1 Introduction
1.1 Executive Summary
In the past years the stress of competition towards companies is growing. In addition, companies can hardly grow or make profit in the long run due to stagnant or shrinking markets and increasing internationalisation. Continuous improvement or enhancements of production technology and the products themselves lead to the fact that products are even more substituted. Thus, it is not sufficient to sell only good products but the service is coming more to the fore from customer’s point of view.
This change in general conditions leads to a focusing on customer orientation. While the acquisition of new customers was formerly relevant, today’s instruments regarding the customer retention gain more importance. Companies recognized that satisfied customers considerably contribute to corporate success. Empirical studies showed that it is five times more expensive to acquire a new customer and considerably cost extensive to recover a lost customer than binding existing customers.1
Dissatisfied customers change to competition or harm the company via negative word-ofmouth propaganda. Permanent customer relations in comparison do have a profit- as well as cost-advantage. Customer retention leads to more profit due to the buying frequency, crossselling- effects and cost savings in consequence of saved acquisition costs and efficiency advantages. Further chances result from the decreasing price sensitivity of the customer. Beside of the direct profit impacts of customer retention, indirect impacts on further customer relations occur, e.g. recommendations of satisfied customers. The corporate objective should be the focusing on customer retention and thus to improve the corporate competitive position.
Table of Contents
1 Introduction
1.1 Executive Summary
1.2 Scope of Work
2 Problem and Research
2.1 Problem Definition
2.2 Relevance and Motivation
2.3 Methodology
3 Basics of complaint management
3.1 General classification into customer management
3.2 Objectives of complaint management
3.3 Development and effects of customer dissatisfaction
4 Complaint management as an instrument for customer retention
4.1 Complaint stimulation
4.2 Complaint acceptance and processing
4.3 Complaint reaction
4.4 Complaint analysis, - controlling, - reporting, -utilization
5 Conclusion, critical comments and outlook
Objectives and Themes
The primary objective of this assignment is to highlight the critical importance of effective complaint management as a strategic instrument for enhancing customer retention and corporate success in increasingly competitive markets. The work investigates how organizations can transform dissatisfied customers into loyal advocates through systematic processes and proactive management strategies.
- Theoretical classification of complaint management within Customer Relationship Management (CRM)
- Analysis of the development and psychological impact of customer dissatisfaction
- Strategic importance of complaint stimulation, acceptance, and resolution
- Optimization of internal processes for complaint analysis, controlling, and reporting
Excerpt from the Book
4.1 Complaint stimulation
In this connection the so called complaint stimulation, as one of the three elementary fields of the complaint management, is indispensable.
The subtasks of the direct process aim to eliminate individual customer dissatisfaction and develop thus complaint satisfaction. One can speak about indirect processes if customers are not involved in tasks directly. Nevertheless they exert an indirect influence on the complaint satisfaction.
Only a small part of the dissatisfied customers complain. Reasons for this are beside psychological barriers, efforts of the enterprise to make complaints as expensive as possible as well as difficult and unpleasant for the customer. Not attainable hotlines, unsettled competencies for the acceptance and processing of the complaints, lacking decision-making power with the co-workers and other deficiencies leading to the fact that dissatisfied customers must go on a cumbersome way through the enterprise. Many enterprises are still viewing complaints as disruptive factor and try to minimize the number of complaints addressed to the enterprise. This attitude should be reconceived if one considers that each dissatisfied customer, who does not complain, selects another alternative action. The binding effect of the complaint management seizes only at the customers, who also complain. Therefore it should be a goal of the enterprise of maximizing the portion of the dissatisfied customers who decide for the reaction form of a complaint.
Complaint stimulation covers the field of complaint management to encourage dissatisfied customers and to make it easier for them to turn with a complaint to the enterprise. The major task of the complaint stimulation lies in the creation of easily accessible complaint channels. The complaint articulation can be made by the communication ways in verbal, written, telephone and electronic form. Today, by means of modern technology, complaint channels can be opened to the customer, which do not cause costs and which are comfortable and fast usable. Service hotlines which are free of charge or e-mails can contribute to lower the number of the unvoiced complaints.
Chapter Summaries
1 Introduction: Provides an executive summary of the shifting business landscape and outlines the scope of work regarding complaint management.
2 Problem and Research: Defines the problem of shifting marketing priorities and explains the secondary research methodology employed in the assignment.
3 Basics of complaint management: Analyzes the classification of complaint management within CRM, its core objectives, and the psychological roots of customer dissatisfaction.
4 Complaint management as an instrument for customer retention: Details the operational phases of complaint management, including stimulation, processing, reaction, and analytical utilization.
5 Conclusion, critical comments and outlook: Summarizes key findings and provides a final assessment of complaint management as a strategic success factor.
Keywords
Complaint management, Customer retention, Customer satisfaction, CRM, Complaint stimulation, Customer dissatisfaction, Marketing strategy, Complaint processing, Customer loyalty, Corporate success, Service quality, After-sales marketing, Competitive position
Frequently Asked Questions
What is the core focus of this assignment?
The assignment focuses on the strategic importance of complaint management as an essential tool for recovering customer satisfaction and ensuring long-term customer retention in competitive markets.
What are the central themes covered in the text?
Key themes include the integration of complaint management into CRM, the psychological processes behind dissatisfaction, and the structured phases of handling complaints from stimulation to reporting.
What is the primary research goal?
The primary goal is to demonstrate why well-implemented complaint management is vital for corporate success and to provide a critical overview of management methods to achieve this.
Which methodology is used to conduct this research?
The assignment is based on secondary research, utilizing existing literature and academic reports to analyze current developments in complaint management.
What topics are discussed in the main body?
The main body covers the classification of complaint management, the objectives of the function, the causes of dissatisfaction, and the practical implementation of direct and indirect complaint processes.
Which keywords best characterize this work?
Relevant keywords include complaint management, customer retention, customer satisfaction, CRM, and service quality.
How does the author categorize the types of damage in complaint cases?
The author identifies four categories based on the combination of psychological and material damage, ranging from "low/low" to "high/high," each requiring a different management response.
Why does the author advocate for "complaint stimulation"?
The author argues that businesses should make it easier for customers to complain because customers who do not voice their complaints often switch to competitors silently instead of giving the company a chance to resolve the issue.
- Citation du texte
- Stefanie Welz (Auteur), 2006, Complaint management - a short overview, Munich, GRIN Verlag, https://www.grin.com/document/73462
