Complaints: Relationship to customer loyalty

6th Jul 2010

Tracking complaints information against loyalty shows that if a customer doesn’t have a reason to complain their loyalty improves. However where a customer is unhappy and has a cause for complaint their loyalty decreases

Impact on customer loyalty

Tracking complaints information against loyalty shows that if a customer doesn’t have a reason to complain their loyalty improves. However where a customer is unhappy and has a cause for complaint their loyalty decreases. But where their complaint is sorted out really well, the customer is even more loyal than if they never had a problem in the first place.

So handing complaints well impacts positively on customer loyalty and this brings about real business benefits. In the private sector enhanced customer loyalty has an impact on the bottom line as it costs 5 times more to attract a new customer than to retain an existing one. In public sector organisations there is a greater sense of trust and the organisation’s reputation and image are enhanced.

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