Customer Complaints: How to Handle Them and Keep Customers Happy

"I didn't get what I ordered."

"The girl was rude to me."

"The delivery promised for Tuesday didn't come until Thursday. What's going on over there?"

Does this sound familiar to you? Do you hear this every other day, or every day? Customer complaints. Perhaps you grew sick of them long ago, and stopped listening. Better change your habits. Complaints are valuable. They come from customers who are trying to help you with your business.

Chicago retailer Marshall Fields once said, "Those who buy, support me. Those who come to flatter, please me. Those who complain teach me how I may please others so they will buy. The only ones that hurt me are those who are displeased but do not complain. They refuse me permission to correct my errors and thus improve my service." 

Studies conducted by universities, industries and government have shown that customers whose complaints have been resolved will bring in more revenue than they ever cost. A satisfied customer returns and buys more, and refers more new customers than one whose complaint went unresolved. 

A study by the Technical Assistance Research Programs Institute pinpoints three findings about customer complaints: 

"1) The average customer with an unresolved complaint will tell nine to 10 people; 13 percent tell more than 20 people. "2) Up to 70 percent of complainers will return to your business if the complaint is resolved. Up to 95 percent return if the problem is resolved quickly. "3) For every complaint received, the average company has 26 unhappy customers it never hears from; six of these customers have problems that are considered serious. 

Consider this: For every customer who complains, 26 remain silent. Five complaints a week means there are 130 dissatisfied, disgruntled ex-customers out there that you never hear from.