Complaint Handling: The Key To Brand Loyalty
Complaints are simply inevitable. Nobody ever likes to receive them, but, they can present you with the perfect opportunity to identify and rectify specific problems within your business.
And most importantly, it can help you to develop or maintain a relationship with your customers by allowing you to demonstrate that you value their service, therefore, building on their loyalty to your brand.
A well-handled complaint makes customers 67pc more likely to make a repeat purchase from a start up (Source: Business Advice)
Over a three-year period, the Ombudsman Service reported a total of 52m consumer complaints. Amongst 2,500 of those consumers, a study was conducted with its results reported in the latest Consumer Action Monitor (CAM).
It reported that an effective complaint management system can significantly affect a small company’s reputation. And, that good customer service has wider benefits than just improved customer retention. Customers tend to think more highly of businesses that handle complaints effectively.
Chief Ombudsman Lewis Shand Smith said: “Our three-year study suggests that consumer activism is on the rise and that complaint handling has become an increasingly important part of brand marketing.
The format of complaints is also changing, of the 52m complaints, 18 were submitted via social media. More than a third of consumers now use social media to submit complaints (an increase of 5pc on last year).
This can negatively affect your brand and as a startup or SME, this can lead to devastating effects.
When handling your customer complaints here are a few tips to keep in mind;
- Listen to the customer, give them your full attention.
- Empathise with he or she
- Apologise without blaming
- Offer a solution and execute it as quickly as possible
- Follow up with the customers to make sure they’re satisfied.