A Complaint Is a Gift

A Complaint Is a Gift

Janelle Barlow, Ph.D.




There’s no such thing There’s no such thing as a problem-free as a problem-free relationship.relationship.

Problem resolution is Problem resolution is probably the most probably the most critical competency.critical competency.

——KPMG Ted FernandezKPMG Ted Fernandez


About the least level of problems you can expectis 12%,

…and that’s with such itemsas lamps, tires, cosmetics, blankets and sheets! Alan Andreason & Arthur Best, HBR


You must get close --intimately close -- to your customers.

In the final analysis, customers are youronly source of job

security..Price Pritchett

New Work Habits for a Radically Changing World


Something not rightSomething not rightExpectations not metExpectations not metEarly warning systemEarly warning system

ThreatThreatExpressed to you, Expressed to you,

and not the marketplaceand not the marketplace

Source of ideasSource of ideas


Chance to find out how good you Chance to find out how good you really are at customer servicereally are at customer service

At times, a challengeAt times, a challengeChance to educateChance to educate

Opportunity to tighten bondsOpportunity to tighten bondswith customerswith customers



DISSATISFACTION

WITH SERVICE IS SELDOM VISIBLE

26 of 27 dissatisfiedcustomers do not complain



How many customers do your agencies

lose?


A very common reason for losing

customers is poor handlingof complaints.


More than halfMore than halfof all efforts to respondof all efforts to respondto customer complaintsto customer complaints

reinforce negative reinforce negative reactions.reactions.

......

......


ApologyApology

RejectionRejection

““Passed on”Passed on”Making excusesMaking excuses

Customer “interview”Customer “interview”InterrogationInterrogation



How can insurance

customers return the

favor

of your effective

complaint handling?


$$$$ $$$$It costs atIt costs at

least 5 times more least 5 times more to win a new customerto win a new customer

than to keep an existing one.than to keep an existing one.

$$$$ $$$$$$


“Reducing customerdefections by as little asfive points—from say, 15% to 10% per year—

can double profits.”

Bain and Co.


“The profit made from asingle customer who has

stayed loyal for seven years is six times

more than the profit made from a new customer.”

Bain and Co.


•Lower costs to retain

• Less negative word of mouth

• Can learn from them

• Easier to satisfy



•Marketing experts

• Public relations specialists

• Sales teams

• Customer retention staff



1. Say “thank you.”1. Say “thank you.”

2. Explain why you appreciate the 2. Explain why you appreciate the complaint.complaint. 3. Apologize for the mistake.3. Apologize for the mistake. 4. Promise to do something about 4. Promise to do something about it.it. 5. Ask for necessary information.5. Ask for necessary information.

6. Correct the mistake 6. Correct the mistake – promptly.– promptly. 7. Check customer satisfaction.7. Check customer satisfaction.

8. Prevent future mistakes.8. Prevent future mistakes.


You never change things byfighting the existing reality.

To change something, build anew model that makes theexisting model obsolete. Buckminster Fuller

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A Complaint Is a Gift