Complaints as an opportunity: Efficient complaint management ensures long-term customer relationships
Mr. Giese, customer complaints are a real annoyance for online retailers - aren't they?
That would be the wrong approach. For a customer who complains is indeed a very committed customer. It shows that it is the power that he has claimed and paid really important.
A retailer who responds to complaints quickly and satisfactorily even has the chance to build long-term customer relationships. Experience shows: Four fifths of all customers who have complained and whose problem has been solved remain loyal to the company. Good complaint management also gets around and ensures a good image.
Isn't it better not to let complaints arise in the first place?
Of course, you are right. It must be the top priority for every company to deliver optimal products and services. But are customers really happy just because they don't complain to the company? How, for example, does a consumer behave if the kettle they bought cheaply in the online shop doesn’t work or if the chocolates they ordered for Mother’s Day aren’t delivered? You can angrily put the kettle in the kitchen cupboard, and you might get the chocolates in the supermarket and then send them personally. The affected online shop operator is usually not informed of this, because the customer does not complain even though he is dissatisfied.
The fact is: Only a few customers choose the route of complaints. In most cases, the reason for this reluctance is complaints barriers that companies have built up - consciously or unconsciously.
What are these hurdles?
On the one hand, consumers weigh the cost of a complaint against the benefit or the likely success. So: Do I have to write a letter of complaint first, do I have to send the goods back myself and will I get the goods back or will I only be reimbursed part of the purchase price? On the other hand, socio-demographic factors such as age, gender, education and occupation as well as psychological conditions play a role. Clearly, people who are confident, opinion leaders, and have in-depth product knowledge, relevant information, and experience dealing with competitors are more likely to complain.
But it is also true that the Internet has made consumers more empowered. Today's modern customer is more informed, more self-confident and asserts his claims more clearly in the event of a complaint. He also expects good, individual customer service, he wants to be impressed by the seller and the products. As I said before, this is a huge opportunity for companies to gain customer loyalty.
Couldn't payment delays also be an indication of dissatisfaction?
But yes! Unpaid invoices are also a case for complaint management. This includes a company dealing specifically with the individual customer and questioning why a customer does not pay his claim instead of sending a reminder for the invoice immediately. The goal must be: "Solve the problem, not the question of guilt."
Isn't efficient complaint management expensive - especially for smaller online providers?
No, because good complaint management pays off in the long term. Retailers should always know the individual customer value and base the respective customer approach on this. Customer value-oriented models take into account the customer's creditworthiness, the duration of the customer relationship, his previous payment behavior and his sales volume. Customers who act with fraudulent intent or generally pay less well can be identified more quickly and addressed in a completely different way than customers who are delaying payment because of a problem with the delivered goods, for example. In the case of the latter, the first thing to do is to quickly and competently solve the problem with the goods.
Intrum Justitia, for example, offers a service with ReConnect® that starts immediately when payment difficulties arise and takes all of the customer aspects mentioned above into account. The aim of ReConnect® is, on the one hand, that companies quickly receive the money they are entitled to and, on the other hand, the restoration of good business relationships with the respective customer. For example, reminders, calls or SMS are sent in the name of the company, all of which help to avoid unnecessarily jeopardizing customer relationships at an early stage of late payment. We refer to this as soft escalation towards the customer. This approach has proven to be very efficient and secures valuable liquidity for the company.
Thank you for the interview.
About Hans-Jörg Giese
As a consultant, Hans-Jörg Giese is responsible for selling Credit Management Services (CMS) solutions in the German-speaking countries (DACH) of the Intrum Justitia Group.
About Intrum Justitia
Intrum Justitia is the leading provider of credit management services in Europe. Intrum Justitia employs over 3.100 people in 24 markets. The group is listed on the Stockholm Stock Exchange. More information on www.intrum.de.
Source: Darmstadt [ ots ]
