Turning Customer Complaints into New Opportunities
By now you probably know that customer complaints management is important in terms of improvement and overall service levels. But did you know that you can also use customer feedback to improve your financial results too?
All of the data that you collect when customers share their feedback is worth gold. You may be given insight into things that need to be fixed, or perhaps ideas you may not have considered for products, processes or even delivery. You could also equate that feedback into real, obtainable strategies that will improve not only the business itself, but also the bottom line.
How Customer Complaints Deliver Better Business Results
If ever there was a reason to take customer complaints more seriously, the following advice would be it. And, if you have yet to install a clear process for customer feedback, now might be a good time to start thinking of how you can leverage feedback for better business results.
Recent studies done by Ernst & Young in a report titled ‘Effectively Leveraging Consumer Complaints for Competitive Advantage’ showed some very interesting findings indeed. Here is a snapshot of how you can use the data collected via feedback for your own advantage.
Resolve Bad Experiences
Resolving the bad before all other feedback is a strategy that works. One study done on US Retail Banking by PwC stated that two in five customers changed to another bank after even one bad experience. You can avoid the same by turning bad experiences into good ones – responding with urgency, dealing with the matter appropriately and working to foster loyalty is the best way forward.
Another approach that works well is to seek customer feedback before service level changes are implemented, rather than afterwards. This allows customers to have their say, contributing towards changes in a more meaningful way – not just after the fact.
Train Employees on Live Problem Solving
A potential minefield when it comes to customer complaints management is the front of house team, which could be anyone from sales floor staff, receptionists and anyone else who deals with customers on an upfront basis.
Statistics show that at least 50% of companies do not have faith that their frontline staff are equipped to escalate and handle complaints sufficiently.
Customers ultimately want to be able to have their issues resolved by a real, live person rather than a voice on the other end of the phone or an impersonal email. Having customer complaints software, and front of house employees who are trained to use this sort of tool helps to get issues resolved far more quickly, without the need to search extensively for information to resolve issues on the spot.
Learn What Customers Want
Last but not least, organisations also use feedback data to ‘close the loop’ and make sure that the issue has been resolved in accordance with customer needs.
But there is even more potential for growth, by listening to what customers truly want in terms of your business offerings. Word of mouth marketing has proved so effective that around 50% of customer recommendations are presented this way.
Experience counts far more than prices or even promotions – if you have reverted an unhappy customer into a good one, and put changes into place that improve things on a bigger scale, what will that customer be telling people they know?
Use all available channels to connect to your customers – social, online, in-store and via call centres too. By leveraging the data you get from each and every complaint, you will have the chance to turn those complaints into powerful strategies that deliver results. And that is what makes customer complaints management something that no business should overlook.
Cezar Consing :A Very Angry Letter from An EQ Post Reader
to BPI TRADE:
What is your right to withhold the withdrawal of my money from BPI trade account?
Why do you consider my trade account dormant for two years?
Pls check my monthly statement of account to verify whether this is true or not!
I have been actively trading in stocks all these years!
In all my years as a BPI customer, I have never ever been treated this rudely!
A Loyal BPI Trade Customer
Please be informed that your withdrawal has not been processed for reasons that your account is already under dormant in status. The BPI Trade Bank Account becomes dormant after two years of inactivity.
Should you wish to continue your withdrawal, we have to first lift the dormancy of your account. In this regard, we request you to fill-up theattached BPIDirect Form, Customer Reference Card, FATCA Questionnaire,Signature Card and signed Reactivation Letter. Kindly send it togetherwith a copy of two valid ID's to our office at 3rd Floor BPI Bldg, AyalaAve cor Paseo de Roxas, Makati City.
We hope to hear from you. Thank you very much!
BPITrade Customer Service
The objective of an effective consumer complaints system is to turn a disgruntled customer to a HAPPY customer.
Management of Consumer Complaints
Managing customer complaints, problems, and issues is part of being in business. Managing the complaint well and providing good customer service is about more than just keeping customers happy. It's about revenue, because customers make buying decisions based on the service they receive, not just price, quality and availability. A lost customer means lost revenue and an unhappy customer can damage your reputation.
A well managed complaint may convert a potentially lost sale into a loyal customer and is a way to stay ahead of your competitors, but how do you turn a negative experience for the customer into a positive one that may result in repeat business?
How to manage customer complaints
Develop procedures so you and your employees know how to manage customer complaints.
Provide employees dealing directly with customers the power and flexibility to immediately resolve the issue.
Listen empathetically to the customer to establish the details and facts of the complaint (the nature of the fault, the damaged goods, date of purchase, price paid, proof of purchase, name, address etc).
Record the details together with relevant evidence (sales receipt or damaged goods).
Ask the customer what remedy they are seeking (repair, replacement, refund or apology). Make a judgement about whether the customer's request is reasonable.
Resolve the complaint quickly, courteously, and without hassle. Negotiate face to face in a calm and professional manner.
Don't make promises you can't keep. Keep the customer informed of any delays. It is better to under-promise and over-deliver.
Where appropriate, follow-up to ensure the problem has been rectified and the customer is satisfied.