Turning Dissatisfaction Into Loyalty

Reuters might not see the value in it just yet, but by encouraging customers to complain when they are not happy with your product or service, you can turn them into some of your most loyal customers.

A dissatisfied customer is less likely to return if they don't complain. The customer that does - and then receives some sort of compensation - is more likely to be back.

Three factors that affect the future loyalty to a company are:

• response time,


• the number of contacts the complainant made before the complaint was resolved and


• the extent to which the complainant's expectations were met.

The compensation can be something as simple as a free product delivered to them or even a $5 voucher to spend with your company. This encourages the customer to return to your business, choose your product when shopping and generates positive word of mouth.

Of course, much of this is damage control - a quick and effective resolution at the first point of contact is the very best way to go.