No business is perfect.
Products can break too soon, shipments may lag way behind schedule and tempers (both yours and your customers) can run high.
These things are bound to happen occasionally. But that doesn’t mean you should sit idly by and brush off complaints when they come, and they will.
Ignore a negative online review, and you might as well say goodbye to potential customers watching on the sidelines. Mishandle a customer complaint, and you risk losing a possible repeat business for good.
But not all is lost.
With every dispiriting private complaint and damaging public negative review comes a chance to refine your offerings, attract more businesses and elevate the overall customer experience.
Let this blog serve as your guide in creating an effective complaint management system:
• What Is a Customer Complaint Management System?
• Why You Need a Complaint Management Process
• 5 Common Customer Complaints
• Customer Complaint Management Strategy: How To Handle Negative Feedback
• Customer Complaint Software Options
| 8 Steps on How To Build an Effective Complaint Management Strategy |
| 1. Identify Your Complaint Channels |
📗 Related read: A Beginner’s Guide to Online Reputation Management
What Is a Customer Complaint Management System?
A complaint management system comprises a set of measures or standard operating processes designed to accept, classify, respond to and track complaints from the moment they’re raised until they’re fully resolved.
The complaint management process typically begins with logging a complaint ticket, which records the details of the issue.
This ticket then follows a predefined path through various stages:
• Classification to determine the nature and severity of the complaint
• Response to address the customer’s concerns
• Tracking to ensure the issue is resolved to the customer’s satisfaction
It is a structured approach to handling customer complaints and disputes.
It’s important to note that a complaints management system is specifically tailored for handling complaints or poor reviews, not simple requests or inquiries, which should have their own separate processes.
By filtering out these simpler matters, the system remains focused on addressing genuine concerns that could impact your brand’s reputation.
Why You Need a Complaint Management Process
In January 2024, a U.S. survey found that about 75% of online shoppers want quick answers to their questions. They also care a lot about getting helpful and knowledgeable replies from customer service agents. Past experiences with customer service also mattered, with 15% of respondents considering them (Statista).
Here’s more on the importance or the benefits of having customer complaint management systems or strategies.
• Protect your brand through transparency. A complaint management system helps maintain transparency by allowing you to address issues openly and honestly. When customers see that you’re committed to resolving their concerns, it strengthens your brand’s reputation.
• Improve customer experience. A well-designed system gives you a clear view of the entire process, increasing better follow-throughs and complete resolutions. Customers feel valued and heard when their concerns are addressed promptly and effectively.
• Embrace engagement opportunities. On the surface, complaints are just problems. But you can treat them as opportunities to engage with your customers. A well-managed system allows you to further understand customer needs and even potentially upsell or introduce other services that could benefit them.
• Promote customer satisfaction and brand loyalty. When complaints are handled well, they lead to higher customer satisfaction and foster brand loyalty. Customers are more likely to stick with a brand that takes their concerns seriously and works to resolve them.
• Identify repeat issues. A structured system helps you spot recurring issues like multiple product returns, which may necessitate a product recall. By identifying patterns in complaints, you can implement broader or even long-term solutions. In a way, you’re addressing potential similar issues that may arise.
• Reduce customer support team burnout. A well-organized complaint system streamlines processes and lightens the load of your customer support agent or team. With less stress, you can provide better care and attention to each complaint.
• Maintain compliance. Regulatory requirements are in place to protect both your customers and your brand. A complaint management system helps ensure that your company stays compliant with these regulations and avoids costly legal pitfalls.
Overall, having a complaint management system is a win-win, with better outcomes for both customers and your team.
📗 Further reading: How To Maximize Customer Acquisition and Retention With Online Reputation Management
5 Common Customer Complaints
Occasional hiccups are inevitable, but they shouldn’t become a regular occurrence. You want to stay on top of these issues and continuously work to meet or exceed customer expectations.
When a customer has something negative to say, it’s likely about one or two of these issues:
• Product or service flaws
• Poor customer service
• Billing and pricing issues
• Website or app outages
• Delivery and shipping errors
Product or Service Flaws
Product or service issues are a common source of customer complaints and can seriously damage your brand if not addressed properly.
Be it a faulty electronic device that stops working prematurely or a delayed flight that ruins vacation plans, these experiences can lead to serious frustration.
Poor Customer Service
Poor customer support before a sale can stop a potential customer from converting.
For example, if someone inquires about a product and gets an unhelpful response, they would likely take their business elsewhere.
Similarly, poor customer support after-sales can prevent repeat business.
Billing and Pricing Issues
Billing and pricing errors can quickly frustrate your customers’ confidence, whether it’s unsecure payment processes, incorrect charges or hidden fees.
Any customer who discovers unexpected charges on their bill or feels misled by unclear pricing is likely to feel cheated by the brand.
Website or App Outages
Website or app outages might fall under product or service issues, but they deserve special attention given the digital shift in business.
A site that’s frequently down or an app that crashes often sends a clear message to customers: Your brand isn’t dependable. That’s a reputation you want to avoid.
Delivery and Shipping Errors
Problems with delivery and shipping, like late or damaged orders or incorrect items can quickly sour the customer experience.
Cutting corners on packaging might also seem to save money initially, but it often leads to damaged goods and customer complaints, costing you more.
Customer Complaint Management Strategy: How To Handle Negative Feedback
Let’s go over simple yet effective ways to implement a complaints management system.
These steps guide you on how to respond to a negative review or complaint.
1. Identify Your Complaint Channels
Knowing where your customers are most likely to voice their concerns is key to addressing issues. Having a strategy in place for each channel is essential so you can better manage and resolve issues before they further escalate. Common channels include:
• Email
• Phone calls
• Live chat
• In-person (physical stores)
• Review platforms
• Social media platforms
Platforms like X (formerly Twitter) are particularly popular for customer service interactions. However, not all complaints will be directed through your official channels. Some customers may voice their dissatisfaction on forums, review sites or even personal blogs.
It’s important to track any off-channel complaint as well, ensuring that you’re capturing the full spectrum of customer feedback.
Later, we’ll mention tools you can use to manage customer complaints and poor reviews across channels on a single platform.
2. Track and Categorize Complaints
Common complaint types often revolve around product issues, service dissatisfaction, billing disputes or delivery problems. Categorizing these complaints ensures that each issue is handled with the appropriate level of attention.
Beyond the type of complaint, consider other key attributes like volume and severity.
For example, if multiple customers are raising the same issue — say, frequent delays in shipping — it signals a systemic problem that needs urgent attention.
On the other hand, a single negative review about a delay in response might be less critical but still important to resolve.
Resolution complexity also plays a role in categorization. Some complaints might require a simple answer to a question, while others could involve more intricate solutions, like dispatching a technician to resolve a service issue.
3. Ask Questions (First to Your Team, Then the Customer)
Instead of jumping to conclusions, approach each complaint with the goal of truly understanding the customer’s experience. This mindset helps you avoid sounding defensive and ensures you empathetically address the root of the problem.
For instance, if a diner complains about cold food served at your restaurant, gather all relevant information. Interview the customer to understand their experience, asking questions like, “Were you able to eat the food immediately?” or “Were there any other issues with the taste?”
Also, speak with the staff involved to get their perspective.
For example, if multiple customers are complaining about slow service, ask questions like, “Did you notice any food sitting out too long before being served?” or “Were there any issues with staffing or communication in the kitchen?”
Analyzing these responses can help you identify patterns, such as understaffing during busy times, which might be causing repeated service problems.
4. Be Thorough in Your Response
With a clearer understanding of the issue, you’re now ready to craft a better and more thorough response that addresses every concern raised by the customer.
Make sure your reply covers all the points mentioned in their complaint. For instance, if a customer complained about slow service and incorrect orders, your response should acknowledge both issues and outline the steps you’ve taken to address them.
Before hitting send, it’s also essential to mention any preliminary actions you’ve taken, like consulting with your team or investigating the issue. This shows the customer you’re actively working to resolve the problem.
Professionalism and personalization are two things you want to keep in mind in your complaint and negative review responses. This is important because generic responses come across as dismissive. Address the customer by name, thank them for their feedback and let them know you’re committed to making things right.
5. Act To Resolve the Issue
It’s not enough to learn how to respond to a negative review. Taking action on customer complaints is crucial because you want your brand to walk the walk.
Depending on the customer complaint, here are some examples of actionable steps you can take:
• Correct a wrong product delivery by sending the correct item immediately.
• Offer a discount voucher to apologize for any inconvenience caused.
• Fix bugs in your app and promptly release an update.
• Be more transparent in pricing to avoid future misunderstandings.
• Provide a refresher course for your staff on customer service best practices.
• Replace or repair a faulty product without extra charges.
Addressing issues accordingly reinforces your brand’s credibility and commitment to customer satisfaction.
6. Update the Customer on the Resolution Progress
With a progress or status tracking system in place, you want to keep your customer in the loop every step of the way.
In more severe cases, frequent check-ins might be necessary to reassure the customer that their issue is being actively addressed. For less critical issues, an update or two might be enough to satisfy the customer.
Some customers can be skeptical and assume you’re making empty promises, which, sadly, many brands do. So by consistently communicating your progress, you set your business apart, build trust and show that their complaint is a priority for your business.
7. Know and Follow Regulations
Although there isn’t a single, overarching law specifically for customer complaints, various federal and state laws exist to protect consumers in different scenarios.
For instance, the Federal Trade Commission (FTC) enforces laws against deceptive practices, fraud and misleading advertising, protecting consumers on multiple fronts.
On the other hand, the Consumer Financial Protection Bureau (CFPB) monitors a wide range of financial products, from credit cards to mortgages, ensuring that companies comply with consumer protection standards.
Different industries also have their own set of rules when it comes to handling customer complaints:
• Airlines: Airlines must adhere to the Department of Transportation (DOT) regulations for managing and resolving complaints.
• Telecommunications: The Federal Communications Commission (FCC) sets specific guidelines for how consumer complaints are handled in this sector.
Beyond federal laws, many states have additional consumer protection laws that offer further safeguards for consumers. These laws can vary widely, so it’s essential to be aware of the specific regulations that apply to your business at the state level.
8. Equip Your Team With Complaint Management Tool
To solidify your customer complaint strategy, you also want to equip your team with the right customer complaint management tool. But the “right” software depends on your specific needs and budget.
5 Customer Complaint Software Tools
To get you started, here are some customer complaints management software tools you can explore:
1. Sprinklr Complaint Management System
2. Zoho Desk
3. Freshworks
4. Zendesk
5. Salesforce Service Cloud
QualtricsXM and Jira Service Management are also excellent platforms, but they are more focused on overall customer experience management and IT service management, respectively. Although they can handle complaints, they might not be as specialized as those listed above.
📗 Related read: What To Expect From Your Online Review Management Software
Need Help Managing Customer Complaints and Negative Reviews?
Thrive Local’s team goes beyond surface-level complaint management systems. We help you design a strategy that eases your burden, delights customers and attracts new business.
Our services include:
• Reputation Management Software
• Online Reputation Repair
• Franchise Reputation Management
• Social Media Reputation Management
Talk to our team, and let’s help you manage customer complaints better.
