How your customers perceive the quality of their complaint experience can have a direct impact on their future loyalty. When raising and resolving a complaint becomes more difficult than expected, the likelihood of disloyalty increases significantly and can impact customer retention rates. When this happens, organisations find themselves with a ‘leaky bucket’ which constantly needs to be topped up with new customers to replace those leaving.
Customer service interactions are a breeding ground for disloyalty, particularly when the customer has an issue or problem they can’t resolve and then they raise a complaint. When it becomes more difficult than anticipated for customers to get their jobs done, then this effort can drive disloyalty.
“You can’t manage what you don’t measure”
World renowned management thinker Peter Drucker is often quoted as saying “you can’t manage what you don’t measure”. What Drucker meant was that you can’t know if you have been successful if you don’t define what success is and then track your progress towards it. We think that this is also true when it comes to improving your complaint handling performance and how it positively influences the customer experience. By clearly understanding what is important to your customers and introducing appropriate improvement initiatives, you must also quantify your progress and, where necessary, make adjustments along the way.
At The Research Locker, we advocate the use of qualitative and quantitative research to understand and map the customer complaint journey, quantify what is important to them, identify the key drivers of loyalty / disloyalty – using regression analysis – and then regularly measuring your performance against the key drivers. Both Customer Effort and Emotion are key components of the work we do for clients.