I’ve had several conversations with clients lately on customer satisfaction, retention, and profitability. All of my clients agree—satisfying customers is crucial to their success. Yet, when I ask them how they handle customer complaints and feedback, their responses are less than unified.

Some say they read every customer feedback email, form or letter, note the comment(s), and take appropriate corrective action. Others say they disregard the worst and the best for the week (they consider those the extremes and, therefore, not valid), and only focus on the “middle-ground” grumbles. Other clients have said they only pay attention to the really vocal few as they obviously care the most. And finally, I’ve even had some clients say, “We don’t want to hear their complaints until after we’ve completed the entire project; we don’t want to be crushed by their negativity! We might run away.”

Needless to say, the comments from my clients probably mirror what you do regularly, or at least think about doing with your own customer complaints. However, studies have again determined that only about 4% of customers actually take the time to make a critical comment, share a suggestion, or give an out-and-out complaint. Of the 96% who don’t say anything, 23% have a serious issue to complain about and the remaining 77% have a less-than-serious issue that still needs attention. Another way of looking at this is to realize that 26 out of every 27 of your customers are not complaining even though they’re not completely satisfied with your services or products! That’s frightening and it’s dangerous to your business. You’re only hearing one small piece of your customers’ stories about their interactions with your organization and your employees.

Without the specific insights from customers on what you can do better, what you need to improve, and where you’ve completely messed up, you’re at a loss to fix it for the next customer. Therefore, leaders, this is the time to have a real heart-to-heart talk with your employees to help them understand the value of customer input, feedback, and complaints. Help them to realize that “good information” can come from customers. Because even when a customer is angry and not expressing herself in the most diplomatic of ways, she is still a source of information and potential improvement.

Believe me. I know. Receiving criticism is hard. I am personally critiqued after every training program, speech, and consulting project. Negative comments are hard to take, but they are my/your best source of information on how and where I/you can improve. They’re also the clearest way for your customers to tell you what is most important to them at this point in time.

So stop running from customer complaints. Instead, run to them…because without the complaints, you’re only hearing one small piece of your customer service story.

Leadership Keys:

1. How you handle customer complaints tells customers a great deal about your company. Those complaints handled with sincerity and action – reveal a company that is committed to making its customers happy. Those complaints handled with rudeness and inaction – reveal a company that is committed to itself and its profitability – not its customers.
2. Customers are typically reluctant to voice their criticisms because they don’t think it’ll do any good, and they’re afraid of retaliation. Make it easy for customers to share their concerns without fear and doubt. The more comfortable they are in sharing their insights, the more information you have to work with to improve services and products.
3. Work with your employees in developing a mindset and culture that appreciates and seeks customer input. Helping your employees to help the customers share their thoughts builds confidence and a customer-focused mindset in your employees. It’s a win-win-win situation. Your employees start to care more for the customers, the customers start to share more insights, and as a result, your organization realizes improvements in services and products. Win-win-win.

Copyright MMIII – Liz Weber, CMC, CSP – Weber Business Services, LLC – www.WBSLLC.com +1.717.597.8890

Liz supports clients with strategic and succession planning, as well as leadership training and executive coaching. Learn more about me on LinkedIn!