79% of consumers that had a negative experience with a company told others about it

97% used word of mouth as their preferred method to share their experience*

However, all hope isn’t lost if a company makes a misstep. In today’s transparent environment, owning up to your mistake and taking action yields positive results.

92% of consumers said they would be willing to go back to a company after a negative experience if they

· Received a follow up apology/correction from a supervisor/head office (63%) 

· Were offered a discount (52%) 

· Or were offered proof of enhanced customer service (49%)

It looks like, more than ever, enhanced customer service is the secret weapon for turning around negative word of mouth, and further more, for increasing revenue.

According to the same study, 85% of consumers said they would be willing to pay more over the standard price in order to ensure a superior customer experience.

· 76% would pay 5% or more 

· 55% would pay 10% or more 

· 27% would pay 15% or more 

· 18% would pay 20% or more 

· 10% would pay 25% or more

And these numbers stack up to make quite an impact. For example, the US airline industry could make an additional $10.6 billion in revenue this year if they could guarantee a superior customer experience.

Companies spend billions on advertising and marketing, yet word of mouth remains the most powerful vehicle for influencing one’s purchasing decisions. 76% of consumers said word of mouth most influenced their purchasing decisions, followed by customer reviews and online feedback at 49%, product review web sites at 41%, magazine articles at 23% and reputation on social networking sites like Facebook, Twitter and Youtube at 7%.

It looks like social networks add a whole new dimension to customer service. If negative comments are left unaddressed then it will influence buyer's choice a lot more than positive comments and advertising combined. 

Find the full study Here.

*These calculations were done by RightNow based on the results from Harris Survey and predicted US Airline revenue for 2010 by the Bureau of Transportation Statics