Value/cost of addressing customer concerns/complaints

Value/cost of addressing customer concerns/complaints

Complaints and customer satisfaction

Complaint management is strongly related to customer satisfaction: effectively managing a complaint about avoiding the dissatisfaction of a customer. In this section we're going to analyze the reasons.

New customers are very expensive: a new customer costs by five to six times more than keep an existing portfolio. A new customer costs in terms of investments in communication, in personal contact, in days of work and price reductions. For what is expensive in terms of time and effort, managing customer dissatisfaction is still much less expensive than acquiring a new customer (Sitko-Lutek, et. al., 2010).

Customers today are very valuable: not only in terms of cost savings, but also because customers become loyal in time partners with which companies are able to develop innovation and / or higher margins. Through collaborative forms the Customer- partners are able to develop with new suppliers' products and services, then sold again to other customers. Customers satisfied forgive many things: the more the level of satisfaction of the company is high, as customers are willing to pay a premium price for the service or product. Not only is that, customers satisfied even willing to forgive a few errors business and, indeed, sometimes collaborating with companies reporting early warning of potential problems that could damage the image quality (Sharabi & Davidow, 2010). Furthermore, we consider that for every 10 dissatisfied customers whose complaints were resolved satisfactorily, regained by the company.

Whenever a complaint is resolved:

Save a customer whose future purchases will be on average equal to ten times the amount of the purchase of which has been satisfied (although this proportion varies widely from sector to sector)

Save 5-6 times the cost than buying a new customer

9-20 people know that we avoid what is bad our product or service

Get free advertising by word of mouth.

Customers react with much more force to the way they are treaties than any other thing: as in many activities business is often not the "what" but "how" is a settled question that shifts the balance of customer satisfaction. It 'been repeatedly shown that people are unmet for many reasons, but the main reason why leave the company is one on which you have the widest margin intervention: the quality of treatment they receive.

Concept of quality costs

A cost means the money for quality to get the required quality. Quality required is not achieved by chance or by accident, but all must be planned in activities, measured and assured.

These planned activities of cost money and cover most areas such as marketing, projects, design, purchasing, production and technical assistance. The main objective of a Cost of Quality, is to ensure that the manufacture of a product, to successfully meet predetermined requirements of the customer and society with minimal cost, thus helping to maximize the profits of an enterprise.

The Cost of Quality System provides the criteria for information that can be address used by the Company to analyze the economic impact the quality or absence in the results of the organization and verify the progress made ??as result of actions ...