No company wants complaints. At the same time, complaints are something positive if you know how to deal with them. 

If a customer receives a defective or damaged product, chances are they won’t say anything, but simply won’t buy from your company again and leave a bad review. If the customer complains about the product, you still have the opportunity to keep them as a satisfied customer through good customer service.

Why this is so important? Because it is much more expensive to acquire new customers than to retain old ones. According to Harvard Business School , 65% of a company’s business comes from existing customers. On average, a 5% increase in customer retention rate also means a 25% -95% increase in profit.

A study by Marketing Metrics supports this value by stating that the probability of selling to an existing customer is 60%-70%. In contrast, the chance of selling to a new customer is only 5%-20%.

Why is good complaints management so important?

Dealing with a complaint properly is incredibly important for the future of the company. If the customer complaint is handled quickly and qualitatively by customer service, there is still a high chance that the customer in question will remain a loyal advocate of the brand.

Another point that turns complaints into an asset for your company is the following: complaints draw attention to a problem. They give you the opportunity to identify sources of error and find long-term solutions to minimize complaints in the long run. 

So be sure to make your customers aware that your customer service team is always available if they have a problem. Complaints are better than customers disappearing quietly and disappointed.

How should customer service handle complaints about shipping damage and defects?

According to a customer satisfaction study by Oracle , the top two reasons customers leave a company are incredibly slow customer service and unfriendly or incompetent employees. 

Research by Forum Corporation shows that in 70% of cases, poor customer service is the reason why customers leave a company. 

Correct: Neither the quality of the product, nor the price, nor transport damage, defects or other reasons for complaints are most important to your customers, but customer service. 

This means that your customer service is the point  where the customer decides whether or not to remain loyal to the company. Even in the case of an unpleasant complaint, customer service can still provide a positive customer experience. Particularly important for successful complaint management and high customer satisfaction are:

Listen and understand

Through attentive listening and understanding, the customer feels seen and taken seriously, and their trust is still in your company.

Remain calm and objective

Some customers want to vent their frustration. It is important to remain calm, factual and understanding without getting personal as well. Then the customer usually calms down quickly.

Apologies

If your company has made a mistake, don’t be afraid to issue an apology. In most cases, the will to forgive is very high when the company admits the mistake and apologizes.

Find a solution

If, in addition to all this, you can find a solution for the customer, for example, through an exchange or a refund, in most cases you will have gained a regular customer. Overcoming a difficult situation and satisfying the customer in the end is one of the best ways to build a firm basic trust in your company.