The
Customer Complaint Iceberg.
Written
by Paul Quinn of PeoplePulse.com.au.
Stop!
Before you dismiss last week's customer complaint
as unimportant, consider this: research by US
firm TARP shows that for every 26 unhappy customers,
only one will lodge a formal complaint with Management.
The real concern, however, comes from the finding
that an average of 1,560 people will hear about
at least one of these unhappy customers' experiences.
That's
right. On average, each unhappy customer will
tell 10 people, who in turn will tell 5 others.
This finding makes for a compelling wake up call
for businesses that take the task of collecting
and responding to customer feedback lightly.
Send
a shiver up your spine? It's bound to generate
anxiety in any recruitment organisation serious
about generating positive word of mouth and building
strong brand awareness. Indeed, recruiters need
to understand that soliciting ongoing client and
candidate feedback - both good and bad - is crucial
to their continued success.
How
do you collect feedback?
Companies
should look upon every interaction with their
customers as an opportunity to gather feedback.
The most effective way to do this is to develop
a multi-channel customer feedback system that
encompasses opinion from clients, candidates and
staff.
Don't
fall into the trap of relying on only one feedback
channel (such as paper-based feedback surveys)
because to do so results in two main problems:
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(i)
Accessibility - You limit a customer's access
to providing feedback. Your customer feedback
system must be flexible enough to allow
customers to provide you with timely comments
no matter how they come into contact with
you.
(ii)
Convenience - Offering only one feedback
channel limits feedback from customers who
wish to interact with you via a different
channel. It's no good, for example, only
offering candidates a postal address to
submit feedback if most of them prefer to
correspond with you via the Internet.
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Customer Feedback Systems - 5 Pitfalls
To Avoid:
1.
An informal and/or unstructured verbal
feedback process.
2.
Feedback not recorded (for later action
and review).
3.
Feedback system not 'owned' or 'championed'
by Management.
4.
Poor feedback communications loop
(to advise on outcomes and action
plan).
5.
Feedback sought too infrequently (once
a year is not enough).
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Often
recruiters cite an informal face-to-face feedback
process as an alternative to having a formal customer
feedback system. However relying solely on verbal
feedback sought by the person who serviced the
client is insufficient for companies serious about
making positive customer-driven business improvements.
The main problems with informal feedback systems
are:
- Lack
of Consistency - a lack of consistent criteria
to evaluate and record feedback.
- Lack
of Accuracy - often the difference between what
the customer said and what the consultant heard
can be substantial.
- Confrontational
- would a hiring manager feel comfortable about
telling a consultant that they performed poorly
in a face-to-face (potentially confrontational)
situation? Some hiring managers may. Most won't.
Accordingly,
relying on an informal face-to-face customer review
performed by the recruitment consultant who conducted
the assignment is clearly not the best method
of gaining quality customer feedback.
Leverage
technology to aid your efforts
The
widespread use of the Internet and the advent
of online survey technology is making the customer
feedback process easier than ever. Fast and cost
effective, online systems enable the recruiter
to instantly receive customer feedback, collate
information and view reports in real time. In
addition, response rates are frequently higher
than paper-based surveys as online surveys are
usually quicker and more convenient for respondents
to complete.
Some
good examples of online customer feedback systems
currently in use by recruiters include:
- A
major ASX-listed recruiter conducts monthly
post-placement feedback surveys with both clients
and candidates and asks respondents to 'tick
the box' if they have raised any issues that
they would like a 'Quality Manager' to follow
up with them over the phone.
- A
small Melbourne-based recruiter surveys clients
on a quarterly basis regarding hiring intentions
and salary levels and then distributes the feedback
to clients as part of their newsletter.
- A
large Sydney-based recruiter uses client feedback
as part of their consultant performance review
process. A below-average client satisfaction
rating for a particular consultant can indicate
a 'red flag' issue that needs to be addressed
by Management.
- A
large corporate employer in Brisbane uses an
online survey tool to quiz candidates about
the effectiveness of their recruitment process
and provides an incentive to candidates for
the submission of ideas on how the process can
be improved.
Online
feedback systems should not be used in isolation,
however the benefits of speed, cost, accuracy
and convenience over traditional paper-based survey
techniques ensure that online feedback systems
in the recruitment process are becoming more widely
used and accepted.
Ask
For Feedback - Then Take Action!
Remember
too that asking for feedback alone is not enough
- you must make the commitment to establish an
effective customer feedback response process that
addresses each issue that arises. In doing so,
you not only encourage people to continue giving
you feedback (because they know that you'll do
something about it), but research also shows that
between 54-70 percent of business from complaining
customers can be won back if the process is handled
promptly and professionally.
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Consider this scenario …
Feedback:
A client completes your online post-placement
feedback survey and highlights his
disappointment with a reoccurring
problem relating to the coding and
layout of his invoices. He says that
after a number of prior requests to
address the issue this latest occurrence
is the final straw and he intends
on taking his business elsewhere.
He also indicates he's willing to
talk with the company's Quality Manager
about his experience.
Action
taken: Within 20 minutes of receipt
of the feedback, the Quality Manager
phones the client, listens to his
concerns (without defense or judgement)
and commits to promptly investigate
the problem. Within 24 hours the Quality
Manager has talked to the Accounts
Department, identified the appropriate
steps to resolve the issue, and called
the client back to go though the five
actions the company is taking to address
the situation to ensure it never happens
again.
Key
message to aggrieved client: (i)
we listen and don't blame or pass
the buck, (ii) we are responsive to
your needs, (iii) we are committed
to improvement, and (iv) we value
your business!
End
result: Avoided potential client
defection, and stimulated positive
word of mouth as the client tells
other colleagues and associates about
the timely and professional response
he received.
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Offering a system that makes it easy for your
customers to provide you with regular feedback
is not only good business practice - it's plain
common sense. By letting you know when they are
unhappy, customers give you a golden opportunity
to correct the immediate problem, restore goodwill
and avoid the negative word of mouth that results
from the phenomena known as 'The Customer Complaint
Iceberg'.
In
Summary:
| 1. |
Actively
seek and encourage feedback - remember the
'Customer Complaint Iceberg' and understand
that no news is BAD news. Every customer interaction
is an opportunity for feedback. |
| 2. |
Develop
a multi-channel customer feedback system that
enables you to capture, record and report
information quickly and easily. Leverage technology
to aid your efforts. |
| 3. |
Follow
up issues. Review feedback regularly. Commit
to a process of constant customer-driven improvement. |
| 4. |
Complete
the feedback loop. Give prompt feedback to
your clients, candidates and staff about the
actions you've taken, or intend to take, as
a result of the feedback you've received.
Encourage them to keep the dialogue with you
open. Reinforce you're listening, and that
you genuinely care what they think. |
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