The Study of Customer Complaints Management Based on System Dynamics: Modeling and Simulation

In this paper, based on the relationships among customer satisfaction, repeated purchases, customer loyalty, complaint-voicing rate and complaint-dealing ability, a model is built to analysis customer flow resulting from the complaint management with the system dynamics method. Applying Vensim 5.0, customer flow is simulated with the data from China's mobile market. Through analyzing the simulation results we can identify the key factors of system. Finally we obtain the high-point of the system running by adjusting the key factors effectively and continuously. We have also studied how to adjust the factors according to the experimental datum which provides guidance to managers making decisions.