Ignoring Customers Complaints can be Disastrous for Business

“The goal as a company is to have customer service that is not just the best but legendary.”

                 ~ Sam Walton, Founder of Wal-Mart

No matter how big or small your enterprise is, customer complaints are something you can’t avoid completely. From minor to the serious, these are pinpricks you must work towards reducing to the barest minimum.

Recently, Tim Cook, CEO of Apple Inc., had to apologize for warranty issues in China. The apology came in response to the complaints of Chinese customers that U.S. customers receive full replacement for faulty phones while the Chinese customers only get their faulty sets repaired with replacement parts.

According to Apple Insider “Apple on Monday published an open letter from Chief Executive Tim Cook in which he formally apologized for what were described as "misunderstandings" over the company's warranty policies, and revealed new changes that aim to better serve iPhone customers.”

Now check out the changes that Apple Inc. made to its existing polices to retain their customers in China.

·        Modified repair policies for the iPhone 4 and iPhone 4S

·        Published a "concise and clear" statement on its website pertaining to repair and warranty policies

·        Improved supervision and training of Apple Authorized Service providers

·        Now, there is a new feedback service to help customers conveniently contact the company regarding issues or complaints

It gives a clear idea about how bad servicing or customers’ dissatisfaction can lead to dire consequences even for established and strong players like Apple. It is very important for a business to handle dissatisfied customers effectively.  

Here are some vital tips to deal with customer complaints effectively:

·        Listen to the customer’s complaint carefully. Don't give lame excuses. It will only frustrate him more.

·        Enquire about the problem in a concerned and caring manner. Ask for more details. Don’t jump to conclusions.

·        Think from customer’s point of view. As a business owner, you should pacify your customer if you want to retain him. Make him feel that you are on his side and provide some instant solution.

·        Don’t hesitate to apologize. It could be anybody’s mistake but being the leader and face of the company, it’s your responsibility to apologize. You can take some lessons from Apple’s CEO, Tim Cook. It makes big impact when the apology comes from the top of the hierarchy.

·        Consider customer’s suggestion in providing an acceptable solution. Choose the idea that closely matches the one suggested by customer. It will calm down the customer and will send across a positive message to other customers.

·        The most important aspect of handling customer’s complaint is providing a prompt solution that is accepted to the customer. As in Apple’s case, company immediately rectified their repair policies defying which they may lose around 50% percent of their customers in China.

For more insights into this area, you can join a CEO peer group or a CEO association where you will get important guidance and advice regarding every aspect of the business ranging from starting a business, to dealing with issues of customer complaints and even exit planning.

Remember, in business, making mistakes can be dangerous but when you do not rectify mistakes it can be fatal.