ADNET Audio & Internet Advertising

When we first started dealing direct with customers 16 years ago (Jan 15 1996), a customer who also ran a business said: “If you’re in business you’re sure to have upset someone!”

At first we took it as a personal afront as we strived always to deliver good service on every level however although a customer complaint can be a negative experience, it can also be a valuable asset.

A customer complaint is one of the best opportunities you have for turning an unhappy customer into a loyal customer. Even the most dissatisfied customer can become an ambassador, winning new customers for your business by word-of-mouth advertising.

• Train your staff to handle complaints well

• Make it easy for customers to complain

• Welcome customer complaints. Generally only 4% of customers will complain, 5% MAY return and 91% of them will never go back. Then there’s the domino effect where a dissatisfied customer tells more than eight people about his or her problem.

• Deal with complaints promptly. 70% of complaining customers will do business with you again if you resolve the complaint in their favour and, if it is resolved on the spot, 95% will do business with you again.

So, through resolving a complaint efficiently and fairly, you can retain the customer’s loyalty and potentially gain new customers through good feedback.

It’s a good idea to have a strategy in place for dealing with complaints. An effective and efficient complaints handling policy means:

1. Fewer mistakes and less time spent fixing them
2. Improved product quality
3. Better understanding of customers’ needs
4. Happier and loyal customers
5. More customers through word-of-mouth advertising
6. Less time and money spent attracting customers
7. Improving business reputation
8. A healthier bottom line.

The worst thing you can do is to ignore a complaint – accept, acknowledge, apologise and resolve.

For example

On a Virgin Australia  flight from Sydney to Perth I notified the Flight Attendant that there appeared to be something stuck in the headphone socket rendering the in- flight entertainment useless.  They immediately accepted and acknowledged the problem, detailed it in their fault report for the airline and then promptly gave me a portable DVD player preloaded with movies, music etc.

The major cause of a breakdown in communication when handling complaints is misunderstanding, so it’s wise to keep a record of all promises, agreements and undertakings.

Decide how you should handle complaints.  Standards Australia’s  ‘Complaints Handling’ provides an excellent guide for developing an effective policy.

Anticipate potential problems or mistakes and how you can fix it if

1. You’re short staffed?
2. The customer is still angry after we’ve apologised?
3. We didn’t deliver on time?
4. The computer ‘goes down’?
5. The order went missing?

Type up your new policy, taking into account any legal obligations, industry codes of conduct and how it will work.

Make sure all staff understand the new policy, why it was introduced, how it will work and what they should do. Be aware that some staff training will be necessary.

Encourage and even reward your employees for finding disgruntled customers and handling their complaints well. Remember, complaints are a great opportunity for improving your business and for impressing and keeping even the most dissatisfied customer.

Let your customers know that your business welcomes complaints. Invite your customers to let you know if they were satisfied with the way their complaint was handled.

Trial the system for a set period of time; for example, two to three months and then access how well it’s working and make any necessary changes.

Take time to handle complaints when they are first made. Prompt action will be more likely to satisfy the customer. The faster a complaint is resolved, the less time you’ll need to spend on it.

Be sympathetic and calm, acknowledge there is a problem and that it may be annoying, inconvenient or unfortunate.

You may not believe the customer’s complaint is justified but remember that  they are telling you because they are unhappy. Their complaint is an opportunity to retain their custom.

Stay calm. This attitude may be difficult if the customer is angry or has an irritating manner.  Sometimes people are just busting for a fight and an agreeable nature can quickly disperse the anger.

Find out the exact problem. Listen carefully.  Be sympathetic. Ask what they want you to do for them. Don’t assume and don’t just fob them off. Write it down and if you’re not authorised to effect a solution then pass it on to the person in charge of complaints.

Try putting yourself in your customers’ place and imagine how you would feel if you were in their situation. Even in situations where the complaint may be unjustified, you still need to make the customer happy again to keep their business. A simple explanation may be all that is needed.

Keep a written record of the complaint and what you have agreed to do.  Record all contact about complaints, including whether they were face-to-face, by telephone or in writing.

Remember that simply filling out a complaint record form does not solve the problem and neither does ignoring the complaint!