How Do Ripple Effects Escalate the Problem of the Lost Customer?

Topics: Ripple effect, Customer, Customer service Pages: 1 (417 words) Published: September 30, 2012
How do ripple effects escalate the problem of the lost customer? (Timm 14). A ripple effect is defined as what happens when, “… upset customers tell other people” (Timm 8). A very common way that this is occurs is via word of mouth. The book says that the numbers of people an upset customer will talk to about their issue is between 10 and 20, and that these people will tell 5 more each on average. What this tells me is that one mad customer can have a huge impact just by telling a few family members. This escalates the problem because this one lost customer can result in over 60 people hearing about the bad experience and almost 20 of them will stop using a specific product or shopping in a specific store. So there is the escalation of the lost customer problem; one could potentially turn into dozens of lost customers.

What major corporations that you’ve heard of seem to be doing the best job of building customer loyalty? In what ways do they attempt to build long-term relationships with customers?(Timm 14-15)
One major corporation that I know of instantly that seems to be doing the best job of building customer loyalty is JetBlue Airlines. I say this from experience and what I have observed the few times I flew on other airlines. First of all they have a loyalty points program that over time can earn you rewards flights, as well as sister airlines for overseas trips. They have “pick your own” seating you pick before you buy your ticket) rather than sit where there’s an empty seat and deal with it like some other airlines. Your first bag flies free, and while some airlines offer two free checked bags, their amenities on board do not match those of JetBlue in any way. They have TV on each headrest (just bring/buy headphones), they not only serve snacks and beverages, but also coffee from a very popular coffee chain (my favorite as a matter of fact), and their tickets are some of the cheapest around. I recently got 2 round trip tickets from NYC to Florida and...
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