When Consumers Complain

By Lesley Fair
 
“Nobody likes a complainer,” the old saying goes.  But to savvy marketers, consumer complaints can be a valuable source of information on how to improve products and performance.  That’s why consumers who take the time to tell you what’s on their mind may be one of your best resources.

According to the Federal Trade Commission (FTC), the agency receives close to a million complaints from consumers each year.  Identity theft topped the charts, but second on the list was the category of shop-at-home/catalog product sales.  Internet services won the dubious bronze medal and credit issues are a perennial contender.  Of course, the vast majority of companies work hard to earn consumer satisfaction.  But an analysis of complaint data can yield some valuable tips for the wise marketer.

  • Keep the lines of communication open.  Make it easy for customers to get your ear.  We’ve all experienced the frustration of a customer service line that’s short on the service, but long on the line.  Although phone trees and emailboxes are a fact of 21st century life, let your customers know you’re listening.  
  • You’ve got mail.  Some companies claim to be surprised when problems arise, but that’s because they ignored the warning signals in their mailbox.  Smart marketers monitor their mail, get feedback from their call centers, and address consumer concerns proactively.
  • The usual suspects.   Every consumer’s story is different, but some consistent themes emerge.  In the FTC report, complaints about undisclosed costs and conditions seem to be perennials.  Savvy companies avoid these problems by explaining up front important terms like the total cost.  Dot.Com Disclosures, offers tips for advertisers on how to disclose the details clearly and conspicuously.
  • Signed, sealed, and delivered.  Failure to deliver on time and non-delivery of merchandise are another source of consumer frustration.  The FTC’s Mail Order Rule – which applies to telephone and Internet sales, too – sets minimum standards for direct response companies.  Read A Business Guide to the Federal Trade Commission’s Mail or Telephone Order Merchandise Rule to make sure your procedures measure up.
  • Putting your money where your mouth is.  Marketing experts will tell you that positive word-of-mouth buzz is one of the most effective forms of advertising money can’t buy.  But the converse is true, too.  Unhappy consumers rarely keep their complaints to themselves.  According to one study, they tell at least nine friends and family members about their unpleasant experience.  Factor in the power of blogs and chatrooms and word-of-mouth buzz – or fizzle – can make or break your company’s reputation.  In the long run, winning back the loyalty of a consumer with a valid complaint may be less expensive than dealing with the consequences of their dissatisfaction.

Lesley Fair is attorney in the FTC’s Bureau of Consumer Protection.