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.
HOLLI HAMMARQUIST is a senior executive of client services
for International Profit Associates, Buffalo Grove, Ill. IPA’s 1,800
employees offer consulting services to businesses throughout
the 50 United States and Canada. Reach Hammarquist at
(800) 531-7100 or [email protected] or
www.ipa-iba.com.
