Greener Business Bureau

Posts Tagged ‘Customer Complaints’

No one likes to receive a complaint — but complaints are worth their weight in gold if an organization learns from them and then uses the information to improve the customer experience. Customer complaints can be used to build a better customer experience and turn a dissatisfied customer into a raving fan.

A good response to a customer complaint also ensures you’ll receive that particular complaint only once. The company will know how to handle that issue in advance in the future

Customer complaints are usually not personal. When employees understand that the customer’s anger is directed toward the company, not the employee, they are better able to deal with the emotions of the customer. If the employee doesn’t take a customer’s comments personally, it will help them remain calm. Remaining calm will, in turn, help calm the customer more rapidly. Focus on the customer rather than the complaint. Customer-focus will help the employee empathize or “walk in the shoes” of the customer. It will help them listen more sympathetically to a complaining customer — which is often all the customer wants. Plus it will help them remain calm and polite while a customer vents his frustrations. Attitude is everything in creating satisfied customers. Even the most irate customer will usually calm down when dealing with someone who is obviously doing their best to understand the customer’s situation. If employees truly listen to a customer complaint, valid or not, the customer will at least feel as if they are being heard. Sometimes that’s enough to completely diffuse a negative situation. Empower employees to handle customer complaints themselves. Obviously, there will be a point when a more senior person must make a decision in dealing with a complaint, but empowering employees to deal with common complaints and issues on their own will go a long way toward creating a more positive customer experience and increasing employee engagement. Verify before taking action. Make sure that you ask what would make the customer happy and then verify before taking any action. Customers will rarely ask for more that we are prepared to offer, so ask what will make them happy first. Once they have made their suggestions, then verify that if you are able to provide that remedy, the customer will be satisfied. Nothing worse than working to resolve an issue only to find that the customer is still not happy. Move quickly to resolution. Once a resolution is agreed, move quickly. When an upset customer calls and receives an immediate resolution to their problem, they will be much more likely to return as a customer. In fact, a good recovery builds greater customer loyalty than simply delivering as expected — so make sure to use this to your advantage. The exact opposite is true, however, if the customer is “given the runaround” by being transferred from employee to manager to higher level executive before their problem is handled. Provide tools. Give employees options when dealing with difficult customers or those with an issue the employee can’t resolve. For example, if a customer bought an item on clearance, and the store’s policy is to never accept returns on clearance items, allow employees to offer the customer a complimentary gift card, an extended warranty on the item, or a similar bonus. While it may not be exactly what the customer asks for, it will show customer appreciation and help them see that the company is going out of its way to satisfy the complaint. There will be times when nothing can be done to satisfy an unhappy customer. At that point, the customer service employee must simply defer that customer to a manager or supervisor. But employees who handle customer service complaints quickly, efficiently and professionally will minimize those issues and will give employees a sense of ownership in their jobs and in the company.

The motto of the Better Business Bureau (BBB) is “Start with Trust” and they do everything in their considerable power to make sure that consumers have all the impartial information they need to select a trusted debt consolidation company with which to do business. Before signing on the dotted line with any prospective debt-relief organization, you would be wise to first check in with this trusted watchdog organization to see if the company has a track record of providing their customers with excellent consolidation services. If negative reports have been filed, the BBB will in no uncertain terms alert you to them. Conversely, if an agency’s previous customers sing their praise, you will be fully informed of that as well.

Online Access

You can log on to the BBB website at any hour of any day in order to check out any debt consolidation company that has caught your eye. If your organization meets all of the stringent standards of the Better Business Bureau, they will be accredited by them and marked with a seal. This seal indicates that you can trust this consolidation agency to make good on their promises, offering an honest day’s work for an honest day’s pay.

Ratings

The Bureau rates debt consolidation companies using a classic grade-school style, A+ being the highest possible grade and an F being the lowest. Check out your prospective company’s grades on the BBB website or at one of their local storefront locations in order to get a clear view of the customer service levels you can expect to enjoy with your company of choice. Without even digging any further on the website, the grade that is associated with your prospective consolidation company will give you an idea whether or not you can trust them with your financial situation or if you should keep looking for a better option.

Customer Complaints

If customers have reported a negative experience with the consolidation company with which you are considering doing business, the BBB will have that information on that report displayed for you to see. You can also discover whether the company resolved the issue with their client or ignored it, which will give you a pretty clear picture as to whether they value their client relationships or not.

Debt consolidation is a viable solution to credit problems but you want to make sure you work with only the most reputable companies in the industry. Let the Better Business Bureau help connect you to the agencies you can trust most with your finances.

To my customer,
I may not have the answer, but I’ll find it!
I may not have the time, but I’ll make it!

Yes, this is the essence of managing customer complaints. A satisfied customer is the lifeline for any business. However, in real life it is not possible to keep your customers happy always. Even the best run businesses face problems or make mistakes which might cause customer dissatisfaction. While unhappy customers will and must complain, customer oriented businesses will and must tend to them! While no one likes a whiner, you must realize that customer complaints can actually be turned to your advantage. Viewing the complaint as an opportunity to gain insight that will help you improve takes you a step closer to ensuring customer loyalty.

Following are the two direct benefits for your business when you take good care of customer complaints:

1. Improvement: There’s no smoke without fire. If a customer is complaining, chances are that there is a real problem somewhere. Listening to the complaint will allow you to look for solutions.

2. Image: When you provide quick solutions, it shows your respect for the customer and makes him or her feel valued. In turn, the customer believes that you can be relied upon, even when things go wrong. What more can you ask for?

But, there is a third, much larger benefit that effective complaint handling can bring to your business. Research proves that customers who had problems that were satisfactorily solved are generally much more loyal than those who are simply happy with your product. So, how do you go about converting a complaining customer into a captive one?

Pay Attention: The best way to make dejected customers feel good is by listening to them. This shows that you care. Be friendly, polite, and helpful; and try your best to solve the problem. Even if a problem is not completely solved, the fact that your business did everything to help will make the customer feel much better about it. Sometimes you may find it difficult to help irate customers especially when the problem is not caused from your side – no matter what, grin and bear it, because the customer is always right.

Offer a Solution: Try offering a solution, always. If you cannot fix the problem right away, at least let them know that you are trying. Or choose between the following options:

1. Replace – Offer a replacement for a defective product. If an exact replacement is not available, suggest an alternative model. This might cost you a bit, but you get to keep your customer.
2. Refund – If a customer is disappointed with your product or service, he may want a refund. While this means loss of revenue, it may be the best solution at the time. In case of a minor complaint, a partial refund may douse the fire.
3. Discount – Sometimes you can offer the customer discount coupons that could be redeemed on their next purchase. This will ensure that they return to you, while also minimizing financial loss.
4. Apologize – An apology works like a charm almost always. In fact, do this first! It can be a verbal regret for minor problems, or a written apology for bigger issues. Don’t let your ego stand in the way.

While we’ve given you a bird’s eye view, books like ‘Resolve customer complaints’, ‘Dealing with customer complaints’ and ’6 ways to benefit from customer complaints’ are great for gaining further insight.

Finally, we leave you with a thought from Peter Drucker. “The single most important thing about any enterprise is that there are no results inside its walls. The result of a business is a satisfied customer.”

Background

The company was experiencing an increase in the number of customer complaints and an increase in the cost of processing them and we were hired to analyze the current situation and develop recommendations to increase the effectiveness of the process of administering and resolving the complaints.

Identify Customer Requirements

A consultant was assigned to the design of customer service systems and complaint processes, and who had done extensive work in QFD (Quality Function Deployment), which is a methodology that analyzes the needs of the customer and integrates them with the company processes to ensure the needs are met.

The first task was to identify what the customers’ requirements were for complaint handling and how well customers felt their complaints were resolved. This involved conducting interviews with customers who had filed a recent complaint.Customers were asked to talk about their experience with the complaint handling process.

The purpose of this exercise was to:

determine positive and negative incidents in the complaint handling process

determine important information regarding the customer’s feelings about the resolution of his/her complaint

identity the main reasons for deficiencies in the process

develop suggestions on how to improve the system.

Review Existing Complaint Process

The review of the process started` by developing a complaint management questionnaire that was administered to all complaint handlers. This provided a view of the complaint handling process across all departments of the company and at the same time it identified areas for improvement.
An operations study was performed on the current complaint handling process.

A Service plan was developed that detailed the complete current process for a customer reporting a complaint to the company. A Serviceplan shows a cross sectional view of what is happening to all participants of the process at each step. This includes
the customer, front line personnel,
support personnel,
other departments, and
outside regulatory agencies.

With the Service plan it is easy to see escalation points and interfaces to other personnel and departments. This is critical information to understand when streamlining a process.

Other aspects of the process were analyzed, such as where do the customers call first to report a complaint, how do they find the number to call, and how many calls did they have to make before the complaint was resolved.

Analysis of Complaint Data

A complete analysis of complaint data for the past four years was conducted. Starting at the beginning of this process, a review was conducted of what information was being captured from the interaction between the complaint handler and the customer.

The review continued by investigating how the complaint data itself was captured and logged into a complaint database.We also looked at what types of reports were generated from complaint data and the frequency of distribution.

We also analyzed the claims data, searching for potential causes for the claims and the trend and frequency of claims. The data revealed certain tendencies that indicate that a new method for the administration of claims would have positive effects.

Recommendations

Aa synthesis was developed of the analysis, investigations, and review of the activities associated with the claims process in the holding company.
Based on this, several recommendations emerged which were customized to the specific needs of each of the subsidiaries.

The recommendations included:

establish a Centralized Center

negotiate with the regulatory agencies in various states so they can direct the customers with complaints to the Center

establish stronger links with the service recovery process and the Center

establish diagnostic activities to prevent future complaints

implement prevention planning

establish targets for complaint reductions

The new system for administration and resolution of complaints has resulted in:

more effective and timely resolution of customers’ complaints

focus on prevention and avoidance of recurring problems

integration of the different work units involved in the claims process

reduction of costs associated with the handling of claims

increased customer satisfaction

When you respond to a customer complaint, what do you hope will happen next? In many cases, the answer is “nothing.”

But when you reply and the result is silence, have you genuinely resolved the issue? Is your customer truly satisfied? Or have they simply gone quiet, and maybe gone away? Did you use good customer service skills to win that customer back and improve your business?

If you’re making a sincere effort and good customer service skills to respond to customer complaints, then make sure you also track complaining customers until you are absolutely sure they have come back.

If you run a restaurant, make sure they come back for dinner. If you work in travel, be sure they come back on board. If you’re in a bank, check they’re still using their credit cards. If not, your recovery effort remains incomplete.

My friend Steven Howard puts it this way: “A customer is not a customer until she buys from you the second time. The first time she is only a ‘trial user.’ The second time she becomes a ‘customer.’ The third time she qualifies as a ‘repeat customer’ and, over time, may become truly loyal.”

Key Learning Point About Customer Service Skills

Complaining customers are more active and vocal than most. Your response should not shut them up, it should win them back. Use good customer service skills and you can boost your client base.

Action Steps To Improve Customer Service Skills

Start tracking the return and repeat purchases of your complaining customers. If they come back and patronize you again, you are on the road to great reward. If they go away and don’t return, your “complaint reply system” is not working as it should.

Follow up with complaining customers who do not return. Find out what you could have done, or should have done, to truly recover their business. Then implement their suggestions – and keep on tracking.

When someone complains about their experience with your business, how do you view those complaints? How do you handle complaints? Do you encourage people to complain if they are not satisfied with your product or service? Do you have any type of procedure to handle complaints? Do you have any idea of the value of complaints?

Yes, I know that I just asked you many questions and you are probably saying what Ronald Reagan became accustomed to saying, “There you go again.” Well, in coaching, questions lead to answers and so there are many questions needed to find answers. And there are answers to the above questions that I believe require a strategic thinking view. Complaint handling is a strategic tool and all businesses and organizations need to make a commitment to address complaints in a professional manner. Unfortunately, in today’s world, handling complaints is very misunderstood and undervalued in business.

Did you know that 70% of dissatisfied customers will return if their complaint is resolved favorably? Did you know that 95% of dissatisfied customers will return if you resolve their complaint on the spot? Complaining customers are really a treasure. That means there is great value in resolving complaints. Remember, it takes six (6) times more effort to attract new customers than to retain existing customers.

Looking at turning complaints into compliments, I suggest a strategic thinking approach is needed. So, with this mindset, I developed a short list of action items that I believe will turn your complaints into compliments. These action items are:

Action #1: Appreciate the fact that they have brought a complaint to you. You should thank them and then be calm and very attentive as they share their complaint.

Action #2: Acknowledge the feelings of the person with the complaint, but DO NOT tell them you know how they feel. This is a major error and could cause a rapid disengagement with the customer. Make sure you allow them enough time to say what they want to say about their complaint.

Action #3: Provide an individual to listen to the complaint. Make this person accessible to the customer and have that person respond immediately to begin the process of addressing the complaint.

Action #4: Exhibit honesty and sincerity at all times with the customer. An apology is appropriate to acknowledge your being sorry that the customer had a negative experience. It is critical to give the customer your undivided attention and to maintain a calm demeanor and remain non-confrontational.

Action #5: Ask the customer about solutions. It is a very effective tactic to ask very open-ended questions to help identify potential solutions to the problem in the complaint. For example, you could ask the customer, “What would make you feel better about this?” Or “What would you like to see happen in response to your complaint?” This enables you to potentially form an alliance with the customer to solve the problem. You can create an atmosphere of establishing the attitude that you and the customer are in this together to find a solution.

Action #6: Be a “person of your word.” You must do what you say you will do.
Make promises you can keep and make sure you keep them.

Action #7: Follow Up with your customer. This is a wonderful opportunity for increased contacts with your customer. Send them a note and let them know you appreciate their business, that they shared their complaint and that this experience will enable your company to improve.

These are very practical and useful actions you can do to turn complaints into compliments. It is very important to remember that an unresolved complaint is very costly and very damaging to your company. Swift, effective and caring complaint resolution is a very effective strategic tool for your business. And probably the most important thing to remember is that people, not companies, resolve complaints.

If you would like to learn more about the importance of listening to customer complaints and fostering a culture of swift, effective and caring responses to complaints so you too can turn complaints into compliments, please contact Glenn Ebersole today through his website at http://www.businesscoach4u.com or by email at jgecoach@aol.com