Word of (bad) mouth

Trainers, consultants and other know-it-alls like to throw around lifestyle statistics in an effort to cause jaws to drop, ears to perk up, and advice to be taken.

One of the most common is the "number of messages that consumers are exposed to each day." Ad people love to drop that ditty on clients who want to change a campaign strategy before it's had a chance to become even the faintest blip on the target audience's radar screen.

Another familiar statistic of woe has to do with how consumers react to good and bad retail experiences. Until recently, the tried-and-true numbers ran like this: A bad experience is shared with four people, while a good experience is shared with one.

Well, a new study has taken that sobering news to a new level.

Conducted by the Wharton School of The University of Pennsylvania and The Verde Group, a Toronto consulting firm, The Retail Customer Dissatisfaction Study 2006 tracked the behavior of 1,186 shoppers over the 2005 holiday shopping season. And, its results put a bit of a finer point on the generic, and oft-quoted, 4-1 ratio.

Specifically, the study found that only 6 percent of shoppers would tell a business when they were dissatisfied, but 31 percent would tell friends, family, or colleagues. Of those, 6 percent would tell six or more people. When the average level of bad-mouthing was calculated, researchers suggested that 100 people with bad experiences would likely result in the business losing 32 to 36 current or potential customers.

Solutions? Well, aside from making certain to avoid putting the surly staff out front, and keeping the shelves attractively stocked, the research team had another thought: Ask customers what you could do better.

That's right; instead of saying "Please rate our service" or asking the clientele "Tell us about someone who delighted you today," one of the study's recommendations was to take the plunge and ask the questions whose answers might make you squirm.

The reasoning is sound. After all, if you encourage customers to tell you what's wrong, they might find it more satisfying than holding that topic for the next water cooler meeting or phone call to Mom. Plus, you get the chance to fix it, and rebuild the relationship in the process.

What does all of this mean for those of us who don't work somewhere that holds "Moonlight Madness" sales?

• Find a balance - You don't want to ask questions that invite only rosy responses, nor do you want your inquiries to exclusively spread gloom and doom. Find a balance, but don't shy away from the tough stuff.
• Use constructive language - For example, instead of asking, "What did we do wrong?" Ask "How can we improve our X?" If there's a problem, you'll find out about it in a way that won't plant any negative seeds in your customer's mind in the process. If everything's fine, you'll learn that too.
• Ask creatively, and often - Annual satisfaction surveys are fine, but do you really want to wait a year to hear from customers with concerns? Look for every chance possible to ask how their experience with you could improve.

The message: Steel yourself and take the chance. You'll either be pleasantly surprised, or you'll have more than just a gut feeling regarding what needs attention.