7 simple steps to help you resolve complaints and delight your customers. Discover how to "Dazzle Right".

I recently visited a local shop that sells computer equipment. For a few minutes I was left sitting at a desk whilst the assistant went off to process some paperwork. And, whilst I was sat there, I was able to listen in on a very heated conversation that was going on just a few feet away.

A couple had bought a printer and experienced a whole succession of problems. They had made many visits to the shop and were now quite desperate and angry. They simply wanted to return the printer and get their money back.

The assistant who was trying to help really didnt have the first idea about how to handle this confrontation. Not knowing what to do he simply smiled.

Dont just stand there with that stupid smile on your face! yelled the customer. Do something!

What a shame that a customer can get into this state. And all because the assistant wasnt trained or prepared to handle the complaint.

Extensive research into customer complaints has been done by TARP (Technical Assistance Research Programs Inc), now known as e-satisfy.com . They found that:

1. Only 1-5% of customers will escalate their complaint to a local manager or head office. This means that in most cases the business owners or managers dont even get to know that there has been a complaint.

2. Twice as many people are told about a bad experience than they are about a good experience. This means that unhappy customers are turning into terrorists and doing huge damage to your business.

3. For major problems, 91% of customers wont complain at all. They just walk away. What an awful way to lose a customer! But customers who complain can become more loyal than if they had no complaint at all provided that the complaint is handled quickly and resolved to their satisfaction. Marriott researched customer intentions following a visit to one of their hotels. They found that:-

* For customers who no problems during their stay, 89% said that they intended to use Marriott again.

* For customers who had experienced a problem that had not been corrected to their satisfaction, only 69% would use Marriott again.

* But for customers who had experienced a problem and the problem had been resolved before they left the hotel, a staggering 94% said that they would use Marriott again! Customer complaints are a great opportunity for us to delight our customers, improve our business and gain customer loyalty. So how do you do it?

Ive recently been working with a small business close to where I live. Its a great little business. Super people, working very hard and really trying hard for their customers. However, every once in a while they get a customer complaint. And, when they do, I see some interesting things start to happen.

Firstly, they are hurt. Because they are working very hard and really trying hard for their customers they feel hurt. Criticism is always difficult to accept no matter how positive you try to be. And the harder that you are working to please the customer, the deeper the criticism cuts.

Secondly, they try to prove that the customer is wrong. Probably every business in the world goes through this same sort of problem. And it would be easy to say that the customer is wrong, that the customer didnt understand, or that the customer didnt do what we told him or her.

So this is how Ive helped the people in this business to approach these situations:-

1. Wear the customers shoes. Very few customers are going to complain unless theyve got a real problem. So when a customer does take the time and trouble to let you know that youve got a problem dont reject them.

Get behind the problem. Look at the problem from their point of view. How did this arise? What were they expecting? How did the reality match up to their expectations? Whatever they perceive, is their reality.

2. The best feedback we can get comes in the form of complaints. It would be nice if every single customer told us what a great job we were doing but it wouldnt help us to improve our service. Complaints tell us how we could do it better.

This business has also introduced a suggestion scheme. There is nothing to stop a member of the Team using a customer complaint to come up with a great idea and putting it in the suggestion scheme. And they get rewarded for the suggestion!

3. If one person says it, then there may be ten others who are also suffering but dont like to complain. So when resolving one customers problem, look to see if there are other customers who might also be affected. If you can solve things for them before they complain you earn huge loyalty.

4. Managing perceptions is all about letting the customers know what to expect.

So many businesses over promise and under deliver. No one wants to be let down. They would rather have a more realistic proposition in the first place. So be honest with your customer.

Keep your customer informed. If theres going to be a problem then tell the customer but think it through and finish on a good note. For example: Im sorry but theres going to be a delay with your delivery. But I have spoken to the driver and he will be with you in 15 minutes.

5. Sometimes the people in this business will say things like, But I told the customer that this was going to happen, or We did write and explain all this before.

What this tells me is that despite some good efforts, theyre still not communicating properly with their customers. Many people feel that communication is all about sending out messages writing a letter, sending an email, leaving a message on the ansaphone. But this is not communication!

Communication only happens when the same message that is sent, is received and correctly understood. If customers do not understand the communication then the communication needs to be improved. And there are lots of ways of doing this.

Make sure that the communication is both received and understood. Emphasise whats important and what is just for information. Use simple language. Dont try to communicate too much at one time. Ask your customer questions to make certain that they understand. Use reminders for important dates. Use combinations of telephone, letter and email.

If the customer doesnt understand your communication, it can only be your fault.

6. Listen and act appropriately. Often a customer simply wants to make their problem known. Theyre not looking for compensation. They just want to make you aware.

Always listen. Let the customer know that youre listening. Ask questions and make some notes. Take it seriously this is not a good time to smile or laugh! Try to find out what the customer would like done. Often a simple apology is enough. Sometimes, more action is needed.

Having a complaints system is a great way of demonstrating to customers that their complaints are important. A special form is really helpful to everyone.

Thank them for taking the trouble to let you know. Let them know what you intend to do. And follow through on your promise. Try to report back to the customer even if its not absolutely necessary. A customer will really appreciate the fact that you have done something and taken the trouble to keep them informed.

7. Dazzle and delight your customer. Use this as an opportunity to really make a really lasting impression.

Knowing that resolving complaints can increase loyalty helped this business to create a little system. Its called Dazzle Right. What it says is:

* Every Team member is responsible for dazzling and delighting our customers.

* Every Team member has the authority to take any action that they consider appropriate. The cost of any such action will be reimbursed by the company (receipts should be obtained whenever possible).

Do the people on your Team have the authority to resolve a customers complaint? Or do they resort to a stupid smile?