1. Only 1-5% complain to management or company headquarters 45% complain to a frontline employee 50% of those who encounter a problem, do not complain

2. Dissatisfied Consumers Behavior The Retail Customer Dissatisfaction Study 2006 by the Verde Group found: ◦ 48% of respondents reported avoiding a store because of someone else’s negative experience ◦ For those who encountered problems, 33% said they would “definitely not” or “probably not” return The exponential power of storytelling As people tell the story, the negativity is embellished and grows

3. What Complainants Got A study at Arizona State University found that: 56% of complainants felt they got NOTHING (no satisfactory resolution of the complaint)

4. RecoveryAdaptabilityCopingSpontaneity

8. Acknowledge problem Explain causes Apologize Compensate/upgrade Lay out options Take responsibility Attempt to accommodate Explain rules/policies Take responsibility Ignore customer Blame customer Leave customer to fend for him/herself Downgrade Act as if nothing is wrong Promise, then fail to follow through Ignore Show unwillingness to try Embarrass the customer Laugh at the customer Avoid responsibility DosDon’ts