Complaints – The tip of the iceberg

The “voice of the customer” (VOC) is a key issue in all kinds of customer service, TQM or Six Sigma training, and related project work. There are two main categories for VOCs, reactive data and proactive data. While proactive data is collected using methods such as focus groups, interviews, observations, surveys, or test customers, reactive data is primarily based on customer complaints, feedback, hotline data, or warranty claims. The nature of the human being is almost always restricted to negative comments through reactive data channels.

How do you feed back?

reagent

The other day in Singapore, I had a small complaint about an SBS bus driver who really didn’t respect me riding my bike on the road. After I got home, I took some time to recap what happened and wrote a very detailed letter to SBS explaining the situation.

proactive

When I spent a few days in a hotel, I received a survey form to fill out before leaving the hotel. I filled it? Guess…

Asking staff working in customer service departments about the nature of the feedback they receive from customers will result in responses such as “No one calls to tell us how good we are at delivering our service. Most of the calls, which aren’t questions, are more or less loud complaints.” On one hand, this sounds frustrating, “it’s not fair.” On the other hand, “negative feedback” is very powerful because someone takes the time and tells us what is wrong with our processes, therefore showing us opportunities to improve, to be more competitive, to grow. The quality of this type of information is often much better than feedback received through proactive channels such as surveys due to the fact that respondents generally have no interest in the topic.

Customer research studies in the German financial industry have shown some years ago that complaints usually reveal only the “tip of the iceberg”. Receiving 50 complaint letters means we only receive feedback from those who take the time and courage to complain. There may be around 1250 customers experiencing a similar situation but not complaining. They might immediately go to our competitor if they get the chance. We may never find out. Additionally, research has shown that there can be up to 10 times more negative touchpoints with our company, such as “Your call is important to us. Please stay on the line.” These negative incidents are not “big enough” for a complaint, but they always have enough impact to prompt customers’ decision sooner or later.

Conclusion

Welcome complaints! Whenever you receive complaints, someone is interested in your service and wants to help you improve. Behind each complaint you can expect up to 25 times the situation that gave rise to the complaint and up to 250 negative “Moments of Truth” with your company. Use this valuable and powerful information to take action.

And also give positive feedback!

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