How Customer Complaints Can Strengthen Your Business

Of all the calls and emails your tax resolution office handles, the most challenging, and potentially the most rewarding, is the client with a complaint.

customer-complaints-tax-resolutionBelieve it or not, customer complaints can strengthen your business. Whether the object of complaint is truly your (or your staff's) fault or not, remember that people who call or email to complain care enough to reach out to you with their concerns. Studies show that only four percent of customers will contact the company if they are having a serious problem — the other 96 percent eventually just stop doing business — and on average tell nine or ten other people about their negative experience. This is a crucial moment in the reputation and retention of your business.

The good news is that, when handled properly, formerly disgruntled clients actually tell an average of six or seven people about their positive experience with the company. That means they’re marketing for you. All because they felt that the company was able to listen and resolve a problem.

Further research shows that a resolved problem actually creates a more profitable customer relationship than that of a non-complaining customer. Cook & Dow (1997) found that a respectable 89 percent of people who interacted with a company and had no issues would do business with them in the future. That number jumped to 94 percent for people who had an issue satisfactorily resolved. This reveals that a mended relationship creates a more loyal client.

Keep these benefits in mind next time you receive a complaint. Rather than dreading the angry call or email, train your tax resolution staff to view them as opportunities to defuse and neutralize negatives and build stronger relationships with customers.

Get in the Business of Growing Your Business™!

Until next time,