HSM E-briefing Series
on Customer Retention and Loyalty

"HOLDING ONTO YOUR CUSTOMERS"

Issue 2 - 2001

Welcome to a new monthly e-briefing with two minutes of tips that could be worth millions to you in customer retention and loyalty. It's brought to you by The HSM Group, Ltd., a longtime leader in health care marketing. In working with health care organizations of all kinds, we frequently see opportunities to improve retention and loyalty. We hope the following information helps you, our valued clients and friends, in your efforts to build better relationships with your customers.

PAY MORE ATTENTION TO SERVICE RECOVERY

When was the last time you invited your customers to complain? Research shows that effective handling of complaints strengthens customer loyalty. It also can result in service improvements and increased profitability. Yet, only 5% to 10% of customers complain when they're dissatisfied. They just leave.

Make sure your service recovery process fits these guidelines.

• Tell customers you want to hear from them when they're unhappy with service. Research shows that customers are reluctant to complain because they don't think the organization will be responsive. In health care, consumers sometimes fear they may not get good care if they complain.
  
  
• Provide explicit instructions on how to complain and make it easy for customers to do so. Also tell customers what to expect from you in response.
  
  
• Make it clear to everyone in your organization that complaints are to be treated as opportunities to save customers, and then learn how to provide better service. Every organization should have guidelines for all employees on how to handle complaints to recover customers.
  
  
• Hire and train front-line employees with skills in listening, defusing anger, and empathizing, as well as analyzing and solving problems. Customers want to be treated with caring and concern.
  
  
• Give front-line employees the authority to bend the rules and provide compensation to customers within certain limits defined by the organization. Customers don't want the runaround. It is extremely important to resolve the complaint quickly, preferably at the first point of contact.
  
  
• Use complaints to identify and fix the root cause of service problems. To do so, you must have good systems to document, categorize and share complaints internally.
  

 

For more information on service recovery and other customer retention and loyalty issues, visit www.hsmgroup.com. If you would like for us to address a specific customer loyalty challenge in "Holding Onto Your Customers," please send an e-mail to ebriefing@hsmgroup.com with your suggestion. If you would prefer not to continue receiving the monthly e-briefing, please e-mail us at ebriefing@hsmgroup.com.

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