No company relishes the idea of complaints on their social media page. Some prefer to ignore or delete the comments, but this is often a missed opportunity. Effectively dealing with negative feedback may lead to increased customer satisfaction and brand loyalty.
In this article, we’ll discuss complaints in more detail. We’ll start by answering the question, “Why are customer complaints important?” We’ll then move on to the types of customer complaints and what some other indicators of customer satisfaction are.
Why are Customer Complaints Important?
According to Esteban Kolsky, companies should appreciate rather than dread this type of feedback. In an interview for Huffington Post, Kolsky said that only one out of twenty-six customer complain. The rest churn without saying a word to the firm.
Here, according to a leading service provider, SupportYourApp, effective resolution increases customer loyalty. It also allows potential clients to view how the firm resolves issues.
According to the Harvard Business Review, there’s also a strong profit motive to consider. Researchers found that clients were willing to pay a premium for products from a brand that handled negative feedback well.
According to the HBR researchers, the goodwill earned increased most when companies handled complaints within five minutes or less.
Types of Customer Complaints
How the firm deals with negative feedback is more important than how it’s categorized. Still, teaching employees about the types of complaints and how to deal with them is essential. There are many types of complaints, but we’ve listed the most common below.
Firms should address all service issues quickly. When they’re visible on social media, they become the priority. Other clients and potential clients may base their future purchasing decisions on your responses.
Some clients seem to delight in complaining. It’s when the same issue keeps cropping up that firms should take note. Companies should audit the internal processes related to the problem to find a solution.
If the client’s never complained before, businesses should work harder to address the issue. If they do, they’ll have a better chance of mending the relationship.
Most businesses receive their fair share of complaints about employees. They should monitor whether these are the exception rather than the rule. When several clients have similar issues with an employee, firms should retrain the staff member.
Indicators of Customer Satisfaction
Complaints are just one indicator of customer satisfaction. In this section, we’ll discuss others.
Customer Satisfaction Score (CSAT)
The customer satisfaction score is a snapshot of service delivery at one point in time. Companies ask clients whether or not they’re happy with the service or different aspects of it. It’s a useful tool but doesn’t provide insights into future behavior.
Net Promoter Score (NPS)
THE CSAT and NPS scores are often used in conjunction with one another. The NPS measures how likely clients are to recommend the company.
Customer Effort Score (CES)
THE CES drills down into operational issues. Firms ask clients to rate them on how easy it was to complete a transaction, such as a purchase or service issue, with the company.
Intention to Buy in the Future
This measurement may help to identify disconnects between past and future actions. Clients may try a product and not like it. There’s no way to determine that from any of the previous indicators.
Complaints are an essential part of the process, but firms cannot rely solely on them to make strategic decisions. Using a combination of several customer satisfaction indicators, firms create a holistic view of the situation. They’ll then be able to make adjustments and improve their strategies accordingly.