complaint is a gift
TRANSCRIPT
-
8/10/2019 Complaint is a Gift
1/27
Birendra Kumar , B.E. , M.Tech , MIE
Director & CEOCalidad India Pvt. Ltd.( www.calidadindia.com )
-
8/10/2019 Complaint is a Gift
2/27
-
8/10/2019 Complaint is a Gift
3/27
IMPORTANCE OF CUSTOMER SATISFACTION
In essence , an organization can increase its business in two ways:
1.
Increase sales to existing customers
If the organization wants to achieve this, the customers need to be
satisfied and still want to buy more products and services from the
organization.
2.
Win new customers
This is possible if the new customers form a positive impression of
the organization. This impression may be formed either through
marketing and sales initiatives or through satisfied customers who
may favorably of the organizations products, services and staff
-
8/10/2019 Complaint is a Gift
4/27
Customer satisfaction is crucial to the organization
s future, because:
"Satisfied customers come back.Dissatisfied customers do not back.
" Satisfied customers are often Goodwillambassadors and help the organization
to win more customers. Dissatisfied customers share the dissatisfaction with anyone
who will listen to them and in the process get the organization a bad reputation.
" Satisfied customers are usually prepared to buy new products/ services from the
organization. Dissatisfied customers rarely return as customers.
" Potential customers are more inclined to listen to existing and pervious customers
then to the organizations marketing campaigns. The Information serviceprovided
by dissatisfied customers can nullify the effects of even the most powerful
marketing campaigns.
"
Satisfied customers are a source of inspiration to the organization and contributeto giving the employees increased job satisfaction.
It costs at least 5 times more to get a new
customer than to keep an existing one !
IMPORTANCE OF CUSTOMER SATISFACTION
-
8/10/2019 Complaint is a Gift
5/27
WINNING AND LOSING CUSTOMERS
The following illustration shows a development in three stages, which
unfortunately occurs far too frequently in many organizations because they do
not spend sufficient resources and energy in retaining existing customers.
1. In the beginning, the organizations turnover develops rapidly.
2. In the next stage, the turnover begins to level out.
3. Then the turnover begins to fall.
When the turnover of an organization begins to fall, the organization oftenjustifies this negative trend by talking about reasons that are beyond their
control :
"
Exchange-rate fluctuations
"Change in legislation
"
Diminishing purchase power
" Poor weather conditions
" Fierce competition.
-
8/10/2019 Complaint is a Gift
6/27
1,000 new customers replacing 1000 lost customers are
equal to the same total number of customers in the shortterm. However, this is a very poor deal for the
organization, because it costs at least five times more to
win a new customer than to keep an existing one.
This is because 1000 lost customers do not keep theirdissatisfaction to themselves. Perhaps they do not tell the
organization about their dissatisfaction, but they will
definitely tell a lot of other people about it.
Therefore, the 1,000 lost customers get the organization abad reputation/ image, which very few marketing
campaigns can make up for. The more customers an
organization loses, the more difficult and expensive it is to
win mew ones.
WINNING AND LOSING CUSTOMERS
-
8/10/2019 Complaint is a Gift
7/27
HOW MANY CUSTOMERS DO WE LOSE &WHY?
There may be many reasons why an organization loses customers.
One very major reason is the way the organization processes complaints and views
services recovery. Some symptoms of inappropriate ways of processing
complaints are:
#
Customers do not feel that their complaints are welcome#
Customers do not know who to complain to
#Customers do not know how to complain
#Complaining may have a high hassle factor attached to it.
#
Only very few customers complain
Processing complaints effectively can lead to customer satisfaction.
Processing complaints effectively can lead to customer satisfaction.
WINNING AND LOSING CUSTOMERS
-
8/10/2019 Complaint is a Gift
8/27
REACTIONS FROM DISSATISFIED CUSTOMERS
"If you buy a car and you
re pleased with the purchase,you will tell an average of 8 people about the car and how
happy you are with it.
"If you buy a car, and youre unhappy with the purchase,
you will tell an average of 22 other people.
Shoddy consumer durable constantly reminds
Customers to change brand next time !
-
8/10/2019 Complaint is a Gift
9/27
-
8/10/2019 Complaint is a Gift
10/27
WHY DONT CUSTOMERS COMPLAIN ?
" I dont think my complaint is welcome
"I don
t suppose anyone will listen to me
"Whenever I make a complaint, I am treated with suspicion and doubt
" Complaining invites more trouble than finding a new supplier
" I have tried complaining- but nothing happened
"
I dont know who to complain to
"Nobody is willing to take responsibility for my problem- they just try
and pass it like a hot potato to another person or department
"They are rude to me when I make a complaint
"
When I make a complaint, they treat me like a criminal and I amsubjected to an interrogation
" If I send a complaint in writing, I have to wait a long time for a reply-if
I hear from them at all
Do state your complaint we
ll process it effectively !
-
8/10/2019 Complaint is a Gift
11/27
MISLEADING CUSTOMER STATISTICS
Many organizations make a serious mistake when they compile
statistics on customer satisfaction and dissatisfaction. Theyequate the number of dissatisfied customers. And they presume
that those customers who do not complain are satisfied. This
gives the organization a false sense of security.
Let us take a look at the consequences when 26 out of 27
dissatisfied customers do not bother to complain. This means
that every complaint received by an organization
( by letter, telephone or in person) this represents 27 dissatisfied
customers.
If we calculate on the basis of 100 complaints received from
different customers we find that they represent 2,700
dissatisfied customers.
-
8/10/2019 Complaint is a Gift
12/27
WRITTEN COMPLAINTS
Only very few customers choose to write to their suppliers. If
they do write, by far the majority of these letter writers aredissatisfied customers. An organization can expect to receive
10 letters of complaint for every one letter of thanks.
The importance of rapid and satisfactory responses
A survey conducted by TARP, USA, produced the following
results.
55%-70% of those who complain in writing remain customers
if they receive a rapid reply.
95% of those who complain in writing remain customers if
they receive both a rapid and a satisfactory reply.
-
8/10/2019 Complaint is a Gift
13/27
CONDITIONS FOR KEEPING THE CUSTOMER
In order to keep your unhappy customers and regain theirtrust, two conditions need to be filled:
1.
Within two days, the customer should be thankedfor the
complaint with a promise to deal with the matter quickly
and effectively.
2.
Within two weeks, complaint should be processed
satisfactorily
A member of staff, who processes complaints rapidly and
Satisfactorily, May become the organizations most
valuable asset.
-
8/10/2019 Complaint is a Gift
14/27
CUSTOMER INTERROGATION
Customer who have complained before may have experienced
the following spontaneous reactions from the people whoreceive their complaints:
1.
Apology
I do apologize
Im very sorry to hear that
I hope it hasnt caused you too much trouble
2.
Rejection
You must have handled it wrongly Im afraid there is nothing we can do under the present circumstances-its
company policy
You should have complained earlier
There is no date on the guarantee certificate
Do not focus on the complaint-focus on the customer
-
8/10/2019 Complaint is a Gift
15/27
-
8/10/2019 Complaint is a Gift
16/27
Who did you speak to?
Did you pay cash?
Do you remember your customer registration number?
Have you got a receipt?
No matter how relevant these questions are, this kind of interview
should never be the first reaction to a customer compliant .Worst of all, the
customer interviewmay develop into an interrogation.
6.
Interrogation
How can I be sure that what you say is true?
Are you sure you bought it here?
Did you follow the instructions?
Did you even read the instructions?
Are you sure you didnt drop it?
Anyone can make a claim like that. You just wouldnt believe the number
of people who tell us all kinds of stories.
CUSTOMER INTERROGATION
-
8/10/2019 Complaint is a Gift
17/27
EFFECTIVE COMPLAINT HANDLING
Prerequisites change ve situation into +ve by effective system & policy
Attitude and behaviorSuspicion- dont take complaint as trick of customer for getting extra
Guilt
I dont like to be reminded of my mistakes
That customer puts me in a bad mood
Why dont I ever hear about my good points
I am not the only one who ever makes mistakes
Irritation
Are there no limits to what people will complain about?
The complaints is totally unreasonable. The customer is a trouble-maker
Cant they see Im busy?
Obviously, the customer doesnt understand one bit of what Im trying to say
-
8/10/2019 Complaint is a Gift
18/27
7. Put yourself in the Customers Place
(Principle of Empathy)
When you are about to deal with a compliant, it may be useful for
both you and the customer if you try and seek the matter through the
eyes of the customer.
Try putting yourself in the customers place. Imagine that the samething has happened to you:
"What would you think and feel ?
" How would you expect?
"
What would you expect from the organization?
"What would it make to make you happy?
" What would it take to take you a goodwillambassador of the
organization?
EFFECTIVE COMPLAINT HANDLING
-
8/10/2019 Complaint is a Gift
19/27
A Good Attitude Towards Complaints
Remember that the customer who complaints :
" Has the right to complain
" Still has some confidence in the organization
"
Is still a Customer
" Can be made a Good willambassador
" Give you and your organization a chance to correct the
mistakes and recover the customers confidence.
Think of the complaining customer as a friend.
Somebody who wants to help you.
EFFECTIVE COMPLAINT HANDLING
-
8/10/2019 Complaint is a Gift
20/27
-
8/10/2019 Complaint is a Gift
21/27
REQUIREMENT FOR A COMPLAINT POLICY
A good complaint policy:
"
encourages customers to complain" demands systems that make it easy for customers to complain and make
customers feel good when they do complain
" It is known by everybody in the organization
" authorizes the employees to move across traditional rules and regulations
" demonstrates the attitude: it is more important to keep the customer than to
win the argument
" stipulates that all staff with customer contact are trained to process
complaints effectively
"
encourages prompt and competent handling of complaints
" helps to ensure constant supervision of customer satisfaction
" reflects the idea that a complaint is a gift
-
8/10/2019 Complaint is a Gift
22/27
-
8/10/2019 Complaint is a Gift
23/27
ORGANIZATIONAL COMPLAINTS POLICY
We should have a positive attitude towards complaints
Every customer who complaints :
$ is a friend
$ should be thanked for taking the trouble to complain
$ should have their problem solved
Every complaint :
$ is justified
$ is a gift
$ should be dealt with promptly and professionally
$represents an opportunity to improve
The result of effective processing and handling of complaints is that:
$ we keep our customers
$ the customer who complaints becomes a good willambassador of the
organization
$ we get more satisfied customers and staff
-
8/10/2019 Complaint is a Gift
24/27
# We encourage our customer to complain
#
Complaints are processed promptly
# Everybody is trained in complaint handling
# Our staff members are empowered
#
We learn from complaints
# We treat un reasonablecomplaints reasonably
# We reward effective handling of complaints
#
We have customer-friendly systems
# We monitor customer satisfaction
# We keep our internalcustomer satisfied
ORGANIZATIONAL COMPLAINTS POLICY
-
8/10/2019 Complaint is a Gift
25/27
YOUR PERSONAL COMPLAINT POLICY
Here are some ideas for developing your own personal
complaints policy. These ideas should encourage you to:
% Use other peoples criticism of you in a helpful
positive way
% Demand quality from others
%Complain politely and constructively
-
8/10/2019 Complaint is a Gift
26/27
HOW TO HANDLE CRITICISM OF YOU
" Be happy when others discover your mistakes. Thank them. Be happy
when you discover youve made a mistake. You need to able to see your
mistakes before you can do something about them.
" Dont try to rationalize those mistakes that deep down you know youve
made. Just admit ``youve made a mistake .
" Dont feel hurt or react defensively when others correct or criticize you
for your errors. Try to regard the correction as a gift, a challenge to improveand an aid to avoid making the same mistake again.
"Accept justified criticism. Ignore unjustified criticism.
" Regard mistakes as unavoidable and as part of your own learning process.
"
Learn from your mistakes.
" Correct them.
" Find and analyze the reasons for your mistakes.
" Dont make the same mistake twice.
-
8/10/2019 Complaint is a Gift
27/27