Unlike other departments, customer service has the unique ability to change a consumer’s attitude towards a brand by turning their dilemma into a profitable solution that benefits both parties. Throughout the purchasing process, consumers have multiple interactions (or touchpoints) with a brand. Companies are always seeking to improve upon their brand’s touchpoints to enhance customer experience and improve customer satisfaction. At first, a 90% customer satisfaction score for each of the five touchpoints seems like a good achievement.
Although every business strives for 100% customer satisfaction, it’s realistically impossible to achieve. Dealing with customer complaints properly allows companies to create a strong bond with their customers by turning negative brand experiences into positive ones. Suppose you work for a cell phone provider, and you receive a call from an unhappy customer who has been experiencing technical problems with their phone, but has continued to receive the same charges for their service.
The way a company decides how to handle customer complaints will inevitably affect its reputation and bottom line. It’s easier for most hairdressers to hold on to their current loyal customers than to acquire new ones. Replacing customers is not an easy task because it costs more to acquire new customers than to keep current ones. When a customer takes a complaint to customer service, that experience becomes the brand experience–the customer looks to customer service to restore their trust in the brand.
These higher profits could be used to attract even more customers through promotions and advertising. It’s vital for businesses to think about their relationship with their customers in the long term. As Andy Sernovitz states in his book Word of Mouth Marketing, for every person a happy customer talks to, an unhappy customer talks to five. This means that a positive customer service experience can actually overshadow a bad brand experience. Smart companies view customer complaints as an opportunity to discover unmet needs, and use that information to improve upon their operations or find a new competitive advantage.

For example, let’s say a customer wants to place an order with an online retailer but has trouble navigating the website. When you consider how many other customers will benefit from implementing the same solution, it’s clear that customer complaints can become a profitable opportunity. Wise companies realize the importance of effective customer service and handling customer complaints effectively. If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader. If you have received bad service from LiquidCapital, or are unhappy with any of our services, please fill in the form below and submit it to us. LiquidCapital (Pty) Ltd, Authorised Financial Services Provider FSP 6210 140 Boeing Road East, Elma Park, Edenvale, 1610, Gauteng, South Africa P.O. A typical online retailer has five touchpoints: the website, customer service, the checkout process, distribution, and product quality. However, if you multiply each score to derive the overall customer satisfaction across all five touchpoints, the score is effectively 59%. Only a fraction of that 41% of customers who had a negative experience will file a compliant with the customer service department. Providing this customer with a credit to their account will cost the company money in the short term, but it also means higher customer satisfaction and customer loyalty in the long term.
Implementing policies and procedures aimed towards improving a customer’s brand experience will lead to higher customer satisfaction, increased customer retention, and additional revenue.
In order to acquire new customers, you must spend money to make them aware of your company, convince them to purchase from you, and convert them into loyal customers. For example, hairdressers working in salons know that it is much easier to satisfy their current customers than it is to convince new people to try them out.
However, if you chose to sacrifice the quality of your customer service, you’ll reap the consequences of losing customers both old and new. Although handling customer complaints adds to a company’s expenses in the short term, cutting corners in customer service ends up costing even more money in the long run. Customers who have a positive customer service experience are more likely to recommend the company to others–but the opposite is also true.

Consumers are more likely to talk about a positive customer service experience than they are to talk about the initial complaint they had. They view it as a critical component to their brand’s success and treat it as an extension of the brand. This particular company has been collecting customer satisfaction statistics via survey questions, and found that each of the five touchpoints has a 90% customer satisfaction rate. The majority of unsatisfied customers will simply take their business elsewhere without even notifying the company about their complaint.
In fact, if these skills are implemented correctly, the company has the ability to achieve even better satisfaction ratings from the customer than they would have if the complaint never occurred. This generates higher profits over the course of the business relationship–a higher customer lifetime value (CLV). When businesses think in terms of customer lifetime value, they view their relationship with customers and their complaints as valuable assets and manage them accordingly.
Customers who have a negative customer service experience are likely to tell others about their bad experience and detract business from the company. Because word of mouth has a multiplying effect, deciding how to effectively handle customer complaints can be the most influential marketing decision a company will make. It’s clear that customer service has the unique ability to harness information from customer complaints and turn them into a valuable and profitable asset.
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