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by Business AdvisorA customer with a complaint does not have to signify lost revenue for a business, advises the Better Business Bureau. By taking prompt and constructive action, businesses can turn discontent into customer loyalty and generate new income in the long run.
The foundation of customer goodwill is the existence, promotion and practice of a sound customer relations policy. This policy should encourage customers to communicate their concerns so the business can demonstrate its commitment to their satisfaction. The policy should spell out how, when, where and by whom complaints or questions are handled. One person within the company should have the ultimate authority and responsibility for customer relations, although all employees should know your policy and how to implement it.
Your complaint handling system is structured from your customer relations policy and must operate simply, effectively and quickly. The following procedures are essential:
Screening and Logging. The date the problem occurred, a description of the problem , and any other pertinent information should be formally recorded. For example, your may want to list the product or service, the brand name, date of purchase, cost, and salesperson involved.
Investigating. In addition to information from the customer, gather more facts by researching in-house records on the customer, requesting receipts, and inspecting the product.
Acknowledging. Let the customer know that the matter is receiving attention and how long it will take to resolve the issue.
Formulating a Solution. Your solution must be consistent with your customer relation policy. Important criteria to consider include warranty obligations, your customer's expectations, the cost versus benefit of alternative solutions, the probability of your customer seeking redress, the fairness of your decisions, and your ability to carry out the solution.
Responding. Your response should be clear, appropriate, and specific to the individual's complaints. Avoid form letters and technical jargon. Explaining your decision can preserve your customer's goodwill, even if a different result was desired.
Following Up. Contact your customer following your response to verify whether or not the matter was resolved satisfactorily. If the customer is unhappy, refer the matter to a third party dispute resolution mechanism, such as the Better Business Bureau, for assistance.
- Business Advisor, Volume Two: June 1996 Used with permission from the Better Business Bureau of Mainland British Columbia, Canada.