"The consumer is not a moron, she is your wife." David Ogilvy
When she complains, she is simply asking for redress of a grievance (compensation, amends, or reparation for a wrong, injury, etc.) about your product or service. The EQ PostWhile consumers are now more inclined to voice complaints to organizations about products and services than they were in the past, the majority of shoppers will not make the effort to let you know when their purchase from you disappoints them.
In the Philippines, only one of every 10 customers with a similar problem about a product will go out of her way to voice out her complaint.
No matter how obnoxious a complaining customer might be, “People who do complain to an organization are giving it the chance to put things right.”
@ WatsonsPH :Your sales clerk in SMSouthMall DEFACED my 2016 doctors prescription for Micardis+40grams by writing "100% order fulfilled" over my prescription. She very rudely said,"You have to get a new prescription next time!"
It's my lifetime maintenance medicine for hypertension.
The Watson's clerk's apparent objective was to prevent me from availing of the senior citizen discount the next time I go to Watson's.
I have been using that same prescription in Mercury Drug and I never had this same experience.
Since the doctor's prescription was defaced, I will have to see the doctor again and pay expensive doctor's fee to get the same prescription again!
As a small SM stockholder , I have tried patronizing SM Affiliates
rather than the competition like Mercury.
But, from now on, I will not buy again from Watson's because of this very unprofessional service!
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.
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.
From UpYour Service
Managing Complaints To Improve Customer Satisfaction
Managing customer complaints is a vital, internal process influencing customer perceptions and the attitudes of your staff. Pay attention to complaints and you can improve customer satisfaction for the better.
Is your “complaint management system” up-to-date? Use this checklist to review your current approach and, if needed, make it better to improve customer satisfaction.
1. Focus on the complaint
Read the complaint with an open and appreciative mind. Complaints are an opportunity to fix problems and prevent them from re-occurring to improve customer satisfaction.
Identify the “value dimension” your customer is complaining about. A value dimension is that aspect of the service interaction your customer truly values, but which has been under-delivered or unfulfilled.
Value dimensions are always positive, often the opposite of your customer’s complaint. For example, if they complain about slow response, the value dimension is speed.
If they complain about rude staff, the value dimension is respect, courtesy and staff attitude.
2. Focus on the company
Connect with those inside your organization who can make improvements in the identified value dimensions. This may be people responsible for procedures, staff development, etc.
Study the complaint with your team and determine what should be changed or improved to prevent repetition.
Confirm who will make the changes required to improve customer satisfaction. Be clear about who will do what and by when.
Track customer complaints in this value dimension over time.
3. Focus on the customer
Assess the impact of this problem on your customer. Has your customer been severely pained or is the impact minor? Is your customer cool, or hot and ready to explode?
Plan the actions needed to set things right for this customer. Express empathy and apologize. Give an explanation of what will be improved inside the company. Prepare specific positive actions. Include a generous gesture of goodwill to demonstrate your appreciation and improve customer satisfaction.
Then contact the customer by phone, e-mail, letter or in person. Make them feel right by agreeing on the importance of the value dimension they hold so dear. Tell them how committed you are to improving this dimension of your service and to reclaiming their full satisfaction.
Explain the specific actions you plan to take on their behalf to improve customer satisfaction. Confirm whether these will be sufficient to restore your customer’s confidence and trust.
After you have taken the actions, follow-through to be sure your customer is satisfied and intends to patronize you again.
Key Learning Point To Improve Customer Satisfaction
Most people with a complaint won’t even tell you about it. Instead, they’ll walk away and tell other people: your customers, prospects and competitors – sometimes government agencies and the press!
Customers who do complain are actually your best friends, your free consultants, your valued business partners. They give you the information you need to improve customer satisfaction. Be sure you treat them that way to improve customer satisfaction.
Action Steps To Improve Customer Satisfaction
Review, revise and reinforce your complaints management policy and procedures. Make sure every upset customer becomes a happy customer.
Manage positive comments, too! When you receive a customer compliment, send an appreciative and informative reply. Turn your happy customers into bona fide ambassadors: eager to return, willing to stay in touch, ready to promote you with positive word-of-mouth.