Complaints Matter! How to get your customers to complain more (to you!) Anne P. Crick, PhD Mona School of Business & Management UWI, Mona Anne.crick@gmail.com
Do Angry Customers make you want to tune out?
HIDE?
• Y ou’re not alone. Most people (and most companies) hate those 3 words: “ I HAVE A COMPLAINT ”
PARADIGM SHIFT • Customers have a right to complain ….Part of the buying agreement customers make is that if they do not like what they purchased, if it does not meet their needs, if it is substandard, or if they have changed their mind, they are buying the right to do something about this Barlow & Moller, 1996
O verview • Why customers’ don’t complain • What you’re missing when they don’t complain • Everyone is a complaint manager • Stimulating complaints • Managing complaints
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Walking up to the Knutsford Express counter at 7:25, I told the agent that I had a ticket for the 7:30 bus to Falmouth. “There isn’t a 7:30 bus to Falmouth,” she said. “The bus left at 7:00 a.m. and there isn’t another one till 9.” “But I have a ticket,” I protested. She peered at her computer screen and said to no one in particular, “The computer messed up,” picked up a phone and walked away from the counter.
By the time I put my phone back in my bag, the agent returned. “The Negril driver will take you to Falmouth,” she said. I was stunned. The least I expected was that they’d give me a complimentary ticket but to take me to Falmouth? Wow, that was going above and beyond.
Before I could cancel my taxi, a tall young man with an engaging smile approached. “Are you the person going to Falmouth?” He led the way to his bus, a regular 40- or 50-seater. I couldn’t believe my luck. Actually, this was more than luck. This was a gift straight from the gods. How else to explain a bus that materialized right when I needed it? I took one of the seats directly behind the driver’s and we pulled out of the station.
I’ve been taking Knutsford Express to Kingston for at least five years and have always been impressed by their reliable and on-time service, friendly and efficient staff, comfortable and clean buses, even the chilled complimentary bottle of water they provide each passenger. Now, thanks to Andre and Keisha, Knutsford’s stock has increased several fold in my book.
I was smiling all day as I told almost everyone I met about my experience. Everyone was surprised at my good luck. The next day, as I waited for my return trip to MoBay, I shared my story with Alexia, the Knutsford Express agent in Falmouth. She didn’t seem surprised by how Keisha had handled the situation, adding, “the error was ours.”
• Most customers do not complain because they want a freebie or handout
Why Do Most Customers Complain? • The following is a typical response: – I wanted an error corrected. An apology would have been nice too.
• The Complaining customer is not the problem – We are the problem in the way that we respond to the complaint
No News is Not always Good News
Most customers Do not Complain • It varies from industry to industry but anywhere from 50 to 80% of customers do not complain • Some data suggests that only 10% of dissatisfied customers complain
The Sample • 5 point scale ranging from “Not at All Likely” (1) to “Very Likely” (5) – Students were unlikely to forget about the incident and do nothing (2.2) – Were somewhat neutral on whether they would complain to the manager when they had a chance (3.31) BUT – Were very likely to tell friends or relatives about the bad experience (4.71).
Student Data Contd. • They were unlikely to tell a consumer agency (2.47) and even more unlikely to write a letter to the newspaper (1.71) but they were more likely to use social media (2.98)
Customer Complaint Actions Following Service Failure
Why Customers Don’t Complain • Don’t believe that a solution will be found • Too much hassle • Don’t want employee to lose the job • Have not received any satisfactory response to previous complaints • Fear of retribution • Don’t know who to complain to/how to complain • Didn’t get around to it • They don’t like complaining
Data from UWI Students • Students said that they were likely to complain if: – The organization had clear procedures for complaining (3.67) – The organization provided a speedy response (3.42) – They believed that the organization would respond (3.60) – There was a single point of contact atwhich to complain (3.40) – Easy to access the complaints process (3.66) – Easy to use the complaints process (3.69)
• Complaints were about failures of products and services and in particular about the response of service providers
Product/Service Failure • Electricity was disconnected erroneously • I applied for internet service and was told that I had to wait until someone gave up their modem. About 2 months later I received a bill for a new modem which I did not receive • I called someone to fix my computer. After a few days it stopped working again.
Attitude of Staff • Wanted to change food order – attendant raised her voice and rolled her eyes. Was clearly irritated. • I called an office to query something. The phone rang for about 5 minutes and when someone finally decided to answer, they said “Hello”, asked me to hold and then had a conversation with another individual about something irrelevant to their job
INDIFFERENCE • A visit to a doctor’s office resulted in a long wait and there were only two persons ahead of me. After hours of not being attended to, I asked where I was in the queue only to be told that there were emergencies being taken before me. The receptionist continued to speak around me – “She nuh see it fi harself?”
No Response to Service Failure • After activating data service, could not access the internet even after making several complaints to technicians • I went to the company to report internet issues and they claimed they had fixed it, but they really had not and they wanted me to travel to the head office to fix it again
Poor Response to Service Failure • Company took $100 credit off of my phone wrongfully. When I called customer care requesting a refund they refused to. Instead they asked foolish questions that had nothing to do with the missing credit. In all of this they never admitted that the credit was indeed missing • I called the company to rectify a problem with my credit balance and the customer service representative told me that it was an error and the problem would be addressed in the next 24 hours. It’s been 2 years and the problem remains. • Went for lunch. O rder placed. Server repeated. We agreed. Received incorrect order – twice.
SERVQUAL • A large body of research tells us that customers assess us on 5 aspects of service: – Reliability – Assurance – Tangibles – Empathy – Responsiveness
4 T Y PES O F CUST O MERS • a) P assive • b) Vo icers • c) I rates • d) A ctivists
PASSIVES • Dissatisfied but don’t tell the organization either because it is not in their personality to complain or because they believe that complaining will not have any desired results.
IRATES • Frustrated customers who engage in negative word of mouth within close groups • They are not staunch loyalists and prefer shifting to other options
Activists • Spread negative word of mouth and may even be regarded as terrorists
Voicers • Loyal customers who do not share their concerns outside of the organization but who have no hesitation in voicing their concerns to you
• Voicers may be the lifeline of your business but are you listening?
E very on e is a Compl ai n t M a n ager • Customers complain in different ways and using different processes. • This is not the job for someone called a ‘Customer service’ or ‘Complaint’ Manager • Anyone who is associated with the organization is a complaint manager
Steps in Complaint Management • Capturing Complaints is more than a complaint/suggestion box!
• O rganizations that are totally customer-focused do not just respond effectively to customer complaints, they actively seek them out
• Companies that are serious about complaints do not set targets of lowering complaints
• Companies that are serious about complaints don’t punish without understanding
• Companies that are serious about complaints: – Put customer friendly employees on the frontline – Train them in how to receive complaints graciously and without defensiveness – Empower employees to respond quickly and effectively – Review complaints and complaint handling regularly and fix what is broken
The Do Not Walk Past Attitude R eactive • Body Language • Verbal Complaints P r o active • Long lines, waits, delays
Social Media • Do you tweet? • Y our customers do! • A US study found that nearly half of respondents expected the company to read their Tweet
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