Tales of the Unexpected

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Tales of the Unexpected

• What happens when customers have a problem?

Jim Bruce Customers for Life Ltd.
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What is your experience?

• Have you had a problem with a service provider in
  the last 12 months?
• Shop?
• Airline?
• Restaurant?
• Garage?
• Did you complain?
• Did you receive a satisfactory response?

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From the Customer Perspective
Is this how they treat a loyal customer?
Why am I being passed from Billy to Jack?
A simple Sorry would be great.
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From the Supplier Perspective
Why is he angry with me? It wasnt my fault.
Id better not admit responsibility. He might
decide to sue.
Who does he think he is? Roy Keane?
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Case Study

• Two service providers
• Frodo plc Gollum plc
• Irish-based
• Consumer-orientated
• Customer satisfaction surveys conducted by
  Customers for Life
• Sample Sizes
• Frodo plc - 1,500
• Gollum plc - 1,000

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Survey Focus

• Routine service transactions
• Infrequent moments-of-truth, e.g. significant
  sales transaction
• Problem handling

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Survey Focus

• Routine service transactions
• Infrequent moments-of-truth, e.g. significant
  sales transaction
• Problem handling

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Overall Satisfaction with Service Provider
Frodo plc
Gollum plc
Base Customers who have never experienced a
problem with Service Provider
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Survey Focus

• Routine service transactions
• Infrequent moments-of-truth, e.g. significant
  sales transaction
• Problem handling

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Focus on Problem Handling

• How many customers have ever experienced a
  problem with this supplier?
• Have they advised the supplier about their
  problem?
• How did the supplier respond?
• How satisfied are the customers with the outcome?

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Problems vs. Complaints

• A problem becomes a complaint only when the
  customer notifies the service provider
• Not all customer problems become complaints!

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Incidence of Problems
Have you ever experienced a problem in your
dealings with this service provider?
Notified Service Provider
Notified Service Provider
Yes - 81
No - 19
Yes - 81
No - 19
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Satisfaction with Problem Handling Process
Frodo plc
Gollum plc
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How long did it take to resolve problems?
Frodo plc
Gollum plc
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Satisfaction with Time Taken to Resolve Problems
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What is needed to satisfy customers with a
problem?
Frodo plc
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What is needed to satisfy customers with a
problem?
Gollum plc
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Impact of Problem Handling on Overall Satisfaction
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Impact of Problem Handling on Overall Satisfaction
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To sum up...
Frodo plc
Gollum plc

• 1 in 6 customers experienced problem
• 1 in 5 satisfied with how problem was handled
• Problems should be resolved within 2 days max.
• Receiving apology is critical
• Customers satisfied with problem handling not as
  satisfied with company as customers who never had
  problem

• Almost 1 in 2 customers experienced problem
• 1 in 3 satisfied with how problem was handled
• Problems should be resolved within 3 days max.
• Receiving apology not critical
• Customers satisfied with problem handling just as
  satisfied with company as customers who never
  had problem

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Why are they different?
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Profile of Customers with Problem
Frodo plc
Gollum plc
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Why satisfying customers matters

• Frodo plc
• Satisfied customers are
• three times as likely as dissatisfied customers
  to buy additional services
• and four times as likely to recommend the company
  to others
• Gollum plc
• Satisfied customers are
• twice as likely as dissatisfied customers to buy
  additional services
• and twice as likely to recommend the company to
  others

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What lessons can be learnt?

• Organisation
• Set up process that handles complaints quickly
  and efficiently
• Encourage and facilitate complaints
• Train and empower staff to deal with customer
  complaints
• Representative
• Be professional - it is not personal
• Empathise and explain

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Tales of the Unexpected - A Happy Ending?