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The Online Advisor

July 2008


New Business

Turn a complaint into an opportunity

Nobody in business wants an unhappy customer, but when a customer complains, think of it as three opportunities in one.

* An opportunity to get free feedback on something that's not working right in your organization.

* An opportunity to convert a disgruntled customer into a loyal customer.

* An opportunity to head off negative publicity as the complainer shares his gripe with others.

How do you turn a complaint to your advantage? Here are the four steps you need to take.

1. The initial response. The initial response to a complaint should be respectful and helpful, not defensive or "it's not our fault."

2. Understanding the complaint. Make sure you really understand the true complaint. This is perhaps the most important part of the process. By allowing the customer to vent, you'll defuse a large part of the hostility and ill will. Also, this step provides valuable feedback to pinpoint the exact problem and find out exactly what went wrong.

3. Fixing the problem. Employees must know clearly who has the responsibility and the authority to fix a problem. You may choose to compensate the customer for inconvenience, but at a minimum, you must remedy the customer's immediate concern.

4. The follow-up. A supervisor or higher-level manager should always follow up with the customer to make sure that the problem has been resolved. This is a key step in turning the customer from "disgruntled" back to "loyal."

For assistance with this or any of your business concerns, contact our office.







Before you invest in any business, it's always a good idea to discuss the proposed venture with your advisors. If you would like assistance with evaluating a business opportunity or with legitimate tax planning, please call our office.

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