Customer Retention Strategy: Costs and Savings

Complaint Management Return on Investment

Even though a good customer retention strategy incurs cost, so does a badly performed service. No business can afford to lose customers, if only because it costs much more to replace a customer than it does to retain one -- five times more, most industry experts agree. A customer recovery service allows a business to shift its cost from constantly courting new customers to cutting customer defection.

Also keep in mind that dissatisfied customers almost always get stuck with certain costs: the money they spend for phone calls, the time they spend making their cases, and the aggravation they must endure throughout. The customer left stranded on the highway because her car was not repaired properly might miss an important meeting, have to pay for a tow truck, and spend time waiting for the repair to be made. Many service companies conveniently overlook these hidden costs, but the customer surely will not. Companies known for excellent service will go the extra mile to cover all the costs a failure incurs or, if the inconvenience is so great that the company cannot completely compensate the customer, respond in a tone that signals the company's regret.

1. Handling Complaints : A Critical Form of Communications
2. Why is Complaint Handling Important?
3. Management's Role
4. Cost and Savings
5. Complaint Handling Staff
6. Publicizing the Complaint Management System
7. Co-ordination with Others in the Distribution Chain
8. Third-party Dispute Resolution
9. Basic Steps for Effective Complaint Management
10. Conclusion
11. Complaint Management Checklist
12. Entire Guide

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