Customer Complaints – a gift for organizations
Even though most organizations agree that they are customer-centric, only a few are delivering experiences that align with the customer’s voice. In fact, according to a study conducted by Bain and Company, while 80% of companies say that they are customer-centric, only 8% of the customers agree.
Insights like these would make you wonder whether your customers are as happy with your products and services as you may think or even wish for? Well, the secret of knowing how happy or unhappy your customers are, is to ask them!
The relevance of customer feedback is evidenced through organisations like TripAdvisor, Zomato, etc. These websites solely exist as review directories wherein multiple reviews can be found for almost every brand / restaurant / hotel et all. People make their purchase decisions largely based on these customer reviews. Additionally, these organisations also leverage these reviews to improve their services.
Smart organizations recognize the importance of customer feedback, specifically customer complaints, and consider receiving the complaints an opportunity to problem solve and impact loyalty.
This blog lists down 7 reasons as to why customer complaints are important for your organization and why they should be actively sought and attended to
- Complaints highlight key areas where products and services need improvement
Complaints provide the most accurate insights into what is working well with the product or service and what should be done to make the experience better for the customers. Customer opinions help organisations ensure that the product meets their expectations, solves their problems, and fulfils their needs. This intelligence can only be provided by customers.
- Complaints aid in understanding customer better: Understanding customer can be vital for the following reasons:
- Insights about who they are, what are their interests, what they think about you can help you to structure your approach to meet their expectations.
- Learn their psychology and use it to improve your products and services.
- The easier you make things for your customers, the more likely they are to retain your brand over others.
- Taking complaints seriously and acting promptly shows you value their opinions: Addressing the complaint of your customer and letting them know in a timely manner what is being done with that, communicates that their opinion is important to you. That helps build their loyalty with your brand.
- Complaints are fuel for taking new action and catalyzing positive change: Sharing customer complaints throughout the organization educates everyone to understand what your customers experience, expect, and insist upon receiving. It can then help improvement in processes and capability building depending on what part of the experience needs to be improved.
- Complaints drive leadership actions and behaviors: It is imperative that leaders are engaged with the customer and the expected experience, always. It is the leadership that drives change and signals the right behaviors. Unless they are tuned into the customer and their complaints, nothing much will change in the organisation
- Complaints help to create the best customer experience: Today’s marketing is heavily based on experiences customers have with products, services, and brands. For example, customers do not buy Apple products just because they are good- they want to demonstrate their status and affiliation to a particular group. Therefore, if you focus on providing the best customer experience at every touchpoint, customers will stay loyal to your brand. And the most effective way to give them an amazing experience is by promptly and appropriately resolving their complaints.
- Collecting complaints helps to ensure that customers always remain the priority: When success happens, organizations can lose sight of what they set out to achieve, getting waylaid by processes and metrics. Collecting customer complaints is an essential part of keeping your organization on track with its mission and goals.
In the end, I would just like to reiterate that customer complaints are gold mines that your organization needs mine. Hence, the focus should not be on brushing them under the carpet, instead, proactive measures should be taken to address and resolve these complaints.
InspireOne, has been doing extensive work in customer experience for the past two decades We offer a the globally benchmarked TMI solution – ‘A Complaint is a Gift’. This program will help you and your team members to understand the 8 golden rules of complaint handling that help make complaints a powerful customer-focused tool. If you would like to know more about our offering, feel free to contact us!