Customer Complaints Several years ago --time enough for everyone to have forgotten-- I circulated some material about the usefulness of complaints. This is a good time to revisit the subject. Complaints are valuable feedback. Generally --not always, but most of the time-- complaints are honest. They are also fact-filled, at least insofar as a customer understands a product or service and any intrinsic limitations that go along with the product or service. And sometimes complaints come with suggestions for how to fix a problem. This is really important. Most customers of most businesses don't take the time to offer feedback of any kind. While in most cases they don't do so because they are satisfied with what they have purchased, there is a significant number that is dissatisfied and never say a word and also never buy from the company again. Worse, unhappy customers do usually spread the word that such-and-such company gave them a raw deal or did not fix a problem. One report, cited below, says that for every overt complaint there may be as many as 10 complaints that a company never hears but that thousands of others do hear, and in cases millions of people hear, all to a company's disadvantage. In other words, cherish complaints. They are valuable. You don't have to like them, of course, and if you think a complaint is unfair say so. A customer may respect you far more than otherwise. I recall a visit to an pastry shop some years ago. I was looking for sweets with no hard-sugar sprinkles on top ; I hate sprinkles. All the store had that day were sweets with sprinkles on top. So I said to the sales woman, "don't you have anything without those crappy sprinkles ?" She replied, "they aren't crappy, and some people really like them." She was right , of course, and for me it was another lesson learned. I still detest sprinkles but now am less antagonistic on the subject and more patient in looking for pastries which come au natural. Don't know why, but at some point in the 1990s in Arizona while waiting in an auto repair shop for the car I was driving at the time, I saw a business magazine in the waiting room that caught my attention. One of the featured stories in it was all about customer complaints. I read it and was immediately impressed. Complaints are feedback and are worth gold. >From that day to this I have been a big enthusiast of complaints. Don't take this too literally, but maybe you get the idea... About a year after relocating to Oregon, eventually sans car, I was enrolled in a class on writing taught by a former magazine editor. At one point she stressed the value in an editor's critiques. After all, an editor does not have to mark up a paper with marginal notes and red circles around parts of the text. The instructor said that all of the criticisms are gifts. They are recommendations for improving your work, for saying things better, for making your writing itself more publishable next time. OK, sometimes complaints go too far. And some people are habitual whiners who complain incessantly. But surely it is not much of a problem to sort out valuable complaints from the other stuff. And then you have value added to your product --or to your writing or to additional "services" you offer. Here is a guess. Ernie will assuredly correct me if this is wrong in any way. The guess is that companies like Apple, which are fan clubs as much as businesses, are not much "into" complaints. They are successful because of all the adulation --in Apple's case for superlative products. Or also because there is something or someone to believe in. Hence one possible explanation for Apple's troubles in the Tim Cook era, he isn't Steve Jobs. But to the extent that Apple is similar to a religion, one thing all religions have in common is lack of appreciation for criticisms. It isn't just Apple. It is also Harley, C-Span for C-Span junkies, the WSJ for business true believers, and so forth. This seems to be more true for Apple and Harley than for other businesses, and maybe add in Amway, but in these kinds of cases criticisms are as unwelcome as criticisms of the Pope are for Catholics or criticisms of the Dalai Lama are for Buddhists. Not a bad idea to recognize such facts. Regardless, to the extent that you can accept criticisms at face value, you do yourself a big favor in regarding them as feedback with potential for adding value to your business --or your skill set. Suggestion that is easier said than done : Turn part of your brain over to a new "manager." Find a manager who will strive mightily to make the best of it. This will be your own inner Complaint Department. Prediction : It won't take very long before the "products" you wish to "sell" will be better and more appealing to your intended "customers." Like I just said, easier said than done. But this should work........ Billy ============================================== By Ira Kalb / CBS MoneyWatch/ June 23, 2011 How Customer Complaints Can Improve Business
The way companies handle complaints can mean the _difference_ (http://www.returncustomer.com/category/customer-service/) between success and failure in an increasingly competitive marketplace. Businesses that turn complaints into opportunities for building closer relationships with customers are the ones that are most likely to survive and prosper. The complaint is a signal that should not be ignored. When customers complain, they are giving your company an _opportunity_ (http://allbizanswers.com/turn-customer-complaints-into-conversations/) to fix what is wrong and improve your business. Why? Customers act in their own self-interest, and they are in a unique position to tell your company the unvarnished truth - something your employees are unlikely to do because it might reflect negatively on their performance or they may fear that you might "kill the messenger" rather than listen to the message. Just about every comprehensive study done on this subject points to greater success for companies that turn the negatives represented by complaints into positives. Customer complaints are marketing opportunities John Goodman did pioneering _customer service research_ (http://www.tarp.com/goodman/) through TARP, the company he founded in 1971. He showed that, while customer service is typically a cost center in most companies, it could be turned into a powerful _marketing force_ (http://serve4impact.com/2009/08/05/podcast-john-goodman-on-the-future-of-customer-service/) to drive sales, repeat business and greater profits. His research showed that roughly 4% of customers (1 out of 26) that were "wronged" by a company complain. The other 96% (25 out of 26) stop buying and tell 9 to 10 others within a week about their poor treatment. This means that a negative word of mouth pyramid averaging 250 is created. If the company is able to satisfactorily solve the problems of the 4% that complain (turn the negative into a positive), they will tell 6 to 7 others within a week that the company solved their problem. This will result in a positive word of mouth pyramid of 250 customers that say good things about the company. The positive group will also develop a closer relationship with the company. What can you do about the other 96%? You can go through your customer list and contact customers that have not bought products from you in a while and ask them why you have not heard from them. This will identify a good number of negatives that you can turn into positives. And, in cases where there were no negatives, the contact is another opportunity to generate more business. Marriott research In their book, _Turned On_ (http://books.google.com/books?id=epOOh778owkC&printsec=frontcover&dq=Turned+On+by+Roger+Dow+and+Susan+Cook&source=bl&ots =34u6W71Fyz&sig=kWdMKI6-_V-2X_1OWEFa-8o2ecA&hl=en&ei=05CPTbXYNYLksQPB5OyKCQ&sa= X&oi=book_result&ct=result&resnum=1&ved=0CBgQ6AEwAA#v=onepage&q&f=false) , Roger Dow and Susan Cook describe the Marriott research done to identify which guests intended to stay at the Marriott again. They divided guest stays into 3 groups A, B, and C. * A = Nothing bad happened during their stay. * B = Something bad happened, but Marriott fixed the problem. * C = Something bad happened, but Marriott did not fix the problem. The percentage of these three groups that intended to return to the Marriott were as follows: * A = 89% * B = 94% * C = 69% This corroborated the TARP studies that showed that a "fixed" relationship creates a more loyal customer than one that was never broken. The more a company is able to fix what is wrong, the more they build a _positive reputation_ (http://www.ehow.com/how_7452406_improve-organization_s-reputation-customer-service.html) . _Opinion Research_ (http://atc.netcomsus.com/index.php/newsletters/newsletter_articles/4.html) did studies that showed that when choosing between similar products, 87% of customers choose the product from the company with the better reputation. How to Create a System to Handle Complaints How can your company use this information to turn complaints into a powerful marketing force that improves your business and reputation? 1. Train you people to look for complaints and view them as opportunities to neutralize negatives and build stronger relationships with customers. 2. Record the complaint so that it can be electronically distributed. 3. Send it to the appropriate person or department with the authority to fix what is wrong. 4. Make sure they fix it as quickly as possible. 5. Follow up with the customer to insure that they were satisfied with the fix. If not, expedite a solution. 6. Give them a code to use when they purchase from you again or refer others (you can give them an electronic coupon or code so that when they buy again or refer others they will get a discount). 7. Track their repeat purchases and referrals. 8. Report statistics on repeat purchases and referrals stemming from the fixed problem. 9. Calculate the ROI (return on investment) of the entire process. How might you develop a problem-response system in your organization to turn complaints into a marketing machine to improve your business? --------------------------------------------------------------------- _M.Lee_ (http://contributor.yahoo.com/user/152635/mlee.html) , _Yahoo! Contributor Network_ (https://contributor.yahoo.com/) Feb 15, 2010 Using Customer Complaints to Improve Your Business Whether you own a restaurant, coffee shop, stationary shop, and clothing boutique the basic rules are the same when dealing with customers and clients - they are always right! Of course you will always be subjected to extremely difficult customers who can never be made happy. You will also experience repeat customers, which are the very best kind. But when a customer is not pleased with your shop, product, or service, what can you do? Aside from doing everything you can to make the customer happy, you can take customer complaints and improve the overall function of your shop. Remember, dealing with angry customers doesn't always have to be a battle that you lose. Being properly prepared for dealing with customer complaints will help you use them to your advantage overall. Knowing this, you will be able to use customer complaints to build your business. One of the integral aspects of using customer complaints to improve your shop or business is to train your employees specifically to believe your customers, listen to your customers, apologize, satisfy, and then ultimately thank the customer for the complaint and the business. Some of these practices may seem strange to you, but truly do work at soothing customer complaints. Incorporating these guides will help standardize your staff's method for dealing with complaints and bringing angry customers back pleased and loyal. No matter what your customer may complain about, it is very important to believe them. Believing the customer is actually the cornerstone of dealing with a complaint. While it is true that the customer may be lying or embellishing, but they truly do believe that your shop has wronged them in some way. That is the bottom line - they are unhappy and blame you, so deal with it! Listening is also incredibly important when dealing with customer complaints. Try not to give in to the instinct to prepare your retort before the customer has finished speaking. It is very important to remain calm and even-minded as your customer may be extremely upset. If you stay calm and courteous throughout the discussion, you will be able to make a more positive impression. An apology is required, even if in truth, the customer is in the wrong. Remember, as far as your customer is concerned, it was your shop that messed up and they expect nothing less than an apology. Many times, a sincere apology will diffuse the situation quite effectively. After apologizing, the ball is in your court to make it right. Ask your customer what they think would make it right and then decide what is fair. As with anything else in life, learn from your mistakes. Using past mistakes and complaints from customers will only help your shop grow as a business. While you may have a good basic idea as to how to use your customer complaints to help your business, coming at it from a unique perspective will always help. Think about what your customers feel, and put yourself in their shoes. Ask yourself if you were the customer, how would you want to be treated? How would you want a particular problem resolved? --------------------------------------------------------- Consumer complaint >From Wikipedia A consumer complaint or customer complaint is “an expression of dissatisfaction on a consumer’s behalf to a responsible party” (Landon, 1980)._[1]_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#c ite_note-1) It can also be described in a positive sense as a report from a consumer providing documentation about a problem with a product or service._[2]_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_note-2) In fact, some modern business consultants urge businesses to view customer complaints as a gift._[3]_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_note-3) _[4]_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_no te-4) Consumer complaints are usually informal complaints directly addressed to a company or public service provider, and most consumers manage to resolve problems with products and services in this way, but it sometimes requires persistence. If the grievance is not addressed in a way that satisfies the consumer, the consumer sometimes registers the complaint with a third party such as the Better Business Bureau and Federal Trade Commission (in the United States). These and similar organizations in other countries accept for consumer complaints and assist people with customer service issues, as do government representatives like attorneys general. Consumers however rarely file complaints in the more formal legal sense, which consists of a formal legal process (see the article on _complaint_ (http://en.wikipedia.org/wiki/Complaint) ). In some countries (for example _Australia_ (http://en.wikipedia.org/wiki/Ombudsmen_in_Australia) , _[5]_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_note-5) the United Kingdom,_[6]_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_no te-6) and many countries of the _European Community_ (http://en.wikipedia.org/wiki/European_Community) ), the making of consumer complaints, particularly regarding the sale of financial services, is governed by _statute_ (http://en.wikipedia.org/wiki/Statute) (law). The statutory authority may require companies to reply to complaints within set time limits, publish written procedures for handling customer dissatisfaction, and provide information about arbitration schemes. The advent of Internet forums has provided consumers with a new way to submit complaints. Consumer news and advocacy websites often accept and publish complaints. Publishing complaints on highly visible websites increases the likelihood that the general public will become aware of the consumer's complaint. Internet forums in general and on complaint websites have made it possible for individual consumers to hold large corporations accountable in a public forum. References 1. _^_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_ref-1) _"Consumer Complaints"_ (http://www.health.qld.gov.au/quality/consumer_complaints/complaints.asp) . Health.qld.gov.au. Retrieved December 9, 2011. 2. _^_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_ref-2) _"What Is a Consumer Complaint?"_ (http://www.wisegeek.com/what-is-a-consumer-complaint.htm) . Wisegeek.com. Retrieved December 9, 2011. 3. _^_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_ref-3) _"BJ Gallagher: A Customer Complaint Is a Gift"_ (http://www.huffingtonpost.com/bj-gallagher/a-complaint-is-a-gift_b_914505.ht ml) . Huffingtonpost.com. August 1, 2011. Retrieved December 9, 2011. 4. _^_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_ref-4) Bleuel, William (December 20, 2010). _"The GBR Book Corner Reviews: A Complaint Is a Gift by Janelle Barlow and Claus Moller | Graziadio Business Review | Graziadio School of Business and Management | Pepperdine University"_ (http://gbr.pepperdine.edu/2010/08/a-complaint-is-a-gift-by-janelle-barlow-and-claus-moller/) . Gbr.pepperdine.edu. Retrieved December 9, 2011. 5. _^_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_ref-5) _"Australian Approved Complaint Services"_ (http://www.fido.gov.au/fido/fido.nsf/byheadline/Financial+services+complaints+sche mes?openDocument) . 6. _^_ (http://en.wikipedia.org/w/index.php?title=Consumer_complaint&printable=yes#cite_ref-6) _"Financial Ombudsman - UK"_ (http://www.financial-ombudsman.org.uk/alia) . -- -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org --- You received this message because you are subscribed to the Google Groups "Centroids: The Center of the Radical Centrist Community" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/groups/opt_out.
