How do dissatisfied customers behave?
Managers still tend to think their customers are satisfied because few complaints come to their attention. Classic research conducted during the Carter Administration revealed 96% of dissatisfied customers do not complain. Smart managers use this research. They know that for every complaint, there are about 25 other customers with the same problem. If the problem is not resolved, they know people with problems will tell 10-20 people. Smart managers encourage people to complain to the company and make it easy for them to do so because: • Complainers are more likely than non-complainers to buy from the organization again-even if their problems aren’t resolved. • 54-70% of complainers remain loyal to organizations when complaints are well handled; 95% will do business again if problem is resolved quickly. • Complainers whose problems are resolved tell five others about the good service they received. The cost of getting a new customer is 3-5 times the cost of keeping an existing one. Yet
