|
Useful Links
» TARP
» CustomerNet
If you like this article, why not share it with others? You can use Digg.com or post the link to your twitter feed.
|
Maximising Profits
An effective complaint management process drives profitability. Customer acquisition costs can be focused on
increasing market share rather than filling the gaps created when loyal customers leave. In this respect, the
overall cost of building market share is minimised. Also helping to minimise marketing costs, customers who are
successfully retained become strong brand advocates and thus act as free sources of powerful positive advertising.
Ironic as it may sound, revenue is also enhanced as a result of customers buying and spending more as a result of an
extremely positive service recovery on the back of an original complaint.
Key attributes of an effective complaint-management process
- Clear procedures
- Ability to provide a speedy response
- Reliability & consistency of response
- Single point of contact for each issue
- Ease of access to the complaint process
- Ease of use of the complaint process
- Ability to keep the complainant informed
- All staff understand the complaint process
- All complaints are taken seriously
- Employees are empowered to resolve issues
- Resolutions are followed up
- Data is used to drive improvement
- Performance is based on cause reduction rather than complaint volume reduction
[Source: The Customer Service Network]
|
Enhancing the customer experience through the use of effective complaint management is a means to an end –
increased profitability. By developing strategies that quickly and effectively recover service failures, and make
use of customer feedback to make products and services more attractive to customers, leading organisations can:
1. Reduce churn and increase customer retention
2. Encourage customers to buy again and spend more.
The first outcome helps reduce costs – Leading organisations can maintain and build market share with lower marketing
costs since retaining loyal customers is usually significantly cheaper than attracting new ones. At the same time,
customers who have had a positive experience as a result of a well handled complaint will be great company
advocates – a great source of free advertising.
The second outcome helps increase revenue since, on average, customers who have had a complaint resolved quickly are
twice as likely to buy again as those customers whose complaint was not resolved effectively. In addition, as the
next section also demonstrates, effective complaint management can lead to increased spend.
Involving the whole organisation using enterprise feedback management (EFM) creates a more motivated
work-force which is empowered to solve issues at first-point and is involved in helping to identify and address the
root cause of complaints. Increased moral & motivation amongst employees leads to reduced staff turnover and reduced
costs associated with lost time due to sickness and recruitment.
Improved operational efficiencies and a consistent approach to complaint management through the use of a
robust complaint management process also help leading organisations to reduce operational costs as a result of more
customer-focused, cost-effective, performance managed resolution management and compensation and
|
For non-profit organisations, such as government agencies, reduced operational costs mean that scarce
resources can be stretched even further.
Click Here to see the impact complaints have on your bottom line.
|