HIGHLIGHTS FROM THE 2017 CUSTOMER RAGE SURVEY Small

HIGHLIGHTS FROM THE 2017 CUSTOMER RAGE SURVEY: Small Uptick In Problems, Less Rage, Improved Complaint–Handling, But Still A Failing Grade Affecting Billions Of Dollars Of Future Sales October 4, 2017 Confidential & Proprietary - Page 1

Survey Conducted By… In collaboration with Confidential & Proprietary - Page 2

Methodology • Follow-up to 1976 White House Study • Beginning in 2003 • 8 th wave of Rage Survey • Both land line and cell phone respondents • Representative sample (age, gender, income) of US households • 1, 000 household interviews Confidential & Proprietary - Page 3

PROBLEM EXPERIENCE Confidential & Proprietary - Page 4

Small Uptick In Customer Problem Incidence In 2017 • 2017 results − 2 percentage point increase over 2015 − Increase from 54% to 56% • Only 32% problem incidence in White House Study Confidential & Proprietary - Page 5

Top Five Customer Problems In 2017 1. 2. 1. Internet accounts for 12 percentage points • Accounts for 58% of most-serious problems • Same order as in 2015 Confidential & Proprietary - Page 6

While Posting On The Web About The Most-Serious Problem Has Increased, It Is Still A Minority Phenomenon • Only 34% of problem households posted on at least 1 of the above websites Confidential & Proprietary - Page 7

Age Does Have An Impact On Posting In 2017 • 29% of 18 to 34 year olds posted on social networking web sites about their most serious problem • Only 17% of 55+ year olds posted on social networking web sites • Still a minority phenomenon Confidential & Proprietary - Page 8

Less Rage, But Negative Emotions Still Unacceptably HIGH In 2017 • Good News − 10 percentage points less RAGE than in 2015 − Drop from 66% to 56% • Bad News − Other negative emotions were associated with respondents’ most-serious problems Confidential & Proprietary - Page 9

CORPORATE COMPLAINTHANDLING PRACTICES Confidential & Proprietary - Page 10

Improved Complaint-handling Practices: But Still A FAILING GRADE 1. 23% complainant satisfaction for 1976 White House Study Confidential & Proprietary - Page 11

In 2017, Telephone Is Still The Primary Channel For Complaining By Nearly A 6 To 1 Margin Over the Internet 1. Less than 4 percentage points of these problem households named websites as their primary channel. Confidential & Proprietary - Page 12

In 2017, Even The Young Prefer The Telephone • DON’T FORCE COMPLAINANTS TO USE CHANNELS THEY DON’T WANT TO USE Confidential & Proprietary - Page 13

In 2017, Complainants Got BUPKIS 1 Note: Shading indicates a non-monetary remedy. Confidential & Proprietary - Page 14

SO WHAT Confidential & Proprietary - Page 15

There’s No Free Lunch Anymore • White House Study found that there was a brand loyalty UPLIFT over non-complainants even when complainants were NOT satisfied (+9%) • This is the basis for expansion of corporate complaint solicitation practices • In 2000’s, Rage Surveys report a loss of brand loyalty for dissatisfied complainants (-10% to -12%) • Given today’s low complainant satisfaction, most companies earn a NEGATIVE ROI on complainthandling Confidential & Proprietary - Page 16

We Live In A Top Box World in 2017 Satisfaction With Action Taken (% Complainants) % Repurchase Intention SATISFIED (21%) 68% 57%-point drop MOLLIFIED (39%) 11% DISSATISFIED (40%) 3% Confidential & Proprietary - Page 17

Commonly Used Telephone Complaint. handling Practices That People HATE 1 • Examples of practices that scored less than 2. 5 on a 0 – 10 point scale where 0 was “would significantly decrease your satisfaction” − Misuse of automated telephone technology e. g. , no option to talk to a live person (1. 19) − Try to sell you something (1. 58) − Must repeat info. already given (2. 15) − Talking too fast (2. 38)/agent accents (1. 98) − Outsourcing; esp. outside the US (2. 01) 1. 2006 CCMC Study Confidential & Proprietary - Page 18

Although In 2017 Posting On The Web Is Not The Primary Complaint-handling Channel, It Spreads A Massive Amount Of Negative Word Of Mouth (WOM) Confidential & Proprietary - Page 19

A Spoonful Of Sugar Helps The Medicine Go 1. Down In 2004 – 2017 2. 3. 4. 1. A comparable question was not asked in the initial wave (2003) of the Customer Rage Surveys. 2. Top 3 boxes 3. Monetary remedies include product repaired/service fixed, money back, free product/service in future, or compensation for damages 4. Non-monetary remedies include treated with dignity, agent didn’t use scripted response, assurance problem would not be repeated an explanation why the problem occurred, a thank you for patronage, offending company showed empathy to complainant’s concerns, opportunity to vent, and an apology Confidential & Proprietary - Page 20

Vital Statistics: 2017 Survey Findings Extrapolated To The Nation’s Population 1. • Number of households experiencing at least one problem during past 12 months 2. • Number of households experiencing RAGE 3. • Number of households posting information about their most serious problem on at least one website • Revenue at risk to business 4. 1. 2. 3. 4. 62, 720, 000 35, 750, 400 21, 324, 800 $313, 286, 400, 000 Statistics apply to ONLY most serious problem during the past 12 months Assuming 112, 000 total US households Based on “extremely” and “very upset” respondents The mean cost of products/services for most serious problem multiplied by the number of households experiencing problems Confidential & Proprietary - Page 21

A Few Final Thoughts • COMPANIES ARE DOING ALL THE RIGHT THINGS, BUT THE WRONG WAY − Call centers − Satisfaction surveys − Monetary remedies − Use of the web • DO IT RIGHT, OR DON’T DO IT Confidential & Proprietary - Page 22

For more information about the 2017 Customer Rage Survey, please contact: Scott M. Broetzmann President & CEO Customer Care Measurement & Consulting 2121 Eisenhower Ave. , Ste. 501 Alexandria, Virginia 22314 703. 823. 9531 scott@customercaremc. com www. customercaremc. com Confidential & Proprietary - Page 23