10 Steps to Resolving Client Complaints, by Bill Cates

1. Today's post comes courtesy of guest blogger Bill Cates.

I believe that you should do everything you can to encourage your clients to complain.

Now, you must think I'm nuts. What I mean is this. Some clients will complain about important things, and a select few will complain about anything and everything. But most clients do NOT complain about the small stuff.  They prefer to let things slide.

The problem with this is that it usually leads to resentment and lost business.  A client with an unexpressed complaint is not going to give you referrals, and they're probably a candidate to move their business somewhere else, sooner or later. That's why you have to create an environment that fosters your clients' candid communication with you.

How you receive complaints is critical.  When a client is registering a complaint with you, the first few words out of your mouth and the first few actions you take can make all the difference. Start off on the wrong foot and things just get worse. Start off on the right foot, and they usually get much easier.

Here are some specific things you can do to ensure you are "receiving" complaints in the best possible way. 

1. Say "I'm sorry." (Be genuine!) Saying "I'm sorry" is not admitting fault. You're sorry they are upset, frustrated, or just unhappy with something you or someone in your firm did. Saying "I'm sorry" is an expression of empathy that begins to diffuse the client's negativity.
2. Honor their perspective (whatever it is). Their view of the situation may be way off base. That doesn't matter, at least not at first. First, you have to treat their position with honor. As you learn more about it, and they feel heard, you can begin to work on changing their perspective (if appropriate).
3. Don't get defensive. I think there is a natural tendency for most people to want to protect themselves when someone complains. Resist this at all costs. Demonstrate you are there for them with statements such as "Tell me more."
4. Don't make excuses or argue. First, you never win an argument with a client. Even if you win the battle, you'll probably lose the war (the client will walk). After you have completely heard the client's position and after you have a solution that pleases the client, you may tell them some of the reasons that contributed to the problem, but doing this too soon in the process will appear as if you are making excuses and not taking responsibility.
5. Fully understand the problem. To demonstrate that you fully understand their complaint, repeat back to them what you think you heard.
6. Tell them what you're going to do next and when you'll be done - if appropriate to the situation. Some complaints have no resolution, your client just needs to be heard.
7. Tell them when you'll call them back. Make a commitment and then honor it. If you can't honor the commitment, call them and let them know you're still working on it.
8. Thank them for bringing the issue to your attention. Especially for the little stuff, you want to thank your clients for not holding back. You want to let them know that you desire communication that is as candid as possible.
9. Resolve the issue as quickly as possible. The faster the resolution, the less the problem will affect the overall relationship.
10. Follow through and follow up until the problem has been resolved and all residual emotions have been cleaned up.

Remember, a relationship that has overcome a problem, handled well, is a stronger relationship than one that has never had any problems at all. 

Here are some helpful articles (free registration required) about client satisfaction and complaints:

How to Handle Angry Clients
Nobody finds it easy to deal with irate clients. But if you learn to handle them adeptly, you can actually use the experience to retain their business and build a stronger relationship.

Why Satisfied Customers Defect
You should be thrilled when 95% of your clients say they are "satisfied" with your service, right?  Wrong.

Should You Apologize to Clients?
Sometimes—but carefully.  The way you say "I'm sorry" can make or break you.