Why Is Resolving Customer Complaints Good For Business?

It is well-documented that resolving customer complaints is good for business.  Responding promptly and resolving customer issues builds long-lasting loyalty and repeat business, as well as referral business.  Here is a roundup of research and advice:

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Customers' Problems Are Companies' Loyalty-Building Opportunities (Andrew McInnes, Forrester Research, December 6, 2010)

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• 81% of customers who said a company's problem resolution experience far exceeded expectations are very likely to do business with that company again
• Only 5% of customers who said a company's problem resolution experience fell far below expectations are very likely to do business with that company again
• 71% of respondents who said that problem resolution fell far below their expectations also said that they’re very likely to tell someone about the experience

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Infographic: Social Customer Service, the Next Competitive Battleground (Daily Infographic)

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• 59% of customers will switch brands to get better customer service
• 73% of customers have spent more with a company because of good customer service

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What Drives Customer Loyalty with Complaint Resolution by Tor Wallin Andraessen (Journal of Service Research, Vol 1, No 4, 1999)

"Satisfaction with complaint resolution has a positive impact on customer loyalty. Complaint resolution is thus an important element of the company’s customer retention strategy."

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Six Steps to Dealing with Customer Complaints (Ben Ridler, Entrepreneurs' Organization)

1. Listen carefully to what the customer has to say, and let them finish. 
2. Ask questions in a caring and concerned manner.
3. Put yourself in their shoes
4. Apologize without blaming
5. Ask the customer, "What would be an acceptable solution to you?"
6. Solve the problem, or find someone who can solve it -- quickly!

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Groupon Blog: Five Lessons Learned From Amy’s Baking Company
Five problems small businesses grapple with when they receive a customer complaint, and how to solve them calmly and professionally.