Complaints?

Making complaints work for you

By Holli Hammarquist

Complaining clients will tell you where they perceive your business is falling short, giving you the opportunity to improve products and services that might otherwise go unrecognized. In addition, providing a timely resolution to complaints has the effect of increasing client loyalty beyond the level that would have been achieved had the problem never occurred.

Do not think of what it will cost to fix a complaint. Think of what it will cost if you do not fix it.

"Satisfied clients may speak about their experience to a handful of people, but a dissatisfied client will broadcast his concerns to all who will listen," says Holli Hammarquist, senior executive of client services for International Profit Associates. "With the advent of the Internet, their voice travels farther and spreads faster than ever before. The multiplier effect is prolific. In addition, because large portions of satisfied clients never sing your praises, you are missing important feedback."

Smart Business asked Hammarquist about how business owners can best deal with complaints.

What steps should businesses follow to handle complaints?

The first and foremost important step in handling complaints is to create a certain mindset within the business itself. The business as a whole should look at complaints as a source of opportunity. Clients whose problems are resolved quickly tend to be more loyal to, and supportive of, the business than those who do not experience any problems. So train your employees to listen to a client complaint with as much attention as they would to an extremely satisfied client.

Second, be prepared for the number of complaints you receive. The worst mistake you can commit at this stage is to cut back on your efforts or start believing that there is a decline in product service or quality. If clients or potential clients do complain, they are doing your business a service and enabling you to improve.

Third, develop a complaint management system by going through past complaints and generate a comprehensive list of the ones that are most likely to come up. Classify the complaints into various categories based on their seriousness and specify a complaint resolution timeline for your employees to follow.

The complaint management system should: (1) be easily accessible and well publicized; (2) be simple to understand and use; (3) allow speedy handling, with established time limits for action, and keep clients informed of the progress of their complaints; (4) respect the client’s desire for confidentiality; (5) provide an effective response; and (6) provide timely information to management so that services or products can be improved.

How should a business respond to a complaint?

Train and then empower client service executives to resolve complaints quickly. Define the escalation path for complex and difficult-to-resolve complaints, and encourage complaint closures by incentivising satisfactory resolution of complaints.

When training client service executives, remember some basic rules to handling a complaint:

Listen. Resist the temptation to argue. Instead, ask questions, listen without interruption and rephrase back to clients what you heard to indicate that you understand the issue. Find out what is making them complain — which may not always be the topic of their complaint. Listening is the most effective way to deal with the emotions of complainants and to understand the source of their concern or frustration. To uncover the real problem and determine an appropriate response, ask them what resolution they are expecting.

Do not be defensive. Allow the client the time to be heard. An upset client should not be put on a time clock. Acknowledge the validity of the complaint. If the client becomes angry or frustrated, reassure him emotionally before dealing with the issue logically. Even if the complaint seems bizarre, it probably contains a grain of truth. Try to learn something from it. Any complaint from a client is a 100 percent bona fide, major issue to the client. His or her perception is your reality.

Research the problem and look for lessons before making any decisions. Find out what actually happened from both sides. Does it need to be fixed, or is it a onetime issue? Has the client misunderstood something? For complex problems, give yourself time to figure out a proper resolution. If the situation was caused by something that can be controlled, implement a system to prevent it from happening in the future. Know that if one client complained, others are feeling the same way.

Give the client a choice of possible resolutions. Suggest a way that works for both of you. Sometimes just listening to a grievance and acknowledging it is sufficient. At other times, the client is looking for more. Be creative, find an equitable resolution to the problem and make sure the client agrees that it meets his or her needs. Always, make sure to thank the client for helping make your business better.