Question

Topic: Research/Metrics

Stats Re: Passing On Good Vs Bad Service

Posted by Anonymous on 250 Points
I know that when someone receives bad service they tell a lot of people, but when someone receives good service, they tend to tell fewer people.

I also know that there are statistics out there, but I can't find a resource now that I need it!

Does anyone know the stats or where to get them?

Thanks.
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RESPONSES

  • Posted by Paul Linnell on Accepted
    Hi Kathleen

    The actual number will vary from one company to another and from one industry to another. It can also be influenced by the value of the product or service. However, generally twice as many people tend to be told about a bad customer experience that about a good one.

    This research originates from customer research conducted by TARP (Technical Assistance Research Programmes) and was referred to by Tom Peters in “Thriving on Chaos”.

    Research we have conducted at CTMA shows a similar tendency. In one recent study of customers who had experienced a problem with their supplier we found that:

    • Customers who had contacted them for assistance, and were satisfied with the way they resolved the problem, told an average of 2.5 other people about it.
    • Customers who had contacted them for assistance, and were dissatisfied with the way they resolved the problem, told an average of more than 5 other people about it.

    Please feel free to contact me if I can help more.

    Best regards

    Paul Linnell
  • Posted by Chris Blackman on Accepted
    Kathleen

    I heard good = tell one person, bad = tell nine.

    Also this gem: "68% of your customers leave because of perceived indifference"...

    Obviously there will be some kind of distribution curve for any of these oft-quoted rules.

    BTW Oceania is the area all around Australia and New Zealand, includes all the archipelagoes, reefs and tropical islands. Usually it means land found at the southern end of any route Qantas flies.

    Cheers

    ChrisB


  • Posted by Chris Blackman on Member
    Well, Kathleen, that's the wrong Oceania, and highlights the problem with picking #1 on the Google search.

    See, at #6 you would have found the Oceania Football Competition, whose members are:

    NEW CALEDONIA
    AUSTRALIA
    AMERICAN SAMOA
    COOK ISLANDS
    FIJI
    NEW ZEALAND
    PAPUA NEW GUINEA
    SAMOA
    SOLOMON ISLANDS
    TAHITI
    TONGA
    VANUATU

    Which shows where it's at...

    As the United Airlines captain said, "Sydney approach, we have your island in sight and request clearance to land"... To which the air traffic controller said "Ah, OK United, fly one circuit of the island and land when ready".

    Some islands are bigger than others. Once around Australia - = about 12 hours flying time at cruise in a 747. Welcome to Oceania...

    No, Paul's not nuts. That's the term we use for people who don't live in Oceania. Yet.

    Cheers

    ChrisB

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