anne p. crick, phd mona school of business & management

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?

• You’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

Overview

• Why customers’ don’t complain

• What you’re missing when they don’t

complain

• Everyone is a complaint manager

• Stimulating complaints

• Managing complaints

• .

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. Order 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 TYPES OF CUSTOMERS

• a) Passive

• b) Voicers

• c) Irates

• d)Activists

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?

Everyone is a Complaint Manager

• 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!

• Organizations 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

Reactive

• Body Language

• Verbal Complaints

Proactive

• Long lines, waits, delays

Social Media

• Do you tweet?

• Your customers do!

• A US study found that nearly half of

respondents expected the company to read

their Tweet

Responding to Tweets

• Of those who received a response from

companies:

– 83% said they liked or loved hearing from the

company

– Only 4% didn’t like or hated hearing from the

company

– Nearly 3 in 4 were very or somewhat satisfied with

the company’s response

No Response to Tweets

• Of those who did not receive follow up:

– 86% would have liked or loved hearing form the

company regarding their complaint tweet

– Only 1% would have NOT liked it or hated it if they

were contacted by the company regarding their

complaint tweet

– 63% would not like it or hat it if the company

contacted them about something other than their

complaint tweet

The Web

• The web is one giant listening platform…

more valuable to companies than a hundred

focus groups, the raw, unsolicited

conversations on the web not only reflect

what consumers really think but also provide

companies the opportunity to participate in

the dialogue.” (Blackshaw, 2008)

• Google yourself! What are they saying about

you?

• Use Google Alerts

• Monitor your Facebook page

• Read reviews on relevant sites eg. Trip Advisor

• Respond!

• Respond Quickly

• Respond with minimum excuses and

maximum apologies

• Offer to make it right (from the customer’s

eyes!)

The Southwest Apology Letter

Dear JetBlue Customers,

We are sorry and embarrassed. But most of all,

we are deeply sorry.

Last week was the worst operational week in

JetBlue’s seven year history. Following the

severe winter ice storm in the Northeast, we

subjected our customers to unacceptable

delays, flight cancellations, lost baggage, and

other major inconveniences.

Words cannot express how truly sorry we are

for the anxiety, frustration and inconvenience

that we caused. This is especially saddening

because JetBlue was founded on the promise

of bringing humanity back to air travel and

making the experience of flying happier and

easier for everyone who chooses to fly with us.

We know we failed to deliver on this promise

last week.Most importantly, we have published the

JetBlue Airways Customer Bill of Rights — our

official commitment to you of how we will

handle operational interruptions going forward

— including details of compensation. I have a

video message to share with you about this

industry leading action.

You deserved better — a lot better — from us last week. Nothing is

more important than regaining your trust and all of us here hope you

will give us the opportunity to welcome you onboard again soon and

provide you the positive JetBlue Experience you have come to expect

from us.

The Guarantee

• One of the best ways to stimulate complaints

is through the guarantee. A guarantee

– Tells the world that you stand behind your brand

– Convinces ‘on the fence’ customers to give you a

try

– Forces you and your staff to lift your game

– May be a source of competitive advantage in a

crowded marketplace

Types of Guarantees

• Total vs. Specific

– Test yourself – are you ready?

– Prepare your organization and your employees

(invoking the guarantee should be welcomed!)

– Pilot test

– Fix the glitches and try again and again until you’re

ready to roll it out

Beyond Complaints

• What can we do better?

– Ask your customers what was

beneficial and

– What can be improved

In Summary

• Complaints can be your best friend so

– Encourage them

– Train your staff to receive them and respond to

them

– Understand the source and manage them

•Questions?