They can tell you a lot about your business.
It’s a fact that one unhappy customer tells 10 to 15 others about their bad experience. If it’s really bad, they will tell the whole world.
For every complaint that could be made, around 20 people simply don’t bother. This means 20 lost opportunities for you to make improvements to your business.
When complaints are handled badly or with a “couldn’t care less attitude”…or worse still, if you hide behind the rule book “sorry its company policy”, you will lose the customer for good.
You can’t even afford to lose a single penny to bad service, because this mounts up when you apply the multiplier effect. Let’s take a look at the “income multiplier effect”.
A customer comes into a leisure centre which was only built last year. The centre is trying to build up its customer base. It employs 50 staff, part time and full time, who haven’t received any training in customer service and complaint handling. The customer asks about booking a squash court for later that day. He fails to receive a very positive response, and the receptionist’s attitude is very much “take it or leave it”. He shrugs and walks away.
How much has the centre lost in potential revenue?
£5.00 primary spend = the price of the court
£5.00 secondary spend = a drink, a sandwich, perhaps a swim etc.
£500.00 potential membership fees
He will tell at least seven people about his bad experience. In simple terms this represents £510 x 7 totaling £3,570
It’s very easy for a small amount of lost income to multiply to dangerous levels. Listen to your customers.
They can enhance your business when you choose to listen to them. Ignoring their complaints can destroy your business. The choice is yours. Choose wisely.
“Customers may forget what you said but they’ll never forget how you made them feel” Unknown