A Complaint Is a Gift Janelle Barlow, Ph.D.

A Complaint Is a Gift

There’s no such thing as a problem-free relationship. Problem resolution is probably the most critical competency. —KPMG Ted Fernandez

A Complaint Is a Gift About the least level of problems you can expect is 12%, …and that’s with such items as lamps, tires, cosmetics, blankets and sheets! Alan Andreason & Arthur Best, HBR

A Complaint Is a Gift You must get close -- intimately close -- to your customers. In the final analysis, customers are your. only source of job security. Price Pritchett New Work Habits for a Radically Changing World

A Complaint Is a Gift Something not right Expectations not met Early warning system Threat Expressed to you, and not the marketplace Source of ideas

A Complaint Is a Gift Chance to find out how good you really are at customer service At times, a challenge Chance to educate Opportunity to tighten bonds with customers

A Complaint Is a Gift

DISSATISFACTION WITH SERVICE IS SELDOM VISIBLE 26 of 27 dissatisfied customers do not complain

A Complaint Is a Gift

How many customers do your agencies lose?

A Complaint Is a Gift A very common reason for losing customers is poor handling of complaints.

A Complaint Is a Gift More than half of all efforts to respond to customer complaints reinforce negative reactions

A Complaint Is a Gift Apology Rejection “Passed on” Making excuses Customer “interview” Interrogation

A Complaint Is a Gift

How can insurance customers return the favor of your effective complaint handling?

A Complaint Is a Gift $$ $$ It costs at least 5 times more to win a new customer than to keep an existing one. $$ $$ $

A Complaint Is a Gift “Reducing customer defections by as little as five points—from say, 15% to 10% per year— can double profits.” Bain and Co.

A Complaint Is a Gift “The profit made from a single customer who has stayed loyal for seven years is six times more than the profit made from a new customer.” Bain and Co.

A Complaint Is a Gift Lower costs to retain Less negative word of mouth Can learn from them Easier to satisfy

A Complaint Is a Gift

Marketing experts Public relations specialists Sales teams Customer retention staff

A Complaint Is a Gift

1. Say “thank you.” 1. Say “thank you.” 2. Explain why you appreciate the complaint. 2. Explain why you appreciate the complaint. 3. Apologize for the mistake. 3. Apologize for the mistake. 4. Promise to do something about it. 4. Promise to do something about it. 5. Ask for necessary information. 5. Ask for necessary information. 6. Correct the mistake – promptly. 6. Correct the mistake – promptly. 7. Check customer satisfaction. 7. Check customer satisfaction. 8. Prevent future mistakes.

A Complaint Is a Gift You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete. Buckminster Fuller