Companies, stop striving for zero complaints

The same logic applies in business: silence from customers can be far more dangerous than complaints. These are the customers who simply walk away–the 50% you’ll never see again.

But, here’s the twist: 60-70% of customers who have their complaints resolved satisfactorily go on to buy five times more than they initially would have.

“If you solve their concerns instead of over-apologizing, they’ll actually come back to repurchase five times more,” Dr. Barlow said. “This is the power of complaint handling in the language of revenue and results.”

Everyone owns the complaint

Only 1 in 10,000 written complaints ever make their way to senior management. In the US, companies are losing 1 trillion dollars due to poor complaint handling.

Dr. Barlow emphasized the need to break down silos. Businesses must instead foster a culture where everyone feels responsible for addressing customer concerns.

Too often, companies are laser-focused on acquiring new customers, missing the retention goldmine.

Retaining existing customers is significantly cheaper than attracting new ones. And the rewards are exponential. A small increase in retention can lead to a dramatic uptick in profits.