The True Costs of Poor Customer Service

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The Research Institute of America, which conducted a study for the White House Office of Consumer Affairs, sheds some light on the devistating consequences of poor customer service:

* The average business will hear nothing from 96% of unhappy customers who receive rude or discourteous treatment.

* 90% of those who are dissatisfied with the service they receive will not come back or buy again.

* Each of those unhappy customers will tell their story to at least nine other people, and 13% will relate their tales of woe to over 20 people.

* For every complaint received, the average company has 26 customers with problems, six of which they consider serious problems.

* Only 4% of unhappy customers bother to complain. For every complaint you hear, 24 others go uncommunicated to your company, but not uncommunicated to other potential customers.

* Of customers who register a complaint, between 54% and 70% will do business again with your firm if their complaint is resolved. The figure rises to 95% if the customer feels the complaint was resolved quickly.

* 68% of customers who quit doing business with an organization do so because of company indifference.

* It takes twelve positive incidents to make up for one negative incident in the eyes of your customers