Amity Business School

Types of Complainers

Dr. Sonali P. Banerjee

 Types of complainers Amity Business School

• Passives
• Voicers
• Irates
• Activists
 Amity Business School

• Passive complainers : they will complain

to everyone but the actual business. Since
the business is left unaware of their error
they cannot correct it and the only thing a
passive complainer succeeds in doing is
depriving the company of potential
business.
 Amity Business School

• Voicers : These customers actively

complain to the service provider but they
are less likely to spread negetive word of
mouth to switch or to go to the third parties
with their complaints. These customers
are the Service providers best friend.
 Amity Business School

• Irates : These consumers are more likely

to engage in negative word of mouth to
friends and relatives and to switch
providers than are others. They are
unlikely to complain to 3rd party. Though
they are angry with the service provider,
but still believe that complaining would
have some social benefits. They usually
switch the provider.
 Amity Business School

• Activists : These consumers complain in

an above average way in all dimensions.
They will complain to the provider. They
will tell others and they are more likely to
complain to the third parties
 Level of customer participation Amity Business School

Low customer Moderate customer High customer co-

Participation inputs rqrd for service produces the service
prod

(Consumer Services) (Consumer Services) (Consumer Services)

Bus travel, Motel stay, Hair cut, annual physical Marriage counsel,
Movie theater check up personal Training, Weight
reduction

(Business to business (Business to business (Business to business

services) services) services)

Uniform cleaning service, ADV. Agency, Payroll Management consultant,

Pest control Seminar, Super market
 The Problem of Customer Misbehavior
Amity Business School

Customers form an important element in many services’ encounters.

Firms that fail to deal effectively with customer misbehaviors, risks
damaging their relationships with all the other customers that they
would like to keep. Following are the problems (P) & solutions (S)

P—the thief ( Shop lifter, Towel, Linen theft, “E’ crime )

S---a) Find the route of theft and try to plug it, and if necessary
prosecute.
b) But take care that honest customers do not suffer.
Genuine mistakes are to be ignored.
c) be sensitive and handle carefully.

Note:
• P – Problem
• S – Tentative Solution
 Amity Business School

P)---the rule breaker ( Carrying gun in airlines, No shoe, No shirt

in clubs etc. Jump the ‘Q” )
S)---Rules should be properly conveyed, may be on a billboard.
---Take help of other customers.
---Too many rules and control reduces the pleasure of
service.
---The fewer the rules, the more explicit,the important ones
can be.

P)---the vandals ( Breaking of Nursing Homes,Burning of

buses,etc.)
S)---The best cure for vandalism is prevention.
--- Improved security, better lighting, design with grills etc.
 Amity Business School

P)--- the dead beat (Those who fail to

pay)

S)---Prevention is better than cure.

---Ask for credit card before order.
---Present the bill immediately after
the service.
---Handle softly and tactfully.
 Understanding the Customer Amity Business School

Relationship
1. Transactional marketing –is exchange of values
between two
parties. Repeated transactions not necessarily creates
relationship, may be it creates relationship between
customer and intermediaries.
2. Data base marketing uses technology
-to create data base for present and future
customers
-gives segment wise customer’s
preferences and characteristics
-track each relationship to monitor the cost
of acquiring and / or maintaining the customer
 Amity Business School

3. Interaction marketing –may include

negotiations and sharing of insights in both
directions. Good organizations effectively
combine data base and interaction marketing.
4. Network marketing –this type of marketing
occurs primarily in business to business context,
where firms commit resources to develop
relationships with customers, distributors,
suppliers, media, Govt. agencies etc.
 Conti… Amity Business School

5. Creating “Memberships” Relationships – is a

formalized relationship between the firm and an
identifiable customer.
Many elements are involved in gaining
market share and profit. The process starts by
identifying and targeting the right customers,
and then learning about their needs and
preferred service delivery. Translating this
knowledge into service delivery, tiered service
levels, and customer relationship strategies are
the key steps toward achieving customer loyalty.
 Management of Employees. Amity Business School

Frontline work is Difficult and Stressful

Frontline staff may perform triple roles: Producing service
quality, productivity, and sales. The multiplicity of roles
in service jobs often leads to conflict role stress among
employees.
Sources of Conflict
1. Person / Role conflict—service staff feels
conflicts between what their jobs require and their own
personalities, self perceptions and beliefs.
e.g. The job may require staff to smile and be
friendly even to rude customers.
 Conti.. Amity Business School

2. Organization / Client conflict---should

the staff follow the company rule or satisfy
the customer?
 Amity Business School

3.Inter Client conflict

It becomes the responsibility of the frontline staff.
4. Emotional labour –The term emotional labour means
the emotion that arises from the discrepancy between the way
frontline staff feel inside, and the emotions they are expected to
portray in front of customers.
Successful company in service firms have: Leadership that
-Focuses the entire organization on the frontline to support the
frontline
-Fosters a strong service culture with passion for service and
productivity
-Drives values that inspire, energize, and guide service providers
 Managing Relationships & BuildingAmity Business School
Loyalty
Why relationship & loyalty?
How much is loyal customer worth in terms of
profit?
Research shows:
a) Profit derived from increased purchases---
over time business customers often grow larger and so
purchases in greater quantities.
b) Profit from reduced operating costs---as
customers become more experienced they make fewer
demands on the supplier and makes fewer operational
mistakes.( less need for information and operational
training )
 Managing Relationships & BuildingAmity Business School
Loyalty
c) Profits from referrals to other customers—positive word of mouth
recommendations are like free sales and advertising. (firms save
money in such activities )

d) Profit from price premium -----new customers are lured by

introductory discounts, where as normal customers are more likely
to pay normal price.
Understanding the customer / firm Relationship
1. Transactional marketing –is exchange of values between
two
parties. Repeated transactions not necessarily creates relationship,
may be it creates relationship between customer and intermediaries.
 Amity Business School

2. Data base marketing uses technology

-to create data base for present
and future customers
-gives segment wise customer’s
preferences and characteristics
-track each relationship to
monitor the cost of acquiring and / or
maintaining the customer
 Understanding the Customer / FirmAmity Business School
Relationship
3. Interaction marketing –may include
negotiations and sharing of insights in both
directions. Good organizations effectively
combine data base and interaction marketing.
4. Network marketing –this type of
marketing occurs primarily in business to
business context, where firms commit resources
to develop relationships with customers,
distributors, suppliers, media, Govt. agencies etc.
 Amity Business School

5. Creating “Memberships” Relationships – is a

formalized relationship between the firm and an
identifiable customer.
Many elements are involved in gaining
market share and profit. The process starts by
identifying and targeting the right customers,
and then learning about their needs and
preferred service delivery. Translating this
knowledge into service delivery, tiered service
levels, and customer relationship strategies are
the key steps toward achieving customer loyalty.
 Strategic Product Amity Business School

Implications
• the core service can be enhanced through
the addition of supplementary services,
thereby creating added value
• the life cycle of services has to be
managed
• the branding of a service can be difficult as
the customer often has nothing tangible to
show
 Continued… Amity Business School

• Quality is hard to define, measure, control,

and communicate
• Quality is defined by the consumer
• It’s important to measure customer
satisfaction with an organization’s service
quality.
Degree of Customization and Customer Involvement
Amity Business School
 Amity Business School

Thank You

For any Query Mail me on :

[email protected]
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