783 words
In a survey of service quality conducted by the Financial Institution Marketing
Association (FIMA) and Raddon Financial Group, it was discovered that 25 percent
of customers had expressed a complaint in the previous twelve months. The survey
stated, "In light of this significant percentage, everyone in the organization-from
teller to president--must become increasingly aware that he or she is either
serving the customer directly or is serving someone in the organization who
serves the customer. All positions exist because of the customer."
Calming upset customers is rarely pleasant, but it must be done. If upset people continue expressing their anger and frustration without intervention, it can upset the whole office.
Upset Customers Don't Come Back
A recent study showed that customers stop buying from a particular business
for the following reasons:
o 1% die (not much you can do about that)
o 3% move away
o 5% form other interests
o 9% for competitive reasons
o 14% due to product dissatisfaction
o 68% because someone was rude, indifferent, or discourteous to them
Another survey showed that one out of every five supermarket customers had switched stores in the last 12 months. What made them switch? The way they were treated at the cash registers, mostly.
It is clear that people want and expect good service, and when they are not treated well they don't come back. The FIMA/Raddon study found that in financial institutions, such as banks, " 'Complainers' have an average of 3.2 deposit products. While their problem may involve just one specific product, their entire relationship is in jeopardy over unresolved conflicts.
It can be expensive for your company if your customers decide not to come back. One study found that the average cost of acquiring a new customer was $118.16, yet to keep a current customer happy costs only $19.76. It is six times more expensive to acquire a new customer than to keep a current one. That money could be spent improving your work environment, giving you a raise, or keeping you employed.
Word of Mouth Spreads Quickly
If your organization has a reputation for quick, courteous responses to complaints,
people will be more apt to begin their conversation with you rationally. When
customers scream and yell it's often because that's what their friend had to
do to get some action from your organization.
One study found that, on average, one dissatisfied customer told 11 other people, who each told 5 others. That's 67 (1 + 11 + 55) people spreading bad word-of-mouth about your organization. Most organizations are going to be hurt by that much bad advertising.
You Want Customers To Complain
Yes, you do. Because if they don't complain, they'll just take their business
elsewhere, and tell their friends not to do business with you. Think about what
happens when you are treated poorly: do you usually complain? Most people don't.
They just say, "I'm never coming here again."
A study conducted by the Technical Assistance Research Program discovered that 96% of a business' customers don't complain when they have a problem. This means that for every complaint the average business receives, there are 24 silent unhappy customers.
Yet if a customer does complain, he is more likely to come back. The act of complaining can actually increase customer loyalty.
Unhappy Customers Who Will Buy From You Again*
No complaint: 9% (91% won't come back)
Complaint not resolved: 19% (81% won't come back)
Complaint resolved: 54% (46% won't come back)
Complaint resolved quickly: 82% (only 18% won't come back)
*% customers with major cause for complaint (over $100 losses) who will buy from you again.
Source: U.S. OCA/White House National Consumer Survey.
In a 1993 study reported in the Yankelovich Monitor, 54% of adults agreed with the statement: "It is usually a waste of time to complain to a big company when you're not satisfied with a product or service."
So remember: Encourage customers to complain when they have a problem.
What You Can Learn
We can learn from every experience, if we choose. Even a difficult encounter
can be an opportunity to learn something new, or to apply what you've learned.
o Have patience. It takes a lot of patience to listen attentively to someone
while they are yelling.
o Identify specific company procedures or practices that may be annoying your
customers. Then you can work to change these.
o Improve yourself. There may be something in your behavior that irritates people.
You can work at changing this.
o Show confidence. People can tell if you are confident in your skills or not.
An irate person is more apt to hassle someone who appears unsure of himself.
o Learn how to calm upset people. You get to practice your calming skills.
© 1989 Morgan Seminar Group
_______________________
Rebecca L. Morgan, CSP, is a professional speaker and seminarist. This is an excerpt from her book, Calming Upset Customers. Additionally, she's authored the books TurboTime: Maximizing Your Results Through Technology, Life's Lessons: Insights and Information for a Richer Life, and Professional Selling. For information on her speaking services, books, and tapes contact her at 1440 Newport Ave., San Jose, CA 95125, 408/998-7977, 800/247-9662, fax: 408/998-1742, rebecca@RebeccaMorgan.com, www.RebeccaMorgan.com. Please contact Rebecca for permission to reprint or repost this item.
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