complaints & social media gripes
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www.beyondphilosophy.com
The CustomerComplaints ExperienceQaalfa Dibeehi, Chief Operating and Consulting Officer
Zhecho Dobrev, Consultant
Experience Tracker – 2010
www.beyondphilosophy.com
1. Viewer Window 2. Control Panel
Beyond Philosophy © All rights reserved. 2001-2010 2
GoToWebinar
Example Interface
Webinar Interface Review
www.beyondphilosophy.com 3Beyond Philosophy © All rights reserved. 2001-2010
The Beyond Philosophy Perspective
Customer Experience
is all we do!
Thought leadership is
our differentiator
Offices in London,
Atlanta with Partners in
Europe & Asia
Fourth book launch in
September 2010
Focus on the
emotional side of the
Customer Experience
Links with
Academia
www.beyondphilosophy.com 4
We are Proud to Have Helped Some Great Organizations…
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com
The CustomerComplaints ExperienceQaalfa Dibeehi, Chief Operating and Consulting Officer
Zhecho Dobrev, Consultant
Experience Tracker – 2010
www.beyondphilosophy.com
The Study Basics
6Beyond Philosophy © All rights reserved. 2001-2010
• Methodology
• Quarterly online survey via
online panel
• Sample Characteristics
• 1015 respondents
• 50% USA; 50% UK
• Perspective
• Action based on a single
complaint
• “If you have made more than
one complaint/ comment
please answer the survey
with just one in mind”
www.beyondphilosophy.com
When customers have an issue…Something is missing in the experience
7
Customer expectations are not met
CommentsWhen customers share gripes
with others via social media
(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are met
ComplaintsWhen customers inform the
company directly of issues
(1:Company)
Beyond Philosophy © All rights reserved. 2001-2010
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Customer Interactions and feedbackSomething is missing in the experience
8
Customer expectations are not met
ComplaintsWhen customers inform the
company directly of issues
(1:Company)
CommentsWhen customers share gripes
with others via social media
(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are metOnly 6% of customers think
organizations know their expectations38% of organizations state they know
their customer’s expectations
Source: Beyond Philosophy
Customer Experience Tracker
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com
When customers fall through the cracks…
9
Complaints and
negative
comments in
social media
occur when
customers fall
through the
cracks in the
experience the
organization
provides.
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 10
When Complaints Go Viral The very dangerous new world of complaints
Source: Los Angeles Times.com
Source: Newsweek.com
Source: Industry.BNET.com
Original Video can be found on YouTube –
Search for “United Breaks Guitars”
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 11
• Every customer you keep represents at least 3 that you don’t have to
attract.
• The cost of acquiring a new customer usually runs from 2-4x the
annual cost of keeping an existing one.
• It is estimated that defecting customers will tell 8-10 people about their
negative experience. One in 5 will tell 20 people (multiply for Social
Media and the internet).
• Conversely, a referral from a loyal customer has a 92% retention rate
versus 68% for a customer acquired from advertising.
Source: Bill Bleuel, PhD, Professor of Decision Sciences, Graziadio Business Report
The Cost/Benefit of Getting Complaints Right
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 12
Source: The Customer Complaint Iceberg by Paul Qu
The Cost/Benefit of Getting Complaints Right
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 13
Does your organization monitor:
• Satisfaction with complaint outcomes
• Satisfaction with complaints handling
• Both
• Neither
• I don’t know
Poll
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 14
Complaints Profile
Fig. 2: Complaints by Sector( total sums to 100%)
Per
cen
t o
f C
om
pla
ints
Tra
ns-
po
rt/
Tra
vel
15%
Uti
lity/
E
ner
gy
7%
IT/
Tel
co
13%
Fin
. S
vcs/
B
anks
12%
Insu
r-an
ce
7%
Hea
lth
ca
re
4%
Ret
ail
22%
Ho
spi-
talit
y/
Lei
sure
10%
Oth
er
8%
Per
cen
t o
f C
om
pla
ints
Fig. 1: Complaints by Channel( the total > 100%)
LetterPhoneEmail Other SMS
1%
36%
48%
58%
4%
Fig. 3: Complaint Reason( total sums to 100%)
Product Quality
15%
Service Speed
5%
Other
13%
Price
9%
Missed Appt.
ServiceQuality
42%
Policy
8%
Treat-ment
by Staff
7% 1%
Per
cen
t o
f C
om
pla
ints
Fig. 4: Complaints Management
Per
cen
t o
f P
eop
le w
ho
Co
mp
lain
20%19%
Dissatisfied
23%
Neutral
17%
27%
Highly Dissatisfied
31%
Satisfied
19%
Highly Satisfied
23%
9%
13%
Complaint Handling Complaint Outcome
So
urc
e: B
eyo
nd
Ph
ilos
op
hy C
usto
me
rE
xp
erie
nce
Tra
ck
er (C
ET
)
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 15
Complaints - Defection ModelWhat is the effect of complaints on Defection?
Fig. 5: Complaints Handling-Defect Model
Ma
ke
a c
om
pla
int
28%
Satisfied
53%
Dissatisfied
19% Neutral
59% Continue
31% Defect risk
10% Defect
20% Continue
54% Defect risk
26% Defect
12% Continue
43% Defect risk
45% Defect
Complaint Handling Resultant Behaviour
Fig. 6: Complaints Outcome-Defect Model
Ma
ke
a c
om
pla
int
40%
Satisfied
37%
Dissatisfied
23% Neutral
42% Continue
33% Defect risk
25% Defect
22% Continue
54% Defect risk
24% Defect
13% Continue
43% Defect risk
44% Defect
Complaint Outcome Resultant Behaviour
Fig. 7: Complaints to Defection Profile( total sums to 100%)
Per
cen
t o
f C
om
pla
iner
s
Defect risk
42%
DefectContinue or
use more
26%
32%
Fig. 8: Complaint outcome/handling effect on behaviour
Res
ult
ant B
ehav
iou
r
Complaint Handling/Outcome Satisfaction
Highly Dissatisfied
Highly Satisfied
Def
ect
Use
m
ore
Complaint Handling Complaint Outcome
So
urc
e: B
eyo
nd
Ph
ilos
op
hy
Cu
sto
me
rE
xp
erie
nce
Tra
ck
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ET
)
Dissatisfaction with complaint handling also gives a bigger negative effect than dissatisfaction with outcomes
Satisfaction with complaint handling gives a bigger positive effect thansatisfaction with outcomes
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com
Customer Interactions and feedbackFurther evidence of poor complaint handling
16
Customer expectations are not met
ComplaintsWhen customers inform the
company directly of issues
(1:Company)
CommentsWhen customers share gripes with
others via social media
(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are met
44% of customers show their discontent by talking to employees in a raised voice or by using sarcasm. 36% of customers
engage in more violent behaviors such as slamming their fists, screaming, making threats, and using intimidation.
Source: 2009 Customer Rage Study by California Review Management
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 17
Complaints Management – “net satisfaction score”
How satisfied were you with the way your complaint was handled?
30%
20%
% Satisfied
Less % Dissatisfied
Complaint Handling:
Net Satisfaction Score10%
How satisfied were you with the outcome of your complaint?
30%
20%
% Satisfied
Complaint Outcome:
Net Satisfaction Score10%
Fig. 9: Complaints Management – net satisfaction scores
Net
Co
mp
lain
ts S
core
Complaint Handling Complaint Outcome
Transport/ Travel
Utility/ Energy
IT/ Telco
Fin. Svcs/ Banks
Insurance Health care
RetailHospitality/ Leisure
Other
-19%
12%
-20%-17%
-11%
-52%
-6%
-32%-39%
-11%
28%
-6% -19%
-30%-28%
-1%
0%0%
So
urc
e: B
eyo
nd
Ph
ilos
op
hy C
usto
me
rE
xp
erie
nce
Tra
ck
er (C
ET
)
Less % Dissatisfied
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 18
Complaints Management – “net satisfaction score”
Fig. 9: Complaints Management – net satisfaction scores
Net
Co
mp
lain
ts S
core
Complaint Handling Complaint Outcome
Transport/ Travel
Utility/ Energy
IT/ Telco
Fin. Svcs/ Banks
Insurance Health care
RetailHospitality/ Leisure
Other
-19%
12%
-20%-17%
-11%
-52%
-6%
-32%-39%
-11%
28%
-6% -19%
-30%-28%
-1%
0%0%
So
urc
e: B
eyo
nd
Ph
ilos
op
hy C
usto
me
rE
xp
erie
nce
Tra
ck
er (C
ET
)
Results from a previous Beyond Philosophy CET study.
61% of customers say there is a problem in terms of consistency in
handling issues yet only 23% of managers recognize the problem.
66% of organizations think they are honest and cooperative: but in
contrast, only 15% of customers think they are!
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 19
Complaints - Sensitivity ModelWhat is the effect of complaints on the customer’s sensitivity to issues?
Fig. 10: Complaints Handling-Sensitivity Model
Ma
ke
a c
om
pla
int
1% less sensitive
58% no change
41% more sensitive
7% less sensitive
45% no change
48% more sensitive
5% less sensitive
28% no change
67% more sensitive
Complaint Handling Future Complaints Sensitivity
28%
Satisfied
53%
Dissatisfied
19% Neutral
Fig. 11: Complaints Outcome-Sensitivity Model
Ma
ke
a c
om
pla
int
2% less sensitive
47% no change
51% more sensitive
2% less sensitive
44% no change
54% more sensitive
7% less sensitive
28% no change
64% more sensitive
Complaint Outcome Future Sensitivity
40%
Satisfied
37%
Dissatisfied
23% Neutral
Fig. 12: Complaints Sensitivity Profile( total sums to 100%)
Per
cen
t o
f C
om
pla
iner
s
No change in sensitivity
More sensitive: more likely to make
a complaint in future
Less sensitive: less likely to make a
complaint in future
4%
39%
57%
So
urc
e: B
eyo
nd
Ph
ilos
op
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usto
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rE
xp
erie
nce
Tra
ck
er (C
ET
)
Beyond Philosophy © All rights reserved. 2001-2010
Fig. 13: Connection between the complaint outcome/handling and future sensitivity
Fu
ture
Sen
siti
vity
to
Is
sues
Complaint Handling/Outcome Satisfaction
Highly Dissatisfied
Highly Satisfied
Less
se
nsiti
veM
ore
sens
itive
Complaint OutcomeComplaint Handling
www.beyondphilosophy.com 20
Source: Hotel Chatter.com
Original slide
presentation can
be found at
Slideshare.net –
Search for “Yours
is a very bad
hotel”
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 21
Does your organization do any of the
following in social media?
• Monitor customer comments
• Monitor and respond to customer
comments
• Neither
• I don’t know
Poll
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 22
Comments Profile
Fig. 14: Comments by Channel( ttotal sums to 100%)
Per
cen
t o
f C
om
men
ts
19%
My Space
5%
Customer Rating
Website
14%
Blog
14%
You Tube
Face-book
67%
Other
9%
Linked-In
7% 5%
Fig. 15: Comments by Sector( total sums to 100%)
Per
cen
t o
f C
om
men
ts
Trans-port/
Travel
17%
Utility/ Energy
7%
IT/ Telco
12%
Fin. Svcs/ Banks
9%
Insur-ance
4%
Health care
5%
Retail
27%
Hospi-tality/
Leisure
11%
Other
8%
Fig. 16: Comment Reason( total sums to 100%)
Per
cen
t o
f C
om
men
ts
Product Quality
19%
Service Speed
6%
Other
7%
Price
9%
Missed Appt
ServiceQuality
41%
Policy
5%
Treat-ment
by Staff
13%
1%
Fig. 17: Comments Management
Per
cen
t o
f P
eop
le w
ho
Co
mm
ent
Surprised company
responded
36%
Satisfied with company’s response
Received response from the company
28%
47%
So
urc
e: B
eyo
nd
Ph
ilos
op
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usto
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erie
nce
Tra
ck
er (C
ET
)
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 23
Fig. 18: Comments/Complaints Ratio by SectorP
erce
nt
of
Co
mm
ente
rs
Trans-port/
Travel
Utility/ Energy
IT/ Telco
Fin. Svcs/ Banks
Insur-ance
Health care
Hospi-tality/
LeisureOther
50%
45%
22%29%
Retail
50%
45%
39%40%
38%
Overall: 40%
Fig. 19: Comments/Complaints Ratio by Category
Per
cen
t o
f C
om
men
ters
Product Quality
49%
Service Speed
29%
Other
38%
Price
41%
Missed Appt.
ServiceQuality
76%
Policy
27%
Treat-ment
by Staff
48%
20%
Complainers who commentWhat percent of complainers also comment?
So
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e: B
eyo
nd
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ilos
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erie
nce
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ET
)
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 24
• 40% of the people who complain also comment via social media
• Focus on the quality of experience you provide.
• Like complaints, the biggest reason for making a social media
comment is “service quality”.
• Accept that you may not have visibility of most of the comments
made about your organisation - 48% of comments are made on
Facebook.
• Your best option is to create a Facebook presence that is
interesting for customers such that you are able to observe their
Facebook comments.
• That is, your Facebook presence should NOT just be a place to
leave customer feedback.
• Respond to comments – just over a 1/3 of people who comment are
“surprised” that they got a response and almost half are satisfied
with that response.
Comments Takeaways
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com 25
• Service quality and treatment customers (humanics) are the biggest
reasons for complaints.
• It is NOT price, or product quality.
• You can affect about 40% of people who complain with the way you
handle complaints.
• Make a distinction between complaint handling and outcome.
• Focus on complaint handling over complaint outcomes – it has
a bigger upside if you get it right and a bigger downside if you
get it wrong.
• Unfortunately, organizations are currently too focused on
outcomes rather than handling - the “net satisfaction score” of
complaints handling is always worse than that of complaints
outcomes.
• People who complain become “sensitive” to future issues regardless
of the complaint outcome or how it was handled – so handling
complaints appropriately becomes even more important.
Complaints Takeaways
Beyond Philosophy © All rights reserved. 2001-2010
www.beyondphilosophy.com
The CustomerComplaints ExperienceQaalfa Dibeehi, Chief Operating and Consulting Officer
Zhecho Dobrev, Consultant
Experience Tracker – 2010
Q&A
www.beyondphilosophy.com
Further Conversation? Contact us...
27Beyond Philosophy © All rights reserved. 2001-2010
London Office: 0207 917 1717
Atlanta Office: 1 678 638 6162
qaalfa.dibeehi@beyondphilosophy.com
colin.shaw@beyondphilosophy.com
zhecho.dobrev@beyondphilosophy.com
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