Most people will tell you that customer complaints are bad. They want to eliminate them. But we believe they are good and we encourage customers to voice their opinions. The issue is not the complaints themselves but the opportunities that they represent.
Complaints are simply the expressions of your customers that they were dissatisfied with your products or service. Eliminating complaints is not the same as eliminating dissatisfied customers. Every business, successful or not, has dissatisfied customers.
This topic was brought up while we were talking to prospective clients. How does your company deal with complaints? Do you have a customer support staff or do you let your salespeople talk to dissatisfied customers? Does your company have a special number for complaints or do you make customers jump through hoops in the attempt to get a live person? Would you rather that they hang up and not bother you?
Now, think about your own experiences. Do you complain when you receive less than you thought you would? Do you ask for the manager when you are brushed aside by the person you are complaining to? Do you ever compliment someone for going above what you expect? Or, regardless of how you are treated, do you simply leave allowing your experience to dictate whether you continue to be a customer?
In order to get repeat business, you need great service or products. "Good" just will not do for customer retention because that means they are merely satisfied and customers expect to be satisfied for their money. When a customer is dissatisfied; a few complain, a few will immediately jump to a competitor, and most will simply accept it until they have a better option.
The main difference between a dissatisfied customer who complains and one who does not is that you can SAVE the customer that complains, while you simply lose the ones who don't and you will never know why.
Now that we know that complaints from customers allow us a chance to retain them, we need to establish protocols to convert an upset customer to a happy customer. Customers want to be acknowledged and listened to. They want patience and understanding. They want resolution. Resolving most issues is less expensive than you would think. Once the customer is calm, ASK the customer directly what it will take to resolve the complaint. Do NOT throw gift cards or discounts to keep the business. Offer front-line customer service reps the power to resolve most complaints. If a supervisor is needed to resolve an issue, allow him or her to join in to call. Do not make unnecessary phone transfers.
To encourage more complaints (save more customers from jumping to competitors), prominently invite customers to call your business with ANY issue.
It is common knowledge that it takes seven times the money and energy to sign a new customer as it takes to retain a current one.
The next time you hear a sales rep say he is losing face time with new prospects by resolving issues of his clients, remind him that customer retention is critical to your business. Plus, happy customers who know you care give more referrals than unhappy customers who leave because of poor perception of you, your salespeople, your products, or your services.
Complaints are simply the expressions of your customers that they were dissatisfied with your products or service. Eliminating complaints is not the same as eliminating dissatisfied customers. Every business, successful or not, has dissatisfied customers.
This topic was brought up while we were talking to prospective clients. How does your company deal with complaints? Do you have a customer support staff or do you let your salespeople talk to dissatisfied customers? Does your company have a special number for complaints or do you make customers jump through hoops in the attempt to get a live person? Would you rather that they hang up and not bother you?
Now, think about your own experiences. Do you complain when you receive less than you thought you would? Do you ask for the manager when you are brushed aside by the person you are complaining to? Do you ever compliment someone for going above what you expect? Or, regardless of how you are treated, do you simply leave allowing your experience to dictate whether you continue to be a customer?
In order to get repeat business, you need great service or products. "Good" just will not do for customer retention because that means they are merely satisfied and customers expect to be satisfied for their money. When a customer is dissatisfied; a few complain, a few will immediately jump to a competitor, and most will simply accept it until they have a better option.
The main difference between a dissatisfied customer who complains and one who does not is that you can SAVE the customer that complains, while you simply lose the ones who don't and you will never know why.
Now that we know that complaints from customers allow us a chance to retain them, we need to establish protocols to convert an upset customer to a happy customer. Customers want to be acknowledged and listened to. They want patience and understanding. They want resolution. Resolving most issues is less expensive than you would think. Once the customer is calm, ASK the customer directly what it will take to resolve the complaint. Do NOT throw gift cards or discounts to keep the business. Offer front-line customer service reps the power to resolve most complaints. If a supervisor is needed to resolve an issue, allow him or her to join in to call. Do not make unnecessary phone transfers.
To encourage more complaints (save more customers from jumping to competitors), prominently invite customers to call your business with ANY issue.
It is common knowledge that it takes seven times the money and energy to sign a new customer as it takes to retain a current one.
The next time you hear a sales rep say he is losing face time with new prospects by resolving issues of his clients, remind him that customer retention is critical to your business. Plus, happy customers who know you care give more referrals than unhappy customers who leave because of poor perception of you, your salespeople, your products, or your services.