Lindsay recently posted some customer service statistics some of the key figures are:
- 26 out of every 27 customers who feel they have a legitimate complaint, NEVER COMPLAIN.
- 91% of the 26 customers who wanted to complain, but didn’t, will never return.
- Each of the 27 customers who feel they have a legitimate complaint, will tell at least 12 other people.
- 20% of the 27 customers who feel they have a legitimate complaint, will tell 20 people.
Whereas every satisfied customer will tell only five others about the experience.
So what can you do? Well the first step is to make sure no matter how angry the customer that does complain is, you handle them well. Keep in mind that a customer who complains and has their complaint dealt with promptly and in a fair manner will often become not only a regular customer but an advocate for your business as well.
After that you need to set about ensuring that those 26 customers with a complaint are telling you about it. At the moment those 26 are heading off to tell a total of at least 312 people about their bad experience dealing with your business. If you can resolve their complaint they could be telling 130 people how good your business is instead.
The good news is that getting those customers to provide feedback isn’t hard. All you need to do is ask them a few simple questions; “Is everything OK?”, “Is there anything we can do to improve our service”, but ask genuinely, don’t throw the question over your shoulder as you rush off to deal with the next customer. Then take suitable steps to address their feedback.
This blog is about business opportunities and ideas that I spot, think of or hear about and think are useful and interesting. It is intended to provide ideas and inspriation for you to help you find the right business idea for you to then grow it into a successful business.
I’m annoyed John, Very annoyed!
your rewrite has made this much clearer than my fumblings.
Now I look stupid… oh well if the cap fits…
I’ll just blame it on my antipodean genetic “challanges”
Ha ha ha ha!
I think it’s quite clear from your great blog that you’re anything but stupid.
That first stat is amazing! Good stuff John.
[...] John talks about how to deal with complaints or else lose customers. Great guide for businesses! [...]
[...] John Crickett presents How To Deal With Complaints That You Haven’t Recieved Before They Loose You Business, saying, “If handled well upset customers can become advocates for your business – but what about those that don’t voice a complaint?” [...]
I intend to start a blog very soon showing banks, utilities, telcos and media companies that their customer audience is a massive source of inspiration for them if they can only reach out to them and connect.
The technology is there, we just need the evangelists. Oh all right then, those who can spread the word and reach the places and people that matter.
Regards,
Peter Jones, Director Blue Oyster Innovation
Peter,
I expect many of those people are accessible through networking organisations like LinkedIn.
Hi Peter,
I agree completely been saying this at the University level for some time now. I have started using a wiki to promote collaboration between people in a post graduate subject to great effect. The feedback and open forum on the one hand created good interactivity whilst on the other in showed up a lot of the hidden assumptions. The ability to promote open communication between customer and business (i.e. GOC’s) has never been greater.
Thanks
Luke
Hi John,
Agree LinkedIn is good, particularly Q&A, but the format is more limited than blogging.
With blogging it is possible to cover a range of topics, and build up a knowledge base. Given the ability on blogger to acquire team members, it would appear that teams can be built focussing on a particular subject given that the cause appeals to them.
Your views appreciated.
Peter,
I meant using LinkedIn to “reach the places and people that matter”.
I agree that the use of as blog as a means of voicing customer concerns and providing feedback on how the business could interact better with their customers would make more sense.
Business Success Link Love – 10/15/07…
……
Great Stat’s there, and the rest of the concept as well. It should be so simple, but so many often “lose” that head on approach.
The bad news is that getting customers to provide feedback is hard that you mention. Few simple “Is everything OK?†questions are better than nothing
but definitely not enough.. There’re nice ways
to learn customers’ unsatisfied wishes..