Bad Way to Do Business

My friend Peter Shankman travels a lot on business. I mean a lot: he's platinum in several airlines' and hotel chains' frequent flyer programs. So when he posts a scathing blog entry about a really bad experience at a Sheraton hotel in Miami, I tend to pay attention.

Now I don't travel nearly as much - but enough to hit silver level in some of the programs. I'm one of those customers Starwood (Sheraton's parent) tries to reach with its advertising and I even belong to their program. But the next time I'm flying into Miami - or elsewhere - which do you think I'll remember and act upon - their ad about how wonderful the Sheratons are or the first-person complaint of someone I trust?

I've been over this ground before: advertising can't and won't wipe out first-person reports from people we trust. Study after study has shown us that consumers more and more are relying on comments and recommendations from people they know. That represents a challenge - and a huge opportunity - for companies that pay attention to customer service.

I'd add that I have stayed frequently at Starwood hotels and, like Peter Shankman, rarely had reason to voice complaints. But any company that decides it doesn't need to pay attention to customer service these days probably deserves what is likely to happen to it.