I'd like to complain about my complaint please
In my work as a customer experience advisor and non-executive director I see some serious complaints. These complaints, which have all somehow reached top management, have one thing in common. The subject is not service failure but complaint management failure; in other words a complaint about a complaint.
Such a failure is known as double deviation and, in customer service terms, it’s a cardinal sin.
The benefits of good complaint handling are manifold. Higher customer retention, reduced negative word of mouth, increased positive word of mouth, market research and, sometimes, increased sales. So it stands to reason the opposite is true. Failing to manage complaints well results in lost customers, increased negative word of mouth, decreased positive word of mouth, market ignorance and, usually, lost sales.
Many of the findings of the landmark 1979 customer service study of Consumer Complaint Handling in America by the US Office of Consumer Affairs are quoted to this day:
- On average, only 4 in 100 customers who are dissatisfied make a complaint
- The other 96 will each tell 9 other people about the problem
- Customers whose complaints are well handled are often more likely to recommend the supplier concerned than those with no complaint
But buried deep in this research was an even more powerful statistic. Returns on investment in effective complaint handling range from 75% to 400%.
Do the maths to fit your financial model and buyer behaviour patterns. And then go on to review the way your organisation manages customer dissatisfaction. I wager most of you who do this will have cause for complaint!
Does your approach to complaint management satisfy customers who have experienced a failure? Does it retain those customers? Does it improve organisation-wide processes as a result of the information gleaned? Does it help to retain employees?
#FridayThink
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