Manage Complaints To Enhance Loyalty

Article

Goodman, John   (2006, ASQ)   TARP, Arlington, VA

Quality Progress    Vol. 39    No. 2
QICID: 20412    February 2006    pp. 28-34
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Article Abstract

Every customer complaint represents a chance to correct a flawed process, educate a customer, and strengthen loyalty. But unless management can quantify the return on investment of complaint handling, they won't see the link between complaint handling and loyalty and profits. A survey finds most complaint handling systems completely satisfy 30 to 70 percent of complaining customers; the rest are either dissatisfied or only partly satisfied. A process improvement in complaint handling can move customers from dissatisfied to satisfied without extra expense. Necessary facts and calculations are provided to help establish complaint handling as a priority.

Keywords

Cost of quality (COQ),Customer complaints,Customer loyalty,Customer retention,Customer satisfaction (CS),Management of quality assurance,Voice of the customer (VOC)


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