If it costs five times more to acquire a new customer than to keep one, why do brands continue to try and ignore customer complaints?
For as long as there have been businesses selling goods and services, there have been complaint departments. And I’m guessing that as the number of sales increased, so did the number of complaints. So why did it take until the creation of the Internet and the popularity of social media for so many businesses to really start to address customer satisfaction issues?
In the early 1970’s, interactive voice response (IVR) technology came into vogue. While it was designed to service high call volumes, reduce costs and improve the customer experience, we all know it was a great way to avoid actually talking to customers—especially those with complaints.
As companies got bigger, somebody decided that titles like “customer service rep” weren’t friendly enough, or didn’t accurately describe the importance of the position. (Perhaps because they didn’t actually provide service? Well, that’s a topic for another day.)
That said, titles changed to be things like “Customer Relationship Specialist” or “Customer Interaction Management Specialist” (I kid you not). But it didn’t change the job function … nor the attitude or behavior of the rep who was supposedly resolving your complaint.
As complaints soared, so did the many ways businesses tried to avoid a direct dialogue with those harboring a complaint. Once consumers discovered that pressing “0” usually connected one with a live body, businesses changed that option. I recently called one financial institution to complain that the ATM had eaten my card (yes, I was standing in front of the machine reading the teeny-tiny 800 number posted to the machine in the least obvious location). I probably went through five or six different “menu” options before I finally got someone live on the phone who told me that he had never heard of an ATM eating a card before. So I guess he felt it was helpful to call me a liar. Hmmm …
Next came the Web—and with it the “Contact Us” page. But once again, businesses became overwhelmed with the number of consumers who wanted to have a dialogue with them. Now when you visit “Contact Us,” there’s a form to fill out or worse—no email or phone number, but just a link to “Commonly Asked Questions & Answers” or “Popular Topics” or, one of my favorites, “Where’s My Stuff?”
Have you ever tried to call Amazon? Yeah. Good luck finding a phone number. I will say that I had a problem with my Kindle and, after quite a bit of scouring around the website, found a phone number from a dialogue in a Kindle forum. I called it and got GREAT customer service (I think it was Bob’s first call all day because he actually sounded happy to help me).
Now the Web has created a whole new business complaint system—and it’s for all the world to see. From the formalized review process of Yelp and Angie’s List to sites that let you rate your experience with a product/service like OpenTable.com or Hotels.com, you can whine all you want and it’s very difficult for the brands to respond/resolve (even if they wanted to).
It’s easy to go to a company’s Facebook page and post a rant (I’ve seen some really ugly comments posted on some of the biggest brands’ Facebook pages).
I know these public forums can be an extremely unfair system—especially to smaller businesses who live and die from customer reviews. And I know that not everyone is reasonable with their expectation about a product/service, nor do all consumers have legitimate complaints (although they may feel otherwise).
So here’s my suggestion: If you want to build a positive image of your brand, create a culture that allows for customer feedback and conflict resolution. Make it easy for customers to find a phone number, call you and speak to a live person and/or email you and get a fast response. Empower your reps to resolve issues quickly and fairly—perhaps invest in training them how to listen with empathy, and how to make a decision to do “the right thing.” Spend less time and money on “satisfaction surveys” (which I personally dislike) and more time on “creating satisfaction.”
Net-net, treat every customer as if they were your most valuable asset—because they are. It will return a bigger ROI than any marketing campaign investment.