How to Manage Customer Complaints
We consistently receive emails asking us to provide information about how to manage
or handle customer complaints.
What should the company do, say or avoid? What steps should be taken to
solve the current problem and avoid future ones?
The emails are predominantly from the people on the front lines who've
received no guidance on how to manage the situation, or who have managers
committed to traditional approaches despite the costs or consequences.
The fact that so many employees
(across many industries) continually seek our advice when handling customers
or when trying to craft their own perfect apologies suggests that many organizations
still don't appreciate the costs of negative customer feedback,
and the value of effective customer communications for their bottom line.
The first step for any organization is to have a documented
customer complaint procedure. While the procedure
itself can be quite simple, the benefits it will provide will be felt
throughout the organization.
A systematic accounting of each complaint, along with the response and
reaction, is essential to improving overall customer relations and
customer retention.
For customers, a careful and consistent tracking of complaints
and procedures shows a level of
professionalism and conveys to clients that their complaints are taken seriously.
For employees,
it provides a road map, a set of standard operating procedures, and demonstrates management support for those on
the front lines. It also empowers staff to handle situations more
confidently, efficiently and effectively.
For management, it identifies potential weaknesses and, more
importantly, opportunities for mprovement.
The general guidelines for any customer complaint procedure are as follows:
Make it easy for customers to be heard. Whether this is done online,
over the telephone or in person, make sure that your customers can
easily voice their complaint—without having to wait.
Listen carefully to what the customer is expressing and give them
(and
their complaint) your undivided attention. Don't interrupt them (if the complaint is
being given in person); don't presume you understand their complaint (based on prior experience)
before they've had a chance to fully explain their problem; and don't
re-interpret their complaint based on what you think their
problem is. And do not simply scan written communications—read every word
of the letter to
understand the issues from their perspective.
Once they have expressed themselves, follow up by
asking if there is anything else that needs to be addressed.
Agree with the customer that a problem is real and relevant—don't
dismiss or disagree, and never argue.
Extend a perfect business apology.
Resolve the issue. Ensure that your staff is empowered with the tools
required to resolve the matter. Define clear guidelines for
compensation/restitution as appropriate.
Once the issue is resolved, ask again whether there is
anything else that needs to be discussed.
Thank the customer for bringing the matter to your attention, and
for improving the quality of a product or service.
NOTE:
Make sure that the complaints are documented in a standardized format
for internal purposes and future analysis.
Customer service personnel (or anyone dealing with customer feedback)
needs to be trained on how to handle these situations by laying out the procedures
to follow—this is a crucial first step.
Employees need to be trained on the steps to take, how to communicate
an effective business apology, and what tools are at their disposal to
resolve the issue.
A customer complaint procedure empowers your
staff to handle the situation professionally, effectively, and in a
timely manner.
Learn about customer advocacy and why
a proactive approach to customer retention is important to any
business.
Return to...
Business Apologies from
Managing Customer Complaints.
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