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Last updated on: Oct 22, 2023

How Customer-Centric Companies Manage Customer Complaints

by Cherie Foo

Estimated Reading Time : 7 mins

In today’s rapidly evolving world of customer experience, businesses face an unprecedented challenge: meeting rising customer expectations across an ever-expanding array of channels.

While delivering exceptional service is the goal, the reality is that companies may not always have the time, resources, or capability to address every customer issue.

So, here’s the million dollar question: How can businesses strike a balance between customer satisfaction and also the occasional customer disappointment?

This article explores the delicate art of managing customer complaints while staying customer-centric.

Navigating the challenges of omnichannel customer service

One of the primary challenges in the world of customer service is maintaining consistent service quality across various channels.

Consider this: 85% of digital consumers start the purchasing workflow on one device and finish it on another, and 90% of customers expect consistent interactions across channels.

Simply put, customers expect the same level of service whether they interact with a company via email, chat, phone, or in-person.

Of course, this can be a daunting task given the resource limitations and constraints that organizations often face.

This may come in the form of human resource limitations, technological limitations, budgetary constraints, or all of the above.

For most companies, it’s simply impossible to address every customer issue in the perfect manner and provide an ideal resolution.

Strategies for balancing customer-centricity and disagreement

So, you’ve got a customer issue that you need to resolve, but you’re unable to give the customer exactly what they want.

How do you navigate this delicate situation, ensure that your customer is satisfied, and maintain the reputation of your company?

Here are a few best practices to keep in mind:

  • Lead with empathy
  • Explain the company’s perspective
  • Offer alternative solutions
  • Be open and transparent

#1: Lead with empathy

In the realm of customer service, empathy stands as the cornerstone of effective conflict resolution.

Instead of thinking of empathy as just another soft skill, think of it as a powerful tool that can transform challenging interactions into opportunities for understanding and collaboration.

Remember, empathy begins with active listening.

When a customer reaches out with a concern or complaint, they are not just looking for a solution; they are also seeking validation for their feelings and experiences.

By actively listening, you not only hear their words but also the emotions behind them. This means giving your full attention, asking clarifying questions, and demonstrating a genuine interest in their perspective.

Active listening aside, empathy also entails acknowledging your customer’s emotions without judgment.

Your customer may be frustrated, disappointed, or even flat-out angry – it’s your role to recognize their feelings and validate their emotions.

If you’re able to do that, you’re more likely to establish a connection built on trust and mutual respect – which is a great stepping stone to resolving conflict.

The key here is to make customers feel heard and valued.

When customers sense that you genuinely care about their concerns and are willing to listen, you alleviate their frustration or anger.

This opens the door to a more productive conversation where the customer is receptive to potential solutions or compromises.

#2: Explain the company’s perspective

Once you’ve acknowledged your customers and validated their emotions, the next step is to provide context and explain the company’s perspective.

This goes beyond resolving immediate concerns; it is a way to foster understanding, empathy, and transparency in customer interactions.

Here’s the thing: context is the lens through which customers view your company’s decisions and actions.

When customers encounter a disagreement or disappointment, they often lack insight into the behind-the-scenes workings of your organization.

Providing context can bridge this gap, offering customers a glimpse into the factors influencing company decisions.

Here, keep in mind that explaining the company’s perspective is not about making excuses; it’s about conveying empathy for the constraints and challenges your organization faces.

It helps customers understand that, like individuals, companies have limitations, too.

The goal is to humanize the company, making it easier for customers to relate to and accept the reasons behind certain decisions.

When customers understand the “why” behind a decision, they are more likely to engage in a conversation aimed at finding solutions or alternatives. This dialogue can lead to a mutually beneficial resolution.

#3: Offer alternative solutions

Now that you’ve acknowledged your customers and explained the company’s perspective, let’s move on to achieving a resolution.

As we mentioned earlier in the article, in an ideal world, you’d be able to give the customer exactly what they want.

But due to real-world constraints, your customer’s ideal scenario may not be feasible.

When that happens, it’s time to get creative and come up with alternative solutions.

Now, thinking on your feet and coming up with creative alternatives to appease your customers definitely isn’t easy – it takes time and practice to master this skill.

That said, this is an immensely valuable skill to possess. It highlights your adaptability and also underscores your commitment to problem-solving.

customer survey

Ideally, you should be able to offer your customers multiple alternatives or options, which then empowers them to make a choice.

This approach acknowledges that customers have unique preferences and priorities, and allows them to select the option that aligns best with their situation, needs, and expectations.

When raising these options to the customer, explain why each option is viable and how it can address the customer’s concerns or requirements.

If done right, successfully resolving a customer disagreement through creative alternatives can strengthen the customer relationship.

At the end of the day, this showcases your company’s agility and willingness to go the extra mile to ensure satisfaction.

It also reframes the interaction from one of disagreement to one of collaborative problem-solving, improving the overall customer experience.

#4: Be open and transparent

Last but not least, it’s crucial to be open and transparent in all your communications with your customer.

If your customer has a complaint, it typically means that their expectations have not been met.

These unmet expectations may stem from various sources, including misunderstandings, unclear communication, or even misconceptions on the part of the customer.

In such scenarios, transparency emerges as a powerful tool not only for resolving the immediate issue but also for rebuilding trust, managing future expectations, and fostering a more resilient customer relationship.

Transparency, in this context, serves as the bridge between any communication gaps or misunderstandings and the process of resolution.

It means openly acknowledging the customer’s perspective, seeking clarity on their expectations, and explaining your company’s position. This approach helps pinpoint the root causes of the issue and facilitates a constructive dialogue.

While addressing the immediate complaint is vital, it’s equally essential to proactively manage expectations for the future.

Use the complaint as an opportunity to enhance clarity in communication, correct any misconceptions, and provide customers with accurate information. This empowers them to have more realistic expectations going forward.

Keep in mind that complaints arise from situations where ambiguity or miscommunication prevails, and how you handle these complaints with transparency can either erode trust further or rebuild it stronger than before.

Demonstrating your commitment to addressing misunderstandings and enhancing communication fosters a sense of trustworthiness, and paves the way for a better relationship between the company and the customer.

How to disagree with a customer while remaining customer-centric

Let’s walk through an example that demonstrates the application of the strategies discussed above.

In this scenario, a customer, Sarah, ordered a special gift online with guaranteed next-day delivery for her sister’s birthday.

Unfortunately, due to unforeseen logistical issues, the product could not be delivered as promised. Sarah contacts the company’s customer service team, understandably frustrated and disappointed.

Here’s how the customer service rep can approach the situation:

  • Step 1: Empathetic acknowledgment
    The customer service representative, John, starts by actively listening to Sarah’s concerns. He acknowledges her disappointment and frustration genuinely, expressing empathy for her situation.
  • Step 2: Explanation and transparency
    John explains that the company deeply regrets the inconvenience caused by the delay. He provides Sarah with a clear and detailed explanation of the unexpected logistical challenges that led to the delay, ensuring she understands the situation from the company’s perspective.
  • Step 3: Alternative solutions
    John offers alternative solutions, such as upgrading Sarah’s order to a more premium product at no extra cost, providing a substantial discount on her next purchase, or arranging a personalized apology note to be included with the gift. He ensures these alternatives align with Sarah’s preferences and mitigates the disappointment caused by the delay.
  • Step 4: Setting realistic expectations
    John proactively manages expectations for future deliveries. He informs Sarah about steps the company is taking to prevent similar delays and assures her that they are actively working to improve their delivery processes.
  • Step 5: Apology and gratitude
    John closes the conversation with a sincere apology for the inconvenience and a heartfelt thank-you for Sarah’s understanding and continued loyalty. He reassures her that the company values her as a customer.

In this example, the company upholds a customer-centric approach in response to the customer’s concerns about the timely delivery of the product.

Instead of disputing or deflecting the issue, they maintain a customer-centric approach by demonstrating empathy, providing transparency, offering alternative solutions, setting realistic expectations, and expressing gratitude.

This approach not only resolves the immediate concern but also leaves the customer feeling valued and understood, strengthening the customer-company relationship in the long term.

A final word

In the complex world of customer experience, balancing customer-centricity with the reality of disagreements is an art form.

However, the strategies we’ve outlined above allow you to navigate these challenges while preserving customer trust.

Customer experience is a constantly changing landscape, and adaptability and a commitment to both customers and company constraints are essential for long-term success in this arena.

Remember, you might not always be able to say “yes” to customers and give them what they want; it’s about showing that you care and are doing your best to meet their needs, even when the answer can only be “no.”

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