A complaint is a second chance

A complaint feels unpleasant, but it is simply feedback. The customer is telling you exactly what went wrong. Handling customer complaints well is the quickest way to actually do something with feedback.

How you do it makes a big difference. Research by Arizona State University among about 1,000 American households showed this in 2013. A complaint that is handled well usually makes customers more loyal, not less.

If it goes wrong, they end up less loyal than if they had never complained. Even so, 56% of the people who complained said they got absolutely nothing out of it.

And saying sorry really works. When companies added something free to the compensation, such as an apology, satisfaction doubled from 37% to 74%.

Respond quickly and say sorry without a "but"

The longer a customer waits for a response, the more annoyed they get. So respond the same day, even if you don't have a solution yet. Tell them what you're going to do and when you'll get back to them.

Pick up the phone rather than sending a standard email. Nobody feels heard by "We apologise for any inconvenience." A real voice shows that someone is dealing with it.

Then there is the apology itself. Researchers at Ohio State University asked 755 people to rate different apologies. The most important part turned out to be admitting that it's your fault.

In second place came offering to put things right. Asking for forgiveness mattered least.

That's why "but" works so badly. "Sorry, but we were busy" shifts the blame to the workload. "I'm sorry you feel that way" even puts it on the customer.

Just say: "Sorry, this is our mistake. Here's what I'm going to do about it." Short, honest and no excuses.

Fix it, then add a small gesture

An apology without a fix is only half the job. So first solve the real problem. If the invoice is wrong, send a correct one the same day.

Then ask whether everything is really sorted now. A complaint is only closed when the customer says so, not when your system closes it.

After that, add something small. It doesn't need to be a big payout. It works best when it is personal and fits what went wrong.

The garage gives your car a free wash. An online shop sends your next order with free delivery. A restaurant offers you dessert on the house.

Give your people room to do this. Agree on an amount they can spend without asking anyone. That way the customer doesn't have to wait for a manager to say yes.

After the apology, the real work starts

The customer is happy again. Great, but the cause is still there in your business. If you change nothing, the next customer will be at the counter next week.

Here's what to do with the complaints that come in:

  1. A week after the fix, briefly ask whether everything is fine now. That way you know the problem has really gone.
  2. For every complaint, write down the real cause in one sentence. So not "customer angry", but "car not ready and customer not called".
  3. At the end of the month, look at which cause comes up most often. Tackle only that one, and put a name and a date next to it.
  4. Let the customers who complained know what you have changed. A short message is enough.

Say most complaints at the garage are about scheduling. Then you agree that every day at noon, the front desk checks which cars will be late. Those customers get a call straight away.

After a few months, check whether that complaint comes in less often. If it does, you haven't just helped that one customer, but every customer after them as well.

The short version

Mistakes happen everywhere. Whether a customer stays afterwards depends on what you do.

Respond the same day and say sorry without a "but". Fix the real problem and add something small that fits the mistake.

Then look beyond that one customer. Find the cause, tackle what comes up most often and tell customers what you have changed.

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Frequently asked questions

Do you have to give something extra for every complaint?

No, first you fix the problem. Something extra is a gesture for when the mistake was really annoying. Small and personal works best.

What if the customer is wrong?

Listen to the whole story first, without getting defensive straight away. There is often still something that could be better, such as an explanation that wasn't clear. If the complaint really doesn't hold up, calmly explain how things work and what you can do.

How do you stop the same complaint from coming back?

Write down the cause of every complaint and check each month which one comes up most. Tackle that one, with a name and a date next to it. After a few months, see whether that complaint comes in less often.