Customer Complaints
Do your customers complain a lot? If so you are in good shape.
Many small businesses view customer complaints as problems that they really don’t want to deal with. But the opposite should be true. You should welcome these complaints with open arms.
A complaining customer is probably pretty loyal to your business and wants to do business with you. This customer is giving you a second chance. This is a customer you want to keep.
We are all customers and most of us realize that things are not always perfect. Over time mistakes happen. It’s not if they will happen, it’s what you do about it when they happen, that counts. There are two primary rules about complaints.
First you must acknowledge that the complaint exists and is real. One of the worst actions to take is to try and convince the customer that she or he doesn’t have a problem. Generally, if the customer says he has a problem, he has a problem. Denial is not a good customer strategy.
Secondly speed is critical. You must respond fast, before a little problem turns into a big problem. If you don’t have an answer, tell them you don’t have an answer but you will get one. If you said that you would respond in 1 hour or 1 day, do so. Even if you have to tell them you have nothing to tell them. Tell them that the customer is important and you are still working on their problem. Above all, follow-up and then follow-up some more.
There is a wonderful book by Janelle Barlow and Claus Moller. It is called A Complaint is a Gift, Berrett-Koohler, 1996. The authors’ research shows you how to turn complaining customers into spokespeople for your business. One chapter is “ Turning Terrorist Customers into Partners”. They explain how certain business behavior discourages customers from speaking up. This includes apologies and nothing more, rejection, undelivered promises, no response at all, rudeness, passing you on “down the chain”, avoiding personal responsibility, and customer interrogation. Does your business practice any of these behaviors? Do your employees tell them “It’s not my problem”.
Complaining customers actually do your market research for you. When handled properly, not only do problems get solved, but also suggestions often lead to improvements that are good for the customer and the business. In this way, you turn complaints into feedback.
Is your business “complaint friendly”? Is it easy for them to contact you? Do you have a toll free number and easy email access? Do you welcome their complaints? Make sure you have an organized system for recording and analyzing their complaints (after you have dealt with them, of course).
Many times you will have to compensate them for your lack of stellar performance. However, it will be worth it. Remember, research has shown that it is 5 times more costly to get a new customer, than doing business with an existing one. Discount coupons, free goods or services, as well as full refunds are almost always in the best interest of the business.
Not all customers are worth keeping, however. That one with an unreasonable demand and an abusive disposition is best cast adrift. They will undoubtedly tell others but that can’t be helped. Tell them courteously, but firmly that it is both your interests that you not do business with them.
Treat that complaint as a nugget to be mined. You will be conducting market research and making a happy customer out of a disgruntled one.
This article was written by Seattle SCORE Chapter member Fred Parkinson for the Kitsap Sun in Bremerton.