The High Cost of Customer Complaints

High & Hidden

A hidden cost associated with ignoring customer complaints could be costing you thousands of dollars per year in lost revenue.

Boycotting

Men who are unhappy with the resolution of an issue will boycott an organization for an average of 10 years! Women will boycott for double that amount of time according to a Customer Champions survey in the UK.

If you work in a large organization you might be saying to yourself, "Our internal customers can't boycott us - they have to use our services!" But don't be so sure. Even inside organizations leaders can try to get your services delivered in alternative ways.

For example, a large government department, used to put out request for proposals with some very specific requirements that an internal department could not meet. This was their way of "boycotting." An energy company that I worked with, created "shadow roles" inside their departments. They got training delivered by their own people instead of using HR.

Handling Customer Complaints

1. Take each complaint seriously. Do not ignore complaints - they do not solve themselves.

2. Take responsibility. Say you are sorry.

3. Learn from complaints. What patterns are emerging that are showing a weakness in your service delivery?

4. Respond back quickly with a solution. People don't care how busy you are, so don't give them excuses. Tell them what you have done to resolve the problem.

5. Thank people for the feedback.

Reducing the High Cost of Customer Complaints

By teaching your staff how to handle customer complaints, you will reduce the hidden costs associated with people boycotting your organization. You will also reduce costs associated with handling repeated issues.

Customers who feel their complaints were not handled effectively will complain to others. However, if their issues are handled effectively, they will become loyal customers.

Now what?

1. Review how well your organization handles customers complaints.

2. Try the recommended steps for handling customer complaints.

3. Tell me about your experience.

Contact me Valerie.MacLeod@HainesCentre.com