Saturday 31 January 2009

Increasing complaints equals increased profits

I know it's made the 6 o'clock news, but I couldn't pass up the opportunity to comment on the recent complaint letter sent to Virgin Atlantic.

The letter, reportedly sent by a passenger on a flight from Mumbai to Heathrow describes in a mix of humour and dry sarcasm the inexplicable combination of Indian in-flight food. With comments like "What is this? Why have I been given it? What have I done to deserve this? And, which one is the starter, which one is the desert?" it was clear that things had obviously gone wrong, both with the type of food being served ("The potato masher had obviously broken and so it was decided the next best thing would be to pass the potatoes through the digestive tract of a bird") and the presentation of it ("Luckily there was a small cookie provided…It appears to be in an evidence bag from the scene of a crime. A CRIME AGAINST BLOODY COOKING.")

Now as they say, no news is bad news and some have accused Virgin of creating this as a publicity stunt – especially given their current campaign around their 25th Anniversary. However given Richard's skill at publicity stunts, I'm not sure they would have chosen one which presented both their food and latterly in the letter their entertainment system in such a bad light. It has however got them airtime on the commercial free BBC with large chunks of their current TV campaign being shown.





Better still though it's shown in a really public way how they handle complaints. Richard Branson has apparently spoken personally to the author of the letter to apologise for the experience and invited him to help select food and wine for future flights. Putting my customer retention hat on, I'm betting this passenger will now still be loyal to Virgin. In fact, research has shown that customers who complain and are satisfied are up to 8% more loyal than those that didn't complain and are much more likely to speak positively to friends and family – so increasing word of mouth recommendation.

It's interesting though that many companies still don't handle complaints well – you only have to look at consumer champion programs like Watchdog on the BBC to see people who have come to the end of their tether dealing with companies who appear immovable and arrogant and then only with the intervention of the media finally "show a gesture of goodwill" in resolving the complaint.

As Virgin has demonstrated, at least in part, the trick to handling complaints is to provide a way for people to report them, then to resolve them where you can and finally to change processes, products and services moving forward to prevent it happening again. This approach to complaints can be termed the 3 R's for Report, Resolve and Restructure.

Report

In surveying customers, an airline found that over 1/3 of them were dissatisfied, but that 2/3 of them had never complained. They calculated that for every small percentage of dissatisfied customers they could get to complain, they would retain a large percentage revenue. To support this they made it easier (and acceptable) for customers to complain – from in-flight comment cards to web chats.

What this airline realised is that if customers complain then they are actually taking a positive step - essentially saying "I'd like to continue to purchase from you – but I want you to get it right".

This experience is not unusual – in the book "Complaint Management: The Heart of CRM", authors Stauss and Seidel indicate that on average 22% of customers have a poor experience but 96% of these don't complain. Of this 96%, just over half will actually defect and the remaining customers will essentially be "at risk".

Resolve

As always customers have a choice – they can continue to purchase from you or not – and how you handle the complaint will ultimately determine this. The book Complaint Management goes on to show that up to 40% of customers will defect where they are disappointed with their complaint resolution with the remaining 60% being at risk – at best becoming dormant – at worst becoming a detractor.

Resolution doesn't actually mean you have to "solve" the issue. I recently complained about the waiting time in a queue and although the company obviously couldn't give me back my time, what they did was explain their issues – their EPOS system was playing up resulting in one of their tills being down and they were switching customers from one type of account to another which was taking time with each transaction. They could have done things to mitigate these issues, but having listened to my complaint and explained their issues I left a happy customer.

Using a different example, in a measurement programme I was involved in a few years ago with a large UK high street bank, we measured the customer satisfaction of customers who had complained and noticed a drop in their score where they had complained and had then been sent flowers or chocolates by the branch in response. This seemed initially strange as you'd think customers would have been happy their complaint had been compensated for – however what we found out was that when someone was complaining about an unfair overdraft charge for example, what they wanted was the problem resolved – not simply a token gesture.

Restructure

Not every customer will give you the benefit of the doubt and many will simply switch brands or service providers if you don't deliver the level of service required. Complaints help you to indentify key areas for improvement and allow you to restructure your service provision or product based on this valuable feedback. This helps to ensure that current and prospective customers who maybe aren't as vocal or loyal don't simply move their business elsewhere.

Peppers and Rogers provide a case study around Irish Ferries which in 1999 reportedly had very bad customer service scores and so they restructured their customer service to better empower employees to resolve customer complaints. As part of this they started to interview 100% of passengers on every trip to get their feedback good or bad and empowered employees to spend up to £1000 per customer to help resolve any complaint. By 2003, compliments had started to outnumber complaints 3 to 1.


Virgin's very public handling of the Mumbai to Heathrow complaint is great, but it's not how you handle the single visible and publicised complaint – it's how you handle every complaint that matters.

Many customers don't like the face to face stress of complaining to a brand's employees, or the hassle of writing a letter. Making it quick and easy to report a complaint at the point of purchase and via other channels ensures that customers can get the issue off their chest and a brand can learn how to make their product or service better.

If brands treat customers who complain as "best customers", empower employees to resolve complaints and put in place processes to learn from them, then they will benefit from increased customer retention, share of wallet and word of mouth.

Increasing complaints or at least increasing visibility of complaints really can increase profits.

18 comments:

Unknown said...

chanel handbags, http://www.chanelhandbags-outlet.us.com/
louis vuitton handbags
michael kors outlet
hollister canada, http://www.hollistercanada.com
ray ban uk, http://www.raybansunglass.co.uk
puma sneakers
nhl jerseys
koby bryant shoes
true religion jeans, http://www.truereligionjeansoutlets.us.com/
nike roshe run
links of london uk
cartier love bracelet
oakley sunglasses, http://www.oakleysunglassesdiscount.us.com
ugg outlet, http://www.uggsoutlet.us.org
beats headphones
nike huarache
rolex watches,rolex watches,swiss watches,watches for men,watches for women,omega watches,replica watches,rolex watches for sale,rolex replica,rolex watch,cartier watches,rolex submariner,fake rolex,rolex replica watches,replica rolex
michael kors canada, http://www.michaelkorsoutletcanada.in.net
tods shoes
oakley,occhiali oakley,oakley italia,oakley occhiali,oakley sunglasses
evening dresses
coach outlet
louis vuitton handbags
michael kors outlet store, http://www.michaelkorsoutletonlinstore.us.com
karen millen dresses, http://www.karenmillendressesoutlets.co.uk/
oakland raiders jerseys
tiffany and co
tods outlet
oakley sunglasses outlet
michael kors uk
2015910caihuali

Chi nguyễn said...

Tôi đã biết về cách chữa bệnh dạ dày rất nhanh khỏi ? , Cách chữa bệnh loét dạ dày tá tràng , Thuốc và cách chữa viêm amidan , Chữa bệnh amidan mủ ,đặc trị benh noi me day man tinh , thuoc chua tri gan nhiem mo , Bé mắc bệnh viêm phế quản phổi, Làm thế nào để có những cách chữa ho hiệu quả ,phương pháp mới điều trị viêm mũi dị ứng ,Khoa học với cách chua benh viem xoang mũi, Giaỉ pháp điều trị bệnh dạ dày mới , Chia sẻ thuốc chữa trào ngược dạ dày , Nghiên cứu mới về cách chữa bện trào ngược dạ dày hiệu quả , Rụng tóc nam nữ và những cách chữa rụng tóc, Phụ nữ với căn bệnh rối loạn kinh nguyệt như thế nào , Bệnh viêm xương khớp và thoái hóa đốt sống cổ thì chữa thế nào ? Vài mẹo giảm đau dạ dày Để biết cách giảm bớt cơn đau của bệnh . Phương thuốc quý thuoc chua viem gan b Hiệu quả , Đông y cach chua viem amidan , Viêm họng và bệnh viêm amidan hốc mủ làm sao chữa được ?, Thuốc đông y chữa bệnh loét đại tràng lâu ngày . Chúng tôi chuyên nghiên cứu đau dạ dày ăn gì cho nhanh khỏi . Bạn nên biết về triệu chứng bệnh đau dạ dày Như thế nào.

xumeiqing said...

20160701meiqing
nike blazer
jordan pas cher
coach outlet store
true religion outlet
ralph lauren outlet online
longchamp handbag
louboutin pas cher
omega seamaster
michael kors outlet
nike air force white
louboutin outlet
air max 90
tiffany and co
under armour shoes
louis vuitton factory outlet
oakley sunglasses
ray ban sunglasses
michael kors handbags
north face jackets
cheap nba jerseys
coach outlet online
supra for sale
kate spade outlet
coach outlet
coach outlet
dolce and gabbana outlet
lebron james shoes
nike air max shoes
adidas nmd
kate spade handbags
rolex replica watches
ray ban outlet
polo ralph lauren outlet
coach outlet store online
abercrombie and fitch outlet
hollister co
coach outlet
louis vuitton outlet online

Unknown said...

ray ban sunglasses
true religion jeans
nba jerseys
air jordan 11
tiffany and co
michael kors handbags
michael kors handbags
mont blanc pens
ralph lauren uk
new balance outlet
toms outlet
cheap jordans
prada sunglasses
tiffany and co
michael kors outlet clearance
oakley sunglasses
montblanc pens
fitflops shoes
tiffany jewellery
michael kors uk
ugg clearance
longchamp outlet
versace sunglasses
nike trainers
hollister clothing store
louis vuitton outlet
celine outlet
ugg outlet
beats headphones
uggs outlet
michael kors handbags
mulberry bags
coach outlet
lululemon outlet online
fitflops sale
0727jianxiang

Unknown said...

ray ban sunglasses
true religion jeans
nba jerseys
air jordan 11
tiffany and co
michael kors handbags
michael kors handbags
mont blanc pens
ralph lauren uk
new balance outlet
toms outlet
cheap jordans
prada sunglasses
tiffany and co
michael kors outlet clearance
oakley sunglasses
montblanc pens
fitflops shoes
tiffany jewellery
michael kors uk
ugg clearance
longchamp outlet
versace sunglasses
nike trainers
hollister clothing store
louis vuitton outlet
celine outlet
ugg outlet
beats headphones
uggs outlet
michael kors handbags
mulberry bags
coach outlet
lululemon outlet online
fitflops sale
0727jianxiang

fake Breitling said...

Rolex sta quindi gettando le basi Patek Philippe replica per costruire il suo movimento cronografo, il calibro 4130. Il punto di svolta qui è la cassa e la lunetta Panerai replica completamente ridisegnate: il primo passa da 36mm a un 40mm più popolare, per includere un'ampia lunetta che è un moderno Il segno distintivo di Daytona. È largo, in acciaio e affusolato, in mostra una scala tachimetrica incisa fino a 400 omega replica unità. Il Rolex Daytona 16520 è il precursore del moderno Rolex Daytona, e il suo stile vince ancora sull'attuale versione in acciaio con la lunetta in ceramica per la maggior parte degli appassionati di orologi, oltre a Vacheron Constantin replica includere un lungo elenco di versioni estremamente ricercate, come il Rolex Daytona Patrizzi , per esempio.

fake Patek Philippe said...

The Rolex Daytona 16520 is fake Breitling by far the most successful Daytona to date, Rolex has found its way to the ultimate chronograph. I have personally never loved the fake Omega tachymetric scale engraved onto the polished steel bezel, but we know style is a subjective matter, however there’s no doubt it offers superior readability, fake Hublot further improved with the introduction of the ceramic bezel. Among fake Cartier the all-time Daytona’s pros is that Rolex never added a date window, thus preserving the overall balance and avoiding to make a chronograph born for race competitions look less credible and too commercial.

axing said...

Breitling ha presentato diversi modelli di espansione del Super Ocean Heritage II dell'anno scorso per celebrare il 60 ° anniversario di Diver Watch Super Ocean.rolex imitazioni L'orologio da sub è ancora intatto, tra cui una ghiera girevole unidirezionale, una lancetta rivestita in superluminova con eccellente visibilità e una resistenza all'acqua di 200 metri.omega replica Gli aghi dal design unico e gli indici a forma di cono sono elementi importanti che ricordano il modello del 1957! Oltre alle versioni da 42mm e 46mm del case, introdotte lo scorso anno, quest'anno sono state aggiunte versioni da 44mm. Tra questi, il modello Super Ocean Heritage II B20 Automatic 44 con una lunetta in oro rosso abbinato a una cassa in acciaio sottolinea il fascino della collezione.tudor replica L'abbinamento tra quadrante nero e cinturino in caucciù Aero Classic nero è urbano e la lunetta in oro rosso 120 rivestita in oro è resistente ai graffi con finitura in ceramica nera ad alta tecnologia. è una semplice funzione del Tre lancette, ma presenta anche una finestra della data alle 6 per praticità. Questo particolare modello è disponibile anche con un diametro della cassa di 42 mm.

axing said...

Il design dello stand dell'evento è stato nuovo e geniale.replica patek philippe Il primo a introdurre l'occhio è il movimento DEFYEL PRIMERO 21 che è orgoglioso di Zenith. I suoi toni scuri e moderni danno ai visitatori un forte impatto visivo, dimostrando perfettamente il futuro della nuova collezione di Zenith. C'è anche una sala esperienza DEFY dedicata che invita tutti in uno spazio buio con sei oblò per mostrare sei nuovi orologi.panerai replica Prima di entrare nella stanza dell'esperienza, il meccanismo di rotazione rapida nella stanza crea un'immagine di bagliore che cambia. Quando un visitatore cammina entro 1,5 metri dall'oblò, la serie di attività si interromperà e apparirà il display corrispondente nell'oblò, mostrando chiaramente i superbi dettagli dell'orologio. Queste intense esperienze sensoriali replica rolex forniscono un palcoscenico per l'audace cronografo per creare un'atmosfera dinamica e immersiva unica.

replika uhren said...

6 Jahre Garantie inklusive oder replica uhren Sie können auch ein erweitertes Garantieprogramm wählen: Silber - +3 Jahre / Gold - Lebensdauer / Platin - Lebensdauer fake rolex mit jährlicher Ultraschall-Tiefenreinigung
Trotzdem kommen diese Uhren uhren replica nagelneu und garantiert authentisch. Ganz zu schweigen von den Seriennummern der Hersteller. Darüber hinaus besitzt fake uhren das Original Echtheitszertifikat, Herstellerbox und auch replica uhren deutschland Bedienungsanleitung.

rolex submariner replica said...

Tutto iniziò nel 1904 Breitling replica Tutto iniziò nel 1904 quando il temerario inventore e aviatore nato in Brasile Santos-Dumont si rivolse a Louis Cartier Omega replica confessandogli che mentre volava sul suo Demoiselle non sarebbe IWC replica mai riuscito a leggere il suo orologio da taschino.

Cartier Santos primi Vacheron Constantin replica 900Così Cartier progettò e realizzò per lui un sottile segnatempo da legare al polso con una cinghia di cuoio chiusa rolex falsi da un minuscolo fermaglio. Nel novembre del 1906 Santos-Dumont fu immortalato in un filmato di 21,6 secondi mentre alla guida del suo velivolo volava a un’altezza di circa 220 metri e naturalmente con quel Cartier legato al polso. quando il temerario inventore e imitazioni rolex aviatore nato in Brasile Santos-Dumont si rivolse a Louis Cartier confessandogli che mentre volava sul suo Demoiselle non sarebbe mai replica orologi rolex siti sicuri riuscito a leggere il suo orologio da taschino.

Cartier Santos primi 900Così Cartier rolex imitazioni progettò e realizzò per lui un sottile segnatempo da legare al polso con una cinghia di cuoio chiusa da un minuscolo orologi rolex falsi fermaglio. Nel novembre del 1906 Santos-Dumont fu immortalato in un filmato di 21,6 secondi mentre alla guida del suo velivolo volava a un’altezza di circa 220 metri e naturalmente con rolex daytona replica quel Cartier legato al polso.

axing said...

In questi giorni, un monegasco sta diventando un nome familiare nella città degli orologi,replica panerai Ginevra, Luc Pettavino, a causa dei premi annuali di orologi GPHG Ginevra “orizzonte nel settore dell'orologeria” e dell'asta benefica biennale Only Watch. Molti anni fa, Luc Pettavino ha riscontrato uno sfortunato incidente quando a suo figlio è stata diagnosticata la distrofia muscolare di Duchenne (DMD),patek philippe replica una malattia genetica che provoca un gene che causa la malattia da una madre a causare uno sviluppo muscolare anormale nei ragazzi. La maggior parte dei pazienti è inabile all'età di 10 anni e muore per insufficienza respiratoria all'età di 20 anni,imitazioni orologi che è ancora una malattia incurabile.

axing said...

Due giorni dopo si è conclusa l'ottava asta di beneficenza per il solo orologio e sono stati raccolti oltre 38 milioni di franchi svizzeri,replica iwc il che equivale quasi al totale delle ultime sette sessioni e molti marchi hanno anche registrato un record di aste, facendo scalpore nella città dell'orologio. Ovviamente,franck muller replica ottenere più soldi dalle aste è un'ottima cosa per la ricerca sulla DMD,repliche orologi di lusso e più soldi per la ricerca medica può aiutare gli scienziati a ottenere le prime soluzioni per aiutare i bambini e gli adolescenti che soffrono di malattie.

rolex replica said...

Dos años más tarde vio la edición limitada del golfo de Mónaco ref.replicas relojes CAW2113 con algunos cambios estéticos, así como un nuevo estuche y un nuevo movimiento.
El nuevo dial cambió el dial negro por un gris metálico con rayas azules / naranjas, mientras que también reemplazó la ventana de fecha negra. Reemplazaron la esfera negra a juego con una ventana de fecha blanca en lugar de hacerla coincidir con la esfera gris. El cambio del calibre 17 al calibre 12 no fue realmente tan importante.replicas de relojes Sí marcó el uso de un módulo de cronógrafo Dubois-Depraz en lugar de un módulo de cronógrafo ETA.

repliche orologi said...

La nouvelle taille du boîtier a augmenté de 1 mm à 39 mm x 39 mm et de 14 mm d'épaisseur avec un fond d'exposition.rolex pas cher Une autre série en édition limitée de 4000 unités, le CAW2113 alors mis à jour semble se vendre aux mêmes prix que les deux premiers Gulf Monacos (listes ici) avec environ une douzaine d'unités disponibles entre 4000 $ et 6500 $.

nbde2020 said...

Patek Philippe replica
fake IWC
TAG Heuer replica

Panerai replica
fake Franck Muller
Audemars Piguet replica

TAG Heuer replica
fake Vacheron Constantin
IWC replica

theysmeigh said...

look at these guys gucci replica handbags Full Article best replica designer bags see this here Gucci Dolabuy

Unknown said...

s3r78w5g74 r9h30k7w17 s8o73v7m99 z4c15p7r92 f4c87d2p25 c1p18p5p92