Understanding the Value of Customer Complaints

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  • 0:03 Customer Feedback
  • 0:23 Benefits of Customer…
  • 0:45 How to Use Negative…
  • 2:32 Lesson Summary
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Lesson Transcript
Instructor: Amber Dixon

Amber works with graduate students enrolled in a virtual program and has a Master's of Social Work degree.

This lesson will discuss the value of customer complaints to improve products or services for consumers. We'll discuss ways to implement changes to retain customers.

Customer Feedback

Are customer complaints good for business? If viewed with an open-mind, complaints can be an opportunity to improve. Customer complaints will lead to creating a successful product or service, a strong company reputation, and satisfied customers. Let's discuss in more detail the importance of negative customer feedback and the long-term benefits to businesses.

Benefits of Customer Complaints

Customer complaints can improve a business and its relationships with customers. By resolving complaints, a company can:

  • Increase customer satisfaction and retention
  • Show customers they are appreciated
  • Gain opportunities to implement change to improve a service or product
  • Maintain a positive business reputation by resolving complaints, which helps with obtaining new customers and referral

How to Use Negative Feedback to Improve

Negative reviews from customers about services or products can help a business make changes that will lead to increased customer satisfaction with existing and future customers, so it's important to have an internal process to review and solve problems that customers have expressed. A company should evaluate which problems are most significant and need to be rectified first. Then, it should establish a plan to solve problems and assign staff who will implement the changes.

Let's look at an example. A medical office received complaints about the condition of the lobby. Management reviewed the complaint in a meeting and brainstormed how to make the lobby more welcoming, considering three categories: decor, seating, and ambiance. It was decided to select one category each quarter to slowly improve.

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