GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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10:00 Feb 20, 2017 |
English language (monolingual) [PRO] General / Conversation / Greetings / Letters | |||||||
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| Selected response from: Yvonne Gallagher Ireland Local time: 18:37 | ||||||
Grading comment
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SUMMARY OF ALL EXPLANATIONS PROVIDED | ||||
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4 +3 | each happy customer (whose complaint has been handled well) becomes an advocate and is each worth |
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4 +1 | [annual] return on customer |
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4 +1 | The net result is +9500 dollars |
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Discussion entries: 6 | |
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[annual] return on customer Explanation: the bank earns more on its loyal customers than on detractors , by this amount -------------------------------------------------- Note added at 11 mins (2017-02-20 10:12:34 GMT) -------------------------------------------------- I suggested annual because surely we need a timeframe to benchmark this delta in earnings against, and a year seems the best guess |
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The net result is +9500 dollars Explanation: It's the net result that is important here. The happy customer provides more revenue because they use more bank services and attract more customers. The unhappy customer has the opposite effects. The total difference in revenue between a happy customer and an unhappy one is $9,500. It is not stated whether this is an annual difference or a one-time event. I suspect that it is one-time because a happy customer only stays happy for a limited time. After a certain amount of time, they start to consider the level of customer service to be "normal" so they stop talking about it. Similarly, even an unhappy customer gets over it eventually. |
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each happy customer (whose complaint has been handled well) becomes an advocate and is each worth Explanation: ninety-five hundred dollars more than unhappy customers who do not bring in money...in fact a company loses money as each unhappy customer will drive other potential customers away. However, if "complaints are handled to our satisfaction" i.e. if an unhappy customer is dealt with efficiently, then they become an even better customer than before "we actually become more loyal than we were before we had the problem" so they then will extol the virtues of the company, bring in more business and thus be worth more to the company in terms of profits. why it's so important to keep customers sweet! -------------------------------------------------- Note added at 3 days13 hrs (2017-02-23 23:35:41 GMT) Post-grading -------------------------------------------------- glad to have helped |
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Grading comment
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