Why Customer Complaints Are Good For Your Business?
Even in 2022, there are still many business owners who don’t quite understand how to deal with customer complaints. Customer complaints provide first-hand insight into how your business is doing. The complaint of a customer reveals a problem, a problem with your product, employees, or internal processes, and you can investigate and improve to prevent further complaints. A customer complaint is actually the best form of feedback you can get, so it is better to address them carefully and implement the changes they suggest rather than paying for market research or conducting a feedback survey.
“Your most unhappy customers are your greatest source of learning.” — Bill Gates
If you want to ensure business growth, you should know what your customers complain about and treat them as valuable feedback that you can incorporate into your customer service strategy. Let’s first understand what customer complaints mean and what they offer businesses.
What are Customer Complaints?
Customer complaints are the disparity between what customers receive and the goods and services promised to them by brands. The brand’s offers and customers’ experiences with that brand are at odds. When a brand’s goods or services fall short of the customer’s expectations, the customer typically complains to the brand.
Depending on the nature of the complaint, a brand can quickly resolve it and turn it into a positive shift. Alternatively, a company can modify that feature or service to benefit its customers. There are several customer complaint categories based on the following:
- Service is of poor quality
- Brand communication is ineffective
- The brand broke its promise.
If complaints are not handled properly, customers may withdraw their business and encourage others to do the same. Complaints that are handled properly may help you retain existing customers and may result in new customers being referred to your business.
“The customer’s perception is your reality” -Kate Zabriskie
Advantages of properly handling customer complaints:
- Enhances your brand’s image.
- Improves customer retention.
- Increases customer satisfaction.
- Determines which areas require improvement.
Although certain businesses think they’ve done everything, eventually they end up losing customers. The reason for this may be that they do not have a good customer service system. Customer Relationship Management software now helps you to handle your customers in a better way. By using CRM software, you can improve the productivity of your sales team.
Benefits of Customer Complaints in your Business
Customer complaints provide an early indication of how your customers feel about your products and services. Rather than conducting surveys and market research, categorizing customer issues can be a good starting point for identifying areas for improvement. Implementing those changes not only improves customer service but also helps the company maintain a strong competitive advantage in the market.
Thank your customers who have complained about your products or services because they took the time to let you know their opinion. Many of your customers do not complain but have quietly switched to your competitors.
The following points will help you understand why customer complaints are important for any brand.
- Enhanced customer understanding
- Improved Customer Service and Communication
- Increased Customer Loyalty
- Identifying mistakes
- Increased Positive Word of Mouth
- Product/Service Improvement
- Brand Image Enhancement
1. Enhanced customer understanding
Understanding your customer’s needs and concerns by reading customer complaints will help you serve them better. Even if a customer complains about a minor inconvenience, make sure to resolve it as soon as possible. Learn about customer psychology and apply it to better products and services. It eventually leads to increased customer loyalty and positive word of mouth about your brand.
2. Improved Customer Service and Communication
Are your customers complaining too much about your brand these days? A delayed response from your end or a lack of interaction across all of your communication touchpoints may be the cause. A brand’s reputation can be enhanced by enhancing customer support in response to customer complaints.
When brands use omnichannel support, they become proactive in their approach to reaching out to all customer support touchpoints in order to provide excellent customer service. Customers should be encouraged to contact brands with questions and concerns, and brands should respond to them promptly. Customers must recognize the brands’ interest in resolving their problems. This will not only increase customer loyalty but also brand reputation.
3. Increased Customer Loyalty
Ensure that the customer service representative responds to customers’ calls promptly and that they provide relevant solutions on time. Even if there is no way to resolve the customer’s complaint, compensating the customer in some other way will reflect positively on your brand’s reputation. Customers will remain loyal to your brand despite the inconvenience.
4. Identifying mistakes
For every complaint you receive, there is a chance that hundreds of other customers are experiencing the same problem but have not approached you. It is best to treat each customer complaint with care, especially if it is brought up several times by different customers. Evaluating the issues and concerns will assist you in troubleshooting problems that you were unaware of. Improve your business processes and services while correcting product and service errors so that your company can achieve brand reputation and profitability.
5. Increased Positive Word of Mouth
Customers will tell their friends and family about a brand that addresses their concerns. Customer service plays an important role in establishing a positive brand image in the minds of customers. Word-of-mouth recommendations are invaluable and more effective than any commercial advertisement. When the potential customer hears positive things about a brand, they are more likely to become a customer. This demonstrates the significance of customer complaints to your brand.
6. Product/Service Improvement
When a company receives customer complaints about a product or service or a simple feature that they dislike, the brand should view this as an opportunity to improve their product or service by resolving their customer queries. As a brand, you should always look for ways to delight your customers with product or service enhancements so that they will choose you over competitors. Customer complaints provide valuable insight into areas where your product can improve.
7. Brand Image Enhancement
Having a proper communication channel through which customers can voice their customer experiences and complaints also reflects a positive brand image. However, you must ensure that you address those issues in a timely manner and that you respond to their feedback concisely. The more your brand goes above and beyond to address customer issues, the happier your customers will be. If your customers are satisfied, they are more likely to spread positive feedback about your brand, which will aid in the development of your brand’s reputation.
To resolve customer complaints, employ the L. A. S. T. method. LAST is a widely used method in many businesses to solve customer problems.
Listen: Allow your customer to express all of their complaints and do not interrupt them until they have finished. Even if you disagree, remain calm and listen to everything they say. Reiterate their problem to show that you were paying attention.
Apologize: The next step is to apologize to your customer. Express your regret that your service or product did not meet their expectations.
Solve: Tell them that you will contact your manager and call them back later if you don’t have the proper solution to their problem. It’s not the solution they were hoping for, but it’s progress.
Thank: Express gratitude to your customers who point out flaws in your products or services. Tell them you’ll take care of the issues right away.
You have successfully improved your customer service quality by properly handling customer complaints. With the best customer service practices, you were able to turn an unhappy customer into a happy customer.
Finally, a company should understand that Customer Complaints are a part of doing business. Due to various business and economic constraints, a company cannot satisfy every customer. The most important thing that a brand can do is acknowledge and address customer complaints. Use it as a learning experience or to improve any features of your brand’s product or service. Addressing customer complaints requires patience and time; however, companies must find ways to resolve the issues in order to generate greater business success. If you treat your customers poorly, they will not want to do business with you. Treat them well, and they will become a long-term customer.