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A complaint is never pleasant to receive — but it is an opportunity. Research shows that customers who see a complaint handled well become more loyal than customers who never had a problem. In this guide, you'll learn how to handle complaints professionally.
Customers complain because they have an expectation that wasn't met. That expectation may have been too high, or your product or service fell short. In either case, the customer feels disappointed.
Most unhappy customers don't even complain — they leave quietly and tell their friends. Customers who do complain give you a chance to make it right. In fact, according to a study by InsightSquared, it's estimated that for every complaint, there are 26 other unhappy customers who don’t voice their concerns. This highlights the importance of addressing complaints effectively.
These typically arise when a customer feels that the product did not meet their expectations or was defective. For example, a customer may complain about a clothing item that arrived with a tear.
Complaints in this category often stem from poor customer service experiences, such as long wait times, unhelpful representatives, or lack of support. An example would be a customer who waited on hold for an extended period and received inadequate assistance.
These complaints can arise from overcharging, unexpected fees, or problems with refunds. For instance, a customer might express dissatisfaction over being charged twice for a subscription service.
Let the customer finish without interrupting. Show that you're listening:
Customers want to feel heard before they want a solution. Active listening not only helps in understanding the issue better but also builds trust. Consider using paraphrasing to reflect back what the customer has said, such as, "So what I’m hearing is that you felt disappointed with the delivery time." This can demonstrate that you are truly engaged.
Validate the customer's feeling, even if you disagree with the complaint itself. No defense, no excuses for the company — just acknowledgment.
Wrong: "Actually, our terms and conditions state that..."
Right: "I understand you expected this differently, and I'm sorry about that."
Acknowledgment can be further enhanced by relating to the customer's experience. For instance, "I can imagine how frustrating it must be to wait longer than expected for your order." This shows empathy and helps to soothe the customer’s feelings.
A sincere apology costs nothing but means a lot. Keep it simple:
"I'm sorry you had this experience."
Note: don't apologize if nothing actually went wrong. Insincere apologies are seen through. A genuine apology can turn a negative experience into a positive one. According to a study published in the Forbes, companies that effectively apologize see a 70% increase in customer loyalty.
Fully understand the complaint before offering a solution:
Good questions prevent you from offering the wrong solution. You may also consider using follow-up questions to dig deeper. For example, "How did this issue impact your experience with our product?" This not only gathers more information but also demonstrates your commitment to resolving their issue.
Offer a concrete, fair solution. Be proactive:
Give the customer a choice where possible: "Would you prefer a replacement or a refund?" Having options empowers the customer and can lead to a more satisfactory resolution. For example, a survey from PwC found that 59% of consumers feel more loyal to brands that allow them to choose between resolution options.
After the resolution, reach out to check everything went satisfactorily. This small gesture makes a big difference and shows you mean it. A follow-up can be as simple as an email or a phone call to ask, "Is everything okay now?" This step not only reinforces that you care about the customer but also provides an opportunity for further feedback. Consider keeping a log of complaints and resolutions to track trends and improve future interactions.
Stay calm. Don't get into arguments about who's right. Give the customer space to vent and respond only when emotions subside. It can be helpful to use calming techniques, such as deep breathing or counting to ten before responding, to maintain composure. You might say something like, "I can see that you’re really upset, and I want to help resolve this for you." This acknowledgment can help to de-escalate the situation.
Sometimes a customer is wrong. Be friendly but clear: explain why you can't meet their expectation and offer an alternative. You don't always have to give in to unreasonable demands. Instead, present a solution that is feasible and aligns with company policies. For instance, "While I can't provide a full refund after 30 days, I can offer you a store credit." This approach shows that you're willing to help without compromising on company standards.
Respond quickly (within 1 hour) and publicly. Keep it short and professional, and ask if you can resolve it via DM or email. Public arguments help no one. For example, you might respond with, "Thank you for your feedback, we’re here to help! Please DM us your order details so we can assist you further." This not only addresses the complaint but also shows other potential customers that you are responsive.
Your policy should clearly outline what types of complaints are covered and the processes involved in handling them. This can include product defects, service delays, and billing issues.
Detail the step-by-step process that employees should follow when a complaint is received. This should incorporate the six steps of effective complaint handling previously discussed.
Conduct regular training sessions to equip your team with the necessary skills and knowledge to handle complaints effectively. Role-playing different scenarios can help employees practice their responses.
Regularly assess the effectiveness of your complaint handling policy by analyzing customer feedback and complaint resolution outcomes. Make adjustments as needed to continuously improve the process.
Companies that handle complaints quickly and well score higher on customer satisfaction than companies that never receive complaints. A report by Accenture highlighted that 62% of customers would change their purchasing decisions based on a company's response to complaints. Use complaints as input for improvement: which problems keep coming back? Those are the problems to solve structurally.
Additionally, consider implementing a feedback loop where complaints are analyzed for trends. This can help in identifying recurring issues and addressing them at their source, improving overall customer experience.
The best way to handle customer complaints is to listen actively, acknowledge the issue, apologize sincerely, ask relevant questions, provide a fair resolution, and follow up afterward.
You can improve your complaint handling process by training your team regularly, establishing clear procedures, monitoring customer feedback, and using technology to streamline the process.
Tools like Bugalou, live chat software, CRM systems, and feedback tools can help manage customer complaints effectively by centralizing communication and tracking customer interactions.
Following up on customer complaints shows that you care about their experience, reinforces loyalty, and provides an opportunity for further feedback to improve your services.
Common mistakes include waiting too long to respond, redirecting customers without assistance, being defensive, and failing to follow up on complaints.
Never let another complaint fall through the cracks. Try Bugalou free for 14 days.
Founder of Bugalou and e-commerce entrepreneur. As a business owner, I noticed that customer service tools were either unaffordable or so complex you needed an IT department. That frustration led to Bugalou.