HANDLING CUSTOMER COMPLAINTS

1. 2. OBJECTIVESAt the end of this training session, you will be able to:
Identify reasons why a complaint is a gift from the customer to the service
provider Note what to expect from customers when they make complaints
Identify how to handle customer complaints Learn strategies to redeem
yourself when you have failed in providing the customer the level of
expected service
2. 3. CONTENTWhat is a Complaint?Identifying A Complaint As A
GiftSteps

For

Handling

Customer

ComplaintsService

Recovery

ProcessHandling Difficult Customers

3. 4. SESSION 1What is a Complaint?
4. 5. What is a Complaint?An expression of dissatisfaction made to
anorganization, related to its products orservices, or the complaintshandling processitself, where a response or resolution is explicitlyor
implicitly expected 5
5. 6. Why do customers complain?Their expectations have not been met!To
release their angerTo help improve the serviceBecause of concern for
others who also use theservice 6
6. 7. Why do customers complain?What proportion of unhappy customers
complain? Generally 9% to 37% of unhappy customers make complaints
to the firms. The rest never bother to complainWhy dont unhappy
customers complain? They think it is not worth the time or effort. They
further think that no one would be concerned about their problem or solve
it. They do not know where to go or what to do. Each happy customer will
tell at least six other people

7. 8. Most common complaints...Wrong informationPoor customer service

attitudeOverpricingLack of adequate informationDelaysUnresponsiveness
of serviceproviders.
8. 9. The customer is not always right but...The customer is always the
customer and this means simplythat solving the problem is often more
important than whois right.If you can solve their problem without blaming
yourself orothers, you will reduce stress, everyone will feel better and you
will be on your way to attaining CUSTOMER SATISFACTION
9. 10. SESSION 2Identifying a Complaint as a Gift
10. 11. Is a complaint a gift? Why?Complaints are gift packages waiting to
beopened because they: Are given freely Are not solicited by the recipient
organization Are unexpectedthey come as a surprise (usually) Hold the
key to happiness for the recipient organization If they are well handled 11
11. 12. Is a complaint a gift? Why?A complaint gives you: Free direct
communication from the customer about service failures, competitors
offerings etc. without the added cost of conducting a survey Readily
available market research: they define what customers want 12
12. 13. Is a complaint a gift? Why? A complaint gives you the opportunity to:
Increase customer trust Build long term relationships- customers will use
your services again if they believe complaints are welcomed and addressed
Rectify service failures Engage customers as advocates
13. 14. Is a complaint a gift? Why?If a customer is complaining, you are being
given a chance to retain that customer 14
14. 15. The customers needs when they complainThe customer has 2 separate
needs when complaining- needs relating to the complaint needs as
individuals andExample 1 Complaint the product is not working as

expected Underlying message I dont understand the new technology, I

need helpExample 2 Complaint- I was disappointed with the service
during my last visit Underlying message I am testing the value you place
on my loyalty to your business 15
15. 16. The customers needs when they complainNeeds relating to the
complaint To have their concern dealt with quickly, fairly and properly To
be given what they have been denied and perhaps an apology To have
action taken to rectify a problem or address a concern- a resultant process
changeNeeds as individuals To be heard To be understood To be respected
16
16. 17. When the customers need is met You automatically Engage your
Customer as your Advocate!Who is your advocate??? A person who
publicly supports or recommends you Someone who speaks, or argues in
your favor 17
17. 18. SESSION 3Steps for Handling Customer Complaints
18. 19. How to Handle Customer Complaints How do you react to customer
complaints about the way you do your work? Especially when you think
you are doing your best??? People react to customer complaints in
different ways Some Ignore complaints Become defensive Become
angry or annoyed Are concerned about the loss of trade or the damage to
their professional reputation 19
19. 20. How to Handle Customer Complaints For others, it is A hindrance
They just wish the customer would go away! Or They do not believe some
or all of what the customer is complaining about. These reactions are as a
result of blame being attributed to us or our organization.
20. 21. How to Handle Customer ComplaintsIn making complaints, some
customers portray the followingcharacteristics Lack of gracious social

skills to communicate properly Nervousness Harshness Very Emotional

Lack understanding of you or your organizations limitations Rudeness
Unreasonableness We need to learn to expect such behaviour and
remember however that a complaint is evidence that, in the customers
view, we have not met their expectations. 21
21. 22. How to Handle Customer ComplaintsListen Remember not to take
itRepeat personallyApologise Remain calmAcknowledge Focus on the
problemExplain action and not personThank Turn unhappy people into
happy customersFollow up
22. 23. How to Handle Customer Complaints Address customers by name All
communication should be in the first person. Use I am sorry not we
Dont make excuses or blame others in your organization Give the
customer your full attention and establish eye contact Paraphrase their
complaint in your own words to determine whether you have correctly
understood the situation.
23. 24. How to Handle Customer Complaints If you dont know the answer to
their problem, dont lie. Call back when you say you will, even if for some
reason, you havent been able to obtain a satisfactory answer by then Make
the customer part of the solution not part of the problem
24. 25. How to handle customer complaints Dont be defensive Be composed
at all times Dont take criticisms personally Offer an apology even if the
disservice is not your fault Show empathy by using such phrases as: I can
understand how you feel, I appreciate what youre saying.
25. 26. How to Handle Customer Complaints Tell them what you can donot
what you cant do Find out what it will take to turn their dissatisfaction
into satisfaction If they agree to that solution, act quickly before they
change their mind Follow up And remember: You can never win an
argument with a customer

26. 27. Steps for handling complaintsAt the organizations level, there is the
need for a complaint handling system whichwill involve the following
steps as a minimum:Acknowledge It is important that you acknowledge
the receipt of allreceipt of the complaints, verbal or written. Preferably
allocate a complaint referencecomplaint number and provide the customer
with a contact point for further correspondence.Accurately record Make
sure that your recorded version of the complaint matches exactlycomplaint
what the customer said. Also make sure that the complaint record
isinformation and accessible by any branch of the organization that the
customer maymake it accessible contact.Attach The company should
attempt to resolve complaints on firsttimeframes for contact, but if this is
not possible, then a complaint should be finalizedresolution of within a
specific number of days eg. 30 days.complaint
27. 28. Steps for handling complaintsCustomers mustbe informed As soon as
you realizes that they are unable to resolve aabout any delays complaint
within the given timeframe, contact thein resolving a customer, and inform
advising him/ her of the delay and set acomplaint new timelineMake staff
awareof complaint The complaint handling procedures should be known to
allhandling employees and be part of regular trainingproceduresInform
CustomersOf Complaint Posting your complaint handling procedures on
your officeHandling premises is a good way to inform customers. Also
theseProcedures procedures may be incorporated in the organisations
brochure
28. 29. Find out what your customers really think HOW? THROUGH
Surveys, focus groups, mystery shopping One complaint statistically
represents 24 similar ones
29. 30. SESSION 4Strategies for Service Recovery

30. 31. What is service recoveryService recovery is how you remedy a failed
serviceencounter with a customer. In other words, pull a customer from
hell to heaven in the shortest possible time. It involves: apologizing,
solving the problem, compensating the customer with something of value
31. 32. Service recovery95% of customers who have a complaint that
washandled efficiently and promptly will not onlycontinue to do business
but will become evenmore loyal (Wharton Business School)So how do
you make amends or appease thecustomer? Through product replacements,
good will gifts, free of charge services, etc
32. 33. Some important statisticsOnly 4% of dissatisfied customers complain.
96% leavewithout any communication to the businessOf the 96% who
leave, 91% will never returnA typical dissatisfied customer will tell 8 to 10
peopleabout the issues with your business1 in 5 dissatisfied customers will
tell 20 people about theissues with your businessIt takes 12 positive
service incidents to make up for onenegative incident 33
33. 34. Some important statistics7 out of 10 complaining customers will do
business withagain you if you resolve the complaint in their favourOf
complaining customers, 95% will do business with youagain if you resolve
the complaint at the first contactOn average, a satisfied complainer will
tell 5 people abouttheir problem and how it was solvedIt costs 6 times
more to attract new customers than itdoes to retain current onesCustomer
loyalty is worth 10 times the price of a singlepurchase How to win and
Keep Customers Michael LeBoeuf 34
34. 35. SESSION 5Handling Difficult Customers
35. 36. Handling Difficult CustomersWho is a difficult customer? How do you
handle such people?

36. 37.

Types

of

Difficult

CustomersAngry

SarcasticNasty

ArgumentativeDemandingCriticalNon-stop TalkerIndecisive
37. 38. Why Are They Difficult?They are often expressing They are difficult
for theira need but chose an own reasons appropriate and impolite not
because of youway to communicate thisneed
38. 39. Common Reasons For Being Difficult tired or frustrated dont
understand confused or in bad mood overwhelmed in a hurry defending
their ego other reasons.. unfamiliar with situation feel ignored under
influence of drink or drugs
39. 40. How Do I Deal With Difficult Customers?this job would be very
good if it werent for thedifficult people I have to deal with everyday
Approach them professionally and not personally Taking things personally
can damage your professional reputation Listen for the signals that you are
taking things personally
40. 41. How Do I Deal With Difficult Customers?Check you customer service
attitude Attitude is the key to success Attitude is your mental position on
facts - or more simply, the way you view things
41. 42. How Do I Deal With Difficult Customers?Five points about your
attitude affectsattitude: everyone who comes in your attitude towards
contact with you customers influences tone and body language your
behaviour. You reflect your attitude cannot always your attitude is not
fixed. camouflage how you feel The attitude you choose your attitude
determines to display is up to YOU the level of job satisfaction
42. 43. How Do I Deal With Difficult Customers?Remind yourself! Reinforce
this by saying This is my job and Im I like the job, not going to do it
because its easy, not professionally because there are no If it were not for
these difficult people, not customers I would not because there are no have

a job frustrations but because Every time I solve a people are part of any
job problem I will feel better and I can make things easier by taking things
professionally
43. 44. SummaryBe positiveTake things professionally and not personallyAim
for customer satisfaction, not just serviceSolve problems without blaming
yourself or othersRemember attitudes are caught, not taught