sunclouds.blogspot

10.13.2005

excerpts from Recovering Customer Satisfaction
(published in the straits times today)

disgruntled customers may not only switch to a competitor if switching is easy but also engage in negative word-of-mouth ... And if there is no timely and satisfactory recovery, the firm will be guilty of a double failure, further increasing customer dissatisfaction.

the average business only hears from 4 percent of dissatisfied customers but a dissatisfied one would tell 10-20 people about the problem ... those who do complain are more likely to repurchase. they also tend to be better educated and have higher incomes. such repeat customers generate more and more profits for the company, so it only makes sense to hear them out.

research shows that customers wil tell five close acquaintances about a service recovery compared to three people where the initial service was satisfactory.

americans are more likely to complain to the firm while asians are more likely to tell their friends ... casual explanations of a failure - and being treated in a formal and courteous manner - work better with east asians and latin americans ... withe people from an individualist culture, like americans, however, a hassle-free restitution that compnsates for loss/inconvenience - like and apology or a discount - works better. europeans are somehwere in between.

research shows that, while the outcome matters more to male customers, process matters more to female customers. specifically, women want their views heard during service recovery while males do not care for "voice" so long as the problem gets fixed.

21:55 / and blackened tears fell with mine //

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