Why you need to LOVE complaining customers…

No business is perfect (so get over that one now – all you perfectionists!) Mistakes will be made, errors will occur. It will happen, and it sometimes happens a lot (if it is happening a bit, ever thought of developing a complaints log to establish trends and patterns - faults?)

• 4% of dissatisfied customers complain.
• 96% of dissatisfied customers don’t complain they just stop buying.
• Read that one again – 96%!!! (And some business owners wonder why their business failed.)
• Of customers who register a complaint between 54 -70% will do business again with the organisation if their complaint is resolved (The figure goes up to a staggering 95% if the customer feels that the complaint was resolved quickly – but more about that shortly)
• 80% of dissatisfied customers tell 10 people.
• 20% of dissatisfied customers tell 20 people.
• On average a satisfied customer tells three people about a good product experience

”Your most unhappy customers are your greatest source of learning.”
Bill Gates – richest man in the world: need I say more?

So you’ve just dismissed the complaints in the business? What a lost opportunity.

Let’s go back to those numbers. If your business receives 4 complaints per year you have probably had 100 dissatisfied customers!

Think about that.

Those dissatisfied customers have told hundreds of others. And you wonder why sales aren’t as good as you’d like? (Be real, everyone wants more sales, even if they’re just better quality.)

So take a fresh look at complaining customers. Embrace their complaints, listen, and learn to love your complaining customers. Because they are the ones telling you where you are going wrong - so you can improve and become a better, more profitable business. Ah yes, that magical word that perks everyone up – profit.

And, because complaining customers give you a chance to win a 'new' customer (again from above: 95% of dissatisfied customers will do business with you again if you resolve the complaint in their favour on the spot).

This is even more profound.

Not only can you resolve a problem (= instant happy customer), they become more profitable (coming back more often and buying again = happy business owner), they tell their friends (increasing your reach and database, with an extremely low customer acquisition cost = happy business)

Seeking out and identifying customer complaints is one of the most profitable activities that a business can engage in. When a customer complains they are actually giving you an opportunity to keep their business - business you would otherwise have lost.

And that's the beauty of it. If you are dealing with your complaints properly, and actively seeking and welcoming complaints, then word soon gets around. (That complaint log’s starting to sound pretty good now isn’t it?)

“When people talk about successful retailers and those that are not so successful, the customer determines at the end of the day who is successful and for what reason.”
Gerry Harvey – Founder and chairman of Harvey Normans

Complaining customers can become your best customers. Customers then feel more comfortable to complain and you then get the opportunity to:

• Reduce the number of dissatisfied customers,
• Keep their business,
• Strengthen the relationship,
• Exceed their expectations.
• (and make more profits)

Quickly fixed complaints can have the wonderful effect of increasing customer loyalty that would have been achieved if it had never occurred. And that's because the customer remembers that extra little touch that you provided (you did, didn’t you?)

Remember, the more complaints you hear about equals the more complaints you can effectively deal with. That means more business you can generate from these customers that you wouldn't have otherwise received.

And the more complaints you are hearing about and dealing with means a lesser number of dissatisfied customers talking about their bad experiences with your business.

“Spend a lot of time talking to customers face to face. You'd be amazed how many companies don't listen to their customers.”
Ross Perot - Businessman and candidate for American president in 1992/1996

Don't think of what it will cost to fix a complaint. Think of what it will cost if you don't fix it.

So, here are some quick tips to start the complaint handling process (these are examples that are core to achieving that ultimate objective of a customer becoming a brand advocate of your organisation = telling everyone they know how wonderful your business is):

1. Reward them for complaining

2. Listen to the complaint "Please tell me exactly how we are failing you."

3. Find out how the customer wants it fixed - "Now, how can we make things right?"

4. Thank them - "Thanks for bringing this problem to our attention. We appreciate this greatly because we are committed to providing the best widgets possible."

5. Apologise - "I'm sorry that the quality of the widgets has not been to our usual standard."

6. Offer a solution: "How about we deliver free replacement widgets immediately. We will of course refund the full purchase price of the widgets. Is that acceptable to you?"

7. Get agreement - "Good, I'll have them delivered to your business within the hour."

8. Fix their problem - Deliver the widgets (and refund) within the hour.

9. Make a follow up call - "I'm calling to make sure that the widgets arrived and that they are the correct size. Were you happy with the way we have handled this problem sir?"

Pretty easy stuff. Do some of these (ideally all) and your business will reap the rewards.

”If you work just for money, you'll never make it, but if you love what you're doing and you always put the customer first, success will be yours”
Ray Croc - McDonalds Corporation Founder

Best wishes

Vaughan