Customer Complaints

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Virtually every organization encounters customer complaints from time to time. Sometimes it is easy to get caught up in the complaints and to lose track of how many satisfied customers say nothing at all. Even worse, sometimes it is hard to remember just how valuable a customer complaint can be to the organization. Contrary to how it may feel to be the recipient of a customer complaint, it is a wonderful opportunity if embraced with commitment and integrity. You can turn customer complaints into valuable assets.

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Customer complaints



Harbin Institute of Technology

 

Consumer Behavior

 

Title:        Customer Complaints           

 

Name:   Maria Kalashnikova  13SF05003     

 

 

Comments:                                           

                                                    

                                                    

                                                    

                                                    

                                                    

 

 

 

 

 

 

 

 

2013 
Introduction

 

"Your most unhappy customers are your greatest source of learning."

Bill Gates

 

Virtually every organization encounters customer complaints from time to time. Sometimes it is easy to get caught up in the complaints and to lose track of how many satisfied customers say nothing at all. Even worse, sometimes it is hard to remember just how valuable a customer complaint can be to the organization. Contrary to how it may feel to be the recipient of a customer complaint, it is a wonderful opportunity if embraced with commitment and integrity. You can turn customer complaints into valuable assets.

Analysis of customer complaints is one of the important directions of business of many Western companies. To this end, they create new organizational structures, teach, as appropriate, its staff, and confer additional powers. It requires effort and funds, but Western companies have realized that the cost of care unsatisfied customers will certainly be even more.

The new look at complaints is they are treated as gifts, as a cheap and effective way to improve quality of products and service, and business optimization. In this report, I briefly illustrate how to successfully regain the trust of disappointed customers and discuss the reasons for the loss of business due to the policy of negative relation to the complaints accepted in the company.

                         

 

1. What is the complaint for a vendor

 

1.1 The complaining customer trusts you to care

The easiest way to define a complaint as a statement of unfulfilled expectations. But the complaint is - and , perhaps, it is more important - an opportunity for the organization to return the location dissatisfied customer, eliminating shortcomings service or product. The complaint is a gift that makes a consumer organization. The company will only benefit if carefully reveal " packaging " and see what's inside.

At first glance the meaning of customer complaint is reported that his new sweater has shrunk after washing or faded, spoiling the mountain white things. On a deeper level, the client gives the store where he bought the things, the chance to take action so he will continue to buy things from the same vendor.

It seems that the client simply complains that her trunk just bought luxury car difficult to close . However, on a deeper level, it says it can buy the next car from the same dealer , if she liked , as he decides its a small problem . In this way, this client checks his dealership .

It seems that consumers unequivocally declare their insurance agents that their calls to the insurance company on a simple question of the week no one responds . But on a deeper level customers give them to understand the following: when the time comes to renew the policy , they can turn to their competitors .

We should not think that the majority of the companies hears - banal complaint or deeper message. But unfortunately, mostly employees of the organizations perceive a direct surface treatment. As a result, misunderstood complaints lead to loss of customers .

Listening to their customers without prejudice, the organization is capable to accept the complaint as a gift. Unfortunately, almost no one likes to delve into the essence of the claims: we build deaf psychological barriers . And what's even worse, most of the customers do not even deign us complaining . They simply turn to other organizations.

Why people do not like to complain? At first glance it is obvious why the complaint bad reputation. Man tells you what is happening to him is not to your liking. Who wants to hear it? From a psychological point of view, the complaint is negative information. From the standpoint of the layman , this accusation.

In pleasant events time, people tend to refer to your account or put a merit. For example, the woman receives compliments about the dress, which is selected on your account, even if the saleswoman she got her this model brought into the fitting room and persuaded to buy.

In case of failure all the way around. When something goes wrong, most people prefer to blame other people, and even a particular system. Customers who are dissatisfied with the goods or services , usually to blame workers, especially those that fall under the hot hand. Last doing the same thing - when they hear the complaints tend to blame the customers. However, most employees understand that the accusations are unacceptable customer reaction in response to dissatisfaction with the work or goods. Therefore, they mask their feelings and try to keep within the limits of decency, explaining why the problem occurred. Usually they come to the conclusion that the blame for the organization and its policies . Employee can tell the client : "I would be glad to help you, but can not do anything. This is the policy of our company ... "

Unfortunately, the charge of personnel policies to customers neither cold nor hot, and do not serve them become nicer. Even if workers disagreed with the policy of his organization, which does not allow them to meet customer needs, the latter mostly not able to separate the employee from his company. The father of modern "theory of attribution " Fritz Heider believes that we are more inclined to shift the blame on the people, rather than on the circumstances surrounding the failed purchase or service. For example, an employee of the company , providing services, said: " I ​​know it may seem strange, but I have to ... " , and the client is thinking, " If it seems strange , then why do you impose it to me? " In the client will blame the failure employee regardless of the reasons and circumstances associated with it.

To deal with complaints as a gift, we must first make the following statement: customers always have the right to resentment - even if we consider their complaints ridiculous , unfounded or inconvenience. Vermont manufacturer of fishing tackle company Orvis Inc., Confesses this principle : "The customer is always right , even if you know exactly what he's wrong." At Stew Leonard's, the supermarket chain in Connecticut, adhere to two rules, engraved on a granite slab in human growth : "Rule 1 : The customer is always right . Rule 2: If the customer is wrong, re-read Rule 1. " We believe that by making a purchase, the consumer enters into a contract, as it were, under which acquires a right in if the goods cease to please him or will not meet his needs or standards, or is he just change his mind - to speak on this occasion.

If we want to consider complaints gifts, we need to completely rethink their role in modern business relations. So, companies should learn to separate complaints from emotions and not to blame anyone. This, in turn, requires, first, the ability to get in position frustrated people and, secondly, understanding the significance of the complaint to achieve business goals.

1.2 Complaint as a gift

Consumers are not regretting their time on appeal, thereby show that continue to trust the organization. Customers who complain in the end remain customers. After all, in fact it is easier to apply to another company - and thus the one who expresses their claims, demonstrates a certain degree of loyalty to the organization.

In the Savings Bank of Manchester, Connecticut complaint considered a gift. Claims of depositors helped the bank to define the area in which it was found the largest number of fraudulent schemes. As a result, criminals who used the telephone answering machine to recognize the account numbers of depositors, and the spoilers, they were identified and arrested .

In Wayne-Dalton, companies producing doors and security systems, their attitude to the claims. The company moved to a new packaging system after customers complained of damage to the doors. They spoil the door, but still continued to make claims. Newer, more expensive packaging reduced the number of complaints. Most interestingly, the new packaging system eventually led to lower total cost of Wayne-Dalton.

In QuickPark Inc., A company that manages a huge number of car parks in several cities across the United States, the claim is a gift. After listening to the complaints of customers who are dissatisfied with the fact that leaving the box takes too much time, QuickPark made ​​some changes to ensure unimpeded movement of cars . Introduction of new technologies has enabled the company to meet the demands of motorists and save almost 500 thousand dollars annually.

In Frigidaire Co., Consider complain is a gift. Frigidaire introduced a system of packaging, immediately cut the flow of customer complaints to the damaged part of the output. In the future , thanks to the simplification of the system, the company received a Frigidaire tenfold savings and released utility area at its plant . 
2. Turn Customer Complaints into Assets

 

2.1 Unsatisfied customers still are customers

Look at the eyes of the customer complaints, and we will have a chance to take them as a gift. Imagine that they themselves are in a situation encourages customers to file a complaint . What are their thoughts and feelings? How is their reaction? What they will expect from the organization? What can it does to make us be satisfied?

Are there customers who dream profit at the expense of the company? Certainly. However, if company wants to protect the organization from a handful of people , it does not have all of its customers to consider scammers. According to general estimates, only about 1-1.5 % of consumers are systematically trying to deceive us. Most organizations include this kind of behavior in the common expenses of their business. When someone tries to profit at the expense of using the complaints , there is a chance that other people - witnesses of such communication - will be amazed by the reaction of employees who do not put a man in the position of the perpetrator, even if it is clearly not without sin . Then witnesses a feeling that they are free to contact the company with their claims.

Asian Airline recently organized a workshop for service dealing with complaints of passengers. They took the staff adviser, believes that in the case when the passenger is not lazy to write a complaint to the company's operations, the latter should send him a discount certificate for your next flight. Management has in horror: "But people will use it. They will write a complaint, only to get a discount. "

However, the consultant proposed company look at the situation from the perspective of the customer, which claims are justified. First, people usually do not know about such policies airlines, so the fear of passengers strochaschimi false complaints with a view to get a discount, it is groundless. Secondly, if you send a discount certificate, a person often tends to use it, which means he is again your passenger. Thus, the company gets a chance to offer him a good service to correct the negative impression and make him loyal customer.

Once people or show signs of suspicious attitude towards complainants, clients begin to resist. Or, even worse, they may leave the company in silence, slamming the door, but after the incident will tell all your friends - and in such a situation, the company has no chance to defend themselves.

Some people lack common courtesy: making claims, they behave inappropriately. They get nervous and may seem rude, aggressive or even stupid. Qualified personnel must learn to focus on the content of the complaint, rather than its form. Requirement difficult, but if employees begin to consider a complaint gift, they really will not matter how packed this gift .

 

2.2 Complaints reveal customer needs

Customer complaints reported by the organization as to improve service and products - and thus help to keep the business. IBM spokesman John Davis said about this: "The most cunning trick in the trade - the ability to establish a permanent communication channel extending from the brain to the ear consumer seller. When you are aware of customers' desires and do what they want, what they like and inspires them, then you see their eyes and you can be one step ahead of the competition!". John McKitterick of General Electric goes even further, stating: " The main objective of the operation of the market ... not so much skill to make the customer act in the interests of business, how skillfully anticipate the desires of the client and organize the business in accordance with its interests."

 

If a company can determine the wants and needs of the client, the latter usually willing to pay more for its products. She, in turn, will be able to spend the money on product development, customer needs . Customers contact the company again and thus bringing her to repeat business, reduce the cost of the company.

Consider a successful company, working directories, L. L. Bean. It sells sportswear. Recently L. L. Bean had planned to expand the warehouse and sent their catalogs to potential customers. By counting the number of returns of goods - it increased by 14 % per year - the company decided to halt plans to expand and redirect efforts to retain existing customers rather than chasing new ones. Guide reasonably saw in returning goods indicator of customer dissatisfaction, noteworthy because it reflects the situation o n the market.

A better understanding of customer needs can also lead to an increase in demand and market expansion. So says Bob McNeill, vice president and general manager of the ship's Chris Craft. He knows from experience that attention to customer complaints allowed his company to improve product quality. At times, according to McNeill, company needs to help customers because they do not always make a complaint directly to the company. Some boat owners admit that they do not express their grievances, because they do not quite understand what they can ask or fear, as if they have not reacted with irritation. Others do not believe that dealers are well versed enough in yachts that sell, or even believe that such problems happen at all. So Bob McNeill insists that his company's dealers communicated with yacht owners directly on board and thus better satisfy their claims.

From time to time listening to customers, companies can learn how to adapt products and services to their needs, how to rebuild the internal processes for high performance and quality improvement, how to organize, to improve service .

Complaints from customers directly to organizations representing the most effective and cheapest way to obtain information about customer rating of products and services. Other, more expensive and less direct ways of communication with customers, including: a study of consumer complaints in the parallel branches, conducting secret surveys - for example, through the "secret" buyers - or extensive analysis of customer needs.

Large companies can afford such serious market research, but small firms must rely on what the customers themselves will tell them your opinion about products or services .

In most cases, customers are not located for companies to generate new ideas. They will not offer to invent Ford minivan or encourage Sony to produce Walkman. Innovations within the purview of research departments of any company. But customer feedback helps to better adapt the concept of the product for a specific group of people. Moreover, the business may never understand the client's needs, while some kind of product or service will not fail. Barely appears on the market a new product or type of service, as customer complaints reported to the manufacturer of some of its shortcomings .

Companies that need to respond to the fast changing market conditions, it is necessary to listen to customer complaints and respond to them immediately. This will help them be aware of their needs. For example, convenience stores for a few months do not change the range of essential products. Dissatisfaction buyers (" Why do you not ... ? ") Immediately affects the position of the company. Other, less active organizations also learned this lesson. Compared with a quick review of the living, direct consumers - of different ages, interests, wealth - market research, based on the dry statistics, may be too late .

In addition, paying attention to the defective products, negligence and bad service elaborate system, consumer complaints can also alert managers about current issues in the work of the staff. Customers are usually the first face of poorly-chosen staff. In fact, authorities may never know about unfair customer service, if it is just to watch their employees - in fact, knowing that they are controlled, the latter usually behave better.

 

Conclusion

 

When a customer complains, it gives you the chance to improve your business in ways you wouldn't have thought of on your own. Make the most of customer complaints with these tips. Loyal customers is not easy to get, but easy to lose. Bulk of the statistical data in this area suggests that if customers believe that their complaints will be well received and have much influence action, they are likely to turn again to the company. In addition, long-term customers is not only easier to sell products - they are easier to maintain: they know how to justify their expectations. They know your products, your employees and your business system.

Consumer wants to enjoy the buying and testing with a full satisfaction from the results. Do they want too much? Not at all. Think about how much money to invest in the construction of buildings , advertising , training, people, etc. A man comes into the store and wants to give their money , from sellers for the transaction takes only a minute or two to pay his personal attention to the specific request of the buyer . They do not require anything supernatural , and every company that is counting the ratio of the unreal to the client should do self to conform to the new reality .

 

"The customer doesn't expect everything will go right all the time; the big test is what you do when things go wrong."

Sir Colin Marshall

 

References

 

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