The Secret Formula for Customer Loyalty

Thanks + Explanation + Apology + Next Steps = Customer Thank You Formula

A complaint is a gift – follow these steps to address customer complaints and retain customer loyalty by following these steps.

In their book, A Complaint Is a Gift: Recovering Customer Loyalty When Things Go Wrong, authors Janelle Barlow and Claus Moller spell out a Thank You Formula to follow when you do receive a complaint. I think this is brilliant and will diffuse any possible negative situation and turn it into a positive experience.

When a customer comes to you with a complaint, follow these four steps:

1. Thank them. Say “Thank you…” immediately.
2. Explain why. Continue; “Thank you for bringing this to my attention so that I can fix the issue.” – or whatever reason you want to give as to why you appreciate the customer for their complaint.
3. Apologize, and be specific. Tell them; “I’m really sorry that the product broke after just one use.” – or for the late delivery, or the lousy service they received. Remember, be specific. They need to know that you heard them and sympathise with them.
4. Inform them of your next step. Tell them; “Let me help you fix this.” Make sure to let you customers know what you are going to do about it. Then fix the problem promptly.

Customers are normally looking for three things. They want to know:

1. They are heard.
2. Their issue will be addressed.
3. Something is going to be done to fix this issue in the future so it doesn’t happen again.

This is some great learning for your entire team. Share this with them, then role play it at your next staff meeting so that all your front line people handle complaints in the same manner. This will diffuse any situation 99.9% of the time, no matter how bad or serious it is.

Try it, it works!