Why Complaints Are a Gift in Disguise for Your Business
Complaints can feel like a dagger to the heart of any business owner. It’s natural to want to avoid them, to brush them under the rug, to dismiss them as the rantings of an unhappy customer. But the truth is, complaints are a valuable tool in your business arsenal. They can provide a window into what’s working and what’s not, what’s delighting your customers and what’s driving them away. And most importantly, complaints can be the key to turning unhappy customers into loyal, repeat customers.
The Sobering Statistics
Let’s start with some sobering statistics. According to research, 96% of unhappy customers don’t complain, of which 91% won’t use your company again. Only 1 in 25 unhappy customers will share their complaints directly with the company. So when someone steps forward to voice their issue, it represents the tip of the iceberg, so take it seriously. Based on these statistics, the actual cost of a complaint isn’t the value of one customer transaction. It is far more significant and indicates the company suffers staggering monetary losses and damage to its reputation.
In today’s digital age, customers have an unprecedented ability to share their experiences with the world. Digital reviews have become a crucial factor in the customer decision-making process. So, handling complaints with care is vital, ensuring that your customers feel heard and valued.
Why do People Complain?
It’s usually because their expectations have not been met. Maybe they received a damaged product, or the service was not up to par. Whatever the reason, a complaint is a request to sort the situation out. Understanding the customers’ expectations for resolution is essential without going on the defence.
What Action to Take?
So, what can you do to handle complaints like a pro? First and foremost, listen. Hear your customer out, and show empathy for their situation. Acknowledge that their experience fell short of what they expected, and take responsibility for the issue. Once you understand the problem, communicate clearly the action you can and are willing to take to meet their expectations. And don’t forget to thank your customer for bringing the complaint to your attention. Their feedback is a valuable opportunity to improve your business and provide better customer service.
But why stop there? Consider how you can go the extra mile to illustrate your company’s commitment to superb service. Maybe you can offer a discount on their next purchase or provide additional support to resolve their issue. Find ways to delight your customer and turn their negative experience into a positive one.
A customer whose complaint has been resolved will create more positive word of mouth than most satisfied customers, which has 20 times the impact of advertising! So, if you handle the complaint competently, you can retain the customer and gain new customers through positive reviews.
Analyse, Adjust and Move Forward
But complaints are not just an opportunity to improve your service and retain customers. They can also highlight weak links in the chain, which provide valuable insight into areas that need attention and adjustment. Was the complaint based on a once-off situation, or are many people complaining about the same thing, such as the returns process or how a particular sales staff member treated them? Analyze these complaints to identify patterns and trends.
Once you’ve identified the weak links, could you take action to strengthen them? Adjust policies and ensure staff are appropriately trained to handle complaints, not as an inconvenience but as a valued opportunity.
Handling Complaints is one of the module options offered as part of my workshops.
