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TMI DISSATISFACTION WITH SERVICE IS SELDOM VISIBLE 26 of 27 dissatisfied customers do not complain How many customers do your agencies lose? A very common reason for losing customers is poor handling of complaints. More than half of all efforts to respond to customer complaints reinforce negative reactions. It costs at least 5 times more to win a new customerthan to keep an existing one. Lower costs to retain Marketing experts A Complaint Is a Gift Janelle Barlow, Ph.D. There’s no such thing as a problem-free relationship. Problem resolution is probably the most critical competency. —KPMG Ted Fernandez About the least level of problems you can expect is 12%, …and that’s with such items as lamps, tires, cosmetics, blankets and sheets! Alan Andreason Arthur Best, HBR You must get close -- intimately close -- to your customers. In the final analysis, customers are your only source of job security. Price Pritchett New Work Habits for a Radically Changing World Something not right Expectations not met Early warning system Threat Expressed to you, and not the marketplace Source of ideas Chance to find out how good you really are at customer service At times, a challenge Chance to educate Opportunity to tighten bonds with customers .. . Apology Rejection “Passed on” Making excuses Customer “interview” Interrogation How can insurance customers return the favor of your effective complaint handling? $ $ $ $ $ “Reducing customer defections by as little as five points—from say, 15% to 10% per year— can double profits.” Bain and Co. “The profit made from a single customer who has stayed loyal for seven years is six times more than the profit made from a new customer.” Bain and Co. Less negative word of mouth Can learn from them Easier to satisfy Public relations specialists Sales teams Cust
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