complaint is a gift

8/10/2019 Complaint is a Gift

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Birendra Kumar , B.E. , M.Tech , MIE

Director & CEOCalidad India Pvt. Ltd.( www.calidadindia.com )


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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


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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


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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.


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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.



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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.



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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 !


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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 !


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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.


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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.


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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.


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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


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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


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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


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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?



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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.



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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


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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


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# 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


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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


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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.


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complaint is a gift

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