Why Is it Important to Understand the Underlying Causes of Customer Complaints?

Why do customers complain?

Customers complain when they do not receive the quality product or service they expected. Although complaints are a hassle, they can provide insight into the organization. It is important to understand the underlying causes of customer complaints.

Save money

Customer complaints mean there is something in the process that creates the complaints. These steps are unnecessary and cost the company money.

Increase Revenue

Customers who complain are at risk of no longer patronizing the business. Understanding the causes of the complaints and removing them can mean more products and services sold.

Reputation

If the reasons for customer complaints are not researched and resolved, they can fester and multiply. In online (e.g., social media) and offline (e.g., word of mouth) channels, the company's reputation can suffer.

Processes

Customer complaints provide a reason for process improvements. The complaints provide a launching pad for helping the company to determine which projects should be completed.

Offerings

Customer complaints are an opportunity to improve product offerings. The complaints may occur because the product may need to be reformulated.

References

• Bizhelp24: Why You Need to Listen to Customer Complaints
• spcforexcel.com: Monitoring Customer Complaints
• Business Know-how: Turn Customer Complaints into More Sales

Resources

• Institute of Customer Service
• Inc.: The Rigorous Customer Complaint Form