Things go wrong all the time and when they do, it’s important to recognize and fix the problem, to follow-up with everyone involved and learn from it so it doesn’t happen again and again. That’s easier said than done since most managers prefer to keep themselves busy by putting out fires and look like heroes, rather than to face the real challenges, the root causes of the fires, and to make the tough decisions that would really change things to the better. But one way or the other customer complaints are unavoidable and depending on how effectively your team manages them it will make or break your organization.

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Besides the obvious benefit of having a problem temporarily go away and the pain that comes with it, and turning an upset customer into a happy one, the 5 main benefits of effective complaint management are:

1. It creates a customer focused culture. Having your team understand the true value of every guest who is walking through your doors is fundamental for the success and long-term profitability of your business. Understanding that a guest is not an interruption of your work, but the reason that you have a job is crucial.
2. It reduces the operational cost. Effectively managing a complaint and ensuring that the guest is satisfied with your service recovery, will reduce your expenses and cost in the long-rung, as you may otherwise end up having to reimburse more than necessary to keep the guest from talking bad about your business.
3. It reduces the cost of winning new customers and increases customer loyalty. The return rate of a guest that was satisfied with his or her stay at your hotel is less than the one who experienced a problem at your hotel that was solved to his satisfaction. Why? … simply because your customers know that things can go wrong, but it’s important that when they do, that they can trust your organization to take ownership and get it right.
4. It reduces any brand and market damage. Solving a guest complaint to the customers satisfaction not yours, hopefully stops your client from talking bad about your business or commenting negatively about the service experience on social media.
5. It enhances the customer experience and increases sales and profitability. A happy guest as a result of effective complaint management will spend more at your hotel, stay longer and more often. Even more importantly a happy guest will tell his or her friends about it and act as a brand advocate.

Question: Can you think of any other examples of effective complaint management?