Management Tip of the Day: Don't fall prey to customer rage
BOSTON (Reuters) - Despite endless lip-service about keeping customers happy, far too many companies still make them angry, creating the unfortunate phenomenon of customer rage, says Harvard Business Review.
The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org (http:\\www.hbr.org). Any opinions expressed are not endorsed by Reuters.
"Everyone knows that companies have to keep customers happy. But far too many companies still make them angry. Customer rage results in lawsuits, mass defections, and social media attacks.
Here are three ways to prevent your customers from revolting:
1. Don't squeeze them. Often a company's most profitable customers have the most reason to be dissatisfied. Be sure that all of your customers feel the value they get is equal to what they pay.
2. Get rid of unnecessary rules. Eliminate rules that you want customers to violate (i.e., charging for ATM transactions). They make customers feel taken advantage of, and rightly so.
3. Rely on satisfaction, not contracts. If your customers are only sticking around because of lengthy contracts, something's wrong. Demonstrate confidence in your value proposition and give your customers good reasons not to defect."
- Today's management tip was adapted from Harvard Business Review on Increasing Customer Loyalty.
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