Handling complaints effectively as a business

It may be hard to believe, but customer complaints are one of the best opportunities you have to keep your customers loyal. Your most dissatisfied customers can actually become your best ambassadors – if their complaints are handled properly.

Set up effective complaint handling policy and procedures

Consider the following:

• involve your staff in developing your policy and procedures
• think of all the possible things that could happen and work out potential solutions
• establish a policy and procedures manual, circulate to and train your staff
• let your customers know they can provide feedback or make a complaint
• clearly publicise your contact details
• keep a record of all formal complaints
• make sure your internal systems can cope with the policy and your staff act promptly to resolve customer complaints
• monitor your policy and procedures to make sure they’re working effectively
• regularly review your manual and update as necessary.

Steps on how to deal with unhappy customers

The following steps will help you and your staff deal with disgruntled customers:

• Listen. Understand exactly what the problem is and let the customer know they have your full attention.
• Acknowledge the problem. Complaining can be difficult. Being sympathetic and calm will help alleviate the customer’s stress.
• Address the customer’s needs. Tell the customer you want to help improve the situation. Ask how they would like to proceed.
• Communicate honestly. Decide what can be done to fix the problem and tell them.
• Follow-up. Contact the customer within an agreed timeframe to make sure the problem was resolved.

NSW Fair Trading complaint handling service

If a customer is still unhappy, they can reach out to NSW Fair Trading for assistance. NSW Fair Trading provides information and assistance in negotiating a resolution and will usually contact your business by phone and attempt to sort out the problem.

How your business can ensure customer satisfaction

Doing the job right the first time + Effective customer contact handling = Increased customer satisfaction and brand loyalty.

There are many benefits from welcoming complaints and handling them well. They include:

• fewer mistakes, less time spent fixing them
• improved product quality
• better understanding of customers’ needs
• happier customers
• greater customer loyalty
• more customers through word-of-mouth advertising
• better understanding of your business
• less time and money spent attracting customers
• improved business reputation
• more repeat business
• a healthier bottom line.

What if there are no complaints

You might be receiving complaints but without any formal system of recording complaints they may not be properly addressed or communicated to management. Just because you’re not receiving them does not mean your customers are satisfied.