Resolve Customer Complaints to Extend CLV Customer Lifetime Value

In earlier discussions, we spoke of how well crafted customer experience design contributes considerably to business success. They are a proactive means of preventing problems. However, things can and may still go wrong. This  customer service post discusses elements to incorporate into your customer service response to remedy the situation and boost customer retention for extended customer lifetime value (CLV).

Consider customer complaints as valid concerns with potential opportunity

In order for this to work very well, it is imperative to create a work atmosphere where mistakes can be made and learnt from without undue employee blame and shame. Customer complaints can become opportunities to improve your operations. Swiftly request customer angry feedback. Consider even sharing some of these incidents for training employees (including new onboarding employees) when they train in the related task. In some cases, capitalizing on resolving angry feedback may provide a source of competitive advantage. 

See how Everest Ice & Water, an ice vending company responds so well to questions and distrust from misinformed viewers that they make their brand even more trustworthy. See an example of this in the comments section of one of their videos. This obviously requires someone who is very knowledgeable about the product and brand and is able to keep up with the demands of social media content management.

Viewer: 

I am very familiar with this business and all other machines on the market. Ask this guy why his great machine has had 4 different names on it in the last 7 years, hmmmm. Great very informative video, however any machine made from plastic will not last outside in all types of weather conditions. # Bag Of Ice!

Everest Ice & Water:

Let's talk about some misconceptions about Everest. First, our machine isn't made with plastic. It is made with powder-coated steel. It's designed to handle 6,000 hours of salt spray so these machines can last in almost any condition.

Secondly, Everest has been in business since 2016 so we haven't gone under 4 different names in the last 7 years as you say. However, the confusion can be from other customers white labeling their machines with their custom branding.

Empathize, validate and apologize

Emotionally engage customers. Specifically, empathy, a validating comment and apology can help to diffuse anger really engage customers, especially if you also succeed in the other tips. Regarding apologies, nothing seems to be likely insincere more than someone giving an apology that, in the same breath, subtly invalidates your pain like, 'I'm sorry IF I did X'. Even if the customer's 'concern' appears an unreasonable 'complaint', acknowledge their dissatisfaction, even if to say, 'I am sorry that you are not happy with our service.' Although not entirely an apology, it certainly diffuses the situation as it unconditionally acknowledges the customers discontentment.

To go further, (train employees to) recognize the underlying frustrations. Then confirm in words your understanding of the customer's emotions and sense of loss, not merely from the perspective of a failed product but more personally regarding the impact on the goals the product was supposed to meet. Here is an example.

I am sorry you were delayed like that. The delay must have been very stressful because it affects your ability to prepare adequately for the public presentation on Saturday.

Empower front line employees to resolve matters, promptly

Train your employees to respond. For instance, if a glitch in your operations delayed a client whose buying motivation is time-related, rather than delay the customer any further by needing to call on a manager, the employee may apologize (even if the issue was not his personal fault) before offering a small gift (as a 'thank you' for their patience) or discount on the next service to help the client to stay in line with his goals, in this example, to save time. Notice that this requires you to train employees on the earlier point regarding recognizing the customer's 'concerns' or goals.

Example.

'Given the documents that you already have, our x team can provide a free presentation plan within 2 hours. They could delivery the final product online.'  This example may lead to an opportunity to showcase other services the customer had never used and even open new otherwise untapped opportunities. It may present an add-on opportunity.

Outside of your market research that informed you that customers seek your product for reason x (like to cut costs, be more profitable, be more efficient, etc), learn as much as you can about the customer's predicament by allowing them to vent. Sometimes, the solution may be creative and not necessarily product-related. Here is an example.

'... I see what you mean about how this situations makes it unlikely for you to do everything you need and reach the airport on time by bus. Our messenger will soon make a routine nearby delivery. I will call now to see whether he can give you a ride to your departure gate.'

Remain professional

In their training, use the following to help your employees to present themselves and the brand with professionalism. 

• Do not take the complaints personally. Remain calm. After all, shouting back to angry customers will only escalate their anger. Refer back to the tip above regarding considering complaints an opportunity to improve. However, telling employees this will have not effect if you fail to create a work environment that encourages disclosure without blame.
• If a representative other than the one considered 'at fault' deals with the complaint, there is no use bad mouthing the individual. The current representative should apologize on behalf of the business and consider the matter a failing of the business. 
• Demonstrate an action-oriented approach. For instance, say something like 'Let us see how we can make things right again.'

In conclusion, a well designed customer service response to angry customers has often turned around very bad situations. Take the good situation further. Nudge the customer into your retention and evangelism sales funnels.

CONTENT RELATED TO CUSTOMER SERVICE: HOW TO RESOLVE CUSTOMER COMPLAINTS TO EXTEND CUSTOMER LIFETIME VALUE (CLV)

• Social media content management
• See how a company thanked me for my patience when they turned me into a delighted and loyal customer after their customer service had fallen short.
• Do not be complacent with good customer service. Use a more proactive customer experience approach.
• Use CRM to considerably maximize customer experience, efficiency and, in turn, profitability.
• Know the difference between getting feedback and reviews from business customers ... and when to strategically use each.