How much do dissatisfied customers cost?

In a recent Harvard Business Review OnPoint In the article, “Stop Trying to Please Your Customers,” four statistics were shared about the ripple effect that poor customer service has on your business.

  • 25% of customers are likely to say something positive about their experience.
  • 65% are likely to speak negatively.
  • 23% of customers who had a positive service interaction told 10 or more people.
  • 48% of customers who had negative experiences told 10 or more others.

(Harvard Business Review OnPoint article by Matthew Dixon, Karen Freeman, and Nicholas Toman)

The moral of the story (in my opinion):

  • Dissatisfied customers speak louder than happy customers.
  • Disgruntled customers don’t do your business any good.
  • Dissatisfied customers are bad for your business.

If I were to recommend a quick one-step solution to this problem, it would be simple: don’t let your unhappy customers leave unhappy.

So what do I mean by this? Well actually three things, all of which will do wonders for the quality of your customer experience.

1. Ask for your comments immediately. If you wait a few days before submitting a customer service survey, you’re increasing the amount of time they have to get the word out about the experience that ruined their day. So talk to them before they leave the building, before they hang up the phone, and before they refuse to participate in a process that they have decided they don’t have time to do. The faster you understand what went wrong, the better your chances of redeeming your customer relationship.

2. Make the last point of customer contact memorable. Customers come into contact with various employees, systems, and services while in your building or on your site, so make sure the last thing they experience is incredibly positive. I’m not suggesting that a good memory can undo a bad experience, but research has indicated that what people remember has a greater impact on them than what people experience (research by Daniel Kahneman), so don’t miss out on the opportunity to leave things on a positive note.

3. As much as I can, fix the problem as soon as the customer reports the problem. This may sound similar to # 1, but the difference is that # 1 is about creating an opportunity for customers to give you immediate feedback, it’s about quickly catching their unhappy criticisms. This step consists of identifying the solution and taking steps to resolve the problem. Too many companies tell their customers “We will call you when we have an update” or “We will know more about the problem in two weeks” or “We will have an inventory update once we hear from head office.” Some of these justifications cannot be avoided, but the goal, when possible, is to figure things out on the spot. Don’t delay solutions when not needed – for a customer, all problems are urgent. Show them that you take them seriously by doing something about it. now.

Don’t ignore, avoid, or overlook customer concerns – reach out to them immediately to take action-oriented steps they communicate they are a priority. This will minimize the amount of damage they can cause to your reputation and your bottom line.

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