GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Markups on inventory
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Additional advertising
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Higher commissions
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Loss of sales
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Detailed explanation-1: -In other words, out of every five complaints it’s safe to say you’ll lose one customer, so you should consider the marketing cost of each complaint to be 1/5th of the cost of generating a new customer. Lastly, you need to consider the “loss of productivity” that is associated with each customer complaint.
Detailed explanation-2: -Furthermore, research finds that customers’ whose complaints are handled quickly can often turn into loyal customers and even brand advocates. In fact, a study by Harvard Business Review found that customers who have a complaint handled in less than 5 minutes are willing to spend more on future purchases.
Detailed explanation-3: -Reputation Damage. Leads That Don’t Convert. Loss of Your Best Employees. Loss of Customers (Both Current and Future) Loss of Profits. Don’t Let Bad Customer Service Break Your Business.