A Complaint is a Gift

© Jacqui Knight, 2005

 • When customers are unhappy with service
they have two options: they can say
something (talkers)
or they can walk away
(walkers).

© Jacqui Knight, 2005

 • Walkers give businesses no chance to fix
what was wrong.
• Research tells us that walkers tell twenty
people about the bad deal they (think they)
got – about five times as many as a
satisfied customer would tell!

© Jacqui Knight, 2005

 • It’s cheaper to keep customer loyal than to
acquire new customers.
• A cellphone company
calculated it cost $200-$300
to acquire a new customer,
including advertising,
direct marketing etc.
• But keeping that customer cost
only $20-$30!

© Jacqui Knight, 2005

 • Talkers give us an opportunity to return
them to a state of satisfaction so they are
more likely to buy from us again. So as
much as we might not like negative
feedback, customers who
complain are giving us a gift.

© Jacqui Knight, 2005

 • If we see complaints as gifts we can more
readily use the information complaints
generate to grow our business.

© Jacqui Knight, 2005

 • Customer complaints are
one of the most available
and yet under-utilised
sources of consumer and
market information.
• As such they can become
the foundation for a
company’s quality and
service recovery
programme.
© Jacqui Knight, 2005
 • Many people find it hard to accept
criticism.
• According to statistics up to half the buying
public has some type of complaint each
year, and 15-25% of all
purchases involve
a problem.

© Jacqui Knight, 2005

 • We cannot possibly try and
keep everyone happy.
• What we can do is ascertain
why some people aren’t happy…
and try to address that.
• Welcome constructive feedback as a way
of gathering free marketing data and use it
to increase sales and profits.

© Jacqui Knight, 2005

 • By caring about the customer enough to
ask what is wrong, and how we can fix it
we can turn that complaining customer,
the walker, quite quickly into a friend.
• We just have to look at things from their
point of view.
• Sometimes it means we have
to admit we ‘stuffed up’.

© Jacqui Knight, 2005

 • If customers get good service when
they’ve complained, they will come back.
• They’ll go out of their way to go longer
distances.
• They will be willing to
pay higher prices and
say good things.

© Jacqui Knight, 2005

 • If they walk
away... they will
tell all their
friends.

© Jacqui Knight, 2005

 • Those friends will
remember if your
name comes up
in conversation…
and the story will
grow too!

© Jacqui Knight, 2005

 • The point is to not alienate people
that aren’t happy.
• Or for that matter, people
you don’t like… people
who your friends don’t
like…or people that
have grudges against you,
your family or friends.
• Treat everyone the same
when you’re in business.

© Jacqui Knight, 2005

 • It can be an educational and rewarding
experience turning walkers into talkers.
• Learn to look at body language as you
deal with customers.

© Jacqui Knight, 2005

 • Perhaps they’re confused as to how you
calculated the charge.
• Or they don’t understand your service or
product.

© Jacqui Knight, 2005

 • There is a process for dealing with irate
customers.

© Jacqui Knight, 2005

 • Firstly, thank the person for the complaint
and explain why you appreciate it.
• This tends to disarm the person.

© Jacqui Knight, 2005

 • It is difficult to perceive you as the enemy
when you are expressing appreciation for
the chance to do something constructive
about the problem.
• It also helps you adjust
your own attitude.

© Jacqui Knight, 2005

 • Justifiably or not, the angry customer’s
perception is that you have disappointed
her or him.
• Sometimes you can fix the problem.

© Jacqui Knight, 2005

 • At least you can provide more information
– the background for understanding the
realities that are perceived as the problem.
• Sometimes you can’t
achieve anything –
but at least you have
the opportunity to try.

© Jacqui Knight, 2005

 • Customers who complain can be seen as
troublemakers or assets; the choice is
yours!

© Jacqui Knight, 2005

 • If you choose to see their message as
useful information and an opportunity, then
the interaction is less stressful for us and
more productive.

© Jacqui Knight, 2005