Complaints & Social Media Gripes

www.beyondphilosophy.com

The CustomerComplaints ExperienceQaalfa Dibeehi, Chief Operating and Consulting Officer

Zhecho Dobrev, Consultant

Experience Tracker – 2010


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The Beyond Philosophy Perspective

Customer Experience

is all we do!

Thought leadership is

our differentiator

Offices in London,

Atlanta with Partners in

Europe & Asia

Fourth book launch in

September 2010

Focus on the

emotional side of the

Customer Experience

Links with

Academia

www.beyondphilosophy.com 4

We are Proud to Have Helped Some Great Organizations…

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The Study Basics

6Beyond Philosophy © All rights reserved. 2001-2010

• Methodology

• Quarterly online survey via

online panel

• Sample Characteristics

• 1015 respondents

• 50% USA; 50% UK

• Perspective

• Action based on a single

complaint

• “If you have made more than

one complaint/ comment

please answer the survey

with just one in mind”


When customers have an issue…Something is missing in the experience

7

Customer expectations are not met

CommentsWhen customers share gripes

with others via social media

(1:World)

Customer tolerates it Customer takes action

Customer walksCustomer talks

Customer interacts with company

Customer expectations are met

ComplaintsWhen customers inform the

company directly of issues

(1:Company)



Customer Interactions and feedbackSomething is missing in the experience

8




(1:Company)

CommentsWhen customers share gripes

with others via social media

(1:World)




Customer expectations are metOnly 6% of customers think

organizations know their expectations38% of organizations state they know

their customer’s expectations

Source: Beyond Philosophy

Customer Experience Tracker



When customers fall through the cracks…

9

Complaints and

negative

comments in

social media

occur when

customers fall

through the

cracks in the

experience the

organization

provides.



When Complaints Go Viral The very dangerous new world of complaints

Source: Los Angeles Times.com

Source: Newsweek.com

Source: Industry.BNET.com

Original Video can be found on YouTube –

Search for “United Breaks Guitars”



• Every customer you keep represents at least 3 that you don’t have to

attract.

• The cost of acquiring a new customer usually runs from 2-4x the

annual cost of keeping an existing one.

• It is estimated that defecting customers will tell 8-10 people about their

negative experience. One in 5 will tell 20 people (multiply for Social

Media and the internet).

• Conversely, a referral from a loyal customer has a 92% retention rate

versus 68% for a customer acquired from advertising.

Source: Bill Bleuel, PhD, Professor of Decision Sciences, Graziadio Business Report

The Cost/Benefit of Getting Complaints Right



Source: The Customer Complaint Iceberg by Paul Qu

The Cost/Benefit of Getting Complaints Right



Does your organization monitor:

• Satisfaction with complaint outcomes

• Satisfaction with complaints handling

• Both

• Neither

• I don’t know

Poll



Complaints Profile

Fig. 2: Complaints by Sector( total sums to 100%)

Per

cen

t o

f C

om

pla

ints

Tra

ns-

po

rt/

Tra

vel

15%

Uti

lity/

E

ner

gy

7%

IT/

Tel

co

13%

Fin

. S

vcs/

B

anks

12%

Insu

r-an

ce

7%

Hea

lth

ca

re

4%

Ret

ail

22%

Ho

spi-

talit

y/

Lei

sure

10%

Oth

er

8%

Per

cen

t o

f C

om

pla

ints

Fig. 1: Complaints by Channel( the total > 100%)

LetterPhoneEmail Other SMS

1%

36%

48%

58%

4%

Fig. 3: Complaint Reason( total sums to 100%)

Product Quality

15%

Service Speed

5%

Other

13%

Price

9%

Missed Appt.

ServiceQuality

42%

Policy

8%

Treat-ment

by Staff

7% 1%

Per

cen

t o

f C

om

pla

ints

Fig. 4: Complaints Management

Per

cen

t o

f P

eop

le w

ho

Co

mp

lain

20%19%

Dissatisfied

23%

Neutral

17%

27%

Highly Dissatisfied

31%

Satisfied

19%

Highly Satisfied

23%

9%

13%

Complaint Handling Complaint Outcome

So

urc

e: B

eyo

nd

Ph

ilos

op

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usto

me

rE

xp

erie

nce

Tra

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er (C

ET

)



Complaints - Defection ModelWhat is the effect of complaints on Defection?

Fig. 5: Complaints Handling-Defect Model

Ma

ke

a c

om

pla

int

28%

Satisfied

53%

Dissatisfied

19% Neutral

59% Continue

31% Defect risk

10% Defect

20% Continue

54% Defect risk

26% Defect

12% Continue

43% Defect risk

45% Defect

Complaint Handling Resultant Behaviour

Fig. 6: Complaints Outcome-Defect Model

Ma

ke

a c

om

pla

int

40%

Satisfied

37%

Dissatisfied

23% Neutral

42% Continue

33% Defect risk

25% Defect

22% Continue

54% Defect risk

24% Defect

13% Continue

43% Defect risk

44% Defect

Complaint Outcome Resultant Behaviour

Fig. 7: Complaints to Defection Profile( total sums to 100%)

Per

cen

t o

f C

om

pla

iner

s

Defect risk

42%

DefectContinue or

use more

26%

32%

Fig. 8: Complaint outcome/handling effect on behaviour

Res

ult

ant B

ehav

iou

r

Complaint Handling/Outcome Satisfaction

Highly Dissatisfied

Highly Satisfied

Def

ect

Use

m

ore


So

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e: B

eyo

nd

Ph

ilos

op

hy

Cu

sto

me

rE

xp

erie

nce

Tra

ck

er (C

ET

)

Dissatisfaction with complaint handling also gives a bigger negative effect than dissatisfaction with outcomes

Satisfaction with complaint handling gives a bigger positive effect thansatisfaction with outcomes



Customer Interactions and feedbackFurther evidence of poor complaint handling

16




(1:Company)

CommentsWhen customers share gripes with

others via social media

(1:World)




Customer expectations are met

44% of customers show their discontent by talking to employees in a raised voice or by using sarcasm. 36% of customers

engage in more violent behaviors such as slamming their fists, screaming, making threats, and using intimidation.

Source: 2009 Customer Rage Study by California Review Management



Complaints Management – “net satisfaction score”

How satisfied were you with the way your complaint was handled?

30%

20%

% Satisfied

Less % Dissatisfied

Complaint Handling:

Net Satisfaction Score10%

How satisfied were you with the outcome of your complaint?

30%

20%

% Satisfied

Complaint Outcome:

Net Satisfaction Score10%

Fig. 9: Complaints Management – net satisfaction scores

Net

Co

mp

lain

ts S

core


Transport/ Travel

Utility/ Energy

IT/ Telco

Fin. Svcs/ Banks

Insurance Health care

RetailHospitality/ Leisure

Other

-19%

12%

-20%-17%

-11%

-52%

-6%

-32%-39%

-11%

28%

-6% -19%

-30%-28%

-1%

0%0%

So

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e: B

eyo

nd

Ph

ilos

op

hy C

usto

me

rE

xp

erie

nce

Tra

ck

er (C

ET

)

Less % Dissatisfied



Complaints Management – “net satisfaction score”

Fig. 9: Complaints Management – net satisfaction scores

Net

Co

mp

lain

ts S

core


Transport/ Travel

Utility/ Energy

IT/ Telco

Fin. Svcs/ Banks

Insurance Health care

RetailHospitality/ Leisure

Other

-19%

12%

-20%-17%

-11%

-52%

-6%

-32%-39%

-11%

28%

-6% -19%

-30%-28%

-1%

0%0%

So

urc

e: B

eyo

nd

Ph

ilos

op

hy C

usto

me

rE

xp

erie

nce

Tra

ck

er (C

ET

)

Results from a previous Beyond Philosophy CET study.

61% of customers say there is a problem in terms of consistency in

handling issues yet only 23% of managers recognize the problem.

66% of organizations think they are honest and cooperative: but in

contrast, only 15% of customers think they are!



Complaints - Sensitivity ModelWhat is the effect of complaints on the customer’s sensitivity to issues?

Fig. 10: Complaints Handling-Sensitivity Model

Ma

ke

a c

om

pla

int

1% less sensitive

58% no change

41% more sensitive

7% less sensitive

45% no change

48% more sensitive

5% less sensitive

28% no change

67% more sensitive

Complaint Handling Future Complaints Sensitivity

28%

Satisfied

53%

Dissatisfied

19% Neutral

Fig. 11: Complaints Outcome-Sensitivity Model

Ma

ke

a c

om

pla

int

2% less sensitive

47% no change

51% more sensitive

2% less sensitive

44% no change

54% more sensitive

7% less sensitive

28% no change

64% more sensitive

Complaint Outcome Future Sensitivity

40%

Satisfied

37%

Dissatisfied

23% Neutral

Fig. 12: Complaints Sensitivity Profile( total sums to 100%)

Per

cen

t o

f C

om

pla

iner

s

No change in sensitivity

More sensitive: more likely to make

a complaint in future

Less sensitive: less likely to make a

complaint in future

4%

39%

57%

So

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e: B

eyo

nd

Ph

ilos

op

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Tra

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)


Fig. 13: Connection between the complaint outcome/handling and future sensitivity

Fu

ture

Sen

siti

vity

to

Is

sues

Complaint Handling/Outcome Satisfaction

Highly Dissatisfied

Highly Satisfied

Less

se

nsiti

veM

ore

sens

itive

Complaint OutcomeComplaint Handling


Source: Hotel Chatter.com

Original slide

presentation can

be found at

Slideshare.net –

Search for “Yours

is a very bad

hotel”



Does your organization do any of the

following in social media?

• Monitor customer comments

• Monitor and respond to customer

comments

• Neither

• I don’t know

Poll



Comments Profile

Fig. 14: Comments by Channel( ttotal sums to 100%)

Per

cen

t o

f C

om

men

ts

Twitter

19%

My Space

5%

Customer Rating

Website

14%

Blog

14%

You Tube

Face-book

67%

Other

9%

Linked-In

7% 5%

Fig. 15: Comments by Sector( total sums to 100%)

Per

cen

t o

f C

om

men

ts

Trans-port/

Travel

17%

Utility/ Energy

7%

IT/ Telco

12%

Fin. Svcs/ Banks

9%

Insur-ance

4%

Health care

5%

Retail

27%

Hospi-tality/

Leisure

11%

Other

8%

Fig. 16: Comment Reason( total sums to 100%)

Per

cen

t o

f C

om

men

ts

Product Quality

19%

Service Speed

6%

Other

7%

Price

9%

Missed Appt

ServiceQuality

41%

Policy

5%

Treat-ment

by Staff

13%

1%

Fig. 17: Comments Management

Per

cen

t o

f P

eop

le w

ho

Co

mm

ent

Surprised company

responded

36%

Satisfied with company’s response

Received response from the company

28%

47%

So

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nd

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Fig. 18: Comments/Complaints Ratio by SectorP

erce

nt

of

Co

mm

ente

rs

Trans-port/

Travel

Utility/ Energy

IT/ Telco

Fin. Svcs/ Banks

Insur-ance

Health care

Hospi-tality/

LeisureOther

50%

45%

22%29%

Retail

50%

45%

39%40%

38%

Overall: 40%

Fig. 19: Comments/Complaints Ratio by Category

Per

cen

t o

f C

om

men

ters

Product Quality

49%

Service Speed

29%

Other

38%

Price

41%

Missed Appt.

ServiceQuality

76%

Policy

27%

Treat-ment

by Staff

48%

20%

Complainers who commentWhat percent of complainers also comment?

So

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op

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xp

erie

nce

Tra

ck

er (C

ET

)



• 40% of the people who complain also comment via social media

• Focus on the quality of experience you provide.

• Like complaints, the biggest reason for making a social media

comment is “service quality”.

• Accept that you may not have visibility of most of the comments

made about your organisation - 48% of comments are made on

Facebook.

• Your best option is to create a Facebook presence that is

interesting for customers such that you are able to observe their

Facebook comments.

• That is, your Facebook presence should NOT just be a place to

leave customer feedback.

• Respond to comments – just over a 1/3 of people who comment are

“surprised” that they got a response and almost half are satisfied

with that response.

Comments Takeaways



• Service quality and treatment customers (humanics) are the biggest

reasons for complaints.

• It is NOT price, or product quality.

• You can affect about 40% of people who complain with the way you

handle complaints.

• Make a distinction between complaint handling and outcome.

• Focus on complaint handling over complaint outcomes – it has

a bigger upside if you get it right and a bigger downside if you

get it wrong.

• Unfortunately, organizations are currently too focused on

outcomes rather than handling - the “net satisfaction score” of

complaints handling is always worse than that of complaints

outcomes.

• People who complain become “sensitive” to future issues regardless

of the complaint outcome or how it was handled – so handling

complaints appropriately becomes even more important.

Complaints Takeaways






Q&A


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Complaints & Social Media Gripes