SmallBizResource Blog -- Customer Service

How to Handle Complaints

Posted by Gayle Kesten Friday, May 9, 2008, 12:08 PM ET

The way a business handles a problem speaks more to me than the problem itself.

Last summer, for example, my husband and I parted ways with a kitchen contractor not so much because he had me write a third-party check (no gun was held against my naïve head), but because he never expressed one ounce of remorse for the understandable aggravation that ensued.

That's the short of it, anyway.

Small businesses have the unique opportunity to forge close ties with their customers. That's the beauty of being small -- you provide a personal touch, which is why many customers seek you out versus their bigger options in the first place. Do right by them, and they're going to spread the word.

So what should you do when something goes wrong? Says Home Business Magazine: "In general, it’s better to make customers happy than to simply refund their money and send them away. Chances are you don’t have their money yet anyway: They might be withholding payment while they gripe. Even if they did pay you, you still want them to be happy, because otherwise they might malign you to their friends, a lawyer or the Better Business Bureau."

Here are some other tips from HBM to keep in mind amid a sticky situation:

1. Respond promptly to complaints.
2. Listen carefully to why your client is unhappy.
3. Don't get defensive.
4. Don't insist you're right (even if a contract says you are).
5. Offer something the client perceives as valuable (free product, reworking a piece of the project, etc.).

Another piece of good, big-picture advice: "Keep track of complaints, even if they are very few, so you can determine whether there is a pattern. This might prevent future complaints. It might also help you come up with ideas for new products or services."

How do you handle complaints? Do you abide by "the customer is always right" mentality? Tell me about some sticky situations you've encountered.

Customer Service