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A Complaint Is a Gift

A Complaint Is a Gift. Janelle Barlow, Ph.D. Customer service fundamentals. There’s no such thing as a problem-free relationship. Problem resolution is probably the most critical competency. —KPMG Ted Fernandez. About the least level of problems you can expect is 12%,.

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A Complaint Is a Gift

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  1. A Complaint Is a Gift Janelle Barlow, Ph.D.

  2. Customer service fundamentals

  3. There’s no such thing as a problem-free relationship. Problem resolution is probably the most critical competency. —KPMG Ted Fernandez

  4. About the least level of problems you can expect is 12%, …and that’s with such items as lamps, tires, cosmetics, blankets and sheets! Alan Andreason & Arthur Best, HBR

  5. You must get close -- intimately close -- to your customers. In the final analysis, customers are your only source of job security. Price Pritchett New Work Habits for a Radically Changing World

  6. What are complaints? Something not right Expectations not met Early warning system Threat Expressed to you, and not the marketplace Source of ideas

  7. What are complaints? At times, a challenge Chance to educate Opportunity to tighten bonds with customers Chance to find out how good you really are at customer service

  8. Customers rarely complain

  9. DISSATISFACTION WITH SERVICE IS SELDOM VISIBLE 26 of 27 dissatisfied customers do not complain

  10. Poor complaint handling

  11. How many customers do your agencies lose? Why?

  12. A very common reason for losing customers ispoorhandling of complaints.

  13. More than half of all efforts to respond to customer complaints reinforce negative reactions. .. .

  14. Reactions to Complaints Apology Rejection “Passed on” Making excuses Customer “interview” Interrogation

  15. Customer retention and complaint handling

  16. How can insurance customers return the favor of your effective complaint handling? By remaining your customers!

  17. $ $ It costs at least 5 times more to win a new customerthan to keep an existing one. $ $ $

  18. “Reducing customer defections by as little as five points—from say, 15% to 10% per year— can double profits.” Bain and Co.

  19. “The profit made from a single customer who has stayed loyal for seven years is six times more than the profit made from a new customer.” Bain and Co.

  20. Loyal Customers • Lower costs to retain • Less negative word of mouth • Can learn from them • Easier to satisfy

  21. If you scratch my back, I'll scratch yours.

  22. Complaint Handlers • Marketing experts • Public relations specialists • Sales teams • Customer retention staff

  23. Shifting Our Complaint Model

  24. Gift Formula 1. Say “thank you.” 2. Explain why you appreciate the complaint. 3. Apologize for the mistake. 4. Promise to do something about it. 5. Ask for necessary information. 6. Correct the mistake – promptly. 7. Check customer satisfaction. 8. Prevent future mistakes.

  25. You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete. Buckminster Fuller

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