How to Handle Customer Complaints

With the Internet as the disgruntled customer's oyster, there are new rules for responding to rants and customer complaints.

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Customer loyalty can be elusive, but it is imperative to running a successful business. In today's hyper-digital world, there are myriad online forums that welcome venting and complaining. With the click of a button, an unhappy client could send your company or its sales into a tailspin. "Don't underestimate the power of a disgruntled customer," says Rebecca Morgan, an executive advisor and customer-service expert who authored Calming Upset Customers. "They wreak havoc in your organization because [complaints] upset everybody and, with these tools of Twitter and Facebook and Yelp, they can get the word out quickly."

In truth, the customer isn't always right, and it's tempting to engage in heated arguments, especially when it comes to defending your business, employees, and even yourself. But if customer retention is the end goal, listening intently and sticking with a calm, collected approach will help troubleshoot even the toughest complaint. Customer feedback is a "gift," says Ann Thomas, a senior consultant at Performance Research Associates, a consulting firm in South Bloomington, Minnesota, that deals with customer service-related issues. "I can't fix the problem unless I know about it."

How should you proceed once a complaint is brought to your attention depends largely on the nature of the customer's complaint – and the severity with which it is brought.

Handling Customer Complaints: Shut Up and Listen

As simple as it sounds, the first – and most important – step to take when dealing with a complaining customer is to be quiet and listen. Often customers feel the needs to vent frustration with a product or service before even considering a proactive solution. "Acknowledge the customer's emotional state," Thomas says. Remember that a good empathy statement does not imply ownership of the problem.

Another key communication tip involves asking open-ended questions that involve the customer, Thomas says. This technique will not only divert focus from emotional frustration but also generate copious information about the problem at hand and help you arrive at the appropriate solution. "Rather than getting defensive … I need to simply listen to the customer, accept the feedback, thank the person, and then decide what to do," she adds. As a bonus, the customer might feel appreciated and cared about, alleviating some of their emotional frustration.

Dig Deeper: How to Improve Your Company's Customer Service

Handling Customer Complaints: Don't Take Anything Personally

As frustrating as it is to be the customer with a complaint, it's no delight being the business representative who gets yelled at for a problem likely caused by something or someone else. But, Morgan cautions, don't take it personally. "People say stuff, and they call us names, and they say we're incompetent. Listen to them fully without interrupting, if possible, and then help them."

Further, don't respond to accusations or offensive complaining in a way that perpetuates the argument. Comments like "You did it wrong! That's why you're having a problem!" will only escalate the issue rather than deflate anger. Don't get defensive. Instead, try a tactic Morgan advises: Point some of the blame on an inanimate object, such as an entry form or confusing instruction manual – problem-causing devices that, most importantly, can't yell at you. This way, Morgan says, you acknowledge there's a problem and, without finger pointing or putting anyone on the defensive, can work with the customer to agree on a mutually satisfactory solution. 

Dig Deeper: Websites that Collect Customer Feedback

Handling Customer Complaints: Ditch the Formalities

The last thing unsatisfied customers want to hear is a recitation of your company's return policies. "Today's customer expects to be treated as an individual, not as just another number who's complaining," Thomas says.

Consider the case of a department store with a 90-day deadline for returning an item. If there's a customer who just got married, returned from her honeymoon and, at day 100, realized that a gravy plate adorned with doves is actually not her style, it's worth looking into alternative options rather than sending her home right away. Your company should know that occasionally bending the rules will ultimately cost less it than it would to lose the customer or, worse, if the customer leaves and relays a negative story about your company.

Dig Deeper: There's No Substitute for Great Customer Service

Handling Customer Complaints: Avoid Overcompensating

A particular four-letter word usually does the trick when seeking a solution to a customer's complaint: fair. "One of the key phrases, which not a lot of people use, is: what would you think would be fair?" Morgan says. "That word fair does seem to bring out in people a sense of, OK, this is reasonable."

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