Organizations, their suppliers and their customers are constantly morphing and changing. New products enter the marketplace, new value propositions tested and fresh incentives designed to stimulate demand created. The marketplace is in a constant state of flux. Add into the mix today’s uncertain economic landscape What was good yesterday is considered mediocre today. By the time a business figures this out, the markets moved. The result, a Silent Problem that becomes costly on so many fronts. For instance, I just came across this article over at Forbes titled, Executives Have No Idea What Customers Want. Here are but a few tidbits.
Nearly half of consumers (47%) say they don’t believe company executives understand their experiences, citing problems such as rude customer service staff or employees who provide the wrong information or never solve the customer’s problem. More than one-third (41%) of the customers who take the time to complain don’t think companies listen to or act on their feedback.
But that doesn’t mean customers are doing nothing. On average, more than half will defect–leaving a company flatly–based on bad customer experiences, without ever telling the company why.
And the problem doesn’t end there. Nearly nine out of 10 customers will tell their friends and colleagues about their bad experiences, creating a negative ripple effect in the prospective customer base that has serious implications for a company’s future success. Yet the executives we surveyed thought that only 20% of customers shared the news about their bad experiences–a significant mismatch with the customer view.
And the biggest misunderstanding among executives? If customers don’t complain to them, it means they don’t have a problem and everything is fine. This is the silent but deadly company killer.
It’s the last paragraph that captures the essence and danger of silent problems, “If customer’s don’t complain to them, it means they don’t have a problem… This is a silent but deadly company killer.”
Surprised? You shouldn’t be. Today, many companies discourage customer feedback by putting in phone systems that are difficult to navigate and virtually impossible to lodge a complaint. They create corporate websites that promote their products, yet don’t have a section to lodge a complaint . Companies create customer service departments, yet complaints fall into a black hole. Yes, many companies live in a ”feel good” environment where complaints are not sought, much less allowed.
If you want to know what your customers are thinking, provide them access by allowing for their voices to be heard. If you don’t, a Without Warning Event is likely just around the corner. Beware!
