Why do customers quit ?
• 1% Die
• 3% Move away
• 5% Form other friendship
• 9% For competitive reasons
• 14% Due to product dissatisfaction
• 68% due to indifferent attitude by the staff
What does an unhappy customer do?
• Suffers in silence
• Switches to the competitor in silence
• Tells friends and neighbors
• Talks to third parties like Press, lawyers..
• Talks to the Company
– Whom do you feel the best ?
• 96% of dissatisfied customers never complain to the business, but 91% will not make return purchases
• 70-85% of dissatisfaction is due to customer service not product; 68% of customers who stop buying do so
because they perceive an employee as discourteous or indifferent
• dissatisfied customers on average tell 12 friends of the poor service; satisfied people tell 5 friends (2:1 ratio
• 70% will return if complaint is resolved, and 95% of customers would do business again if a problem is
resolved quickly and effectively
• highly effective companies spend 10% of their operations budget on fixing problems related to customer
complaints; ineffective ones spend 40%
• the average business loses 10-30% of its customers each year
(without knowing which, when or why lost)
• it’s more costly to win a new customer than to lose an existing one (5-
7 times greater); it takes 12 positive incidents to make up for a
• Customers are three times more likely than service providers to
recall the quality of the personal element in a transaction
influence the evaluation of quality
and forecast (from customers’ pre-
purchase perspective) how well the
product or service will perform.
refers to overall quality,
reliability, and the extent
to which a product or
service meets the
customer’s needs; this
shows the greatest impact
on customer satisfaction.
Perceived value is measured
through overall price given quality
and overall quality given price; it
has somewhat less impact on
satisfaction and repeat purchase.
Customer complaint activity is
measured as the percentage of respondents
who reported a problem with the measured
companies’ product or service within a
specified time frame; it has an inverse
relationship to customer complaints.
Customer Loyalty is measured by likelihood to
purchase a company’s products or services at
various price points. Customer satisfaction has a
positive effect on retention, but the magnitude of
that effect varies greatly across companies and
Some key points on developing loyalty
• Since what was once unexpected/unstated becomes
expected/stated, you must keep innovating
• Performance excellence occurs by design, not
• All parts of the organization are part of creating
• Reliability: Keeping your promise, doing what you said you will do. Doing things
right the first time.
• Assurance: Making the customer feel safe in their dealings with you, being
thoroughly professional and ethical.
• Tangibles: How the product/service looks to the client, the appearance of
personnel and equipment, etc.
• Empathy: The degree to which the organization and service personnel
understand the individual client and their needs, the ability to adapt the service to
each client, the willingness to 'go the extra' for the client.
• Responsiveness: The availability, accessibility and timeliness of the service.
The ability to respond to enquiries and complaints in a timely fashion.
Dealing with difficult customers..
• Don’t return anger to anger
• Take control- assert yourself
• Never promise what can’t deliver
• Let them vent their anger
• Show concern and sympathy
• Apologize, even if it is not your fault
• Offer solution
You don’t understand.
I don’t know.
You don’t see my point.
Hold on (or hang on) a second.
Our policy says (or prohibits)…
That’s not my job/responsibility.
You’ll have to…
What you need to do is…
What’s your problem?
Why don’t you…?
I never said…
Words & phrases that damage customer
“I’ll find out for you”;
“I’ll need to check on that
and get back to you”;
“I’ll have to look that up,
when is a good time for me to
call you back?”
Words & phrases that build customer
• Thank you.
• I can/will…
• How may I help?
• I was wrong.
• You’re right.
• I understand how you feel.
• May I …? / Could we try …?
• Have you considered …
• I’m sorry for …
• It’s my/our fault.
• What do you think?
• Would you mind?
Express empathy to customers
Use empathic phrases:
• “I can see why you feel that way”
• “I see what you mean”
• “That must be very upsetting”
• “I understand how frustrating this must be”
• “I’m sorry about this”
• Always say you’re sorry
Golden rules for listening..
• Put yourself in customer’s shoes
• Stop the chatter inside your head
• Concentrate on what is being said
• Show that you are listening
• Check details if you are in doubt
• Be aware of what is being missed by customer
• Write down the details..