Top 10 Common Customer Complaints and How to Address Them

A study shows that an astounding 96% of customers ditch a company for bad customer service.

It might sound unexpectedly high, but the statistics are hard to ignore.

Customer complaints are normal, but how you handle them determines if people stick to your brand or make an instant switch.

It is essential that you are mindful of customer complaints and ways to address them if you own a business.

What Are Customer Complaints?

Customer complaints are the statements of disappointment expressed by customers after using the company’s product or service due to an unsatisfactory customer experience.

Not everyone is satisfied with a product or service. It is normal for people to express that the company did not meet their expectations.

Customer complaints can be taken as feedback for brands to reflect on and grow. Businesses always aim to meet their customers’ expectations and improve efficiency. But satisfying everyone is easier said than done.

Sometimes, you as a business need to deal with unhappy customers or difficult customers. So, to handle customer complaints, you need to put your best foot forward.

The key categories of customer complaints are generally based on product issues, delivery timing, billing inaccuracies, miscommunication, and quality of service.

Top 10 Common Customer Complaints

Let’s discuss some common customer complaints faced by companies.

1. Product or Service Not as Described

Most common customer complaints are usually dissatisfaction related to the product or service. People purchase products or sign up for services with an expectation. But sometimes, their expectations are not met.

It is caused by misleading product descriptions, highly modified images, and wrong product delivery. This compels them to express discontentment in written or verbal form.

2. Unresolved Issues or Repeat Contacts

If customers have to convey the same thing multiple times and go through a long, tiring, unnecessary process, it will surely irritate them. Even after multiple mentions, if their issues remain unresolved, the frustration only spikes.

Such poor communication and negligence result in customers feeling down.

3. Rude or Unprofessional Staff

Unfortunately, you can often find customer service representatives who are rude, aggressive, and unresponsive. Customers who encounter such staff report huge dissatisfaction.

Since the customer service staff represents the company, this degrades the brand’s reputation. Dealing with rude staff discourages customers from buying any product from your company.

4. Prolonged Waiting

Customers want proactive customer support, as this will reduce wait times in customer service. Having to wait for a long time in line or phone to access the service drains the customers.

This frustrates them, leading them to choose alternatives, i.e., competitors’ products or services.

5. Billing Errors and Refund Issues

There can be errors in billing charges, such as wrong billing, overcharging, or issues in receiving refunds on time. Since this is a sensitive case, people expect immediate resolutions.

Customers prefer easy billing systems and procedures. If they have scratched their head seeing bills, they are bound to complain.

6. Lack of Follow-Up or Updates

Another common complaint involves a lack of updates or follow-up. There may be a delay in delivery, an appointment may be postponed or preponed, but companies may fail to reach out to the customers in a timely manner.

Customers feeling ignored and undervalued is not a good sign for a company. So, they end up issuing a customer complaint.

7. Difficulty Reaching Support

Customer support should be available 24/7. People want to connect with customer support and receive help as soon as possible. Customers may not reach customer support due to unclear contact information or unavailable numbers.

Also, if your website and other communication channels are not user-friendly, customers will find it difficult to reach out for support. This leads to agitation.

8. Overpromising in Sales and Ads

Companies might think that exaggerating the product and service features might attract numerous customers. But they may not realize this can actually backfire.

Customers watch ads about such products and expect the same features on delivery. But all they meet are disappointments. Hence, the complaints.

9. Lack of Personalization

It is in human nature to prefer to be addressed personally. People tend to prefer when companies text them specifically with their names and reach out to specific individuals at a time. This makes customers feel seen.

Companies should implement strong CRM (Customer Relationship Management) systems to personalize communication with their customers. It helps track customers’ purchase history, preferences, and behavior.

10. Privacy and Data Concerns

Since there have been cases of privacy breaches in the past, customers tend to be wary of sharing their personal information with businesses. Notorious companies have sold customer data, which puts them at risk of fraud or scams.

This makes customers lose trust in the company. Hence, businesses need to maintain transparency regarding how customer data will be used.

How to Handle Customer Complaints?

Customer complaints should be handled professionally and wisely. It is a chance to boost trust and customer engagement for your brand.

A. Listen and Acknowledge the Problem

When you receive customer complaints, listen. Actively listening to their problem is already half the solution to handling the complaint. Do not interrupt and let them express their dissatisfaction.

Next, you must acknowledge the problem. Avoid denying or being defensive. Acknowledging the issue makes people feel heard and valued.

B. Understand and Clarify

Only by listening carefully can you understand the issue. After listening, follow up with your questions to double-check if you understood what they wanted to convey.

Ask suitable questions in a calm and polite manner to clarify the problem. Make sure there is no confusion regarding the topic and content of communication.

C. Apologize Sincerely

Next, you need to apologize sincerely. Do not debate whether it’s the customer’s fault or the company’s fault. It is definitely not time for that.

An apology demonstrates your company’s willingness to take responsibility. A sincere apology is bound to soften up your customer’s heart.

D. Offer a Solution

Then, you need to come up with a suitable solution. You should decide on the solution carefully. Whether it is a refund, compensation, or a product replacement, choose the solution best suited for the specific situation.

In case you cannot offer a solution immediately, express it sincerely and specify the time you need to get back to them.

E. Follow Up

After you’ve offered a solution, it is best to follow up with them at some point later. Check if they are happy with the solution you provided. Ask for their feedback.

You could send a short and quick email. Or maybe call to ask directly. Following up shows you care about your customers’ experience.

F. Document, Learn, and Improve

Always note the complaints or issues. This allows you to keep track of similar problems and understand the pattern.

This helps you and your team to learn and improve. You can understand what customers truly want and design future policies and services tailored to their preferences.

Why Listening to Customer Complaints Matters?

You may feel that complaints are never-ending and get tired of listening to them. But they are not a nuisance. It is a way for companies to learn, reflect, and flourish. Let’s understand in detail why you should listen to customer complaints.

I. Highlights Systematic Issues

Sometimes, complaints can shed light on an underlying issue with your product or service, or other company policies. It may provide you with insights into how to improve your product or service for the better.

Listen carefully, document the issues, and analyze the pattern. If it is recurring, you can invest in fixing the problem.

II. Chance to Retain a Customer

You must have seen how many customers, when dissatisfied with a product, do not express it. They simply switch to another company. So, when a customer makes a complaint, it is your chance to retain them.

Addressing customer complaints will make them feel heard and valued. Chances are, they will give your company’s product or service a second chance.

III. Builds Trust and Transparency

Openly addressing and acknowledging customer complaints shows how much your company values its customers. Communicating with the customers brings you closer to them, building trust in the long run.

When you accept your faults and offer solutions, it strengthens your integrity and improves your brand reputation.

IV. Fuels Innovation

Customers’ feedback and experience can often provide you with space to improve. By reflecting on the reviews and complaints, you can discover loopholes in your products or services that you otherwise would not see.

This opens the door to more product and service innovation and upscales the standard.

V. Ignoring Complaints Can Damage Brand Reputation

Since social media platforms have become popular, expressing complaints has become easier for customers. Companies, too, receive feedback more frequently. But it is crucial that you address the complaints readily.

Ignoring complaints is more dangerous. The customers will feel ignored. Their word of mouth will spread like wildfire, ruining your brand reputation.

When and How to Offer Compensation and Apologies

Compensation and apologies are essential when addressing customer complaints. You should know which ones to use and when.

When Should You Offer Compensation?

• Clear Company Error: When you know it’s a company error, it is advisable to offer compensation. When the product is faulty, you delivered the wrong product, or you knowingly overcharged your customer. Simply offer a sincere apology along with compensation.
• Service Delays: If you are unable to deliver the product or service on time due to staff shortages, product packaging delays, or other factors, you must offer compensation. Also, apologize and clearly state the situation.
• Public Complaints: Public complaints put the brand image at stake. If the complaint is on a public platform, say social media, it is even more crucial that you address it, apologize, and offer compensation. This improves your brand reputation.
• Poor Customer Experience: Sometimes, people experience rude customer service. They may encounter rude staff or receive poor communication, leaving them frustrated or confused. Offer them a discount or gift card to provide them with emotional satisfaction.
• At-risk Loyalty: If a loyal customer is dissatisfied, you may lose them to your competitor. Since a loyal customer is a company’s asset, it is only sensible to do all in your power to retain them. You can personally apologize and offer an exclusive deal.

Types of Compensation to Offer

Below are the types of compensation you can offer to your customers.

• Full/Partial Refund: Full or partial refund? Depends on the situation. In case of wrong order received, delayed delivery, or defective product delivery, the company should offer a full refund. A refund is an immediate solution, saving the situation from escalating.
• Free Upgrades or Services: Sometimes, a delivery delay could frustrate the customer. In this case, you could offer a free upgrade in their service to deal with your seemingly unhappy customer.
• Gift Card or Loyalty Points: If your customer had a not-so-good experience, it is a clever tactic to offer them a gift card or points so as to retain them. It encourages customers to remain associated with your brand in the future.
• Personalized Follow-Up: In some cases, you may have to personally call the customer and ask for their experience and feedback to ensure they are satisfied with your service. This builds value and brings you closer to your customers.

How to Apologize Effectively?

Now, you might as well learn how you can apologize effectively. Read the points below.

• Acknowledgment: The first thing to do is acknowledge the issue. Accept that the problem is real and apologize if the customer faced any inconvenience.
• Responsibility: Although you may not be at fault, you should take full responsibility for the issue. Trying to shift blame will only aggravate the situation.
• Empathy: Be empathetic. Think from their perspective. Make sure they know that your top priority is their satisfaction and experience.
• Resolution: Only a written or verbal apology may fix the issue. Offer a suitable resolution at the earliest. It could be a refund, a discount, or a replacement.
• Commitment: Let them know you are already taking their feedback into consideration to improve their service. This assures customers that similar problems won’t arise in the future.

When is An Apology Better Than A Discount?

In business, focusing only on the sales charts and profit graphs does not bring all-around growth.

Business might be about a service or a product you designed for the customers, but it is a game of emotion.

How a customer feels after using your product or service is possibly the highest priority on the list.

So, in some customer complaints, simply trying to offer a discount or refunds might seem like you are trying to sweep the problems under the rug.

The customers could feel that you are trying to brush it off and do not value them at all.

Hence, in the following few cases, you should offer a sincere apology instead of a discount:

• The customer is frustrated with poor communication or treatment.
• They had a bad experience with your customer service.
• You need to own up to your responsibility for the problem.
• An apology is what the customer wants.

Popular Tools to Manage Customer Complaints

Handling customer complaints can be a daunting task. But it is not something to skip or neglect. Today, you can find various tools that help you manage customer complaints systematically. Below are a few popular tools you can use for handling customer complaints.

• Zendesk: It is a customer support software that facilitates omnichannel support. It also offers AI-based response features to reduce wait times in customer service.
• Freshdesk: It is a customer complaint system that offers a help desk solution for startups and SaaS companies to help with automating repetitive tasks, such as handling tickets.
• HubSpot Service Hub: It is a platform prioritizing an integrated customer experience that helps you track conversations and feedback.
• Salesforce Service Cloud: If your company requires customization or implements AI-based tools, such as chatbots, Salesforce Service Cloud will be a better option.

In Summary

Customer complaints are simply the discontentment of the customers regarding a product or service, or some company policies.

Though customer complaints might sound like a pain but it is actually feedback for the company to reflect on. Often, they bring insights and new innovations. Hence, companies need to learn to handle customer complaints professionally.

Customer complaints are a chance to retain customers by improving efficiency, which ultimately leads to customer satisfaction in the long run.

FAQs

How should a business respond to a customer complaint?

A business needs to pay attention to a customer’s complaint. Listen actively. Remain calm. Be empathetic. It is important to acknowledge the complaint and address it with respect. Apologize when necessary and offer a better solution immediately.

When should I offer a refund or compensation?

You can offer compensation when it is your company’s fault or when customer loyalty is at risk. A Refund is suitable in case of service delays, failure, and defective products.

How can I prevent customer complaints in the future?

To prevent customer complaints in the future, you should track current complaints, reflect on them for improvement, and train support staff for better service delivery.

Can handling complaints well actually improve customer loyalty?

Yes. When you handle complaints successfully, it creates a better brand impression and implies that you care about your customers, increasing their brand loyalty.

Should I respond to customer complaints on public platforms, such as social media and review sites?

Yes. You should address customer complaints on public platforms. Analyze the issues. Respond timely. Use kind and polite words. Reach out personally if necessary.

What should I avoid when responding to a customer complaint?

When responding to a customer complaint, never be defensive. You need to acknowledge their complaint without blaming them. Do not be aggressive or try to prove yourself right. This will only make things worse.