The Complaining Customer: A Service Provider's Best Friend?

Abstract

This research investigates how firms handle customers' complaints. We examine the fundamental question of how, or whether, firms respond to consumer complaints. Specifically, we examine services, as services present a unique challenge for marketers. The human element of service delivery creates many opportunities for failure. In this research we wanted to not only study complaint responses in the services industry, but also compare responses to published response rates to customer product complaints. Our examination, across a multitude of service industries, reveals response rates that are both low and slow. Our results are not encouraging. Service firms are clearly missing out on opportunities to repair problems and build relationships with their customers.