10 Tips for Effectively Handling Customer Complaints
by Ron Kaufman

Spirit Airlines recently flew into a big public relations disaster. Sticking to a no-refunds policy, the airline refused to refund the airfare of a passenger who had to cancel his trip after finding out he has terminal cancer. The incident unearthed earlier cases of Spirit's difficulty handling customer complaints. A couple of years ago, CEO Ben Baldanza hit "Reply All" on an email from two customers who had missed a concert due to a delayed flight. Essentially, he told his employees and (accidentally) the customers themselves that Spirit Airlines didn't owe the customers anything and the customers would be back the next time they wanted low airfare.

These examples are proof of just how tricky it can be to properly navigate customer complaints. Spirit Airlines has a policy and they're sticking to it. That seems to be how the company chooses to handle customer complaints. Unfortunately, as we've seen, that approach might not be what's best for business. When any company receives a complaint, it essentially has two choices. One, treat the complaining customer like he's a pain in the neck. Or two, appreciate each complaining customer and use the complaint as an opportunity to improve.

For every person who actually comes to complain, there is a quantum number that won't come to you. They're the ones who go off and tell somebody else, complain about you online, and take their business elsewhere.

Here's how to use customer complaints to uplift your service.

Thank them for their complaint. Give positive recognition by saying, right off the bat, "Thank you for reaching out." When a customer gives you the opportunity to recover their service, be grateful.

Don't be defensive. Customers with complaints exaggerate situations, they get confused, and yes, they may even lie about how things went down. But getting defensive will lead only to more problems. When a customer complains, they're doing so because they feel wronged in some way. You don't have to agree with what they're saying. But you do have to agree to hear them out. That's how you keep the conversation moving in a positive direction.

Acknowledge what's important to them. Service providers must find a complaining customer's value dimension (or what's important to them). Even if you think the customer's complaint is unfair, there is something they value that your company didn't deliver on. Embrace that value. What the customer wants is to feel right. When you agree with their value dimension, you're telling them they are right to value this specific thing. For example, if a customer says your service was slow, then that customer values speed. You might say, "Absolutely, you deserve quick, efficient service." When you validate what a customer values, you aren't agreeing with them that your service is slow. You're saying, "We agree with you on what you find important and what you value. And we want to deliver in those areas."

Use judo, not boxing. In boxing, you go right after your opponent, trying to punch him to the ground. In judo, you work with someone else's motions to create a desired result. You use another person's speed and energy to spin him around and then end up together on the same side. When you show a customer you understand what they value, you're catching them off guard with your own movement. They don't expect you to tell them that they're right. Suddenly, you've avoided a defensive confrontation. In customer service, you use the opportunity to show the customer that you're now both on the same side and you can work together.

Apologize once, upfront. Every service provider knows that the customer is not always right. But the customer is always the customer. You don't have to tell the customer you were wrong, but you should apologize for the inconvenience they've experienced. When you do so, you're showing understanding and empathy for their discomfort, displeasure, or inconvenience.

Explain the company's desire to improve. When you understand what the customer values, show them things your company does that helps you perform well in that area. For example, let's say a customer is complaining because a package was delivered a day late. You would say, "We understand that quick, on-time delivery is important to our customers." Now the unhappy customer will probably say, "But you failed in my case! My package was a day late." Then, you should calmly say, "Here's what happened. On that day there was a snow storm that slowed our service. I'd like to reassure you that we are working right now to find a better solution. In fact, we've recently invested $1.7 million in a fleet upgrade that will allow us to better navigate inclement weather and keep our deliveries coming to you on time." Show you are sincere about your commitment to do well in the areas the customer values. When you express the company's desire to improve, you start on the path to rebuilding its credibility with the customer.

Educate your customer. Part of hearing the customer out is answering any questions they ask about their specific situation. Provide additional, useful information. If they ask a question that you can't answer or don't know the answer to, tell them you'll find out the answer and get back to them. And then actually follow through. Even if they might not have requested an update about their situation, get back in touch with them with one anyway. These are additional opportunities for you to say through your actions, "We care about you. We value your business."

Contain the problem. Let's say a family is at a crowded theme park on a hot day. The youngest child in the group starts to have an all-out meltdown. Suddenly, a theme park staff member sweeps onto the scene and whisks the family into a special room. Inside, they find an air conditioned room with water and other beverages, an ice cream machine, a bathroom, a comfortable sitting area, etc. The only thing missing in the room is any connection to the theme park's brand. That's because this room is used to isolate customers from the brand until they're all--parents and children--having a more pleasurable experience. The room is also being used to isolate the unhappy family from the families outside the room who are enjoying their day at the theme park. And finally, they're being isolated from some park staff who may not be as well-prepared as the staff member who brought the family to the room to handle these sticky situations.

Recover. Show the customer you care about them, even if you feel the company did everything right, by making them an offer. Companies worry that they'll get taken advantage of if they give vouchers, discounts, or freebies as part of their service recovery, but the reality is that almost never happens. Offer the customer something and then explain that you're doing so "as a gesture of goodwill" or "as a token of our appreciation." Sears takes recovery seriously. The company now has a "blue ribbon team" of specially educated and empowered staff to handle recoveries. Once an issue goes to them, anything they recommend is what gets done. They have full support from the top down. Sears does this because the company understands that a successfully recovered customer can become your most loyal advocate and ally.

Give serial complainers an out. Some people just love to complain. These kinds of customers complain, not so that they can become satisfied, but because they are never satisfied. With serial complainers, you must limit your liability and isolate them from your brand. One leading luxury airline had a serial complainer who loved caviar," says Kaufman. "He loved it so much that on every flight he'd eat all of the caviar the flight crew had to offer and then he'd complain that they didn't have enough. As a test, the airline even stocked extra caviar on one of his flights. He ate it all again, and complained…again. His constant complaints led the airline to send him a letter. Essentially it read, 'Thank you for traveling with us for so many years. It appears that despite our best efforts we haven't been able to satisfy you. Out of our concern for your happiness we've provided you here with the contact information for three other airlines that serve your route of travel. However, should you choose to travel with us again, and enjoy the high level of service we are able to provide, we will be delighted to welcome you on board with us again.' With the letter, they gave the complaint-prone passenger an out. On the rare occasions when you deal with someone who complains all the time, that's the best thing to do.

Ron Kaufman is the author of Uplifting Service: The Proven Path to Delighting Your Customers, Colleagues, and Everyone Else You Meet, www.UpliftingService.com. He is a columnist at Bloomberg Businessweek and the author of 14 other books on service, business, and inspiration.

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