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This question has been closed, and points have been awarded.
Stats Re: Passing On Good Vs Bad Service
Posted By: KSA on 5/16/2005 3:55 PM (CST) 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.

Posted by: skoobie99 Accepted Answer
5/16/2005 4:30 PM (CST)
I have heard the following rule of thumb:
Good experience = tell two people
Bad experience = tell five people

As far as statistics, while this doesn't answer directly, you might find it useful:
http://www.wspromotion.com/newslettervol134.html

John
 
Posted by: billc24 Accepted Answer
5/16/2005 5:18 PM (CST)
I have heard a wide range of statistics on this. The stat I have settled on...kind of an average of all the various stats...is that people tell good experiences to 1 or 2 people but tell bad experiences to 7 to 10. The ratio obviously depends on the service or product being discussed, how emotionally significant the experience was, etc. I know personnally, I tell way more than 10 people when I have a bad experience at a restaurant or a retail store.

I hope this helps!

Bill
 
Posted by: Paul Linnell Accepted Answer
5/16/2005 5:19 PM (CST)
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: KSA Author Response
5/16/2005 8:12 PM (CST)
John, your link was very helpful. I've got it bookmarked.

Bill - that absolutely helped. I'm with you - I tell anyone who will listen, sometimes!

Paul - Thriving on Chaos - that's where I got it the first time, I'm sure. Nice to have some updated stats.

By the way Paul, where is Oceania?

Kathleen
 
Posted by: ASVP/ChrisB Accepted Answer
5/16/2005 8:56 PM (CST)
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: KSA Author Response
5/16/2005 11:15 PM (CST)
Chris,

Thanks for the insight on the stats. And, thanks for the info on Oceania. I'm sure Qantas is pleased to have their routes so well known!

Also, it saves me from calling the men in the white coats for Paul.

I Googled Oceania and came up with this website: http://oceania.org/. It says:

"The Atlantis Project, which proposed the creation of a floating sea city named Oceania, began in February '93, receiving nationwide publicity from The Art Bell Show, Details Magazine, The Miami Herald, Boating Magazine, and worldwide publicity in Canada, New Zealand, Hong Kong, England, and Belgium. The project ended due to lack of interest in April of 1994."

So, I was afraid, Paul, that you might need some counseling. Glad to know you're OK. :-)

Kathleen
 
Posted by: ASVP/ChrisB Member Response
5/17/2005 11:42 AM (CST)
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
 
Posted by: KSA Author Response
5/17/2005 5:55 PM (CST)
Thanks for all your assistance. Chris, you are a great ambassador for Oceania. My education is now complete. I'll bet the United pilot was British.

I'm closing the question, but if you cruise by, Paul, please excuse us for talking about you... hmmm behind your back? Under your keyboard? Well, you get the idea!
 


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