"Why reputation is damaged when customers are taken for a ride" It is the same story being repeated time and over again. Startups, larger companies, well established companies all dealing with customers, sometimes tend to take customers for granted. In pursuit of growth, their backend processes, administration and operations suffer. Those, who are able to grow faster than the impact on operations are able to improve the backend operations and speed them up with the new cash generated. But those who are not able to scale up, the anger of the customers impacts the company's reputation and begins to halt its growth. There are many such instances from an online retailer, Snapdeal.com, which is a well known household brand. But as expected, their backend systems just don't function well.

Here is what a customer had to say.

• It is a sad story that customers still have to run around to get their money back for a valid and accepted refund due to them.
• And, I wonder that snapdeal wants to come out with any type of future IPO.
• A small item, a wall clock, received broken, returned and the refund was accepted on July 4, 2013
• Refund amount still not received- 3 months from them.
• Several complaints, phone calls, emails, but only promises.
• Such communications make a good reading in the newspaper, but the experience is rather sad.
• If the intention is not to pay, please say so. we will then deal accordingly.

Why do companies not pay refund or act on refund processing, when everything else is clear. It is accepted that the return is valid, that money should be refunded, bank account details all obtained. Then why not the refund. what is stopping them Are they using these money to fund growth, to pay salaries. Are customer funding companies pre-IPO, incase they wish to come out with IPO. So, the key lessons for us is that reputation is at danger when companies start to take customers for granted. They ignore that one customer in a hundred, whom they think he/she does not really matter to them. They ignore the fact that even if one customer bitches about the company, their sales to 100 other customers will make up for negative sentiment and and the company will be able to grow. Such a thought was good in the past, but in the social media era, it is taking a big risk. But this is where social media risk, crisis management, reputation risk management, customer perception and all such good stuff come into play. It's about business ethics, the right from the wrong. Agreed that growth will happen, but somewhere down the line, the growth was because of poor service to one genuine customer. After all, it is not the customer intention to spread negative publicity about a company. It is just that they want a good experience with companies.