Customer Complaining Behavior & Framework
📘 Study Notes – Customer Complaining Behavior 1. The Importance of Complaints in Customer Retention Retention depends on suppliers delivering satisfactory products and services. If a strong relationship exists, customers may tolerate minor issues if remedied quickly. Complaints are valuable signals : they allow suppliers to fix individual issues and identify systemic improvements. ⚠️ The real danger = silent defectors (customers who say nothing, quietly leave, and never return). 2. Customer Complaint Responses Dissatisfied customers typically respond in four ways: Complain to the seller directly Complain to a third-party organization (e.g., regulators, trade bodies) Do nothing but mentally note dissatisfaction (most dangerous) Post negative comments online (covered later in social media studies). 3. Closed vs. Open Questions Companies often ask closed questions : “Is everything okay?” → results in minimal feedback. Open questions : “What...