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KPI Library – Customer Complaints

Customer Complaints

Description:

In the course of business, it is inevitable that some customers will feel that the goods/services provided fall short of their expectations and a complaint may result. Customers with complaints tend to share their experiences and seek to influence the behaviour of friends/colleagues. Conversely, customers with complements tend to share their experiences to a lesser extent. It is therefore of importance to minimise the potential for customer complaints because a reputation is difficult to build and easy to lose! Often customers do not complain, they simply stop buying the goods/services and move to a competitor. However, evidence suggests that dealing with complaints in a swift and effective manner is likely to retain the customer in almost all cases.

Calculation:

Data collection method/measurement methods vary and should be appropriate to the particular organisation but may include some of the following or a selection of criteria forming a scored matrix: Number of complaints over time or complaints relating to a particular product. Response time/time taken to resolve the complaint Cost to resolve a complaint. The number of complaints successfully resolved.

Example:

Not required, the important thing is to deal with the complaint quickly and effectively!