How to resolve customer complaints to build loyalty

Nobody sets out with the intention to disappoint. Most of us have good intentions. So when we receive a complaint from a dissatisfied customer, it’s human nature to feel upset by it. If your business wants to build a loyal customer base, changing the way you respond to negative customer feedback could lead you in the right direction.    

In this blog, we’re going to look at how the way you react to a complaint can build customer loyalty. Let’s begin with a couple of powerful statistics... 

• Research from People 1st reveals that when a customer is happy with their experience, they are 78% loyal to that business.

• The same research shows that when a customer is unhappy and their complaint is resolved quickly and as they would like, their loyalty score rockets to 96%. 

What happens when we receive negative feedback?

One of two things happen when we face negative customer feedback. People tend to either care deeply or don’t care at all. Most colleagues care deeply and want to make the situation right. Some of those won’t feel completely confident in their ability to resolve the complaint, perhaps through lack of experience or training. Skills gaps can be bridged. A poor attitude is more of a challenge.

It’s a bigger problem when team members don’t care that a customer is unhappy. Do you have people who behave like this with your customers? What damage are they doing to your reputation with their ‘couldn’t care less’ attitude? Is it time you took action to resolve their negative attitude?

The magic of feeling understood 

How do you feel when you are dissatisfied? Frustrated, disappointed, upset, even angry? The emotions we feel when we’re unhappy sometimes make people react in unusual ways. I’ve witnessed customers become so angry, their dissatisfaction can become frightening for the person having to deal with it.

If this ever happens to you, don’t interrupt, just allow the person time to express themselves and get their thoughts across.

While they speak, take time to breathe and listen with the intention of fully understanding their perspective. Then follow these simple steps:

1. Reflect your understanding back to them.

2. Apologise to them.

3. Ask what their ideal solution would be.

4. Listen to their response, reflect your understanding.

5. Consider if their preferred outcome is possible to achieve. If you can do it, do it at pace, with positivity (more on that later). If not, offer a choice of similar/suitable solutions that are achievable.

6. Gain their agreement, then take action with pace and more positivity.

7. Follow up and ask if the problem was resolved to their satisfaction. Then thank the customer for their feedback.

When you follow these steps, the customer is likely to feel heard and understood. But they won’t be fully content until their complaint is resolved to their satisfaction.

Resolve the complaint in a timely manner 

Timely resolution may vary depending on the nature of the complaint and/or the setting. What does timely resolution mean to your business? Do you commit to a minimum timeframe?

In lieu of any service standard, act swiftly and with positivity. Explain to the customer that you are happy to make the required changes and focused on doing it quickly.

The worst approach is take so long that the customer has to repeat themselves, resend their email or make a second phone call. I often see customers expressing their dissatisfaction to a colleague, who then goes to find their supervisor, at which point the customer has to repeat themselves. Repetition is annoying and takes up valuable time that could be spent making the situation right.

The solution in this instance is to empower your team to be confident dealing with complaints. Alternatively, train your team to listen effectively and confirm their understanding to the customer, before accurately passing on the information to their manager or supervisor.

Armed with their name and all the facts, the manager can then approach the customer. It not only gives kudos to your colleague, it will impress the customer and make them feel heard, understood and valued.

It’s impressive when all line colleagues actively ask for feedback, with the intention of gaining true and honest feedback from their customers. It’s even more impressive when they have the skills to handle feedback with confidence and have the authority to find suitable solutions.

A successful complaint resolution  

A craftsman used an independent courier to ship a chair to a customer. Despite it being well-packaged in protective wrap, when it arrived at the customer’s home the chair was damaged.

The customer complained, acknowledging that the damage had been caused during transit. The craftsman responded straight away to apologise and asked what the customer would like him to do to resolve the situation. The customer said they didn’t want any financial compensation, they wanted to know how to fix the damage.

Hearing the customer’s wish, the craftsman put a kit together including the materials and instructions they would need to repair the damage. He also offered to refund the delivery charge as a goodwill gesture. The customer accepted this resolution, but asked him to donate the refund to charity. All they wanted was to fix the chair so they could use it as intended.

The outcomes of this story are all positive. The customer received their repair kit, a deserving charity received a donation, and the craftsman had a happy customer. It ended well because the craftsman listened to the customer and acted swiftly.

What matters most when handling a customer complaint is the way you react and the time it takes to resolve it. Teams that acting swiftly, confidently and effectively generate excellent feedback and build customer loyalty.

Become confident with complaints

Book a discovery call with Sally to learn how Zest for Life can support your team or organisation to become more confident handling customer complaints.