Turn Complaining Customers into Loyal Customers


In his article The Marketing Imagination, Theodore Levitt says, “One of the surest signs of a bad or declining relationship is the absence of complaints from the customer. The customer is either not being candid or not being contacted. Probably both. Communication is impaired. The absence of candor reflects the decline of trust, the deterioration of the relationship.”

Many people who write on customer service like to quote a study conducted by the Technical Assistance Research Programs Institute. Here are a few things the study revealed along with my commentary:

It costs 6 times more to attract a new customer than it does to keep an old one. So, attending to customer loyalty is a cost-effective endeavor.

The average business never hears from 96% of it’s unhappy customers. Although percentages vary from industry to industry, the truth is that most customers don’t like to complain – especially about the little things. Yet it’s the little things that add up and cause customers to move their business.

For every complaint heard, the average company has 26 other customers with the same problem. More evidence that customers will withhold their complaints.

The average unhappy customer will remember the incident for 23 years. How many people could they tell over that length of time?

Written by Bill Cates.  To read the full article, click here.

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