What is a customer complaint

What is a customer complaint?

Customers complain when they feel the expectations have not been met and when they feel this should be brought to the attention of the organization. When a complaint is made, the customer usually expects compensation or reservation.

Customer complaints indicate a problem with an organizations service-somewhere between the first point of contact with the customer and when they stop using your products or services.

A complaint maybe verbally or in writing. It may be emotionally charged by frustration, anger, or distress, or maybe matter of fact. Complaints usually point out an aspect of a business that needs changing to improve the experience of customers.

Sometimes, complaints come from customers simply looking to moan and receive compensation, but these people are a minority. Most people want good service and value for money and only feel the need to complain if these expectations are not delivered.

Why complaint handling is important?

A customer complaint is also a valuable opportunity:

It is an essential source of information about how to better your business and gain customer loyalty.

Unless your organization actively gathers feedback and encourages customer complaints, you will never learn what you need to start doing or not doing.

Customer complaints are free feedback. They tell you exactly what customers expect of you and where your products or services are falling short.

With a robust complaint handling process, you can receive and handle feedback in the most efficient way possible. You and the customer can clearly discuss the issue and find a suitable resolution.

In some cases, miss handled complaints can lead to legal action, disciplinary action, and even fines.

Companies dealing with finances, for example, may undergo regular assessments by the financial services authority, who check the business is handling complaints properly and fairly.

No matter what industry you are in, there is always a risk of customers taking their issues further than your internal complaints procedure if they feel as though you are not handling them properly.

With a good complaint handling procedure, you can avoid getting involved in legal complications.

Effective complaint handling reflects well on the business, often on a larger scale than you may realize.

Customers want to purchase products and services from a company that values and respects them. You can show that your business fits the criteria by listening to and dealing with complaints.

In fact, research shows that customers whose complaints are handled affectively feel more loyal to a business than customers who never faced an issue at all.

This is the power of affective complaint handling. You show customers that, with you, service is as smooth and stress-free as possible. You show that you are trustworthy and care about satisfying each and every customer-even when things go wrong.

As a result, customers feel valued. They feel secure and confident in continuing to buy your products and services, and even recommending you to others.

On average, a customer tells 10 people about a bad experience. Some people tell more than 20 and, in our age of social media, I truly bad experience could spread 200s.

Word of mouth can have a strong, lasting impact on a business-for better or for much worse.

People who hear a friend or family members bad experience with a business are likely to avoid it as a result, and may even pass on the story to others. Depending on how widely the story is Fred, you could be looking at dozens of potential customers lost.

That is why it’s in your best interest to handle complaints effectively.

On average, A customer tells 10 people about a bad experience. Some people tell more than 20 and, in our age of social media, A truly bad experience could spread to hundreds.

Word-of-mouth can have a strong, lasting impact on a business-for better or for much worse.

People who hear a friend or family members bad experience with a business are likely to avoid it as a result, and may even pass on the story to others. Depending on how widely the story is spread, you could be looking at dozens of potential customers lost.

That is why it’s in your best interest to handle complaints effectively.

If the complaint is dealt with thoroughly and the customer is happy, chances are your customer will tell friends and family and even recommend you on the basis of their positive experience.

Social media plays a huge role in customer complaints nowadays.

Anyone can leave a comment or complain about a company on social media, and it will be available for all to see. Doing so is quick and easy for customers and they usually expect to get a fast response.

If a business does not reply promptly, or at all, a customer may feel disgruntled and will be more likely to comment further or leave a negative review. Others seeing this might be put off from doing business with you.

Sometimes, comments can go viral. If a negative one does, your reputation could face quite a dent, but if a positive complaint handling experience goes viral, it could be incredible exposure and increase the reputability of your business.

Addressing complaints on social media should, therefore, be a cool part of your complaint handling process.

Why do customers complain?

Customers complain when they are dissatisfied with a business product or service. They expect the business to prevent the issue from happening again and to provide a resolution: an apology and or recompense for the inadequate service and Inconvenience caused.

Customers may complain due to:

Dissatisfaction with a product
Poor attitude or service from staff members Prices I met expectations Disagreement with a business policy Inability to access services Dissatisfaction with a decision may by the business Poor communication

Let’s look at these in more detail.

Dissatisfaction with a product

A customer is likely to complain if the products you sell:

Do not function as advertised
Deteriorate or break too quickly
Do not look as advertised
Have unclear instructions for usage
Cause illness or injury

Customers may also complain if a product is out of stock or has undergone changes.

Poor attitude or service of staff members

These account for the majority of complaints made to business’s.

Customers expect staff to have knowledge about the products of services they sell. They expect staff to be friendly and approachable and to treat customers with respect. They also expect to receive prompt responses to queries.

Disinterested, rude, or unhelpful staff make customers feel devalued and frustrated. The poor service or attitude of staff can cause customers to complain about their negative experience or take their business elsewhere.

Your business could even face serious legal consequences if staff members discriminate or harass customers.

Complaints about staff often indicate a lack of training or point to an employee whose attitude is not in line with your organizations culture.

Prices

Customers want their money to be well spent on your products or services.

They may complain if prices are:

Higher than expected
Misleading or hidden
Higher than competitors
Inconsistent
Higher than what they think a product or service is worth

Businesses may not display prices because Th eh don’t want to put customers off but doing so causes them opposite effect. It suggests you have something to hide and loses customer trust.

Unmet expectations

Customers may have expectations for your service due to the way you advertise it or because of their experience with other companies in the same industry.

They may complain if your business fails to live up to those expectations, questioning why they should spend their money on something less than adequate.

For example, if your service is much slower than it should be or there are major delays without a good explanation.

Sometimes, complaints come from customers with unrealistic expectations. These can be hard to deal with, as customers of this nature are often persistent and demanding.

Disagreement with a business policy

These complaints are difficult to resolve if your business is unable to change its policy or make an exception.

Complaints of this nature may be caused by policies on:

Refund and refunds
Cancelations
Discounts
Customer conduct
Discontinued products
Age restrictions and ID

Inability to access services

As far as is reasonable practicable, businesses should provide equal opportunity for people to access their products and services.

Failure to do so can cause complaints and, in some cases, may be considered discrimination in the provision of goods and services.

Inability to access services may be because of:

Physical barriers e.g lack of access ramps, lifts, or support from staff

Written barrier, e.g small text or no images or translation for those whose first language is not English

Online barriers, e.g inability to purchase products without setting up an account or encountering errors with a website

Hidden barriers, e.g if you have only male and female changing rooms, this could create an uncomfortable situation for a trans person

A business is also likely to receive complaints if they oversubscribed or overbook for a service and have to cancel people’s orders.

Dissatisfaction with a decision made by the business

This may coincide with disagreement with a business policy. It may also occur once a decision is reached about a complaint.

Customers may be dissatisfied with:

Discontinuation of a product
Decisions made about a persons treatment or care Alternations of a product e.g a new recipe or formula Being barred from a service e.g for drunk and disorderly behavior

Poor communication

Misunderstandings or unclear explanation can also lead to customers purchasing the wrong product or service and prompt a complaint.

A lack of communication during the complaint handling process could also spark a new complaint.

Untrained staff are often the root cause of poor communication.

What customers want from a complaint

Listening, emphasizing, and finding a resolution are all equally necessary for making a customer feel that you are fully invested in helping them.

Let’s say you emphasize and listen to a customers complaint but don’t take action to correct the problem or compensate them. They might feel like you are just pacifying them by acting as if you care and may feel like you have no intention of fixing the issue.

Likewise, if you compensate a customer without fully listening to them or showing empathy, they might feel like you are doing the bare minimum to stop complaints and that you don’t appreciate their individual custom.

But with all three, a customer feels valued and satisfied, and they are much more likely to recommend you to others and do business with you again.

Summary

Customer complaints indicate a problem with a business’s service, but they are also a valuable opportunity to gain free feedback and improve your service.

Research shows that customers whose complaints are handled effectively feel more loyal to a business than customers who never faced an issue at all.

The reasons customer complain can include the poor attitude or service of staff, dissatisfaction with a product, too High or hidden prices, unmet expectations, and poor communication, to name a few.

On average, a customer tells feb people about a bad experience. Some tell more than 20 and, in our age of social media, a truly bad experience could spread to hundreds.

Customers expect three key things when they complain: to feel like they are being listened to, to feel like the listener is emphasizing, and to reach a resolution. All three are equally important.