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Why are customer complaints important for business?

The Customer Rocks the Crown

You’ve probably heard the phrase ‘the customer is the ultimate king.’ Or ‘the customer is always right.’ Your boss might have even reprimanded you due to a disagreement with a customer complaint raised due to a glitch in service delivery.
 
78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. (Source: American Express Survey, 2011.)
 
Most, if not all of us, have to know how to deal with customers’ complaints and use them to improve our business. Ironically, we might have been that difficult customer in an alternate situation. We always tend to see only one side of the coin, but the truth is that 24/7 customer service is an every-person game.
 
  • Some customers are too picky.
  • Some customers want too much detail.
  • Some customers are particular about their privacy and customer service.

Companies and their superstructures understand that losing a customer from a disappointing experience that wasn’t resolved means losing them FOREVER.
 
Forbes estimates that companies lose about 62 billion dollars each year due to poor customer service, and the ripple effect translates to years.
 
However, an emotion that grows out of genuine disappointment is always below the facade. Most customers can forgive a one-off incident because they understand that the folks working the command lines are also human.

If you have the same caller complaining about the same thing three times a week, it definitely means something is amiss on your side as a company. And addressing it correctly shows a blind spot to consider and improve your business.

It is crucial to pay gross attention to your customer complaints about the business. This way, the clients can improve your support team operation or the product/service you sell. Instead of a low moment, turn that harsh word into a win for you and your company.
 
deal with customers' complaints

The Golden Age of the Internet and Social Media

In this day and age, where everybody is connected by the Internet and social media such as Facebook, Instagram, or Twitter, a single customer complaint could cost you millions. Replying to customer complaints badly could get you on the receiving end of the hate of millions. 

Big companies hire responsible managers for both social media content and outsourcing eCommerce customer service. Most businesses are now located on the Internet, so people who buy online will overlook your social media presence.

For example, in 2017, United Airlines made headlines when a customer got thrown off a plane under unclear circumstances. The incident was recorded and quickly went viral, especially on Twitter, and one can imagine how that was settled. But they definitely used this case to improve security measures.

How to Respond to Customer Complaints?

Most of the complaints you get will be in text form. People rarely dare to call and express their anger. So, emails or messages need to be written so that you restore the customer’s confidence in your company and regain their goodwill.

Below, we provide some resolving customer complaints examples.

Acknowledge customer concern in the first sentence

Wrong: “We are sorry and embarrassed. But, most of all, we are deeply sorry.”

Correct: “Thank you for your email. I’m sorry you are experiencing problems with your software product keys.”

When you start an email by recognizing the customer’s problem, you delight them with your concern and personal approach to handling customer complaints.

Apologize regardless of who is at fault

Firstly, you should apologize whether the problem is your company’s fault, the customer’s fault, or an act of nature. Try to apologize without placing blame. 

Wrong: “It is not our fault that you damaged the product at home.”

Correct: “I’m sorry for any misunderstanding/inconvenience you may have experienced.”

  • A genuine apology can strengthen a customer’s emotional bond with a company.
  • When an apology is genuine, customer satisfaction increases 10-15%.
  • Apologizing helps you create rapport and rebuild trust. 
 

Secondly, when you react to a customer complaint response, you need to apologize in any part of your message. It can be in the opening paragraph or somewhere in the body, but after stating a problem.

importance of customer complaints

Explain how or why the problem happened

Explaining to the customer what might have caused the problem helps you to reestablish trust in your company and regain customer goodwill. You look more sincere and reliable when you show interest in a sold product or service. 

Example: “Thanks for taking the time to let us know about this. Here’s what we think may have happened.”

Customer Service Directly Translates to Revenue

Happy customers always come back. Customers always talk about good or bad experiences with other people, and this is how most companies stay afloat; by wowing existing customers.

As a business, you need to be empathetic and responsive but, most importantly, quick when handling customer complaints. Make the customer feel loved, cherished, and respected. Things might get terrible, and you may even increase your prices, but customers always stick with you. 70% of buying experiences are based on how customers feel they are being treated.

Conclusion or Customers Never Forget

Customers always make a mental note of good and bad incidents. They say people forget what you say but never how you make them feel. Customers might quickly forget about previous customer service complaints as soon as they are replaced with more amicable support. However, they will never forget being made to feel unworthy or uncared for.

Taking time to understand, respond to, learn and improve from a customer complaint or a nasty incident will get your business on the right track to promised growth.

If you are still struggling with angry customers, do not hesitate to cooperate with outsourcing customer service. Choose us, book a call, and we will definitely “wow” your clients.

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