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« Cultivating raving fans—a referrals lesson from J. Crew | Main | Communicate value, build loyalty, and drive more referrals »

Reputation = Referrals

A colleague of mine had a frightening and frustrating experience recently that got me thinking about the power of word-of-mouth, both for good and ill.

We got pounded by a monstrous nor'easter.  Elizabeth was driving home from work in the middle of a heavy snowfall when the rear window of her year-and-a-half-old BMW suddenly shattered.  It scared her badly and positively traumatized her yellow Lab, Cooper, who was in the back seat.

Luckily, no one was hurt. Elizabeth and Cooper limped home, enduring the frigid air and the snow for the two hours it took them on the slick roads.

At the dealership the next morning, Elizabeth found herself haggling with a very unsympathetic service rep about how quickly they could fix the window and whether or not the warranty would cover the repair.  Unhappy but without options, she left the car in the parking lot (the service bays were all full), covered with a tarp (remember, there's a gaping hole in the rear and now it's pouring rain) and asked them to move the car inside as soon as possible. 

You probably won't be surprised when I tell you that when Elizabeth returned at the end of the day, not only had her car NOT been repaired, but it had been left to sit in the torrential rain for the entire day.

Elizabeth told me the story.  She told lots of other people the story. Now I'm telling YOU the story (although I am refraining from naming names).  And it's not a story any car dealer would want people to hear.  I can't help but wonder if the owner of the "Evil Dealership" has any idea that his business is imploding and that the service department is Ground Zero. 

(I should point out, as an aside, that after telling me her tale of woe, Elizabeth asked me if I knew of a GOOD dealer in the area.  I was delighted to tell her about the dealership where I bought my last car—and where I and my vehicle have always been treated with great care and respect.  They give me consistently great service, and I rewarded them with a referral.)

Even the most stellar of reputations can come crumbling down in very short order thanks if you mistreat someone who has a big circle of friends and the gift of gab.  But Give clients reason to sing your praises at every turn (free registration required) and you really can build an unstoppable business.

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