Very often we hear the 1983 TARP study recited that states one disgruntled client speaks with an average of 10 clients. With the advent of the internet and e-mail however, and more recently, social media such as blogs, tweeting, and Facebook, this statistic is considered very outdated. Which is why I was so happy when TARP Worldwide sent me these updated statistics from their 2008 research:

One unhappy client who escalates their issue to management represents 50 clients, on average, who either complain locally or don't complain at all.

75% will complain to 8 others about the issue either face-to-face or via the phone which represents:
296 people who have been told directly who then tell 237 more people

13% will complain to 60 others via blog, tweet, or social media, such as Facebook which represents:
420 people who have been told directly who then tell 336 more people

12% will complain via e-mail or chat with 8 people which represents:
48 people who have been told via chat who in turn tell 38 more more people

In summary, one escalated complaint = an average of 50 clients and 1,375 cases of word of mouth! So the next time you receive a complaint, handle it seriously, realizing the true cost and realizing that what you are dealing with is just the tip of the iceberg.

Susan Hoekstra is principal consultant of Susan Hoekstra & Associates and author of The Service Journey. She has a proven 25 year history developing customer service strategies and solutions including strategy development, training, presentations, recognition programs, surveys, and contact center CRM technologies.