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Every business has to be customer-centric to sustain in the competitive market. Investing in customer support will help businesses to understand their complaints and improve their services and experience.
There is always a silver lining to the customer complaints. Smart businesses recognize the importance of customer complaints and consider it a golden business opportunity. However, complaints are inevitable, no matter how hard you work or how great your products are, no business can satisfy its customers all the time.
Research by American Express says that “78% of customers have given up on a transaction because of a negative customer experience”
The best way to ensure your business growth is to know what your customer complaints are and treat them as highly valuable feedback to instill in the customer service strategy to improve your brand experience.
Before we comprehensively discuss the impact of customer complaints on businesses, let’s first go through what customer complaints actually are and why are they important for any brand.
Customer complaints can be defined as the gaps between what business promises in terms of the product or services and what customers get. It is a mismatch between how customers perceive the brand and where they fail to get the desired customer service experience.
There could be different types of customer complaints. It could be related to a) improper communication, b) internal processes or c) poor quality of service. Realizing that a complaint is an opportunity makes it easier to turn conflict into positive change. Customer complaints can tell you how to resolve issues – if you listen to them carefully.
You should be thankful to your customers for sharing their opinions and complaints. It helps to understand the challenges customers are facing with your products and services. They are very valuable to your business because not only do they help you gauge the level of consumer perception but also unveil so many unexpected opportunities for growth.
Learning to value the complaints made by customers is an important step in taking your company to the next level. When you use customer feedback tools and understand how to handle the information, complaints can be turned into constructive opportunities for your team and your business to grow.
Some key advantages of customer complaints are:
Complaints give a first-hand perspective of how your customers feel. Instead of doing expensive market research or running a feedback survey, customer complaints are actually the real feedback that you can get if you address them carefully and implement those changes. By realizing the importance of customer complaints, evaluating business areas becomes direct and easy.
Let us discuss a few reasons why customer complaints are important for your business growth.
“Why are customer complaints good for your business?” – The answer is quite simple.
Generally, customers do not prefer doing business with that company again after one negative experience.”
It is critical to pay maximum attention to customer complaints. Businesses that don’t define their objectives get stuck without solid goals and customer complaints can help to identify ways to take businesses to the next level. It acts as a reality check for the businesses and helps them to plan strategies for growth and development.
Troubleshooting the complaints by evaluating the concerns help to improve your business as well as customer experience.
Here is how customer complaints can benefit your business.
Acting on customer complaints regularly helps to deliver a consistent support experience and it also makes every business department accountable to resolve them.
Knowing and understanding customer needs is the focal point of every successful business. The more you know about your customers, the more effective will be your sales and marketing efforts. Making the effort helps to gain insights into your products and services.
Once you have the knowledge of the benefits and drawbacks, it can be used to persuade potential and existing customers that your brand is the best for their interests.
Understanding customers can be vital for the following reasons:
No matter if your customers reach out to you with minor or major concerns, you should ignore them. Rather you should apply it to match the wavelength of the customers with your brand. Handling the challenges properly will help customers feel that brands value their complaints.
When customers have a bad experience with your brand, they might not tell you but certainly, share with their friends and colleagues. Harvard Business Review found that the act of just asking for customer feedback is enough to keep customers from churning and coming back for more.
Acquiring first-hand customer feedback opens growth opportunities for businesses. Encouraging customers to complain and share their opinions is an easy way to share their genuine feedback. It is one good reason why customer complaints are important.
Here are the key reasons why customer complaints or feedback are good for your business?
Podium survey found that 93% of consumers are influenced to purchase by online reviews. This is why marketers give more importance to online reputation and reviews. What customers say about your brand online directly impacts your bottom line.
Managing your brand reputation online is not about removing the negative reviews and complaints from the social channels. It is all about being active 24×7, putting the right efforts to reduce the negative reviews while keeping the customers satisfied at the same time.
Quick tips to manage online reputation:
Wine Country Tour Shuttle serves a good example to handle angry customers with polite responses. You can see how fantastically the manager responded to the customer complaint.
By taking timely actions to an angry customer, your response can appease the direct customer as well as other customers who might read these complaints and access your competence to handle tough queries.
Why do customers complain so much?
Maybe due to reactive support channels, the response may be delayed, and multiple customer touchpoints or interactions are needed to resolve a complaint. If you forget to respond to customer queries on time, don’t forget to use these sorry for the late response phrases to deal with customers better.
Sometimes customers complain because their “frame of reference” does not necessarily line up with the product or service that is offered. If your support team does not have the proper skill set, the process is inadequate, or your team is not equipped with the right tools.
If you are not able to handle your conversations on time and effectively, then you can implement the right tools such as:
REVE Chat is one such AI powered omnichannel platform with digital customer engagements tools that helps to address customer complaints faster. It allows companies to offer real-time assistance on websites, mobile apps and other social media platforms like Facebook, Instagram, Telegram, Viber and WhatsApp. REVE Chat offers 14-day FREE TRIAL to try out all its unique features. So Sign UP today.
McKinsey report says 70% of the customer’s journey is dictated by how the customer feels they are being treated. Generally, customers move to other brands because they are put off by an untrained or rude support team. Effective communication plays a vital role in resolving customer complaints.
When customers make a complaint, it is a hidden opportunity for your business to improve, which is why customer complaints are good for business. When customers see you listening and taking their feedback into account, they appreciate that their voice was heard.
Practice healthy responses for resolving customer complaints:
“Our greatest assets are our customers. Treat each customer as if they are the only one.”
Thus, every customer complaint impacts businesses. Whether it is about a product or service is positive or negative, the business is impacted by it. A satisfied customer may share their experience with limited friends, while a dissatisfied customer may get on social media and share their experience with thousands of followers.
Resolving negative comments is vital but how to respond to customer complaints?
By responding to your customer complaints in a timely manner, you can make them feel valued and happy. Effectively handling customer complaints is important as it is a make-or-break point for customer loyalty.
If you have a business, you will get customer complaints- you have no choice but to face it! Getting complaints from customers is not a very nice thing. Still, they offer valuable insights into how customers perceive your products and services. These complaints present significant opportunities to identify areas for improvement in your offerings and overall business.
Next, let’s look into the types of basic customer complaints and also how to resolve them.
One of the main reasons for customer complaints is the poor quality of a product or service. When a customer makes a purchase, he has something in mind about how that product can benefit him. But when it does not meet the customer’s expectation, sometimes the person can complain to the company about it. These quality issues can include product defects, performance problems, or malfunctions.
Here are some tips for handling different types of customer complaints!
Gather suggestions from your customers about how they would like your products to improve. Based on those feedback and complaints you can work more for the betterment of your services.
Customers expect timely service and instant response, irrespective of where they are shopping- in-store or online. Long wait times can make customers disappointed and often result in complaints. This is especially common in customer service departments, where agents handle multiple customers at a time. High call volumes or live chat requests can lead to extended hold times and customers get upset about it.
Customers reach a brand through various channels (website, mobile app, phone calls, live chat or social media platforms). When they get inconsistent info from different support agents or channels, it leads to confusion. Such information can be related to product or service, pricing, return and replacement policies, and so on. So, make sure that all your customer service agents are well-informed, and that information is standardized across every channel.
Being the face of a brand, support agents are the ones where customers go for any assistance. However, if support agents lack the necessary customer service skills and cannot provide adequate assistance, it can leave a negative impression on buyers.
When a customer reaches out for help and the agent is no’t empathetic or fails to understand and resolve the issue, the situation can get escalated, potentially worsening the customer’s frustration.
Customers connect with a brand through different channels- website, mobile apps, email, phone and social media platforms. When the channels are not integrated properly, customer support agents fail to provide consistent service across all those channels. Customers do switch from channel to channel and also expect to get the same experience everywhere. However, when channels aren’t integrated, they’re forced to repeat their issues each time, which leads to frustration.
Billing or pricing discrepancies are one of the major reasons for customer frustration. High charges, incorrect invoices, or confusing pricing structures can quickly make customers confused and unhappy. They also may feel cheated or misled if they are billed more than expected if discounts or promotions are not applied correctly, or if hidden fees are added.
The customer service department for any brand handles a huge volume of customer queries daily. In that case, companies need to have a well-planned process to respond to complaints effectively. To help you out here, here is a detailed step-by-step process on how to deal with those complaints in the best possible way.
Firstly, listen and understand what the customer wants to convey, his problems, and what he expects to be resolved. Then only you can offer a solution to him. Be empathetic and make him feel that you will try your level best to solve the problem for him. Customers want to feel heard, and demonstrating empathy shows that you care about their experience.
Customers often get annoyed when they have to repeat themselves during the complaint process. To avoid this, opt for customer support tools that store all the required customer details including past interaction history in one place. This gives agents quick access to essential details and helps to use those as references. The more you know about the customer, the better you can personalize the resolution.
Customers can be of different types. They can be angry, rude, loyal, polite, silent or so on. You have to deal with each one of them differently. They also will have different objectives- some may want a refund; some want more clarity with billing, or some may have come to share their dissatisfaction with your services. So, when you understand customers in a better way you can offer assistance more effectively.
Dig deeper into the complaint to understand the root cause that you may not find out initially. Asking clarifying questions will help you out here. It also shows the customer that you are trying to solve his problem. You can do it in 2 ways.
Involving other relevant teams is also a good way to effectively resolve customer complaints, particularly when the issue spans multiple departments or areas of expertise. Some complaints require specialized knowledge or assistance from various departments, such as complaints related to product features or billing. When you involve the concerned department early, you can solve the issue faster. It also prevents similar issues from recurring.
It is a crucial part of resolving customer complaints, as a genuine apology can often defuse tension and rebuild trust. Many times customers come with severe frustration and if you offer a sincere apology first, you can easily calm down the customer. Even when as a support representative you are not directly responsible for that issue, expressing genuine regret for the customer’s bad experience shows empathy and gives him an assurance that you will solve his problem.
A First-Call Resolution is all about resolving the customer issue during the very first interaction with the customer service department without the need for follow-up calls or escalations. This approach is always the best as it reduces the workload and also retains customer trust and satisfaction.
Also, when customers see that you have resolved their problems efficiently, they are more likely to walk away with a positive impression, even if they initially came up with a complaint.
In case you are unable to offer a suitable solution to a customer complaint during the initial discussion, offer him a clear plan of action on how you are going to solve his issue. Additionally, provide an estimated timeframe for when customers can expect a resolution. This helps them to plan things accordingly and set clear expectations related to your brand response.
Follow-ups showcase your dedication to customer satisfaction. Make sure to reach out to those customers to confirm that your solutions meet their expectations and that they are satisfied. Follow-ups are important not only to highlight your commitment to serve better but also you get a chance to collect valuable feedback from them related to your product offerings.
You won’t be able to resolve every customer complaint, and some may remain unhappy. However, that doesn’t mean you will not give it your all. Always go the extra mile to show your customers that you value them and their loyalty. Offering a small gesture, like a discount or a gift, can help ease an upset customer, even if you can’t fully resolve his issue.
When you are running a business, you have to handle customer complaints. However, how you address and analyze these complaints can make all the difference in customer retention and improving your services. These complaints serve as valuable opportunities to gain insights into areas where your business may need improvement. By carefully analyzing customer feedback, you can identify root causes and implement solutions that not only resolve issues but also enhance the overall customer experience. Here are some tips for you!
Collecting customer complaint data is the first and most crucial step in the analysis process. It involves gathering customer feedback from all relevant sources to ensure no valuable information is missed. You can collect customer data from:
Categorizing customer feedback is a great technique to understand how your business is performing. You can sort out those feedback into different categories- such as product quality, pricing, customer service, delivery issues, or website usability. Later you can find out which areas are performing better or getting criticized.
This process helps you to find out the bottlenecks and highlight the newest trends and patterns. Additionally, categorization allows you to uncover smaller operational issues that might otherwise.
It refers to the process of identifying the root causes behind a particular issue or customer complaint. You need to analyze different data, feedback, and performance metrics to uncover the root problems for customer dissatisfaction, employee performance, or operational inefficiencies. By evaluating these causes, organizations can make informed decisions, implement effective solutions, and improve processes to enhance overall outcomes.
Once you have gathered and analyzed all the negative customer feedback, it’s time to create a plan of action. This strategy must be feasible and practical keeping the organization’s resources and constraints in mind. Here are some tips for you!
Next, summarize the complaint data and analysis into reports for decision-makers and share that with all other concerned teams. Highlight key issues, trends, and areas for improvement. Also suggest actionable steps to resolve complaints and prevent future issues.
Lastly, evaluate and monitor how effectively the complaints are being resolved over time. You should look into the below-mentioned pointers:
No matter how big or small a customer complaint is, the way a business responds to it determines whether a customer remains loyal or moves to other brands for business. By adopting an empathetic approach and addressing complaints quickly and professionally, companies can handle customer complaints efficiently. Here are some best practices to look into!
Respond to a complaint as soon as possible to show that your company is always available to assist whenever customers face any issue. Your customers should feel that their concerns are important and valued.
When a customer expresses his problems, listen attentively without interrupting. Such a kind gesture shows empathy and understanding. If required, you can also ask questions to ensure that you have fully understood his challenges. It will help you to find out a solution more easily without any sort of confusion.
The best way to support a dissatisfied customer is by showing empathy and understanding his/her emotions. Empathy is a key skill in customer service that every agent should cultivate. By putting themselves in the customer’s shoes and grasping their concerns, agents can quickly ease the situation and provide an effective solution.
Depending on the complaint, provide possible solutions and let the customer choose which option they prefer. This empowers them and can lead to greater satisfaction. Ensure that your proposed solutions are easy to understand. Avoid technical jargon that may confuse the customer.
Ensure that all customer-facing employees are trained in effective complaint handling. This includes communication skills, product knowledge, and conflict-resolution techniques. The more they are trained the better they will perform.
Use customer complaints as learning opportunities. Complaints are the reflection of what customers feel and think about your brand and its services. So take these positively and work hard to improve your products, services, and customer experience.
When you have a business, you have to deal with complaints, but it has to be effective to retain your customers and brand trust. As customer expectations have changed, the traditional ways of handling complaints need to catch up to meet their expectations. They now expect prompt response and quick resolution to their problems. This is where technology has come into the picture. By integrating advanced tools and systems, businesses can streamline the entire complaint management process—from receiving and tracking issues to resolving them efficiently. Let’s explore how technology is revolutionizing the way companies handle customer complaints.
Through live chat tools, agents can offer real-time assistance to their customers on websites, mobile apps and other social media platforms. When customers encounter problems, they can reach out to agents via live chat and resolve their issues immediately.
Live chat allows you to see in real-time the browsing behavior and current page views of users on the website. So, any time an agent can reach out to them proactively to offer instant assistance even before they ask for it.
Agents need to handle multiple customer queries at a time, and responding to all them at a time manually is impossible. This leads to long waiting times for customers to get replies. Obviously customers do get frustrated. AI powered chatbot is the solution here. This bot can handle multiple customer queries at a time and offer effective responses.
With chatbots, you can automate various business operations including customer service. It also lets you offer 24/7 customer support beyond your office hours.
Many times customers can resolve their problems by themselves, not all issues require direct assistance from agents. By offering resources such as knowledge bases, FAQs, and interactive guides, businesses allow customers to find solutions to their problems, efficiently and quickly. You can develop a robust knowledge base and integrate it with other support channels ensuring that customers can access the information they need at any time.
These self-service options not only let customers find solutions by themselves but also reduce the pressure on support teams, allowing them to handle more complex tasks.
Customer engagement tools offer various reports on customer complaint management such as past chat history, important customer details, browsing history, and also agent performance reports. Such advanced reports help to analyze and identify how customer complaints are getting resolved, what are the improvement areas that need immediate attention and how your agents are performing.
CRM systems (Customer Relationship Management) allow companies to store, monitor, and manage all complaint-related data in one place. This ensures that agents have access to the full customer details (contact information, past chat history, etc.), helping them to understand the background and resolve issues faster.
Customers reach out to brands through various channels, including email, websites, social media, phone calls, and mobile apps. As a result, agents often receive inquiries from multiple sources, making it difficult to manage everything efficiently. Omnichannel tools simplify this process by integrating all communication channels, allowing agents to handle customer queries from a single platform.
With this centralized system, tracking and managing customer interactions becomes much easier, enabling agents to respond promptly and effectively without losing any important customer info.
Automated ticketing systems play a key role in modern complaint management by streamlining how businesses handle customer issues. These tools help to track a concern from submission to customer complaint resolution. Each complaint gets a unique ticket number, making it easier to monitor progress and solve it effectively. Also, tickets can be categorized based on urgency, allowing businesses to handle critical issues first.
To see how the previous sections can be applied in practice, let’s look at an example of handling a customer complaint over live chat. In this scenario, the customer ordered a dress from a website and received it with black stains all over it. The customer contacted the brand’s customer service via live chat to report the issue. Below we have given a sample customer complaint template illustrating how the agent can effectively manage the situation.
Customer: Hi, I just got the dress I ordered, and there’s black stains all over it. This is really disappointing.
Customer Service Agent: Hello, Sara. I’m really sorry to hear that. I completely understand how frustrating that must be. Let me sort this out for you right away.
Customer: Yes, please.
Customer Service Agent: Could you please share your order number with me so I can look into the details?
Customer: Sure, it’s (order no).
Customer Service Agent: Thank you! Let me quickly look into the details. One moment, please…
(After a brief pause)
Thanks for your patience, Sara. I can see your order here. To speed up the process, could you please upload a photo of the stain? This will help our quality control team assess the issue.
Customer: Sure, here’s the photo. (image got uploaded over live chat)
Customer Service Agent: Thanks for the image mam. I can see the stains clearly. We are very sorry for this! I am going to arrange a replacement for you right away, at no additional cost. Does that sound okay?
Customer: Yes, that would be great! Thank you.
Customer Service Agent: You are welcome! I will make sure the new dress is checked thoroughly before shipping. You should receive it within 3-5 business days. In the meantime, I am placing a return request to send back the stained dress. A person will visit your place, please just hand over the defective item.
Customer: Ok sure! Thank you so much.
Customer Service Agent: You are welcome mam. Again, I apologize for the inconvenience caused. For any further assistance, feel free to reach out.
Customer: Sure, thanks!
Customer Service Agent: Welcome mam! Have a wonderful day!
There is not just one common complaint; there are several. But the most frequent ones are slow customer service, long waiting times, billing errors and poor product or service quality.
You need to deal with customer complaints effectively to retain customer trust and happiness. Here are some tips for you!
To be a good customer support agent, one must excel in the following qualities:
Customer complaints provide insights into the performance of your products and services and reflect customers’ perceptions of your brand. You can leverage these complaints to:
Customer complaints can vary widely—some are easy to resolve, while others may be more challenging. In general, it’s important to stay calm and composed. Listen carefully and avoid becoming defensive. Concentrating on finding a solution and expressing empathy will always help to sort things out.
Customer complaints are unavoidable, and how you address them can significantly impact your success. It’s important to shift your mindset and see complaints as valuable opportunities. As mentioned before also, complaints can drive meaningful improvements for your business. By understanding their benefits, you not only enhance your brand’s reputation but also boost your team’s productivity.
With REVE Chat, you can provide real-time support across your website, mobile apps, and social media platforms. Your agents can efficiently manage customer complaints, helping to retain more customers and drive growth. From real-time assistance to automating various business operations, REVE Chat is a comprehensive omnichannel customer engagement tool designed to keep your customers satisfied. Ready to give it a try? SIGN UP today!
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