Customer Complaints and the Role of CRM
by Anshul Tiwari
We are living in an age where there is not only an abundance of information but also a massive flow of this information at an unprecedented rate. In this highly competitive and information rich world, the consumer is more aware than ever before. Steps have been taken both by the governments and NGOs in different countries to ensure that the consumer does not get exploited. A number of consumer awareness programs and campaigns have been taken up in earnest and every effort is made to make people aware of their rights and responsibilities.
On one hand there is growing awareness among the public and on the other hand with an array of products and options available in the market, customers are becoming more choosy and difficult day by day. It thus becomes imperative for companies to adopt a very consumer friendly approach and make that extra effort to retain their customers. There is no longer any scope for negligence in the area of addressing consumer grievances and more and more organizations are taking sincere measures in this regard.
The first step towards effectively handling customer grievances involves empowering the customer and providing accessibility for customers with concerns. The customer should be able to reach the department concerned with ease. Avenues such as a contact email address on the web site, contact information in the owner manual, a dedicated help line, and perhaps even a presence on Twitter or Facebook can prove beneficial. A customer complaint should not be seen as an interruption, nuisance, problem, or necessary evil. The customer is the very reason the business exists in the first place.
When a customer makes a complaint the company should agree that a problem exists; never disagree or argue or deny. The customer needs action, not excuses. Again, this does not mean to admit fault or cast blame either way but is a step towards clarifying the central issue and moving to resolution. It should be viewed as an opportunity to solidify customer relationships and foster brand loyalty. Effective handling of customer complaints requires patience, the ability to listen actively and emphatically, and to sort through the customer's grievance to identify the valid issues that need to be addressed.
In order to manage customer grievances, every company needs to have a policy and system in place for receiving, handling, redressing, and recording customer complaints. This can be vital not only for maintaining good customer relations but also in case of legal issues over warranty, corporate responsibility, or customer treatment.
Having a system (manual or automated) in place means that the entire staff will act upon complaints in the same way and that complaints are followed up. It also leaves a paper/digital trail so that it can be traced later and analyzed to spot ways to improve business and reduce complaints in the future. Even if not referred to very often, the very act of recording the complaint means that the company is more prepared to deal with complaints when they occur. Having a written procedure can also help customers trust you and make them feel it is worthwhile bringing the complaint to you in the first place. What is written down can well be communicated to different stake holders via the electronic media. Once the procedures are set in place, handling of customer grievances gets more streamlined.
What gets measured stand a better chance of being acted upon – and good recording can help the company spot patterns and trends to improve quality of product or service as well as improving customer relations. Analysis of customer complaints, comments and inquiries provides insights into the public perception of a brand, customer mindsets and problem areas or trends. To achieve these goals, many businesses turn to CRM software.
Customer Relationship Management software for complaint tracking can be either integrated into a CRM package, a module in ERP software or standalone ("best of breed") software specifically designed for issue handling. CRM tools can be effectively used to analyze the records of complaints. It is useful for monitoring any patterns and finding areas of improvement in the business. It is also handy as a record of previous complaints if a customer returns to make further complaints.
A regular check of these records will show which complaints still need to be resolved. This way, no complaints are left unresolved for very long and customers won’t be kept waiting. Satisfying a customer who has made a complaint not only improves client relations, but also improves overall business processes. Solving customer problems with emotional intelligence is the professional way to ensure repeat business.
About the Author
Anshul Tiwari is a Consultant with the Enterprise Solutions unit, and works on Clarify based solutions for CRM. She has worked on the functional design for projects in the telecom domain. Anshul will blog on trends in CRM, issues concerning the customer and how technology can be used to enhance customer experience.
