanded, certain aspects of their business started to take a hit.  Customer service eventually suffered and I had to find a new computer supplier.

As you can tell, I still tell that story.  And if we were to meet in person, I'd tell you the company name in a heartbeat.  The company in question expanded beyond their means and the entire business suffered as a consequence.  Before long, a lot of customers (including myself) were talking about how rotten the experience was.

So what happened to them?

Over the course of two years their business slowly fell apart… until it was acquired by another company that they probably wouldn't have even done business with at the height of their popularity.

So Lewis Green has certainly made a good point here.  Make sure you've got the means to provide a pleasant experience for your customers before you expand.  Don't "live beyond your means"… and don't do more than your company can handle at any one time.

The end result - and the WOM that comes with it - is most undesirable.  But it's also avoidable.