11 Steps on How to Handle Customer Complaints

Chirantan Patel

Senior Writer

How to Handle Customer Complaints

Every flourishing business deals with a world of factors that affect its growth. One of the keys to ensuring this growth is knowing how to handle customer complaints effectively

Looking for Complaint Management Software? Check out SoftwareSuggest’s list of the best Complaint Management Software solutions.

Irrespective of impeccable services, one day or the other, customer grievances are a common occurrence. It’s inevitable for any company to have customer complaints and bad situations. As most unhappy customers don’t complain, they walk away. 91% of customers leave without saying a word

But what separates a good company from one that’s doing not so well is the way of handling these complaints. Never ignore customer concerns, as it creates havoc in the long run.

Resolving customers’ problems and ensuring their satisfaction helps trigger an opportunity from a challenge. In the same instance, not every angry customer carries significant insights when something goes wrong.

So, how do you handle customer complaints? This article has useful insights to help your customer support team with the best ways on how to handle customer complaints.

What are Customer Complaints, & Why Are They Important to Businesses?

Customer Complaints Are Crucial to Businesses.

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Pro-tip

Customer satisfaction is the best way to grow your business and stand out from the competition. The key is to listen, empathize, apologize, and offer a solution that meets their needs and expectations. Also, try to empower your frontline staff with the authority to make decisions and provide solutions, which can expedite the resolution process and increase customer satisfaction.

Customer complaints are the expression of customer expectations that have not been satisfied with the level of what the business offers regarding products or services. It is a mismatch between how customers perceive the brand and when they do not receive the expected level of customer care. A staggering 93% of customers are inclined to engage in repeat purchases with companies that provide exceptional customer service. There may be several forms of customer complaints.

  1. Poor product or service
  2. Complaint relating to delivery
  3. Out-of-stock or unavailable product
  4. Communication gap

Complaints are part of the customer service industry, but how you resolve customer complaints successfully gives you a chance to turn these customers and their claims into recommendations. Customers are frequently asked to engage in feedback surveys, which take time and money, whereas analyzing complaints is free.

What Are The Types Of Customer Complaints?

Customer complaints show you the problems your customers face with your products or services. You can use them to enhance your business and satisfy your customers. Here are some usual issues that your service team should learn how to deal with customer complaints:

1. Extended Hold Times

Importance of quick responses

In a customer service environment, particularly in a call center, the Average Hold Time (AHT) is a critical performance indicator. Customers seek prompt responses and cannot afford to spend significant portions of their day waiting on the phone. Research indicates that about 33% of customers find prolonged hold times to be the most frustrating aspect of customer service. This implies that slow response times could alienate a third of your clientele.

  • Here’s a strategy to address this issue

Extended hold times typically point to two potential problems. Firstly, it could suggest that the volume of customer inquiries overwhelms your customer service team. Expanding your team with additional representatives could be a viable solution to meet the demands of your call center. Alternatively, the issue could be a lack of automation within your call center operations. Implementing call center software can equip your team with tools that enhance efficiency and automate routine tasks.

2. Product Unavailability or Stock Shortages

When a product is frequently sold out, it’s generally a positive indicator of its popularity. However, prolonged unavailability can lead to customer frustration as they eagerly await its restock. They may request special orders or persistently inquire about product updates, often signaling an urgent requirement for your product that needs immediate attention.

  • Here’s a strategy to address this issue

As a customer service agent, you may be unable to decide when the next lot of products will be ready. However, it’s crucial to communicate these concerns to your supervisors, who can relay the information to the sales and product management teams. Encourage customers to stay patient and assure them they will be contacted as soon as the product is back in stock.

3. Repeated Explanation of Issues

Customers find it extremely frustrating to have to reiterate their issues multiple times, either due to being transferred between representatives or dealing with an agent who isn’t fully attentive. This not only aggravates the customer but also wastes their valuable time.

Repeated issue explanation

  • Here’s a strategy to address this issue

If a customer expresses annoyance about having to repeat their problem, the most effective immediate action is to minimize call transfers. For a more lasting solution, think about getting help desk software. Such a system can effectively handle and give incoming service requests to the most suitable agents. This ensures that customers are directly connected to representatives most capable of resolving their issues.

Also Read: 6 Effective Ways to Improve Customer Feedback Analysis

4. Bad Product or Service Quality

Sometimes the product itself has malfunctioned or broken. In these cases, offer an immediate replacement or refund. Sometimes, the product may not be broken, but the customer might have trouble using it right. No matter what the reason, your team must stop these unhappy customers from going to your rivals.

  • Here’s a strategy to address this issue

Sometimes the product itself has malfunctioned or broken. If the product is broken, offer quick exchange options and try to find the reason for the failure. Probe to find how and why the issue occurred to prevent future problems. If the product is fine, but the customer misunderstands how to use it properly, educate them on the correct usage and functionality. If it’s due to user error, tactfully guide the customer on preventing such issues in the future.

5. No First Call Resolution

The organization retains 95% of its clientele due to successful First Call Resolution (FCR). Clients who reach out to your customer service anticipate their concerns to be addressed in the initial interaction. This doesn’t imply prolonging the call unnecessarily but emphasizes the importance of striving for first-call resolutions.

  • Here’s a strategy to address this issue

During the commencement of customer interaction, your representatives should assess the urgency of the situation. If the client’s needs are time-critical, aim to settle the issue during the initial call, avoiding unnecessary repetition or irrelevant research. If the representatives lack immediate solutions, they should courteously request a follow-up, explaining how this approach will expedite the resolution process.

6. Lack Of Follow-Up

When case follow-ups are necessary, customers often have varying expectations regarding subsequent communications. Some anticipate a continuous stream of updates, while others exhibit more patience. Customers may feel their case has been overlooked if your representatives fail to consistently communicate expected response times.

Best Practices for Following Up with Customers

  • Here’s a strategy to address this issue

Your service representative should clarify communication expectations when a case follow-up is required. They should inquire if the suggested update frequency is acceptable to the customer, and if not, devise a mutually agreeable system.

If your team struggles with managing follow-ups, it may be beneficial to implement a ticketing system. Moreover, integrating it with your Customer Relationship Management (CRM) system ensures tickets are directly linked to customer profiles.

11 Steps on How to Handle Customer Complaints

Customer complaints are inevitable in any business, but they can also be a valuable source of feedback and improvement. However, handling customer complaints effectively, handling their negative feedback, etc., requires skills and strategies to turn a negative situation into a positive one. By following these 11 steps for handling customer complaints effectively, you can not only resolve customer issues but also build trust and loyalty with them:

Step – 1: A Problem Addressed Well Is a Problem Half Solved

Retaining loyal customers is proportional to the respect given to them. While the customer shares her complaint, be sincere and provide a genuine impression of listening to the concerns. Lend an ear of patience and tell the possible ways of addressing the problem.

Dealing with an unhappy customer in a composed and professional manner is critical. Though it may be difficult, you must remain calm. Do not take the complaint personally or as a direct attack. Customer complaints often highlight areas where a business can improve.

Losing your temper, yelling at a customer, or behaving unprofessionally is unacceptable and will likely only worsen the situation. The best way to satisfy customers and resolve their issues is by addressing them with a level head.

Keep the business objective in mind. Let this goal steer your conversations and not your failure (customer complaints about your business). Mistakes do happen but fix them well.

Step – 2: Avoid Adding Fuel to Their Anger

In a few cases, you might know the customer is wrong in her perception. Rest their case politely. Don’t challenge her that they are wrong. Explain how your service works and clear the misunderstandings.

Be polite

When a customer takes the time to voice a complaint, it indicates the issue is significant to them, even if it may seem trivial to you. We all have bad days, and you never know what someone might be going through personally. Do not assume you fully understand the customer’s concerns or needs. Hear them out fully and pay close attention to what they say.

Frustrated customers may have trouble articulating their concerns or identifying what they need to resolve the issue. Giving them time to speak freely helps calm them and allows the full scope of the problem to emerge. Attentively listening to customers vent their frustrations is often enough to resolve the complaint. Always approach customer service interactions with empathy, respect, and a willingness to understand.

Step- 3: Display Empathy Toward Customer Concerns

Demonstrate a genuine understanding of your customer’s worries and issues. It’s crucial to convey to them that their concerns genuinely matter to you, even if their viewpoints don’t align with yours. In instances where you or your organization have erred, it’s essential to acknowledge it openly.

If the situation results from a misunderstanding, your response should be characterized by a tone of support and concern. You might say, “You have every right to be upset about this situation.” This doesn’t necessarily mean you concur with the customer’s perspective, but it shows that you respect their perception and emotional response to the situation.

Moreover, it’s important to remember that empathy goes beyond just understanding the customer’s feelings. It means seeing things from their perspective and thinking how you would feel if you were in their situation. This can help you better relate to their annoyances and reply more kindly and efficiently.

Step – 4: Witnessing Customer Problems Is Equally Important

It is essential to understand that witnessing customer problems is equally important as providing solutions to those problems. When an aggravated customer walks into your store or contacts your customer support team, they first need someone to listen to them. A responsible employee who can acknowledge and empathize with their emotions can significantly improve the customer’s overall experience.

According to studies, 80 percent of consumers are willing to forgive mistakes made by a company if they receive excellent customer service. Therefore, handling customer complaints with care and attention to detail is crucial. One way to do this is by getting all the necessary clarifications from the customer to ease their stress. Don’t assume you know the problem; ask them questions, and address their discomfort.

As you continue the conversation with the customer, maintain a positive dialogue. Use words and phrases that show you are listening and want to help. Show empathy and understanding by acknowledging the customer’s frustration and assuring them that you will do everything possible to resolve the issue.

Step – 5: Be Faster

As a business owner, encountering bad reviews or upset customers can be a devastating experience. However, it is important to remember that every negative review or complaint presents an opportunity for improvement and growth. The key is to respond to the complaint promptly and work towards resolving it as soon as possible.

Once an upset customer is satisfied, her review can help towards brand recognition. It can also help turn around a bad review’s negative impact. Here are a few ideas to help you handle customer complaints effectively:

  1. Speak to the concerned person who has reported the problem and the one responsible for triggering it. This will help you understand the issue better and find a solution for both parties.
  2. Learn from your mistakes. Include a new procedure in your business process to avoid similar customer problems in the future. This will help you avoid future complaints and improve your overall business operations.

Remember, stellar solutions don’t matter when the customers are unhappy. Therefore, turning every possible stone to satisfy them responsibly and quickly is essential. By handling customer complaints effectively, you can retain and attract new customers through positive word-of-mouth publicity.

Step – 6: Apologize & Offer Gratitude

Offering a sincere apology and expressing gratitude is one of the most effective ways to resolve customer complaints. However, apologies must be genuine to be effective. Simply saying “I apologize” is not enough if you do not take responsibility for the issue or have no intention of making things right.

Studies show that 83% of customers feel more loyal to brands that respond to and resolve their complaints. Therefore, taking every complaint seriously and working diligently to resolve it is essential.

importance of an apology

Acknowledge what went wrong, the inconvenience caused, and how you will remedy the situation. For example, say, “I apologize that your order was delayed. We dropped the ball and did not live up to our commitment to fast, reliable shipping. We will refund your shipping charges and offer you a 20% discount on your next purchase.”

Express gratitude for the customer’s patience and for giving you another chance to provide great service.

For example, you could express, “I’m grateful for your effort in reaching out and highlighting this matter. Your patience and the chance to resolve your concerns are highly valued. Because of customers like you, we are motivated to continually enhance our services.

Acknowledging your importance and your feedback aids in reestablishing trust and positive rapport. Generally, individuals comprehend that errors occur. However, they can distinguish between a company that truly values them and merely performs a routine. Your reputation depends on how you treat customers, especially those with complaints. A heartfelt “I’m sorry, thank you for your feedback” can turn critics into champions.

Step – 7: Organize Complaints

Customer complaints provide invaluable feedback that should not be ignored. Properly documenting and addressing complaints can help improve your offerings, strengthen customer relationships, and boost loyalty.

  1. Record all customer complaints, questions, concerns, and feedback in a centralized system, like a complaint log or database. Include details such as
  2. The customer’s name, contact information, date of complaint, specific issue, and any follow-up correspondence.
  3. Review the log regularly to identify trends, gaps, and opportunities for improvement.
  4. Share highlights from the complaint log in department meetings to get different perspectives on solutions.
  5. Discuss as a team on how to deal with customer complaints and any broader process or product changes that could prevent similar complaints in the future.
  6. Come up with a coordinated action plan to resolve current complaints and implement preventative measures.
  7. Respond to each customer complaint promptly, professionally, and with a solution-focused approach.
  8. Express your gratitude to the customer for letting you know about the problem and sharing their opinion.
  9. Explain how you intend to resolve their specific issue and any changes being made to avoid future problems.

Most customers will appreciate the thoughtful follow-up and your commitment to addressing their concerns.

Step – 8: Delve Deep to Know Your Customers

Based on the common customer complaints, there is a chance to evaluate the type of customer. Know the different personas of your customers and handle their complaints like a champ. 

  • Be responsible for listening to the deep cause of the problem from a meek customer who never likes to speak to you.
  • Control your emotions and speak politely to an aggressive customer.
  • Have patience and address the concerns of a chronic customer who always keeps troubling you with her concerns and complaints.
  • Organize the complaints of the customer who pays the business well. This high roller might complain about discounts or premium support. Check out all the ways to make such a customer happy.

Respond with composure to customers who keep on complaining about the services that they are not paying for. 

Step – 9: Connect The Customer With An Expert

Transferring a customer’s call during a conversation can be necessary to provide excellent customer service. However, it is important to handle the transfer with care and explain the benefits to the customer. The most important thing is to tell the customer that you are connecting the call to a specialist who can quickly and well fix their issue or complaint. This reassures the customer that someone with specialized knowledge or expertise will address their issue.

Customers demand immediate attention

Connecting the call can help the customer save time and annoyance in the end. By connecting them with an expert who can quickly resolve their issue, the customer can avoid spending unnecessary time on hold or being passed around to multiple representatives.

When transferring a call, it is also important to let the customer know you are doing everything you can to assist them. This can be as simple as letting them know you are putting their call on hold while transferring them to the appropriate expert.

Step – 10: Give Your Time on Priority to Customers

Support the customer on time and provide them with the details for every query. Being productive on time is all that you need. Give priority to resolving these tasks. 

Even though you have many customer complaints in the queue, manage your resources to address them through a genuine conversation. Don’t neglect that instant replies are always needed to reduce customers’ stress. Even if the same complaint arises every day, research the customer’s complaint thoroughly. If needed, ask the customer about the references to her issue.

Step – 11: Follow Up

Following up with a customer after resolving their issue is essential to the customer service experience. It demonstrates that you care about their happiness and are dedicated to delivering a positive experience. While moving on to the next customer may be tempting, taking the time to follow up can significantly impact your business.

During the follow-up, it is important to apologize again and ensure you have handled everything the customer needs. This is a chance to make sure that the customer is satisfied with the outcome and deal with any other issues they may still have. It is also a chance to thank them for their business and let them know their satisfaction is a top priority.

By following up with your customer, you ensure their satisfaction and build a relationship with them. It can also deliver useful feedback for your company. By asking the customer about their experience and if there is anything else you can do to improve, you can gain valuable insights into the customer’s perspective and make necessary improvements to your business practices.

Mastering Customer Complaints & Moving Forward With Customer Satisfaction

Handling customer complaints promptly and effectively is critical for any business. Dissatisfied customers who have their complaints resolved satisfactorily can become your biggest advocates and loyal customers. On the other hand, failing to address complaints adequately can significantly damage your brand and reputation.

Also Read: Customer Lifecycle Management: A Detailed Guide

The 11 steps outlined in this blog post provide a comprehensive blueprint for managing complaints and turning a dissatisfied customer into brand promoters. The first step is to let customers complain without any hassle, whether they do it face-to-face, on the phone, by email, or on social media. Have friendly, empathetic customer service reps ready to handle complaints with a professional, problem-solving attitude.

Respond to all complaints immediately and avoid excuses or blame. Apologize and take responsibility for the issue. Investigate what happened, listen to the customer complaints, and determine the root cause, then respond to the customer with a resolution and solution. You may require escalating the matter to higher administration to fix it to the client’s satisfaction.

Follow through and implement process improvements to resolve any systemic issues. Monitor to ensure the customer is fully satisfied after resolving the complaint and address any remaining concerns. Finally, learn from the experience and communicate improvements to staff to avoid similar mistakes.

Frequently Asked Questions

Dealing with customer complaints well is important as it helps keep customers, earns their confidence, and enhances your business image. It also gives useful feedback to make products or services better.

Respond to a customer complaint by listening attentively, empathizing with their situation, apologizing sincerely, and offering a solution. Ensure your response is prompt and professional.

If a customer becomes angry or upset, remain calm and patient. Listen to their concerns, apologize for any inconvenience, and propose a solution. It's important to show understanding and respect.

Preventing customer complaints can be achieved by ensuring high-quality products or services, providing clear communication, and offering excellent customer service. Regularly seeking customer feedback can also help identify potential issues.

Giving something back to customers, like gift vouchers, etc., can be helpful. It proves you care about their satisfaction and want to fix their problems. However, it should be done depending on each situation, looking at the type and seriousness of the complaint.

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