Engage with complaints to retain customers and build profits
30 Aug 2019
It's not necessary to try and avoid complaints. The real value to businesses is how they deal with complaints when they arrive, and how they develop their systems and processes as a result to benefit the business in the long run.
As businesses plan for growth, one area where it pays to focus is customer service and retention. According to HubSpot, customer acquisition costs businesses five times more than retention and a retention rate of 5% can lead to a boost in profits of up to 25%. It’s also proven to be far easier to sell to existing customers than to new ones.
Keeping your customers happy is one of the most effective marketing tools available to businesses. Up to 88% of UK adults will tell a friend or family member about a positive brand experience and these endorsements are trusted nearly seven times more than that of advertising messages (Vendasta Data). The trouble for businesses is that the same is true for negative experiences. As social media platforms and review websites have developed, consumers can now interact directly with businesses in a way that wasn’t possible before. Following a negative experience the first step for the disgruntled customer is often to take to social media to publicly state their grievance, in the hope that this prompts an organisation in to remedial action.
Businesses should not shy away from complaints though, even though there may be initial reputational damage with a customer, the effective resolution of a complaint through efficient and careful management can positively transform a customers experience.
Taking a negative and transforming into a positive requires a mind shift. By installing a culture that embraces and values complaints, companies are in a position to take criticism on board that helps them learn more about their business. Through a thorough root cause analysis, trends and actionable insights can be identified and steps be taken to ensure there is no further recurrence. This can in turn help facilitate future growth through customer retention.
Core to cultivating an effective complaints culture is developing a complaints management platform that lends itself to two-way communication. Businesses who embrace technology to resolve customer issues quickly and painlessly through any channel and on any device will set themselves apart from their competitors. Through the use of intelligent customer service, companies can increase brand loyalty and build trust through effortless customer interactions.
With a pleasant UX throughout the complaints process, businesses will gain valuable insights into how it is perceived by their customers. Bear in mind that for every complaint received there will be customers who felt the same grievance however chose not to get in touch.
Talk to Equiniti ICS about our Complaints Management Platforms to find out how businesses can use these systems to retain customers and grow your business.