World Class Customer Service – How To Handle Customer Complaints

Whatever business you’re in, there are bound to be customer complaints. You simply can’t please everybody. Even if you’ve provided world class customer service and done your absolute best to deliver your promise to customers, complaints are inevitable.
In this article, I’d like to discuss the issue of customer complaints. This will be divided into 3 parts:
1. WHY customers complain
2. WHAT to do about it
3. HOW to handle complaints
It is important to first and foremost understand WHY customers complain. Only after comprehending the reasons behind their complaints can we think of a plan on WHAT to do about it. Then again, simply knowing what to do about it is not enough, which is why we need to learn HOW to handle their complaints.
WHY Customers Complain
Customers buy your products and services because they want to solve problems and are looking for solutions to overcome these problems.
When they buy your dating e-course, they want to get dating partners fast.
When they buy your software, it’s because they want to save time and effort by NOT doing the same repetitive tasks manually.
When they buy a Nintendo Wii, it’s because they want to give it to their children as presents so that they’re regarded as “good parents” or so that the children want to do their schoolwork as part of an agreement, or they simply love playing games (for a whole bunch of different reasons).
So in a nutshell they buy because they’re looking for solutions to solve their problems.
Now, when they’re unable to solve their problems after buying your products or services, some will complain, REGARDLESS of whether your product doesn’t deliver on its promises or because it’s their fault for not following the instructions and guide that came with your product.
In any case, they complain.
WHAT To Do About It
When a customer complains about your product or service, it’s human tendency to be very EMOTINAL about it. By this I mean our emotional instincts take over and completely block out how we think LOGICALLY.
For the past few years, we’ve often heard that we need to be more emotionally intelligent if we want to be successful. It simply isn’t enough to just have a very high IQ but on the other hand possess a poor EQ (emotional quotient).
As far as that might sound to be true, when are talking about customer complaints, we want to think as logically as we possibly can. We need to think about the long term effects these complaints will have on our business.
What we should do is ACKNOWLEDGE their complaints – to do this we need to be thinking very logically instead of emotionally.
When we think logically we can analyze the situation based on what “good” or “benefits” will come out of it.
If we were to think emotionally, we tend to be VERY DEFENSIVE about our products and DO NOT want to acknowledge their complaints and instead defend our products…
Take a look at the following scenario:
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Customer:
I want a refund ASAP. You liar! Your product sucks and doesn’t deliver on its promises! You’re wasting my precious time and if you don’t honor my refund request, I’m going to bad-mouth you to ever person I encounter!
You:
You claimed that my product sucks. Which part of it? My product is one of the best of its kind, and if you think it sucks, it’s because you don’t know how to use it! As stated in the guarantee, I only honor refunds if you can prove to me that you’ve been using my product exactly as stated in the guide. If not, there is no refund!
Customer:
You stupid jerk! Bla bla bla…
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I’m pretty sure the above scenario would continue in a heated argument. Customer and you (the product owner) will even be A LOT angrier and more pissed off than ever.
The argument never ends, and the problem is not solved.
End Result: Customer never buys anything from you ever again, and he bad-mouths you everywhere he goes. You saved a little money by not honoring his refund, but you LOSE A LOT MORE in the long term as your image and brand gets tarnished.
Conclusion: It’s a lose-lose situation for both parties.
HOW To Handle Complaints
Instead of getting into a heated debate of who’s right and who’s wrong, you should instead think about the long term effects this customer complaint will have on your business.
Still the same scenario, but take a look at how you can address the complaint in a much more EFFECTIVE manner:
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Customer:
I want a refund ASAP. You liar! Your product sucks and doesn’t deliver on its promises! You’re wasting my precious time and if you don’t honor my refund request, I’m going to bad-mouth you to ever person I encounter!
You:
Thank you for your complaint. We’d certainly be glad to honor your refund. Not a problem at all. Just for our feedback, may I know which part of the product did not deliver to its promises? This would certainly help us pinpoint where we need more improvements so that we can deliver more value to our customers like yourself.
Customer:
Your product did not do X Y Z as claimed bla bla bla
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Now what do you think will happen if you were to handle a customer complaint like that?
End Result: Customer goes home happy and *maybe* feel a little bad about requesting a refund. You might lose a little money by honoring his refund, but at least he doesn’t go everywhere and bad-mouths your product.
Even more valuable than this is the fact that you get valuable customer feedback about your product. This will enable you to improve your current product and thus make it more powerful and complete than before.
Lessons To Be Learned
I hope you can see and understand the importance of effectively handling customer complaints. There are basically 3 parts to it:
1. ACKNOWLEDGE customers’ complaints about your product.
2. Make it up to them as much as you possibly can (gladly honor a refund if they ask for it; if they didn’t ask for a refund, you can also refund their money to “surprise” and “wow” them). Saying “sorry” is NOT enough. To see a REAL case study of how I did this in my business, click here.
3. Ask for their feedback which part of your product does not deliver, and strive to improve your product.
How do you handle customer complaints? I’d love to hear your thoughts about your view of world class customer service, so please leave them in a comment below…
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18 Responses to “World Class Customer Service – How To Handle Customer Complaints”
Lonely on July 11, 2011
Great! If we start with clear things we will and wont deliver and always focus on value we wont go wrong!Thanks for this information.
Paul on February 3, 2011
Thanks for the article.
If you deal with a customer complaint well you will find in most cases that the customer will be much more likely to buy from you in the future and recommend you to friends. For certain delat with in the wrong way they will tell ALL their friends not to deal with you.
OEE on September 27, 2010
Well as the old daying goes “The customer is always right (even if they are wrong!)”
Evie Roberts on July 13, 2010
when running a business, the first thing you should do is always establish a good customer service`”;
Welly on December 27, 2009
@Nadir: My advice is to focus on those good customers who appreciate you and you product. Those customers who come up with all kinds of excuses just to get their money back is not worth your time and effort. Just give them their money back. No big deal.
No matter how good your product or customer service is, there will always be a small handful of people who will never be satisfied and will ask for their money back.
I say give them their money back and move on and focus on the good customers.
Nadir Alvi on December 26, 2009
Nice Information Dear. But Most of the time customer showed his satisfaction at the time of delivery and then after few months get back with some invalid and vague reason. Then what should we do, Moreover he/she is threatening you to be a bad-Mouth. Can you explain bit what can be done in such situation…..
Tim Tav on December 21, 2009
Great information, thanks. I would add one more factor and that is “When” to get the feedback you need and handle complaints. The answer to this is get your customer satisfaction survey done as near to the point of experience as possible, then the data is reliable
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Welly on October 4, 2009
@Denise: WOW Minisites is opening very soon. Once we open, I’ll let you know here. Just a heads up, usually when we open, our limited slots get taken up very fast.
@Tom: I like it when you say when things go wrong, it can be a great business opportunity. Certainly a lot of people would disagree with that, but I second your thoughts!
@Udegbunam: Thanks for sharing the article
Udegbunam Chukwudi on October 3, 2009
Interesting article. A friend of mine posted something similar of recent. With your permision here’s the link: http://naijaecash.com/when-a-client-goofs-how-do-you-handle-it/.
A lot of patience and self control is needed in this marketing thing as frustrations are abound left and right. I’m yet to start promoting any product actively but hopefully I won’t be faced with such a scenario as above.
Tom Nolan on October 2, 2009
You’re right – when things go wrong, it can actually be a great business opportunity. I find that when everything goes according to plan, people take it for granted; it’s what they expected, no more, no less. But if problems arise and you deal with them brilliantly (and it has to be brilliant) THEN they refer their friends and family to you.
wellsen on October 2, 2009
nice info..
now i can learn to improve my customer service..
thanks for your advice
travel guide destinations on October 1, 2009
thanks for your article welly ,this can make me more want to know how to handle customer and all the problem on internet marketing.
mick on October 1, 2009
Hi Welly,
I havnt got that far as to get customer complaints as yet but no doubt i will, and as long as you keep giving us newbies this great advice it will put us in a good position to deal with such complaints with more confidence.
Thanks alot for all your advice.
mick.
Denise on October 1, 2009
Hi Welly
You raise some good points. We need to all remember we choose this path of selling ( It comes from a word meaning to be of service which we should never forget)
It is about us all looking after our clients and customers.
If we start with clear things we will and wont deliver and always focus on value we wont go wrong!
Best Wishes
Denise PS When is wow opening again for customers I missed out?!