Performance measurement and customer complaints While vice chairman of Chrysler Corporation, Bob Eaton made the following observation about Chrysler employees who answered calls from customers with problems or complaints:

The people who answer these phones have one of the most important jobs in the company. They are our front lines. They can have a more direct effect on sales than anyone else.

The Organization as a System of Activities After noting that it can cost as much as five times more to get a new customer than it costs to keep one, and that, on average, a satisfied customer will re¬ count his experience to 5 people and an unsatisfied customer to 35 people, Mr. Eaton went on to say this:

Even the best salespeople sell only two or three cars a day. Our people on the phones deal with dozens of customers every day. How well they take care of our customers is critical.

REQUIRED Design a performance measurement system for the Chrysler staff that takes these customer calls.

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