The Richwood Report

Really. Complaints are a good sign, according to this article. Why?

You can't stop customers from defecting if you never hear about their problems. Giving customers a way to complain can represent a golden opportunity. Listening and responding appropriately minimizes the damage unhappy customers can create for your business. The average upset customer tells nine people. One in five tells more than 20 people.

Furthermore, a complaint is an opportunity to repair and strengthen the relationship.

Companies should welcome complaints and make it easy for customers to provide feedback. After all, customers who take the time to complain still have some confidence in the organization. Although they may be complaining, at least they are still talking to you. Those who complain are exhibiting a degree of loyalty and a genuine desire to get their problem fixed.

Furthermore, of those who do complain, 56 to 70 per cent will do business with your company again if the complaint is resolved. That goes up to 96 per cent if the complaint is resolved quickly!

One company that decided to listen seriously to customers' complaints was British Airways.

British Airways is a notable example of an organization that has encouraged customer feedback. By installing video booths at Heathrow Airport, it gave angry customers an easy way to sound off. The taped complaints were sent to top management, giving them an unfiltered glimpse into passenger frustration. Their focus on responding to customer complaints paid off. It shed its "bloody awful" image and has become known as one of the best airlines in the world.

Read the whole article for suggestions on responding in concrete ways.