Measuring and dealing with Customer Complaints is probably even more important than rewarding loyal customers.
Research shows that unhappy customers are twice as likely to tell others about their bad experience than satisfied customers are to tell others about a good one.
In addition, many customers don’t complain and stop using products and services.
It is, therefore, increasingly important to carefully consider and resolve every complaint.
Why is it important?
News about bad experiences spread faster than wildfire. Unhappy customers are likely to tell colleagues, friends and family about their negative experience. And these people are likely to listen to and trust this advice. Hence, avoiding the company’s product or service. Quickly resolving complaints and using them to improve products and services creates repeat business and loyal customers.
What questions does KPI answer?
1) How satisfied are your customers?
2) Are you listening to your customers?
3) Are you resolving customer complaints?
4) Are complaints growing or decreasing over time?
KPI target
Zero complaints or satisfactory resolution of every complaint.
Simply measuring the number of complaints may not be enough. Closely linked KPIs such as type of complaints, time to come back to the customer, time to resolve a complaint, % of complaints resolved, and costs to resolve complaints will help maintain happy customers.
Data sources
Customer surveys, call centres, feedback forms, external complaint websites, social media platforms like Facebook, Twitter, Google Maps, etc.