Why customers won’t tell you when things are bad…

Have you heard the one about the unhappy customer who actually told you that they had just received a poor customer service experience and typically told you at a barbeque or social event where plenty of people were listening?

Research tells us that 13% of the people who have service problems tell 20 others (Understanding Customers by Ruby Newell-Legner). While this statistic was certainly true in the past, the increase in social media and blogging has meant that bad news is spreading like wildfire. There are a plethora of sites online across all sectors where sharing opinions and experiences is core to their offer, www.eatability.com.au and www.hostelworld.com for example. We are now even seeing sites such as www.tell1000.com encouraging people to spread their bad shopping experiences to as many people as possible.

The truth is, most unhappy customers don’t bother to complain to the source, they just leave the store and never come back, and worse still they tell their friends. Ruby Newell-Legner also found that a typical business hears from only about 4% of its dissatisfied customers, 96% just go away and 91% will never come back. Meanwhile, store management and staff continue on their merry way believing they are giving good customer experience while, their unhappy customer is telling everyone else a different story.

There is plenty of research and evidence to support the view that most customer dissatisfaction is covert, with a study by US based Forrester Research’s Marketing finding that while 80% of companies reported providing a superior customer experience, only 8% of consumers who were asked the same question said they had received a superior experience. So there is certainly some inconsistency in the experience gap between what retailers perceive is their “high” service level and what actually happens in the hearts and minds of their customers.

Here are a few of the Doctor’s tips to tell if a customer is unhappy without the customer actually saying it.

1. They state their complaint in the form of a question.

This is a classic “I’m not happy” moment and a trained and alert staff member will pick this up every time. Now this moment of truth can easily be turned around to deliver a positive customer experience through skillfully drawing out the reasons for the question and responding positively.

2. They abruptly stop shopping and leave the store.

It could simply be that they are in a hurry, although in the past I have actually diplomatically asked a customer why they left in such a hurry and on occasion found out that they were in fact upset at the treatment they received.

That’s not to say we should go racing out to every customer that leaves the store, rather, stay alert to the unusual walk outs. We spend so much time and money attracting people to our business that winning a customer back is a far less costly exercise.

3. The “I changed my mind” product returns.

A lot of customers do simply change their mind about a purchase but that still doesn’t mean they aren’t disappointed or unhappy about it. As we know, most customers won’t complain about a product return that they make and more often that not we don’t ask them why they returned the item. By politely asking one or two follow-up questions you’re likely to uncover either the real reason for the return, or at the very least how the customer really feels about the product.

There is light at the end of the tunnel however, as 70% of complaining customers will do business with you again if you resolve the complaint in their favour and 95% will return if you resolve the problem instantly (Lee Resource Inc.). Providing great customer service by truly understanding the customers needs and wants and providing them with a solution will ensure your customers are always satisfied and spread the good news, not the bad.

Brian Walker is Managing Director of Australasia’s leading retail consultancy, the Retail Doctor Group. For more on Retail Doctor Group’s Effective People program email businessfitness@retaildoctor.com.au.