Case Study: How Emotional Customer Complaints Impact Profitability

restaurantWhy pay attention to customer complaints? Do complaints matter in the long run? Business stakeholders must pay attention to customer complaints because complaints affect three key revenue drivers. Additionally, not only must businesses pay attention to complaints, but they must pay attention to the emotional strength of those complaints.

First, unaddressed, strong-emotion complaints damage reputation. With reputational decline comes lower engagement with a company, from repeat purchases to word of mouth.

Second, unaddressed, strong-emotion complaints lead to adverse financial resolutions. In this paper, we will see how unaddressed, strong-emotion complaints are more likely to require financial compensation to resolve a complaint than weak-emotion complaints.

Third, unaddressed, strong-emotion complaints mean that businesses must spend more heavily in new customer acquisition to backfill lost customers. In a recent earnings call by Booking Holdings, Inc., customer acquisition costs are rising, especially on digital channels like Facebook.

In this case study, you’ll learn how to examine the identification of unaddressed, strong-emotion complaints, including how to classify them and score them, and how to match the emotions to business outcomes.

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