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HANDLING CUSTOMER COMPLAINTS

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How to Handle Customer Complaints Effectively: Best Practices and Strategies

• August 30, 2023

• August 28, 2023

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Customer complaints are an inevitable part of running a business, and how you handle them can have a significant impact on your reputation and customer loyalty. In this article, we will explore best practices and strategies on how to handle customer complaints effectively. From active listening to swift resolution, understanding the root cause, and implementing preventive measures, we will provide insights into creating a positive customer experience, even in the face of dissatisfaction.

The Importance of Addressing Customer Complaints

Addressing customer complaints is vital in delivering exceptional customer service and nurturing strong customer relationships. Considering how to handle customer complaints effectively, here are some key reasons why addressing customer complaints is crucial:

• Retaining Customers :  By promptly addressing and resolving complaints, businesses can retain valuable customers. When customers feel heard, and their issues are resolved satisfactorily, they are more likely to continue doing business with your company.
• Enhancing Customer Satisfaction:  Effective complaint resolution demonstrates a commitment to customer satisfaction. It shows that the business values its customers’ opinions, experiences, and concerns. This boosts overall customer satisfaction levels .
• Building Trust and Loyalty:  Addressing customer complaints promptly and efficiently helps build trust with customers. When businesses take complaints seriously and work towards finding solutions, customers develop a sense of loyalty, increasing their likelihood of remaining loyal to the brand.
• Improving Business Reputation:  How a business handles complaints directly impacts its reputation. By promptly addressing complaints, businesses can showcase their commitment to customer service excellence , which in turn enhances their reputation in the market.
• Gaining Valuable Feedback:  Customer complaints provide valuable feedback and insights into areas where a business can improve. By addressing complaints, businesses can identify recurring issues, implement necessary changes, and continuously enhance their products or services.
• Increasing Customer Advocacy:  Satisfied customers who have had their complaints successfully resolved are more likely to become brand advocates. They may share positive experiences with others, contribute positive reviews, and recommend the business to friends and family, thereby expanding the customer base.
• Competitive Advantage:  Businesses that prioritize addressing customer complaints gain a competitive advantage. Excellent customer service, including effective complaint handling, sets a business apart from competitors and becomes a differentiating factor for customers when making purchasing decisions.
• Minimizing Negative Word-of-Mouth:  Unaddressed complaints can lead to negative word-of-mouth, which can harm a business’s reputation. By actively addressing and resolving complaints, businesses can minimize the negative impact and maintain a positive brand image.
• Upselling and Cross-Selling Opportunities:  When customer complaints are resolved to their satisfaction, it opens up opportunities for upselling or cross-selling. Satisfied customers are more likely to engage in repeat purchases and explore additional products or services offered by the business.
• Continuous Improvement:  Addressing complaints helps businesses identify areas for improvement and make necessary adjustments. This ongoing process of addressing customer feedback ultimately leads to better products, services, and overall customer experiences.

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Impact of customer complaints on brand reputation

Customer complaints are a reality of doing business, and they can have a significant impact on your brand reputation. How you handle these complaints will determine whether you’re able to turn a disgruntled customer into a loyal brand evangelist or lose them forever. Therefore, it’s essential that you know how to handle customer complaints. 

• Customer Satisfaction:  Addressing customer complaints promptly and satisfactorily plays a crucial role in maintaining customer satisfaction. When complaints are resolved effectively, customers feel heard and valued, and are more likely to view the brand positively.
• Loyalty and Advocacy:  Handling complaints well can turn disgruntled customers into loyal advocates. Research shows that customers whose complaints are quickly addressed often become brand advocates, promoting the brand and its positive customer service experiences.
• Negative Word-of-Mouth:  Unresolved or poorly handled complaints can lead to negative word-of-mouth. Dissatisfied customers may share their negative experiences with others, damaging the brand’s reputation and potential customer acquisition.
• Brand Trust and Loyalty:  A strong brand reputation built on effective complaint handling enhances customer trust and loyalty. When customers trust a brand to address their concerns, they are more likely to remain loyal and continue supporting the brand.
• Business Success:  Positive brand reputation resulting from effective complaint resolution can drive business success. Increased customer loyalty , positive word-of-mouth, and enhanced customer satisfaction can lead to higher customer acquisition rates and revenue growth.

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The role of effective complaint handling in customer retention and growth

Knowing how to handle customer complaints effectively plays a crucial role in customer retention and growth. Here are some key insights from various sources:

• Customer Experience Improvement:  Effective complaint management contributes to positive customer experiences, leading to improved customer loyalty, revenue, and growth. By addressing complaints promptly and satisfactorily, businesses can enhance the overall customer experience.
• Customer Satisfaction, Loyalty, and Retention:  Successful complaint handling positively impacts customer satisfaction, loyalty, and retention. Addressing complaints and resolving issues lead to longer-lasting relationships with customers and the potential for repeat business.
• Service Recovery and Customer Retention:  Effective complaint management and service recovery programs contribute to customer retention. Reclaiming disgruntled customers through efficient service recovery efforts helps improve customer retention rates. 
• Growth Opportunities:  Customer complaints provide valuable feedback that opens business growth opportunities. Encouraging customers to voice their concerns and complaints enables businesses to improve their products, services, and overall customer experience.
• Business Improvement and Profitability:  Handling customer complaints effectively is vital for achieving and sustaining profitability and growth. Addressing complaints helps identify areas for improvement and make necessary adjustments, ensuring long-term business success.
• Customer Satisfaction and Sales:  Handling complaints not only improves customer satisfaction but also has a positive impact on sales. Resolving complaints efficiently increases customer loyalty and can lead to improved sales performance. 

Practices and Strategies on how to Handle Customer Complaints Effectively 

Active Listening and Empathy

When dealing with customer complaints, exercising active listening and empathy is crucial to understanding the issue. This means truly focusing on what the customer is saying rather than simply listening to respond. By genuinely hearing out their resentments without interruption, it’s possible to get a clear sense of how the situation can be resolved in the most efficient and satisfactory manner possible. 

Empathy also plays a huge role in ensuring the customer feels heard and understood. Acknowledging their feelings and showing that you understand their perspective can build rapport and create a more positive experience for all parties involved.

Swift Response and Timely Resolution

Every business wants to provide the best possible customer experience, but sometimes, things can still go wrong. When customers complain, it’s important to respond quickly and provide a satisfactory resolution. Acting swiftly shows customers that you are listening and value their feedback.

But it’s not enough to simply respond. The resolution must also be timely and appropriate. This is where effective complaint-handling strategies come into play. By implementing these strategies, such as active listening, addressing the root cause, and seeking feedback on the resolution, businesses can turn a negative experience into a positive one and earn the loyalty of their customers. 

Understanding the Root Cause

Effective complaints handling policies should be focused on understanding the root cause of customer complaints. Before dealing with a complaint, it is important to gather basic information and investigate what is causing the problem. There are a number of strategies that can be employed to identify the root cause, such as talking to the customer or analyzing data. 

Once this is established, opportunities can be found to address any underlying issues and create lasting solutions for customers. Customers who feel that their complaint has been properly addressed and resolved are more likely to remain loyal to a brand. Understanding the root cause can also prevent future complaints from occurring, creating a positive cycle of customer satisfaction and loyalty.  

Apologizing and Taking Responsibility

As a member of a customer service team , it’s important to understand the significance of apologizing and taking responsibility when handling customer complaints. 

Simply acknowledging the issue and recognizing the customer’s frustration can go a long way in showing that their business is important to you. Taking responsibility for the mistake, even if it wasn’t entirely your fault, also helps build trust and a positive relationship with the customer. 

Apologizing and taking responsibility can also open up a dialogue to find a solution to the issue at hand. Remember, effective communication and empathy are key components in handling customer complaints successfully.

Providing Solutions and Compensation

In today’s business world, it’s more important than ever to have accessible customer service and an effective system for handling complaints. When customers experience issues, they want to know that their concerns are being taken seriously and that they will receive a prompt and satisfactory resolution. 

Providing solutions and compensation is just one aspect of this process. It’s also critical to have a plan in place for how complaints will be received, routed, and resolved, as well as a commitment to ongoing improvement. By focusing on customer service and implementing effective practices and strategies, businesses can ensure that they are meeting their customer’s needs and building long-term loyalty.

Implementing Preventive Measures

Implementing preventive measures is crucial to handling customer complaints effectively. By anticipating potential issues, you can better equip your support team to handle them before they escalate into larger problems. One way to do this is by providing your team with the proper training and resources to address customer needs proactively. 

This could include offering educational resources and proactive communication channels, such as chatbots or email newsletters, to help customers stay informed and feel supported. Additionally, regularly monitoring customer feedback and implementing changes based on their suggestions and concerns can also show customers that their voices are being heard. By taking these steps, you can improve customer satisfaction and minimize complaints before they even happen.

Continuous Improvement and Feedback Loop

As businesses strive to provide an exceptional customer experience, handling complaints effectively becomes a key component. A continuous improvement mindset and feedback loop can help your organization achieve this goal. By regularly assessing and analyzing customer complaints, you can identify underlying issues and areas in need of improvement. 

Implementing changes based on customer feedback can result in improved customer satisfaction and loyalty. In order to ensure these improvements are sustained, it is important to close the feedback loop by communicating updates to customers and following up on their experience. Embracing a culture of continuous improvement and using customer feedback to drive change can ultimately result in a more positive customer experience.

Utilizing Technology and Customer Service Tools

As businesses continue to evolve, technology plays an increasingly important role in managing and handling customer complaints. Utilizing AI natural language processing, companies can now provide customers with efficient and effective customer service tools to resolve issues quickly. These tools can identify and understand customer complaints, allowing for personalized responses and resolutions, ultimately leading to a positive customer experience. 

Gone are the days of long wait times and annoyed customers. By embracing technology and implementing customer service tools, businesses can improve customer loyalty and satisfaction, ultimately increasing revenue and success.

Frequently Asked Questions

What if i am unable to resolve the customer’s complaint immediately.

If you are unable to resolve the customer’s complaint immediately, it is important to communicate this to the customer honestly and provide a clear timeline or next steps for resolving the issue. Keeping the customer informed throughout the process is key.

How can I turn a negative customer complaint into a positive experience?

To turn a negative customer complaint into a positive experience, you can actively listen to the customer’s concerns, apologize sincerely, take ownership of the issue, offer a suitable solution or compensation, and follow up to ensure their satisfaction.

How can I prevent customer complaints in the first place? 

Preventing customer complaints starts with providing excellent products or services, setting clear expectations, maintaining open lines of communication, training your staff to handle customer issues effectively, and continuously seeking feedback to identify and address any potential concerns proactively.

In the fast-paced and competitive business world, customer complaints are bound to crop up from time to time. Despite the negative connotations often associated with them, successful businesses know that complaints provide valuable feedback and insight. Taking a customer-centric approach and effectively addressing grievances can help diffuse a potentially challenging situation and turn a dissatisfied customer into a happy one. 

But how to handle customer complaints? By adopting best practices, such as active listening, empathy, and swift resolution, businesses can transform complaints into opportunities for growth and take customer satisfaction to new heights.

Effective complaint handling not only resolves issues but also shows customers that their concerns are being taken seriously. This builds trust, fosters loyalty, and encourages long-term relationships with customers. So, if your business wants to boost its reputation and keep customers coming back, it’s crucial to know how to handle customer complaints effectively.

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Download our feature-rich MS PowerPoint and Google Slides presentation template to present different forms of Customer Complaints and grievances regarding a product or service. The deck will help you present customized content in an easy-to-understand manner.

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Step-By-Step Guide: How to Handle Customer Complaints

Many customers will continue doing business with you after they've been dissatisfied and complained.

In fact, according to the service recovery paradox , a complaint is an opportunity that can actually result in the customer having a more positive view of your business after a complaint is resolved than before they ever had a problem.

Being able to assess and address customer complaints efficiently is key to making this happen.

How to Talk to Customers: 47 Expert Tips

Great communication is an art. Honing it to a keen edge is a science. These tips will help you improve how you and your team talk to customers — starting today!

What are customer complaints, really?

Customer complaints are often a sign that there's a disconnect between what customers expected and what you delivered. Sometimes that disconnect is caused by a customer's unreasonable expectations or incorrect assumptions. Other times, it's caused by something your company is doing wrong.

A customer complaint might be the result of your marketing copy leading them to believe something incorrect about your product/service — or of your user experience setting customers up for failure. Or it could reflect a problem that's happening outside of your direct control (e.g., third-party shipping issues).

The only way to find out is to give credence to customer complaints to determine if they contain genuinely useful feedback.

A 5-step process for handling customer complaints

To uncover the reason you received a complaint from a customer and solve the problem in order to retain that customer, use this five-step process for handling customer complaints.

Step 1: Dig deeper by asking the right questions

Complaints — even angry ones — can contain insights, and it’s your job to seek out the point of friction. Socratic questioning can help you get to the source of the issue.

Ask your customer questions like:

What do you mean by...?

Could you provide an example?

Could you expand on that point further?

And ask yourself questions like:

What other information do I need?

What am I assuming here?

Why is this complaint important?

Often, complaints are the result of problems that need to be solved. Asking the right questions helps you get to the root of the complaint, figure out if there's a way to resolve the issue, and determine if the complaint contains genuinely useful feedback.

If you determine that you aren't the right person to help with the customer's complaint and need to transfer them to someone who can , make sure to explain why. This can be as simple as saying, "I’m going to set you up with our specialist who will get that squared away for you right away."

Step 2: Identify the type of customer you're dealing with

A study from the University of Florida found that when dealing with customer complaints, you may run into one of the following types of customers, each "motivated by different beliefs, attitudes, and needs":

Customers who aren't shy about letting you know they're upset. When responding, avoid mirroring their confrontational behavior; instead, react with firm politeness.

Customers who pay well and demand premium support for it. When responding, avoid excuses and just get to the solution. Consider creating a VIP folder and workflow to make it easy to identify and respond to their complaints.

Customers who contact you frequently. Stay patient and avoid coming across as frustrated when responding to these customers. When satisfied, they often become repeat customers and advocates for your company.

Customers who don't want to complain and may just take their business elsewhere without ever letting you know there was a problem. You'll have to actively reach out to these customers to solicit and resolve their complaints; otherwise, you may never hear their feedback.

These are broad descriptions and, of course, your customers will present a more complex mixture of motivations and behaviors, but being aware of different persona types can help you respond most appropriately to the real person you are assisting.

Step 3: Respond to the customer quickly

When it comes to unhappy customers, a speedy response goes from being a nice-to-have to a necessity. Complaints are best resolved as soon as possible.

A customer leaving a feature request won’t mind at all if it takes you a day to respond, but customers who are in a “pulling my hair out” situation want a resolution yesterday. Make responding to them a priority.

It can be useful to set up a folder that's separate from the main support queue where you can filter less-than-ecstatic messages. Here, the team can see immediately which emails are from customers who need help right away.

Try the customer support platform your team and customers will love

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Step 4: Present a solution, and verify that the problem is solved

After you've identified the root cause of the customer's complaint, found a solution, and sent that solution to the customer, it's important to verify that the solution you proposed actually solved the problem. There are a couple of ways to do this:

If you can't verify that the solution is working, add this line to the end of your communication: "Please let me know if there's anything else I can do for you. I'm happy to help!"

Verify that the solution is working, then reply with: "I've tested this myself and it all appears to be working as expected, which you can see here: (include screenshot). But please let me know if you're still running into issues."

In some cases, it may even be worth reaching back out to the customer after a few days have passed to make sure that everything is resolved.

You may also want to consider monitoring any satisfaction ratings you receive on the conversation in your customer service software . Negative feedback may be a sign that there are still issues that need to be addressed (though there will be times that you've done everything you can do and the customer will still leave upset).

Step 5: Log the complaint so you can track trends

If you've gotten one complaint from one customer about one specific issue over the last 10 years, that issue might not be worth addressing. But if you're getting multiple messages from multiple customers who all shared the same complaint, that's the beginning of a narrative.

To identify high-volume complaints, you'll need a system for tracking them. At Help Scout , we use the Help Scout + Jira integration to track customer complaints so we can capture them, monitor how often we're hearing recurring concerns, and follow up with each customer directly when the issue has been resolved.

Whatever system you use, the key is to make it easy to capture meaningful complaints and track the volume of customers who are bringing up similar or identical issues.

How to handle negativity as a support professional

Handling customer complaints is just par for the course for support professionals, but that doesn't mean it won't take a toll on you emotionally from time to time.

So in addition to providing you with a process for handling customer complaints, we wanted to share these tips from Jeremey DuVall , Support Engineer at WordPress VIP, on how to keep yourself from feeling down on days when there's lots of negativity in the queue.

Rehearse objections ahead of time

By rehearsing potential objections ahead of time, you can prepare before real-life negative interactions occur. Before launching a new product or feature, think about things that might attract polarizing opinions. This has three purposes:

Tackle negativity — First, tackle negativity to force everyone to confront the fact that some customers might not like the change you're making. Addressing that ahead of time prevents anyone from looking at the situation with rose-colored glasses.

Discuss rationale — Second, discuss the rationale for the change. If the decision to make a change was well-thought-out and backed by data, you can move forward knowing you made the right decision, even if it ruffles some customers' feathers.

Rehearse answers — Lastly, rehearse your answers and get everyone on the same page. It’s not about creating support robots who copy and paste the same replies to customers; it’s about creating a consistent support experience for customers.

Balance negativity

In To Sell Is Human , Daniel H. Pink discusses how door-to-door salespeople experience “no” a heck of a lot. How do you keep your head up amongst that level of negativity?

Pink points to research on positivity ratios — the number of positive interactions to negative ones. If the ratio is high (say, 10:1), you’ll think nothing can go wrong (not necessarily realistic). A ratio of 1:1 is too pessimistic; the glass is half empty. A ratio of 3:1 is just about right.

While we don’t need to focus too specifically on the exact ratio, we do need to have tools in place to boost positivity when we feel ourselves slipping down the negativity slope. Here are some ideas:

Happy file: Create a happy file just for yourself. In that file, keep amazing interactions you've had with customers and conversations that always put a smile on your face. When you feel down during the day, looking through the file is a quick way to pick yourself back up.

Team kudos: At the end of every month, have one person read through all the awesome comments from customers and pick out the best one for each person. If you forget about how awesome your teammates are, this is an easy, quick reminder.

Happiness #hugs: Aggregate awesome comments from your customers and post them to a company-wide feed with the hashtag #hugs. When you’re having a bad day, it’s easy to view the tag feed and get a huge boost.

Master explanatory style

We can explain negative interactions after the fact in a couple of ways. The feedback is either "permanent, pervasive, and personal," or "temporary, specific, and external."

When you view a negative interaction as permanent (not going away), pervasive (everyone feels this way), and personal (there’s a part of me that plays into this), you feel like you have little control over your environment. Things are happening to you.

The alternative to “permanent, pervasive, and personal” is “temporary, specific, and external.” In this light, negative interactions become more manageable and actionable.

First, negative interactions probably aren’t the norm (if they are, you’re doing something wrong). Second, negative feedback is usually specific to a certain product or thing. Finally, it’s external. It’s generally not about you or anything you are doing.

How do you put this into practice? Conduct personal reviews of negative feedback every so often to do the following:

Look for areas where you could have improved in the interaction (details you missed, ways you could have improved the service, etc.).

Practice self-talk so these interactions don’t feel personal. This practice prepares you to stomach any waves of negativity you might run into when navigating the queue.

How to handle customer complaints the right way

Some people aren’t going to like what you build. That’s the cost of shipping things out into the world. If your product is great enough, there’s a good chance you’ll hear polarized opinions about it.

But by preparing ahead of time, maintaining appropriate positivity ratios, and framing feedback as temporary, specific, and external, you can arm yourself with ways to handle the negativity so you can address customer complaints efficiently and use them to create loyal customers.

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Gregory ciotti.

Greg is a writer, marketing strategist and alum of Help Scout. Connect with him on Twitter and LinkedIn .

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Handling Customer Complaints

Jan 04, 2020

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Handling Customer Complaints. Objectives. Students will be able to: Define and explain customer service List examples of great customer service Identify each type of customer who complains and how to handle them Analyze each situation and determine an acceptable way to handle it.

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Presentation Transcript

Objectives • Students will be able to: • Define and explain customer service • List examples of great customer service • Identify each type of customer who complains and how to handle them • Analyze each situation and determine an acceptable way to handle it

What is Customer Service? • Customer Service is a company’s ability to supply wants and the needs to customers • Good customer service is the ability of an organization to constantly and consistently exceed the customer's expectations

Why is Customer Service Important? • Gives positive impression to present and future clientele • Keeps customers willing to come back again • Makes customers feel like they are the number one priority

Steps to Creating Good Customer Service • Make eye contact and greet a customer to show you are available to provide them service as needed. • You should have a good understanding of the product or service you provide, so that if a customer needs assistance, you are able to deliver a satisfactory response. • Assume attentive posture to convey confidence and a helpful attitude • Smile often, if appropriate, or model the emotion that is suitable to the situation.

Customer Complaints • A customer complaint is communication that claims deficiencies during or after purchase. • Appropriate response to customer complaints is essential to a business. • A customer with a complaint that is resolved is more likely to return than a dissatisfied customer who doesn’t voice any complaints.

Customer Complaints • The average customer with an unresolved complaint will tell 9 to 10 other people. • For every complaint received, the average company has 26 unhappy customers that don’t complain.

8 Steps to Handle a Customer Complaint • Provide customers with the opportunity to complain. • Give customers your full and undivided attention. • Listen carefully. • Ask key questions to fully understand the complaint • Agree that a problem exists; never argue. • Apologize for the problem. • Resolve the complaint. • Thank the customer for bringing the complaint to your attention.

Types of Customers • The Aggressive Customer • Readily complains, often loudly and at length. • Your response: Listen completely. • What not to do: Be aggressive in return. This customer does not respond well to excuses or reasons why the product or service was unsatisfactory. • Always follow company policy.

Types of Customers • The High-Roller Customer • Expects the absolute best and is willing to pay for it. Likely to complain in a reasonable manner. • Your Response: Always listen respectfully and actively question to fully determine cause. • Always follow company policy.

Types of Customers • The Rip-Off Customer • Their goal is not to get the complaint satisfied but to win by getting something that is not entitled to be received. Often replies with a repetitive “not good enough” response. • Your Response: Remain objective. Use accurate data to back up your response. Be sure the adjustment is within the range of what the organization would normally do. • Always follow company policy.

Types of Customers • The Chronic Complainer • Never satisfied, feels there is always something wrong. • Your Response: Extreme patience is required. Listen carefully and never get angry. It is best to give sympathy, a sincere apology, and a promise to correct the situation.

Types of Customers • The Meek Customer • Generally, will not complain. Most dangerous to businesses because they will most often complain to others. • Your Response: Must work hard at soliciting comments and complaints to act appropriately to correct those problems.

Common Customer Complaints • The associate helping me was very rude. • The root of the problem is the employee. Apologize to the customer and then start training the employee the proper way of behaving around customers. • I feel like none of the associates want to help me. • Make sure that when a customer first comes in, one person greets them and continues to help them while in they are in the store.

Common Customer Complaints • He/She doesn’t know what to do. • Apologize and then fix the problem. Sit down employees and make sure they understand what they can do to fix that problem when it arises again. And if they cannot, advise them to seek a manager. • I keep coming back with the same problem. When will it be fixed? • You need to solve this problem ASAP! Having a customer come back repeatedly for the same problem is dangerous and unfair to them. Make sure that the problem is addressed and will not occur again.

Common Customer Complaints • I feel like I don’t have a choice in the matter, the employee is making the decision for me. • Help the customer through the process by taking the time to explain exactly what you are wanting to do and walk the customer through the steps. • Nobody seems to care for my problem. • This is the most deadly problem that can arise.. Do your best to show your concern for their problems and promptly fix them.

Common Customer Complaints • The associate that helped me was no help at all! • If the problem is having the associate seem caring for the customer’s situation, give incentives for employees to do well and coaching sessions for those who have trouble with good customer service. • This other store offered do to this for me, why can’t you? • With competition, you can always find out what they are offering that you aren’t. If it is something that can benefit your business, then consider adopting it.

Summary • Good customer service is important for ensuring that customers are satisfied • Customer complaints are important for a company because they help make the company better • It is important to understand the different types of customers and how to handle each one • A customer with a complaint that was solved is much more likely to return to the business again

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How to Handle Customer Complaints: A Comprehensive Guide for Small Business Success

Did you know that 96% of unhappy customers don’t complain, but 91% will simply leave and never come back? That’s a staggering statistic that highlights the importance of proactively addressing customer concerns.

In this comprehensive guide, we’ll equip you with the tools and strategies to gracefully and confidently navigate the tricky terrain of customer complaints. We’ll delve into the psychology of complaints, explore proven communication techniques, and provide actionable steps to overcome poor customer service and resolve issues effectively.

By the end of this article, you’ll be armed with the knowledge to handle complaints and leverage them to build stronger customer relationships and create loyal customers.

What is Effective Customer Complaint Handling?

Effective customer complaint handling is more than just fixing a problem. It’s about turning a negative experience into a positive one, building trust, and providing great customer service . At its core, it’s the process of acknowledging, understanding, and resolving customer issues promptly and satisfactorily.

Why is this so important? Every interaction with customers, especially when they express dissatisfaction, shapes their perception of your brand.

Addressing issues promptly and efficiently demonstrates that you value their business and their feedback. It shows that you’re committed to providing excellent service and are willing to go the extra mile to ensure their satisfaction.

Why You Should Master the Art of Handling Customer Complaints

The way you handle customer complaints can significantly impact your business success. It’s not just about resolving the immediate issue but creating a positive experience that leaves a lasting impression. By mastering the art of complaint handling, you can turn dissatisfied customers into loyal advocates, fostering long-term growth and prosperity.

Here are some key benefits of effective complaint handling:

• Improves customer retention and loyalty: Customers are more likely to stick around and continue doing business with you when they feel heard and valued.
• Enhances brand reputation: Positive experiences, even in the face of complaints, can generate positive word-of-mouth and boost your brand’s image.
• Provides valuable insights for business improvement: Complaints offer valuable feedback on areas where you can improve your products, services, or processes.
• Increases customer lifetime value: Satisfied customers spend more and stay with your business longer, contributing to increased revenue.
• Differentiates your business from competitors: Exceptional complaint handling can give you a distinct advantage over the competition.

How to Handle Customer Complaints Like a Pro: The LASSAC Method

Ready to transform those complaints into golden opportunities? The LASSAC method provides a clear, step-by-step approach to effectively managing customer complaints. Let’s explore each step and discover how to apply it to your business.

L – Listen Actively

Active listening is the cornerstone of effective complaint resolution. It involves more than just hearing your customers’ words; it’s about understanding the underlying emotions and expectations driving their feedback. By listening actively, you acknowledge the customer’s feelings and convey that their concerns are important and taken seriously.

Tips for Practicing Active Listening Techniques

• Give Your Full Attention: Avoid distractions. Ensure you are fully present during the interaction, whether on the phone, in person, or via digital communication.
• Reflect and Clarify: Repeat what you’ve heard to confirm your understanding. This practice helps you grasp the complaint more accurately and shows the customer that you are engaged.
• Ask Questions: Employ open-ended questions to delve deeper into the issue. This technique helps uncover the root of the problem and demonstrates that you are thorough in your approach.

Making customers feel heard starts with your response. Use phrases like “I understand why that would be upsetting” or “It makes sense you’d feel that way” to validate their feelings.

Ensure that your verbal and written tone reflects empathy and a genuine desire to resolve the issue. Remember, the goal is to make the customer feel valued and respected throughout the conversation, turning a potentially negative experience into a positive one.

A – Apologize Sincerely

A sincere apology can transform a contentious situation into a moment of connection and understanding. It demonstrates humility and accountability, which are critical in maintaining customer trust. By acknowledging a complaint and expressing genuine regret, you address the issue at hand and reinforce your commitment to customer satisfaction.

Apologizing effectively doesn’t necessarily mean conceding fault, especially when the details may be unclear or liability is not straightforward. The focus should be on the customer’s feelings and your response to their dissatisfaction rather than the specifics of who is to blame.

• Empathize with Their Experience: Focus on the customer’s experience and emotional response. For instance, “I’m really sorry to hear about your frustration,” or “I understand why you’d be upset about this.”
• Acknowledge the Discomfort: Recognize the inconvenience or disappointment. “I’m sorry this has been such a frustrating process for you,” offers acknowledgment without directly admitting fault.
• Express Commitment to Resolve: Reiterate your intention to find a solution. “We’re sorry you’ve had this experience, and we’re committed to making things right.”

Examples of Effective Apology Statements

• “I’m sorry this has inconvenienced you. Let’s see how we can fix this together.”
• “I understand how disappointing it must be to face such issues. I’m sorry for any trouble caused, and I assure you we’re on it.”
• “We’re sorry this situation has caused frustration. We appreciate you bringing this to our attention so we can work on a solution.”

These examples show that you value the customer’s feedback and are proactive about resolving the issue, setting a positive tone for the rest of the interaction.

S – Sympathize with the Customer

Empathy is a powerful tool in customer service that involves feeling what your customer feels and communicating that understanding back to them. It goes beyond basic sympathy to form a genuine connection and reassure customers that their concerns are taken seriously.

• Use Empathetic Language: Incorporate phrases that reflect understanding and care. Words like “I can see why you’d feel that way” or “That sounds really challenging” help convey empathy.
• Mirror Their Emotions: Your responses should reflect the customer’s emotions. If they are upset, your tone should be concerned and attentive. If they are frustrated, acknowledge that frustration without escalating the emotions.
• Validate Their Feelings: Let them know their feelings are normal and understandable given the situation. Validation can defuse much of the emotional charge and help move toward resolution.

Understanding the customer’s perspective is crucial in empathetic interaction. This means thinking about how you would feel and react if you were in the customer’s position.

S – Solve the Problem

Once you’ve actively listened and apologized sincerely, it’s time to take action and solve the problem. This involves identifying the root cause of the complaint, offering reasonable solutions, and involving the customer in the resolution process.

Here are some steps to identify the root cause of the complaint:

• Gather all the relevant information: Ask questions, review documentation, and consult with colleagues if necessary.
• Analyze the situation: Look for patterns, identify potential causes, and consider the customer’s perspective.
• Communicate your findings: Explain to the customer what you believe the issue is and how you plan to address it.

When offering solutions, keep the following in mind:

• Be realistic and transparent: Don’t overpromise or make commitments you can’t keep.
• Offer options: Provide the customer with a choice whenever possible.
• Explain the benefits: Clearly communicate how your proposed solution will address their concerns.

Involving the customer in the resolution process is crucial. It empowers them and demonstrates your commitment to their satisfaction. Ask for their input, consider their preferences, and keep them informed throughout the process. This collaborative approach can turn a complaint into an opportunity to build a stronger relationship.

A – Act Quickly

In today’s fast-paced world, time is of the essence. Customers expect prompt responses and swift resolutions to their complaints. Delaying action can exacerbate their frustration and damage your reputation. That’s why acting quickly and efficiently is crucial when addressing customer concerns.

The significance of timely responses must be balanced. They demonstrate that you value their time and are committed to resolving their issue immediately. They also prevent the situation from escalating and minimize the potential for negative word-of-mouth.

It’s important to set up efficient complaint-handling processes to ensure swift action. This may involve:

• Establishing clear communication channels: Make it easy for customers to reach you through various channels, such as phone, email, or social media .
• Assigning responsibility: Designate specific individuals or customer service teams to handle complaints and empower them to take action.
• Setting response time goals: Aim to acknowledge complaints within a specific timeframe, such as 24 hours.
• Tracking and monitoring progress: Use a CRM or other tools to keep track of complaints and ensure they’re resolved promptly.

Technology can also play a key role in speeding up resolution times. Consider utilizing tools such as:

• Live chat: Provide real-time support and address concerns immediately.
• Chatbots: Automate simple inquiries and free up your team to handle more complex issues.
• Helpdesk software: Streamline complaint management and track progress.
• Social media monitoring: Stay on top of customer feedback and address issues proactively.

You demonstrate your commitment to customer satisfaction and build trust in your brand by acting quickly and efficiently.

C – Close the Loop

The final step in the LASSAC method is to close the loop. This involves following up with the customer to ensure they’re satisfied with the resolution and to express your appreciation for their feedback. It’s a crucial step that demonstrates your commitment to their satisfaction and can turn a negative experience into a positive one.

Here’s why follow-up communication is so important:

• It shows you care: Following up demonstrates that you’re interested in resolving the immediate issue and ensuring the customer’s long-term satisfaction.
• It provides an opportunity to gather feedback: You can ask the customer if they’re happy with the resolution and if there’s anything else you can do to improve their experience.
• It strengthens the relationship: By going the extra mile, you build trust and customer loyalty, turning a complainer into a potential advocate.

Key Considerations for Successfully Handling Customer Complaints

It’s about creating a robust system that consistently supports excellent customer service. To achieve this, businesses must focus on comprehensive training, advanced technology, and a culture prioritizing customer satisfaction.

These foundational elements ensure that your team is prepared, empowered, and motivated to handle any customer issue that arises.

Training Your Customer Service Team

Ongoing training is essential to keep your customer service team up-to-date with the latest tools, techniques, and standards for effective complaint handling. Continuous learning helps customer service reps adapt to evolving customer expectations and ensures your team always performs at their best.

Key Skills to Develop in Customer Service Representatives:

• Communication Skills: Clear and compassionate communication is crucial.
• Problem-Solving Skills: Ability to quickly identify solutions.
• Emotional Intelligence: Understanding and responding to the emotions of others.

Role-playing exercises are an effective training tool that helps prepare representatives for various scenarios. These simulations can improve decision-making under pressure and enhance empathy, leading to better resolution rates and customer satisfaction.

Leveraging Technology for Complaint Management

CRM systems play a pivotal role in managing customer interactions and data. They help track all communications and resolutions, ensuring nothing slips through the cracks and that every customer interaction is logged and analyzed for future reference.

AI-powered chatbots can handle initial inquiries and basic complaints, directing more complex issues to human representatives. This speeds up response times and allows your team to focus on more nuanced problem-solving.

Monitoring tools are essential with the increasing use of social media as a platform for customer feedback. These tools help quickly identify and respond to online complaints, protecting your brand reputation and promptly addressing customer issues.

Creating a Customer-Centric Culture

Building a customer-centric culture starts with leadership. It requires consistent messaging from the top that customer satisfaction is a priority. This mindset should be integrated into all training programs and company policies.

Leaders must model the customer-first approach in their actions and decision-making . By openly prioritizing customer satisfaction and complaint resolution, leaders set a standard for the rest of the organization .

Acknowledging and rewarding staff for exceptional service motivates and reinforces the behaviors that lead to customer satisfaction. Regular recognition can inspire the entire team and strengthen commitment to quality customer service.

Taking it to the Next Level: Proactive Complaint Prevention

Effective complaint handling isn’t just about managing issues as they arise—it also involves anticipating potential problems and addressing them proactively.

By integrating systematic feedback mechanisms and regular assessments into your customer service framework, you can reduce the frequency of customer complaints and enhance overall customer satisfaction and loyalty.

Setting up structured channels for loyal customers to provide feedback—both positive and negative—enables businesses to gather valuable insights continuously. These could include digital comment boxes, feedback forms on your website, or dedicated email addresses for customer opinions.

Conducting periodic surveys helps gauge customer satisfaction levels and identify areas needing improvement. These surveys can be tailored to follow up on recent purchases or interactions to get real-time, actionable data.

Turning Common Customer Complaints into Opportunities for Growth

View every complaint as a chance to improve. Customers complain because they want changes to the services being provided. This mindset encourages a constructive response to feedback and integrates it into your business’s growth strategy. Regularly review and analyze complaints from a dissatisfied customer to identify any patterns or recurring issues that could inform strategic changes or improvements.

Act on the insights gathered from complaint analysis by making targeted changes in your operations, customer service protocols, or product offerings. Inform your customers about these changes, showing that their feedback is valuable and taken seriously.

Alternatives to Traditional Complaint Handling

Develop self-service resources such as FAQs, how-to guides, and troubleshooting steps available on your website or through mobile apps . These resources empower customers to resolve their issues independently without contacting customer service directly.

Encourage the formation of user communities around your products or services. Forums, social media groups, and other online platforms where customers can discuss issues and share solutions can be very effective. This reduces the load on your customer service team and builds a supportive customer network.

Implement outreach initiatives that contact customers before they need to reach out with a complaint. These include courtesy calls, follow-up emails post-purchase, or preemptive service checks. Such proactive contacts can identify and solve problems before they escalate and improve the overall customer relationship.

Final Thoughts on Handling Customer Complaints

Handling customer complaints effectively is crucial for any business aiming to build lasting relationships and a strong reputation. 

By adopting a structured approach like the LASSAC method, thoroughly training your team, leveraging technology, and fostering a customer-centric culture, you can transform challenges into opportunities for growth. Proactive complaint prevention and innovative handling strategies reduce the incidence of complaints and enhance customer satisfaction and loyalty. 

Remember, every complaint is a direct line of customer feedback, offering invaluable insights that can drive continuous improvement and innovation. Embrace these moments as chances to distinguish your business by demonstrating your commitment to customer care and ability to adapt and improve continually. 

Ultimately, how you handle complaints can define the perception of your brand and influence your success in the competitive marketplace.

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How to Reduce Customer Complaints & Delight Customers in 2024

Babu Jayaram

Head of Customer Success - ProProfs

Review Board Member

Babu Jayaram brings over 20 years of experience in sales and customer service to his role on the Qualaroo Advisory Board. With a profound understanding of sales and conversion strategies, ... Read more

Babu Jayaram brings over 20 years of experience in sales and customer service to his role on the Qualaroo Advisory Board. With a profound understanding of sales and conversion strategies, Babu is committed to delivering exceptional results and fostering robust customer relationships. His expertise extends beyond mere management, including adept handling of support tickets, overseeing internal and customer-facing knowledge bases, and training support teams across diverse industries to ensure exceptional service delivery. Read less

Customer Service & CX Specialists

ProProfs Help Desk Editorial Team is a diverse group of professionals passionate about help desk management. We update you on the latest trends, dive into technical topics, and offer insights to elevate your business.

Customer service professionals across industries face a common question – How to reduce customer complaints?

Hearing back from your customers is amazing. However, the reason matters. Are you getting more complaints than compliments?

No matter how big your brand is, reading those long complaints is never easy. But If you want to survive in this fierce business world, running away from problems should never be an option. You must take responsibility, accept mistakes, and look for ways to reduce customer complaints proactively.

In this blog, we will explore common examples of customer problems, their solutions, and top tips to reduce complaints for happier customers and a thriving business.

What Are Customer Complaints?

A customer complaint refers to a formal communication of disappointment, problem, or negative feedback shared with a business. Complaints result due to the gaps between what a business promises to deliver and what the customers actually get.

Most businesses use a ticketing system to track complaints centrally. You can watch this short video to learn how to create and use a ticketing system for your customer support team.

Customer complaints can take many forms. They could arise due to delayed support, impolite employees, faulty products/services, internal processes, or improper communication. For example, customers can share their complaints when your product does not reach them on time or when they call your business, but nobody responds.

Here is an example of a customer complaint for McDonald’s and their prompt response.

Image Source: Statusbrew.com

5 Common Complaints of Customers With Expert Solutions

Here are five common customer complaints, along with expert solutions to resolve them swiftly and efficiently.

1. Long Wait Times

Customers often express frustration when they have to wait for extended periods before receiving a response from customer service. This could be during phone calls, live chat sessions, or even email responses.

Long wait times can make customers feel neglected and unimportant, leading to dissatisfaction and negative reviews. In an age where instant gratification is expected, waiting too long for help can be a major deterrent.

• Implement AI Chatbots: Use AI chatbots to handle common inquiries and provide instant responses, reducing wait times for customers.
• Optimize Staffing: Analyze peak times and ensure adequate staffing during these periods.
• Offer Callbacks: Customers should be able to request a callback (at a preferred time slot) instead of waiting on hold.

2. Unresolved Issues

Nothing is more frustrating for a customer than reaching out for help and not getting their problem resolved. This can happen due to miscommunication, lack of knowledge, or insufficient resources.

Customers may also experience the frustration of having to explain their issue multiple times to different agents, which can make the process feel endless and inefficient.

• Train Agents Thoroughly: Ensure that customer service representatives are well-trained and equipped to handle a wide range of issues.
• Empower Agents: Give agents the authority to make decisions and resolve issues on the spot without needing to escalate to higher management.
• Track Overdue Tickets: Implement a system to track and follow up on overdue tickets to ensure no issues fall through the cracks and all customer problems are addressed promptly.

3. Pricing Concerns

Customers often feel that products or services are overpriced or do not offer good value for their money. This can lead to dissatisfaction, negative reviews, and lost sales.

Pricing concerns may stem from a lack of understanding of the product’s value, comparison with competitors, or unexpected additional costs.

• Conduct Market Research: Ensure competitive pricing by researching market trends and competitor pricing.
• Communicate Value and Benefits: Clearly explain the value and benefits of the product to justify the price.
• Offer Tiered Pricing Options: Provide tiered pricing options or bundles to cater to different budget levels.
• Implement Loyalty Programs: Offer discounts or loyalty programs for repeat customers to enhance perceived value.

4. Rude or Unhelpful Staff

Customers often encounter representatives who seem indifferent or rude, which can significantly impact their overall experience. Around 62% of customers feel that service insight and knowledge are key to a good experience.

Rude or unhelpful staff can make customers feel disrespected and undervalued. This negative interaction can lead to customers leaving your business for competitors and sharing their poor experiences with others.

• Customer Service Training: Provide regular training sessions focused on soft skills, empathy, and effective communication.
• Monitor Interactions: Use call monitoring and feedback mechanisms to assess and improve agent performance.
• Recognize and Reward: Encourage a positive workplace culture by recognizing and rewarding agents who provide excellent customer service.

5. Lack of Communication

Customers frequently complain about feeling uninformed or kept in the dark about order status, product information, or issue resolution.

Poor communication can lead to confusion, frustration, and a lack of trust in the company. Proper customer communication management can help you share timely and clear updates, making customers feel assured that their concerns are being addressed.

• Proactive Communication: Regularly update customers throughout the customer journey, from order confirmation to delivery.
• Multiple Channels: Use various communication channels (email, SMS, app notifications) to keep customers informed.
• Follow-Up: Regularly follow up with customers to ensure their issues are resolved and to maintain satisfaction.

8 Expert Tips to Reduce Customer Complaints

Dealing with customer complaints is an inevitable part of running a business, but addressing them effectively can turn dissatisfied customers into loyal advocates. Here are 8 tips for minimizing complaints.

1. Set Clear Expectations from the Get-Go

Setting clear expectations is one of the best tips for avoiding customer complaints.

To start a customer relationship on the right foot, you need to clearly communicate aspects such as product quality, pricing, return policies, and any hidden terms and conditions.

Rather than assuming that your communication is effective, ask questions to establish a clear understanding. “We hope you know that extra delivery charges will apply to your location. Do you have any further questions?” This is a great way to ensure that everyone is on the same page.

Here are some business aspects that demand more clarity than others:

• Product/Service Quality: Set clear expectations about the quality of products or services your customers can expect from your brand. Do not boast of a feature that you do not even offer. More importantly, for low-priced products/services, communicate any serious limitations or drawbacks.
• Return & Refund Policies: Many customers complain that they cannot easily return their purchased items. Even if they return it, they are not eligible for a complete refund. You must create well-structured return and refund policies to avoid such complications and ensure a better shopping experience.
• Customer Service SLAs: So what happens when things go wrong? How long are customers expected to wait to get an email or phone response from your team? Communicate customer service SLAs and track how successfully your team lives up to service expectations.

2. Track & Resolve Complaints With Customer Service Software

Do you use spreadsheets or email to handle customer problems? You might want to rethink your strategy.

If you do not have a centralized system to manage customer complaints, it can lead to inefficiencies and inconsistencies in issue resolution. Important complaints might get lost or overlooked, causing customer dissatisfaction and potential loss of business.

With the best customer support software , you can track the complete lifecycle of a complaint ticket. You have complete visibility from the moment a complaint is registered to the time it is resolved and marked as closed.

But. that’s not all. Some AI-powered customer service tools can even summarize a long complaint and offer automated response suggestions that you can use right away.

Real-time tracking of customer issues and requests will allow you to have complete control over your support operations, team productivity, as well as performance.

3. Train Employees on Soft Skills

You must have heard a lot of customers say, “I did not have a great experience with company XYZ. The representative was rude, uninterested, and just wanted to make a sale.”

Yes, we all have encountered such horrific experiences at some point in time.

When your customer-facing team is empathetic and professional, it builds a better reputation for your brand. On the contrary, a lack of soft skills can leave a bad impression on customers.

Here are some soft skills you can prioritize for your team:

• Empathy: Empathy is a must-have soft skill that reflects your ability to understand and relate to the feelings of others. Even if you don’t have a ready solution to a problem, showing empathy makes customers feel that their concerns matter.
• Patience: Frequent customer complaints can make anyone lose their patience and lead to further escalations. However, you need to realize that patience is a vital quality in the workplace that holds the power to reduce conflicts. Patient employees can understand customer problems, avoid arguments, and enhance the quality of relationships.
• Openness to Criticism: Employees must learn to take criticism from both internal leaders and external customers. Train them to see the positive side of every situation and handle negative feedback without taking it personally.

4. Don’t Make Promises You Can’t Keep

Broken promises are the leading cause of customer complaints.

Remember the time when a business promised you next-day delivery, but your product never arrived in time? Making false promises to customers will not only hamper your brand’s image but can also land you in legal trouble.

Brands make all sorts of promises – “We have the best pricing,” “Join today and get 50% discount,” “Free shipping on all orders,” etc. But how many are able to fulfill them? To avoid customer complaints, you should never overpromise and underdeliver.

So does this mean that you should not promise at all? Of course not. You can always make promises that you can deliver. The focus should be on creating value rather than attracting customers with unrealistic promises.

Here are some questions you can ask yourself:

What promises are we making to our customers?

Make sure you know what exact promises you have made to customers. Revisit your SLAs, marketing emails, product catalogs, quotations, etc., and check whether you are in a position to fulfill them. Remove any vague promises and communicate the same to your team.

Which promises do our customers care about the most?

Are you making promises that your customers don’t even want? Spend some time figuring out what customers expect from your brand and what extra commitments they want you to make.

5. Create a Knowledge Base & Community Forum

Encouraging self-service is one of the best strategies for avoiding complaints from customers.

Picture this for a moment: a customer complains when he encounters a problem. What if the solution to the problem was readily available online, and there was no need to raise a complaint?

Invest your time and efforts in creating a dedicated knowledge base that is easy to search and holds answers to frequently asked questions. Similarly, create an online forum where customers can interact with each other and share their experiences, problems, or solutions.

How can you use your knowledge base to reduce complaints?

Most customers look for answers online before approaching your team. If you create an SEO-friendly help center, you can help customers find the right answers easily. For a delightful search experience, optimize your pages for multiple devices, such as mobile, tablet, PC, and laptop.

How can community forums help you avoid customer complaints?

A well-curated online community forum can help you drive customer engagement and build long-term trust with your audience. Before raising a complaint, customers can go through product release news, updates, expert suggestions, etc., and get their queries resolved by themselves.

6. Get to the Root Cause of Issues

So you successfully handled a customer complaint once. Great. But is that enough?

To reduce customer complaints and avoid similar problems in the future, you need to get to the root cause of an issue. Identify “complaint trends” and look for ways to find a permanent fix.

When an old bucket leaks, you can fix it once or twice, but after some time, you need a permanent solution. Similarly, you need to track the root cause of the problem and address areas that are resulting in customer dissatisfaction.

Imagine you receive multiple customer complaints about a product feature that does not work. Instead of fixing the problem for a couple of customers, share the concern with your product team and ask them to improve it.

Communicate this with your customers proactively. Tell them that your team is working on fixing the problem and share a realistic deadline for it. This simple process will help you create a delightful customer experience.

7. Take Feedback Proactively

To identify and reduce customer complaint barriers, you need to get proactive with your feedback process.

Proactive feedback will help you identify problems before they take an ugly turn. It is a bit like giving your car in for a service well in time rather than waiting for it to break down on the highway.

A lot of businesses share a survey with customers only once their problem has been fixed. Such surveys will help you get good ratings but will never display the complete picture. To offer a better experience, you need to share surveys every now and then to understand customer pain points.

For example, you can share open-ended questions, giving customers the opportunity to express themselves. Here are some examples:

• What can we do to improve our customer service?
• Is there any way we can improve the overall buying experience?
• How successful were we in meeting your quality expectations?
• Did you find all the important information on the website?
• What challenges did you face while shopping from our online store?

Regularly monitoring the responses to these questions will help your brand fix common problems and avoid customer complaints in the future.

8. Turn Complaints into Valuable Lessons

Most entrepreneurs see customer complaints as roadblocks to business growth. However, if you look closely, new learning opportunities can stem from negative feedback.

“Your most unhappy customers are your greatest source of learning.”

— Bill Gates 

Here are some actions you can take for improved complaint management:

• Share complaints with other departments: Received a complaint about incorrect billing? Share it with your accounts and billing department. Received a complaint about delayed delivery? Share it with your logistics team or the courier partner. Create a transparent process and hold teams accountable for specific complaints.
• Monitor Conversations: Monitor every single conversation your team has with customers over the phone, live chat, or email. See what is working well and what can infuriate customers. Share examples of agents dealing successfully with customer complaints and set the right example for everyone.
• Offer Discounts: To turn any negative situation into a positive one, you can offer meaningful discounts to customers. Share a personalized apology email and attach some perks and discount coupons that can help you make up for the mistake.

Reduce Complaints, Increase Customer Delight!

Complaints can grow exponentially if not handled in time. A customer shares a problem, your team is slow to respond, the customer shares on social media, and soon everyone has joined the ride—leading to a snowball effect.

To reduce customer complaints, you need to see every negative feedback as a learning opportunity. Set clear expectations with customers, train employees on soft skills, and avoid making promises that you can never fulfill.

Remember that mistakes do happen, and even big brands are not immune to them.

However, how you deal with them can make all the difference. If you are looking for a tool to automate complaint management, ProProfs Help Desk can be the ideal solution. You can track complaints from multiple channels, collaborate with departments, and leverage AI to speed up issue resolution.

About the author

ProProfs Editorial Team

ProProfs Help Desk Editorial Team is a passionate group of customer service experts dedicated to improving your help desk operations with top-notch content. We stay ahead of the curve on trends, tackle technical hurdles, and provide practical tips to boost your business. With our commitment to quality and integrity, you can be confident you're getting the most reliable resources to enhance your customer support initiatives.

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Customer Complaints: 8 Common Complaints & How to Resolve Them

Published: October 10, 2022

Your customers are your purest form of quality control. Without their approval, your business doesn't grow and succeed. So, when customer complaints roll in, it's important to hear them out because these are opportunities to improve the customer experience and prevent potential churn.

No matter which industry you're in, you're going to deal with customer complaints. Even if your business doesn't make a mistake, one of your customers will eventually hit a roadblock that leads them to your customer service team. These are the situations where your service reps make or break the customer's journey .

If you want to increase customer retention , you need to prepare your reps for scenarios they'll face with difficult or frustrated customers . In this post, we'll break down the different types of customers complaints as well as the steps your team can take to resolve each one.

• Types of customer complaints
• Customer complaint resolution techniques

Customer Complaints

Customer complaints are pieces of feedback that point out problems with your company's product or services. These are opportunities for your business to improve its internal processes and create a better customer experience.

Below are a few common customer complaints you can expect your service team to encounter.

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1. Long Wait on Hold

If your team works in a call center, Average Time on Hold (ATH) is one of your most important call center metrics . Customers want fast answers and can't afford to spend their afternoon with a phone glued to their ear. In fact, studies show that after about two minutes, customers are likely to hang up the phone and 34% of those customers won't call back. That means you can potentially lose a third of your customer base just because you didn't pick up the phone fast enough.

How to resolve this customer complaint:

Long hold times indicate two problems. First, it could mean that your customer demand is too high for your customer service team. In this case, you should consider hiring more reps to meet the needs of your call center. In the meantime, your reps should apologize for the long wait times and work to ensure first call resolution.

The other issue may be that your call center lacks automation. Call center software can provide your service team with features that streamline operations and complete tasks automatically. By adopting this technology, you can optimize your team's production by removing menial tasks from their day-to-day workflow. This should reduce hold time complaints and create a more satisfying service experience.

2. Unavailable or Out of Stock Product

It's usually a good sign when a product goes out of stock, but if it stays out of stock, customers can become impatient for its return. They may demand a special order or repeatedly call for product updates. This typically indicates a time-sensitive need for your product which should be fulfilled immediately.

As a customer service rep, you might not have any say in when a new shipment will be ordered. Reps should report these issues to their managers who can notify both sales and product management teams. Service reps should encourage customers to remain patient and let them know that they'll reach out when the shipment arrives. This type of proactive customer service will assure customers that you're aware of their time-sensitive needs.

3. Making Customers Repeat Their Problem

Customers hate repeating their problems to your reps. This happens when they're either transferred to new reps or dealing with an agent who isn't paying close attention. When customers have to describe their issue multiple times, it's both a frustrating and time-consuming experience.

If a customer is complaining about having to repeat their issue, the best step you can take is to stop transferring their call. Even if you need to connect the customer with a specialist, reach out to that agent internally and see if you can relay the advice. This may be more tedious, but it will meet the customer's immediate needs.

A long-term solution to this problem is to invest in help desk software. A help desk can manage and distribute incoming service requests to the most ideal agents. That way, your customers are connected directly to reps who are best suited to resolve their problems.

Opting for an all-in-one customer service solution is also recommended. It helps keep track and respond to all customer interactions across multiple channels within the same place. Service reps get easy access to previous customer conversations and additional customer details, helping them provide tailored experiences. 

4. Uninterested Service Rep

Whether it's their tone, personality, or even just the time of day, some customers simply won't get along with your customer service reps. When a rep fails to meet their needs, some customers think it's due to a lack of interest in their case. Sometimes this is true, other times customers have expectations that are higher than what your team can provide. Regardless of where the fault lies, when your reps fail to appear invested, your business's reputation takes the hit.

When dealing with this type of customer complaint, reps should consider what they can do to provide above-and-beyond customer service . Every business has protocol, but it's sometimes worth bending the rules if that means preventing customer churn . At the very least, reps should pay attention to their tone and body language to ensure they're displaying a motivated and attentive demeanor.

If a customer does report an issue with a rep, management should always investigate the issue. Managers should give their reps the benefit of the doubt but try to get every possible detail. Rather than criticizing the rep's approach, look for opportunities to teach the agent about preventing these types of situations. If these issues continue to occur, it may be time to take more severe actions.

5. Poor Product or Service

When your product breaks, you can expect the customer to complain. In some cases, the product isn't broken, rather, the customer doesn't understand how to use it. Other times, customers aren't a good fit for your product or service, but they blame your company for failing to fulfill their needs. No matter how customers arrive at this conclusion, your team needs to know how to prevent them from turning to your competitors.

If the product isn't broken, educate the customer. Find out what their goals and needs are, then teach them how they can use the product to achieve success. If the product is broken, provide options for immediate replacement and try to determine how it broke. If it was user error, gently point out to the customer how they can avoid this outcome in the future.

For a long-term solution, consider adopting customer feedback tools to survey customers about your product. You can use NPS® surveys to measure customer satisfaction and learn how you can enhance your product's features. These feedback tools provide both quantitative and qualitative data that you can use to improve product development.

6. No First Call Resolution

When customers call your service team, they expect their issue to be resolved after the first call. Studies show that 67% of customer churn is avoided if the service request is fulfilled during the first interaction. While that doesn't mean you should hold customers on the phone, it does mean that they should be pursuing first call resolutions.

When your reps begin a customer interaction, they should make note of the case's urgency. If the customer has time-sensitive needs, try to resolve the case in the first call but don't waste time repeating steps or researching irrelevant information. If your reps don't have the answer, they should ask politely to follow up and explain why that process will yield a faster resolution.

One way you can improve first call resolution rates is to add self-service support options to your company's website. Tools like community forums and a knowledge base can help customers find their own solutions and avoid service calls altogether. This creates a more enjoyable and convenient service experience for your customers.

7. Lack of Follow Up

When you do have to follow up on a case, customers will often have different expectations for follow-up communication. Some customers will expect an ongoing chain of updates while others will be more patient. If your reps aren't consistently clear about response times, your customers may think you've forgotten about their case.

If you do have to follow up on a case, your service rep should make communication expectations clear. Ask the customer if the proposed frequency works for them, and if not, establish a system that works for both your rep and the customer. Your reps should be dedicated to customer needs , but customers have to give your reps space to work on the issue independently. If your reps are constantly providing updates, customers will wait longer for solutions.

If your team is having trouble keeping track of follow up, you should consider adopting a ticketing system . Ticketing systems document incoming requests and make it easier for you to manage active service cases. And, you can integrate it with your CRM so tickets will be directly attached to customer profiles.

8. New Product or Feature Request

This one isn't necessarily a complaint but is something that customer service teams encounter on a daily basis. If your product or service doesn't meet all of your customers' needs, they'll ask if they can propose a new product or feature. While some of these are helpful, most fulfill specific use-cases that don't apply to the bulk of your customer base .

In these cases, you should have a self-service space where your reps can direct these requests to. These product requests are valuable, but you can't afford to have reps spending their day listening to customer ideas. Create a forum where customers can post these ideas for your product development team to see. This will give your team an opportunity to comment and engage with customers who want to improve your product.

How to Handle Customer Complaints

When handling a constant stream of customer needs daily, it can be overwhelming trying to formulate a plan to resolve the complaints coming in. However, it’s not impossible. Empower your service teams to do their best work by following these steps.

1. Collect feedback and look for patterns.

The first step in addressing customer complaints is to dig into the complaints you have received. Using a tracking software will make this process much easier as you’ll be able to quickly access feedback and metrics like average call times.

Next look for patterns. Does a portion of your customers have similar complaints? For example they may say longer call hold times, or report a bug with your product.

Whatever the complaints are, you’ll need to examine the feedback you’re getting first. You can’t fix what you don’t know.

2. Talk to your service team.

Next, share this feedback with your service team. Discuss their pain points solving for the customer and gather any additional insights. Are they overwhelmed with the volume of calls and tickets received? Do they have the tools needed to provide the best service possible? Could your current service processes be improved?

Your service team is on the frontlines with customers every day so their feedback is invaluable for improving the customer experience.

3. Determine the root causes of the problem.

Now that you have a good grasp of the issues your customers are facing, it’s time to address the main causes.

For example, if customers report long call wait times, it could be that they are calling during peak times of the day when your service team is swamped with higher than normal call volumes.

Did you roll out a new product feature that has a few bugs and is causing consistent complaints across the board? Maybe the details of the new feature were not communicated clearly to customers and are causing friction. Getting to the root of the issues will help you formulate a plan which we’ll cover next.

4. Create a plan to address customer pain points.

Now that you’ve found the main cause of your customers’ dissatisfaction, it’s time to implement a plan to solve the issue.

If the root cause is an issue with your current internal service processes, update them to make them more clear to the team and provide more training if necessary.

Maybe your service team noticed an influx of customers calling for information that could be better communicated with a self-serve FAQ page or similar option. Creating a knowledge base customers can use to resolve their issues may be the best solution for light troubleshooting. This way customers don’t have to wait on hold and it frees up your service rep’s time to handle more complicated service requests.

Next, we'll cover some best practices your service reps can use daily while interacting with customers to improve their experience.

Customer Complaint Resolution

Customer complaint resolution is the process of receiving negative feedback, investigating the cause of the issue, and resolving the problem — all while communicating to the customer in a way that makes them feel heard.

Resolution handling with the goal of turning dissatisfied customers into glowing evangelists of your service experience comes down to these techniques:

1. Be accessible.

If the customer has an issue with your product or service, having to jump through hoops to get it resolved will only create more frustration.

Make it easy to solve issues by providing self-service options and being easy to connect with across channels.

2. Use active listening to understand their complaint.

The best thing you can do for a dissatisfied customer is to actively listen and engage with them.

• Ask clarifying questions.
• Stay focused on their needs.
• Empathize with them.

3. Acknowledge their frustration.

The best thing you can do for a dissatisfied customer is acknowledge their frustration and validate their feelings. Empathy is one of the most important customer service skills , and acknowledging their frustration helps them feel heard and appreciated.

4. Reiterate for clarity and understanding.

Show that you were listening by stating their issue back to them. By doing this, you're confirming your understanding and getting approval from the customer.

5. Seek a first-call resolution.

With more contact attempts in pursuit of a solution comes more friction. With more friction comes more frustration.

For a truly stellar customer experience, all effort should be made to completely resolve the issue during the first call. Not only does it increase customer satisfaction, but it also reduces the load on the support team as a whole.

6. Provide a plan of action.

If you're unable to provide a solution on their first call, set expectations for what comes next.

• Will they hear back from you?
• What will you be doing in the meantime? (getting necessary information, etc.)

If you know that their problem is one that has no solution due to limitations of your system or some other reason, acknowledge their frustration and detail what actions you're taking based on their feedback (forwarding their concerns to the appropriate department, escalating the ticket, etc.).

Strive to Delight Customers

In the end, not all customer complaints will be resolved to the customer's satisfaction, and some customers may still walk away upset. However, it's up to you to provide a great experience to reduce these instances where you can.

Editor's note: This post was originally published in July 2019 and has been updated for comprehensiveness.

Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

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News Details

Knowles signs a definitive agreement for the sale of the consumer mems microphone business.

Transaction will further transform Knowles into a premier industrial technology company

Updates Q3 Guidance and Provides Q4 revenue outlook for continuing operations

ITASCA, Ill.--(BUSINESS WIRE)-- Knowles Corporation (NYSE: KN) ("Knowles" or the "Company"), a leading global supplier of high performance electronics for demanding applications, including capacitors and radio frequency ("RF") filters, advanced medtech microphones, and balanced armature speakers, announced today that, following a thorough strategic review, it has entered into a definitive agreement to sell its Consumer MEMS Microphones ("CMM") business to Syntiant Corp ("Syntiant") for $150 million (the "Transaction").

The Transaction supports Knowles' continued transformation into an industrial technology company, consisting of its Precision Devices ("PD") and MedTech & Specialty Audio ("MSA") segments, primarily serving the aerospace, defense, medtech, industrial, and electrification markets. On a pro forma basis, the remaining Knowles businesses (a) , inclusive of Cornell Dubilier’s full year results, had $560 million of revenue in 2023.

Knowles will receive $150 million in total consideration, subject to net working capital and other adjustments, consisting of $70 million in cash and $80 million in Syntiant preferred stock. Syntiant has received a customary debt financing commitment letter in connection with the Transaction and expects to raise additional funds through an equity financing. The closing of the Transaction, which is subject to certain regulatory approvals, third party consents, and other customary closing conditions, is expected to occur in the fourth quarter of 2024. Knowles intends to use the net cash proceeds from the sale of CMM to fund the paydown of debt and the repurchase of Company stock.

"After performing an in-depth strategic review, we believe this Transaction with Syntiant is the best outcome for our shareholders, employees, customers, and suppliers. The Transaction provides Knowles with the ability to protect the intellectual property of our market-leading Hearing Health business while maximizing value for shareholders," said Knowles Chief Executive Officer Jeffrey Niew. "Today's announcement represents another significant milestone in Knowles' transformation into a premier industrial technology company, building upon the success of our recent Cornell Dubilier acquisition."

Knowles today posted an investor presentation with further details which is also available at http://investor.knowles.com .

(a) Pro forma results do not include all required accounting adjustments associated with the disposition of the Consumer MEMS Microphones business. See reconciliation of Pro Forma results in the Appendix.

Third Quarter 2024 Guidance Update: Subject to Change

Knowles is updating its third quarter 2024 guidance to reflect the anticipated sale of the CMM business. Operating results for the CMM segment will be reported as discontinued operations beginning in the third quarter of 2024.

The forward looking guidance for the quarter ending September 30, 2024 is as follows:

Q3 2024 GAAP earnings per share from continuing operations are expected to include approximately $0.06 per share in stock-based compensation expense, $0.04 per share in intangibles amortization expense, $0.02 per share in acquisition related costs, and $0.02 from differences related to the GAAP effective tax rate. These items are excluded from non-GAAP results.

Q3 2024 Net cash provided by operating activities is expected to include $5 million of cash provided by discontinued operations.

__________________________________________________________________________________________________

Q4 Revenue Outlook:

Q4 2024 revenue from continuing operations is expected to be in the range of $140 to $150 million.

Non-GAAP Financial Measures

In addition to the GAAP results included in this press release, Knowles has presented supplemental non-GAAP gross profit, earnings before interest and income taxes, adjusted earnings before interest and income taxes, non-GAAP diluted earnings per share, free cash flow, as well as other metrics on a non-GAAP basis that exclude certain amounts that are included in the most directly comparable GAAP measure to facilitate evaluation of Knowles’ operating performance. Non-GAAP results are not presented in accordance with GAAP. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. Knowles believes that non-GAAP measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating Knowles’ performance for business planning purposes. Knowles also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in Knowles’ opinion, do not reflect its core operating performance including, for example, stock-based compensation, certain intangibles amortization expense, impairment charges, restructuring, production transfer costs, and other charges which management considers to be outside our core operating results. Knowles believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Knowles uses internally for purposes of assessing its core operating performance. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the reconciliation table accompanying this release.

Jefferies LLC served as exclusive financial advisor to Knowles and Sidley Austin LLP served as legal counsel.

About Knowles

Knowles is a market leader and global provider of high-performance capacitors and radio frequency ("RF") filtering products, and advanced micro-acoustic microphones and balanced armature speakers, serving the medtech, defense, electric vehicle, and industrial markets. Knowles' focus on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enables us to deliver innovative solutions across multiple applications. Founded in 1946 and headquartered in Itasca, Illinois, Knowles is a global organization with employees in 11 countries. The Company continues to invest in high value solutions to diversify its revenue and increase exposure to high growth markets. For more information, please visit knowles.com.

About the CMM Business

Knowles' CMM business designs and manufactures micro-electro-mechanical systems microphones which enable voice control communications and superior audio recording for customers across the ear, compute, internet of things, and smartphone market segments.

About Syntiant

Syntiant is a leader in the development of low power edge AI speech, audio, sensor, and vision applications across a wide range of consumer and industrial use cases, from earbuds to automobiles. Current investors include Intel Capital, Microsoft’s M12, Applied Ventures, Robert Bosch Venture Capital, the Amazon Alexa Fund, and Atlantic Bridge Capital. For more information, please visit www.syntiant.com .

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performance, and continued business operations. The words "believe," "expect," "anticipate," "project," "estimate," "budget," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "objective," "forecast," "goal," "guidance," "outlook," "effort," "target," and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. The statements in this news release are based on currently available information and the current expectations, forecasts, and assumptions of Knowles’ management concerning risks and uncertainties that could cause actual outcomes or results to differ materially from those outcomes or results that are projected, anticipated, or implied in these statements. Other risks and uncertainties include, but are not limited to: the occurrence of any event, change, or other circumstance that could give rise to the termination of the Transaction; the possibility that various closing conditions associated with the Transaction may not be satisfied or waived; the possibility of a failure to obtain, delays in obtaining or adverse conditions contained in regulatory or other required approvals; unanticipated difficulties or expenditures relating to the Transaction; legal proceedings that may be instituted against Knowles and others following announcement of the Transaction; disruptions of current plans and operations caused by the announcement and pendency of the Transaction; potential difficulties in employee retention as a result of the announcement and pendency of the Transaction; the response of customers, distributors, suppliers and competitors to the announcement of the Transaction; incurrence of additional impairment charges and a significant charge to earnings due to future events or factors, such as the Company’s inability to realize expected synergies from its acquisitions; fluctuations in our stock's market price; fluctuations in operating results and cash flows; our ability to prevent or identify quality issues in our products or to promptly remedy any such issues that are identified; the timing of OEM product launches; risks associated with increasing our inventories in advance of anticipated orders by customers; global economic instability, including due to inflation, rising interest rates, negative impacts caused by pandemics and public health crises, or the impacts of geopolitical uncertainties; the impact of changes to laws and regulations that affect the Company’s ability to offer products or services to customers in different regions; our ability to achieve reductions in our operating expenses; the ability to qualify our products and facilities with customers; our ability to obtain, enforce, defend or monetize our intellectual property rights; disruption caused by a cybersecurity incident, including a cyber-attack, cyber breach, theft, or other unauthorized access; increases in the costs of critical raw materials and components; availability of raw materials and components; managing new product ramps and introductions for our customers; our dependence on a limited number of large customers; our ability to maintain and expand our existing relationships with leading OEMs in order to maintain and increase our revenue; increasing competition and new entrants in the market for our products; our ability to develop new or enhanced products or technologies in a timely manner that achieve market acceptance; our reliance on third parties to manufacture, assemble, and test our products and sub-components; escalating international trade tensions, new or increased tariffs and trade wars among countries; financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company; a sustained decline in our stock price and market capitalization may result in the impairment of certain intangible or long-lived assets; market risk associated with fluctuations in commodity prices, particularly for various precious metals used in our manufacturing operation, changes in tax laws, changes in tax rates and exposure to additional tax liabilities; and other risks, relevant factors, and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, subsequent Reports on Forms 10-Q and 8-K and our other filings we make with the U.S. Securities and Exchange Commission. Knowles disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Financial Contact: Sarah Cook Knowles Investor Relations Email: [email protected]

[email protected]

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