Let’s Talk Series: How can customer complaints make your business stronger?

Here’s our CEO, Trena Blair‘s, entry:

Let’s Talk. 

In the USA, the economic impact of poor customer service is estimated between $75 billion to $1.6 trillion annually. Customer influence is at an all-time high, where positive experiences can generate cost-free word-of-mouth referrals and new business opportunities. Conversely, failure to deliver a positive customer experience can significantly tarnish a business’s reputation.

Studies indicate that 13% of dissatisfied customers share their complaints with 15 or more people, while only 1 in 25 directly complain to the company. Moreover, a substantial 91% of dissatisfied customers who refrain from complaining cease doing business with the company.

Despite the negative repercussions, customer complaints can offer valuable insights. Each grievance serves as a direct indicator of product flaws, employee issues, or internal process deficiencies. Addressing these concerns promptly allows companies to investigate and improve, preventing future complaints. As highlighted by Harvard Business Review, swift resolution of customer complaints within 5 minutes increases customers’ willingness to spend on future purchases.

In conclusion, developing a robust customer complaints process is crucial for companies expanding into the USA. By doing so, they can pinpoint areas for improvement, retain customers, and foster a loyal customer base, contributing to the growth and success of businesses in the USA.

This is a contribution by FD Global Connections to “Let’s Talk“, a weekly online publication from Dynamic Business. You can read the full article HERE.