True Costs of a ComplaintPosted by BestPractices on March 14 2011
- Each disappointed patient who complains represents six others who are unhappy with a similar experience
- Therefore each complaint may actually represent seven unhappy patients
- Each unhappy patient tells eight to ten others about their unhappy experience
- 63 people now know about these unhappy experiences
- 1/4 of these 63 people (16) will choose not to do business with you again
- 16 patients x the average revenue per patient x the number of visits over a patient’s lifetime =the potential total lost revenue per complaint
- 16 patients x $500 in revenue per patient visit x 5 visits per patient lifetime = $40,000 in potential lost revenue per complaint over a patients’ (customers’) lifetime
- It can cost the institution $400 in actual labor and write-off costs just to handle the average complaint (or $20,000 annually)
- If five percent of potential inpatients opt not to return each year, the revenue at risk is $2,500,000 per year
- If a problem is resolved on the spot, 95 percent of patients (customers) will be satisfied, delighted, and tell others about how the problem was resolved
- 96 percent of dissatisfied customers never complain
- It is six times more expensive to attract a new patient than to keep an existing one!
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