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“How shall freedom be defended? By arms when it is attacked by arms, by truth when it is attacked by lies, by faith when it is attacked by authoritarian dogma. Always, in the final act, by determination and faith.”

― Archibald MacLeish

Thursday, October 17, 2013

Philippine Marketing: How to (properly) handle Consumer Complaints!

"The consumer is not a moron, she is your wife." David Ogilvy 
When she complains, she is simply asking for redress of  a grievance (compensation, amends, or reparation for a wrong, injury, etc.) about your product or service. The EQ Post
While consumers are now more inclined to voice complaints to organizations about products and services than they were in the past, the majority of shoppers will not make the effort to let you know when their purchase from you disappoints them. 

In the Philippines, only one of every 10 customers with a similar problem about a product will go out of her way to voice out her complaint. No matter how obnoxious a complaining customer might be, “People who do complain to an organization are giving it the chance to put things right.”
Read:The Ogre@ Western Union Greenbelt by CVS
 Marketing 101:"how not to package a product" 
"These bottles of Mr Muscle Kitchen helper are so misleading.They look like fruit juice products with fruit flavors illustrated in pack! Dangerous for kids.How could SC Johnson allow these products to be sold in the Philippines? Disgusting!"
Pepsi Pogi
What will they think of next?
It is quite unique since it looks like "gasoline" or diluted iced tea! 
The name is funny too! And note the design with the two hands with the "Laban" sign. 
Can you imagine this Pepsi Pogi in other parts of the world?
From InPinay'sTummy

Redefining what direct product comparison means?

Truth In Packaging? The Clear MEN package back panel says " a dual-active anti-dandruff formula with 2x more scalp strengtheners"*. 

This package copy appears so convincing until you see in very small fine print what the asterisk means: "* vs.Clear WOMEN range shampoo." Unilever is redefining what direct product comparison means! It is simply comparing the product to another variant of the SAME brand.MISLEADING!

Turning Customer Complaints into New Opportunities
From lennoxhill.com
By now you probably know that customer complaints management is important in terms of improvement and overall service levels. But did you know that you can also use customer feedback to improve your financial results too?
All of the data that you collect when customers share their feedback is worth gold. You may be given insight into things that need to be fixed, or perhaps ideas you may not have considered for products, processes or even delivery. You could also equate that feedback into real, obtainable strategies that will improve not only the business itself, but also the bottom line.
How Customer Complaints Deliver Better Business Results
If ever there was a reason to take customer complaints more seriously, the following advice would be it. And, if you have yet to install a clear process for customer feedback, now might be a good time to start thinking of how you can leverage feedback for better business results.
Recent studies done by Ernst & Young in a report titled ‘Effectively Leveraging Consumer Complaints for Competitive Advantage’ showed some very interesting findings indeed. Here is a snapshot of how you can use the data collected via feedback for your own advantage.
Resolve Bad Experiences
Resolving the bad before all other feedback is a strategy that works. One study done on US Retail Banking by PwC stated that two in five customers changed to another bank after even one bad experience. You can avoid the same by turning bad experiences into good ones – responding with urgency, dealing with the matter appropriately and working to foster loyalty is the best way forward.
Another approach that works well is to seek customer feedback before service level changes are implemented, rather than afterwards. This allows customers to have their say, contributing towards changes in a more meaningful way – not just after the fact.
Train Employees on Live Problem Solving
A potential minefield when it comes to customer complaints management is the front of house team, which could be anyone from sales floor staff, receptionists and anyone else who deals with customers on an upfront basis.
Statistics show that at least 50% of companies do not have faith that their frontline staff are equipped to escalate and handle complaints sufficiently.
Customers ultimately want to be able to have their issues resolved by a real, live person rather than a voice on the other end of the phone or an impersonal email. Having customer complaints software, and front of house employees who are trained to use this sort of tool helps to get issues resolved far more quickly, without the need to search extensively for information to resolve issues on the spot.
Learn What Customers Want
Last but not least, organisations also use feedback data to ‘close the loop’ and make sure that the issue has been resolved in accordance with customer needs.
But there is even more potential for growth, by listening to what customers truly want in terms of your business offerings. Word of mouth marketing has proved so effective that around 50% of customer recommendations are presented this way.
Experience counts far more than prices or even promotions – if you have reverted an unhappy customer into a good one, and put changes into place that improve things on a bigger scale, what will that customer be telling people they know?
Use all available channels to connect to your customers – social, online, in-store and via call centres too. By leveraging the data you get from each and every complaint, you will have the chance to turn those complaints into powerful strategies that deliver results. And that is what makes customer complaints management something that no business should overlook.

The objective of an effective consumer complaints system is to turn a disgruntled customer to a  HAPPY customer.

Management of Consumer Complaints 
from www.smallbusiness.
Managing customer complaints, problems, and issues is part of being in business. Managing the complaint well and providing good customer service is about more than just keeping customers happy. It's about revenue, because customers make buying decisions based on the service they receive, not just price, quality and availability. A lost customer means lost revenue and an unhappy customer can damage your reputation.

A well managed complaint may convert a potentially lost sale into a loyal customer and is a way to stay ahead of your competitors, but how do you turn a negative experience for the customer into a positive one that may result in repeat business?

How to manage customer complaints
Develop procedures so you and your employees know how to manage customer complaints.
Provide employees dealing directly with customers the power and flexibility to immediately resolve the issue.
Listen empathetically to the customer to establish the details and facts of the complaint (the nature of the fault, the damaged goods, date of purchase, price paid, proof of purchase, name, address etc).
Record the details together with relevant evidence (sales receipt or damaged goods).
Ask the customer what remedy they are seeking (repair, replacement, refund or apology). Make a judgement about whether the customer's request is reasonable.
Resolve the complaint quickly, courteously, and without hassle. Negotiate face to face in a calm and professional manner.
Don't make promises you can't keep. Keep the customer informed of any delays. It is better to under-promise and over-deliver.
Where appropriate, follow-up to ensure the problem has been rectified and the customer is satisfied.