British Airways research showed that 40 to 50 percent of customers who contacted it with complaints defected if it took company staff longer than five days to respond. Assure the customer that the problem is being fixed. Customers can be retained if they are confident that the operational problem they encountered will truly be addressed. Do it by phone. British Airways found that customers with problems were delighted to have a customer-relations person call them.
Measurement precedes management.
They concentrate on attracting new customers that may actually represent unprofitable business and do not take steps to retain more valuable existing customers. Errors have certain costs associated with them. Some take the form of money-back guarantees, warranty work or replacements, which fall on the company. The customer left stranded on the highway because his or her car was not repaired properly might miss an important meeting, have to pay for a tow truck, and spend time waiting for the repair to be made. Many service companies conveniently overlook these hidden costs, but the customer surely will not.