Tuesday, December 16, 2008

An Unforgivable Incident ... ...

An incident happen to my TWO months brand new xxxxxx vehicle due to the sheer negligence, mishandling & unprofessional services provided by a global brand xxxxxx Service Centre and his Customer Service Team. The regular service was intended to maintain the mentioned vehicle in good condition and performance. But unfortunately, the vehicle was not being well maintained and had caused more unidentified damages. The incident had caused me and my family in an inconvenience condition, unexpected problems and also endangering our safety as drivers and passengers.

From day one (11th September 2008) until to date, the xxxxxx representative have been deceiving myself by giving empty promises and false statement in order to sweep-off the case easily and last but not least to let this issue resolve naturally. What ‘nightmarish’ events I have been through for the past three (3) months and no one can fathom the ‘bitter’ and ‘painful’ experience I undergone. Apart from being kicked around like a yarn ball, I have received hurting and insulting remarks from xxxxxx ‘good’ service representatives which they are.

I still remembered one of xxxxxx customer service representative had ‘comfort’ me on the first day after incident that no matter how cheap or how expensive the vehicle was, they would act professionally and treat it as a ‘Privileged Car’ from a ‘Valued Customer’. “There are no worries and we sure to get good solution until your satisfaction”. It seems only a tactic to ‘comfort’ me and use a subterfuge to gain the compromise.

The representatives of xxxxxx acted like 'big brother'. They have 'acted on my behalf without my personal agreement’ even I disagreed at all with the Xxxxxx’s statement from day one until to date. I would say that Xxxxxx trying to push the responsibility to me in order to cover their mistakes. They have already breach our agreement by doing rectification or repairing works without having me informed and always use 'pending your consent'( Actually this should rephrase to ‘pending for your legal action’) as an excuse to cover their mistake repeatedly. They always mentioned 'as we have communicated to you' in their letter and I suggested them to rephrased it to 'as what we had decided and acted on behalf of you' because they are doing 'one way communication'. They had made the ultimate decision without taking the customer's consideration and agreement and regard their action as professional.

The representative of xxxxxx kept on asking me what I am expecting from xxxxxx which putting me in a very confuse stage. Actually “what I am expecting from xxxxxx?” is a good question raised by xxxxxx staffs. Since this incident, xxxxxx should be the appropriate party to give me the best answer. Constant questioning me ‘what I am expecting from xxxxxx’ do not solve this issue at all.

The representative of xxxxxx also said I can always send back the vehicle to the service centre during the warranty period due to this incident. This kept me wondering why I should buy a xxxxxx brand new car which I need to send for frequent service during the warranty period. They told me that my vehicle had gone through a ‘costly’ thorough checking which myself might not understand in technical terms. It is too ‘costly’ until no report will be given to me. What they meant the ‘thorough checking’ was ‘checked and replaced any parts they think should be changed or replaced which is beyond a lay man’s understanding’. I am thinking ‘What is so costly about on that check-up report? Was it the amount spent on the checking or the truth of their silly blunder which is even more costly after knowing the consequences?’ May be there are no any detail report had been done so far (just an assumption, may be incomplete) or there are some hidden agenda and defects cannot be shown. xxxxxx good staff kept reassuring me that there were only minor damages occurred to my vehicle and not in serious defects which I think is really misleading. Replacement of new components does not guarantee that my vehicle in good and perfect condition.

Besides, my vehicle was not in “perfect condition and even not as good as new car” according to what the xxxxxx representatives had described before 3rd November 2008. Why xxxxxx representatives did not stand firm with the context that what they kept saying earlier “Your car is in ‘perfect’ condition and ‘as good as new car’?! This was because xxxxxx good representatives had personally saw, touched and felt the infected parts of the vehicle; internally and externally still in “oily, greasy and stain spot all over” condition even after another round of car cleaning works without my consent. This is a undeniable fact that the mentioned vehicle is not in good condition even few round of cleaning works had been done. It’s been also the reason of why xxxxxx had “twisted” and conclude with a statement to “We would like to inform that your xxxxxx xxxxxx is in roadworthy condition”. For my simple understanding of ‘Roadworthy Condition’ vehicle can be meant by any vehicle running on the road but might not in perfect or good condition as the brand new car is. Does it meant my vehicle = 15 years car / second-hand car???

I am buying a brand new car without any defects to carry out my daily works and not to deserve such kind of irresponsible and unprofessional treatment from xxxxxx. Are xxxxxx indirectly conveying a message to her customer that ‘Please send your brand new xxxxxx vehicle to xxxxxx Service Centre at your own risk!!!?’ Realizing this, xxxxxx should have made an open announcement publicly, a warning sign to all xxxxxx new future customers to be cautious before purchasing a brand new xxxxxx vehicle! It would be fair for them to know that the new purchases are bundled with a host of ‘horrendous’ features and surprises… with bonus of a ‘professional’ customer’s services. At least I would not make my first step into xxxxxx showroom on purchase an xxxxxx!

Until today, I am still waiting for xxxxxx’s comprehensive check-up report on my vehicle. But until today, xxxxxx still refuses to give me a clear answer to the detail report and on how xxxxxx would compensate me for my losses and damages (e.g. Time, Car Installments, Insurance, Road Tax, Daily Work, Inconvenience Caused, etc…) incurred from this incident. xxxxxx should be liable to all these damages, losses and inconvenience caused.

Actually, this incident had opened my eyes on their Management and Damage Control which the 'quality of management' and 'professional services' provided had been acclaimed by the media and public. It had also explicates this globally well-known and prestigious brand's business moral values and exposed the ignorance of the customer service team of their duty and responsibility (the arrogant, unprofessional, sheer negligence, mishandling, misleading & deceptive, false representative and unfair practice, etc.). This incident had tarnished the image of “xxxxxx”, a globally well-known and prestigious brand. The mark, "xxxxxx", was once seen as vehicle of quality and perfection, but through this case I have learned, the quality & perfection does not exist in reality but just as marketing tagline and this really gave a bad impression in the hearts of all Malaysian customers who had the similar experience as mine.

I strongly feel that xxxxxx is not keen to solve this issue sincerely, seriously and in transparent manner. Make no mistake, this is one issue that won’t just go away! The attitude of trying to ‘wrap up’ the case by ignoring the customer rights and safety is very unprofessional and unscrupulous. I feel sorry to say that the so-called ‘professional Customer Service Team’ had damaged deeply xxxxxx’s good company reputation.

As conclusion, as an owner of the xxxxxx Vehicle, I had done my part and had fulfilled my obligations by sending my new vehicle to xxxxxx qualified service centre for the professional maintenance and services in order to maintain it in tip-top condition. But for what I had experienced until to date, as an xxxxxx customer, I would say my xxxxxx xxxxxx had purchased at too great a price and I have to take all the risk and bear the responsibility from the entire mistake made by the xxxxxx representatives. xxxxxx is very protective to its own benefits and neglected customers' consumer rights with unfair practice. Indirectly, xxxxxx is telling me that the xxxxxx owner to send their new xxxxxx vehicle to the xxxxxx service centre at their own risk!!!

Xxxxxx, please advise me… …

Thursday, December 11, 2008

Management & Damage Control of A Global Brand

An useful online article for our better understanding of the importance of complaint...


Why Complaint - Importance of Complaint

What is Complaint?

Many companies still regard customers’ complaints as unpleasant and as a waste of time and money they install barriers to the customer’s decision to complain and some (frontline) employees even make their customers believe that they would not have the right to complain at all.

Customer Complaints are indicators that something is not working as it should.

Complaints reflect “real life” situations to the customers, and should not be neglected or ignored.

The way a company manages complaints is a reflection of the quality of its product or services, and of its desire to retain and satisfy its customers. Most traders want the goodwill of their customers and will sort the problem out. Some traders may be more difficult to deal with.

As desirable as complaints can be, they are a crucial communication tool between the buyer and the seller.

Complaints offer businesses an opportunity to correct immediate problems.

Complaints and complaint trends tell business how to do its job better by alerting management to problems that need prompt attention and correction.

They indicate long range opportunities for product innovation and problem prevention.

They frequently provide constructive ideas for improving products, adapting marketing practices, upgrading services, or modifying promotional material and product information.

Research into complaint behavior reveals that only a fraction of dissatisfied consumers complains to business and, thereby, gives the company an opportunity to correct the problem.

No business can afford to lose customers, if only because it costs much more to replace a customer than it does to retain one? Five times more, most industry experts agree "It's 6-7 times more expensive to gain a new customer than it is to retain an existing customer."

Why do people complain?

Generally speaking most customers “complain” in an effort to get answers.

Research indicates that only a small portion of dissatisfied customers register complaints. This is due in part to the perception that companies are unwilling or unable to make the corrections or resolve the problem.

When customers believe they have not received their money’s worth, consumers give businesses an opportunity to correct the immediate problem and restore goodwill.

Experience show that consumers who complain about products and services continue to frequent the businesses and buy the products they complain about if they believe the complaint was resolved fairly.

There is evidence that some consumers do not complain because they are skeptical about business’s willingness or ability to resolve disputes fairly. Consumers simply withdraw their patronage and criticize the company or the product to others. Such findings underscore the importance to business of a complaint management system that is well-publicized and easily accessible.

According to Tax and Brown (1998: 76), only 5-10% of dissatisfied customers decide to complain to the company and most of them “are dissatisfied with the way companies resolve their complaints” and “have more negative feelings about an organization after they go through the service-recovery process”.

Complaint Consequences
If a response to a complaint is timely and accurately addresses the concern, the issue can be resolved before it develops into a more serious action: namely, a product liability claim or lawsuit.

All complaints do not result in legal action.

To ignore the danger signals that “complaints” represent can subject a company’s profits to an undue exposure to loss.

The complaint that goes unreported can be as costly as the one that is mismanaged or unresolved.

Negative word-of-mouth publicity from dissatisfied consumers means lost revenue & market share and necessitates additional investment in advertising to attract replacement customers.

In addition to lost revenue, this will usually also result in additional advertising cost to attract new customers, or revision of current publications to correct misconceptions

Dissatisfied customers almost always get stuck with certain costs: the money they spend for phone calls, the time they spend making their cases, and the aggravation they must endure throughout.

Dissatisfied customers will switch to competitors if alternatives are available and if the company does not apply a number of mechanisms to prevent customers from switching

Customer engage in negative word-of-mouth communication to warn friends and relative (Blodgett et al. 1995)

On average one dissatisfied customer will tell 11 others who on average will tell five others. That's 55 pieces of negative advertising from one disgruntled customer. (Business Centre's Information Resource Centre)

Benefit of complaint

A good recovery can turn angry frustrated customers into loyal ones.

Companies can learn to recover from mistakes.

Complaints offer many opportunities:

· Corrective of immediate problems

· Constructive ideas to improve products

· Adapting marketing practices

· Improving services

· Modifying promotional material and product information

Save business unwanted costs

What should we do with the complaint?

Companies should try to prevent these negative consequences and the high costs of acquiring new customers by strengthening the endangered relationship with the customer.

Exposure of loss can be reduced and controlled with proper attention to complaint management.

Proponents of third-party systems point out that their use can help make manufacturers and retailers more responsive to consumer problems.

Tip - Winning customers and keeping them

· It costs between six and ten times as much to gain a new customer as it does to keep an existing one.

· On average one dissatisfied customer will tell 11 others who on average will tell five others. That's 55 pieces of negative advertising from one disgruntled customer.

· Often the business's lowest-paid people are the ones who actually meet the customers? They are the business in the eyes of the customer. Make sure they are well trained.

· 96 percent of customers don't complain when they have a problem; they just don't come back.

· Because less than 4 percent of unhappy customers complain, management are lulled into thinking all is well.

· Half the customers who tell the business they are "fairly satisfied" won't be repeat buyers.

· The average business will lose 10 percent to 30 percent of its existing customers this year? Mostly because of poor service.

· Of those customers whose complaints are resolved, 83 percent will remain loyal and each will recommend you to five others.

· 68 percent of customers who stop dealing with a particular organization do so because of some indifference on the part of the organization.

· Businesses which have a reputation for excellent customer relations and quality service charge up to 9 percent more, grow twice as fast, and pick up market share three times quicker than their under-performing competitors.

· Increases of just a few percentage points in customer retention have resulted in significant increases in sales and profits. One customer retained means repeat business and its all cream. You don't have the extra cost of signing up and establishing the account, customer details, etc? The repeat business becomes a bonus.

· Quality, value and reliability are the most popular reasons given by most business patrons who describe themselves as regular and loyal customers.