Principle 5 - Dealing with complaints

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3 min 45 sec
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Turning Customer Complaints into Business Opportunities

Understanding customer behaviour is essential in business, especially as most customers tend to move on without complaining, directly affecting profit margins.

The Silent Majority of Customers

Studies indicate that up to 85% of dissatisfied customers switch to competitors without voicing their dissatisfaction. This highlights the need to go beyond mere satisfaction and truly delight customers.

Encouraging Customer Feedback

Making the process of complaining straightforward and welcoming feedback is crucial. View this as an opportunity for growth and improvement.

Case Study: Premier Inn's Approach

Premier Inn Hotels' 'good night guarantee' exemplifies this strategy. They encourage feedback and offer a no-quibble refund, enhancing customer trust and business revenue.

Customer-Centric Philosophy

The adage 'The customer is always right' embodies the spirit of prioritising customer needs, even when their demands seem unreasonable.

Managing Unrealistic Expectations

Customers may have irrational expectations. In such cases, explain limitations clearly and offer alternative solutions wherever possible.

Educating Customers

When customers are unsure of their needs, take time to educate them about your product or service to align expectations and prevent future complaints.

Honesty and Reliability

Always be honest and keep your word. Explain any restrictions early and ensure quality is not compromised, even if it means longer turnaround times.

Positive Outcomes from Complaints

While no one enjoys complaints, handling them effectively can turn a negative experience into a positive one, enhancing your company's reputation.

Implementing a Customer Charter

Many companies adopt a customer charter outlining their complaint process, service levels, expected standards and behaviours, and any related charges.