how to manage employees in small business

How to REACT to a customer complaint

Danielle Collard
16 Jan 2025

Itโ€™s not easy. From angry customers to the demanding types that seem to want the world at half the price, people can be difficult to deal with. Whatโ€™s needed is a simple method you and your team can remember, even when someone starts to snap. Thatโ€™s where REACT comes in.

React. Empathize. Apologize. Communicate, and Train. Ready to give it a go?

A step-by-step complaint process for effective communication

Whatโ€™s handy about the REACT process is that you can think your way through the acronym during the complaint, making it a practical start-to-finish guide for handling a potentially tricky situation. So letโ€™s give each part a spotlight so you can see how itโ€™s done.

1. React

React is both the acronym and the first, most crucial step in handling any complaint calmly. Whether youโ€™re learning of the complaint directly from the customer or a colleague, whether youโ€™re having a difficult, hectic day of trade or not, the first instinct should be to switch into a calm, practical state of mind.

While the customer may express frustration, get loud and boisterous, itโ€™s crucial that you maintain a calm but focused manner. Take a second to breathe, quieten your thoughts, and stay in control. React the right way by entering a solution-oriented mindset. Whatever the problem is, all you need is to apply the right antidote and you and your customerโ€™s day will be bright and sunny once more.

Your customer will read your reaction as the interaction begins, which gives you the opportunity to influence the atmosphere. Show them you are calm and in control, and this will give them confidence that you can guide them to a resolution.

2. Empathize

As you listen to their grievances and frustrations, put yourself in your customerโ€™s shoes. Thereโ€™s nothing more annoying than seeking support from someone who just doesnโ€™t seem to get why you have a problem.

That may all sound very simple. โ€œOf course Iโ€™ll listen to their problem!โ€ you say. But this step isnโ€™t just about hearing and understanding the situation. Itโ€™s about actively listening; listening in the right way, so they know youโ€™re hearing them as they speak, which will help them feel respected and give them confidence in you. Make eye contact, nod as you listen, and make noises of agreement and understanding. You can even offer small phrases as they speak such as โ€œof courseโ€, and โ€œI can see what you meanโ€.

Not only does active listening strengthen the sense of dialogue between you and the complainant, but it helps regulate and balance the conversation. It prevents the customer from falling into a rant and negates the โ€œus and themโ€, โ€œattack and defenceโ€ mindset by aligning you with the customer.

Customer Management 1

3. Apologize

Ah, once the customer has given you their complaint, you reach the most delicate part. A: apologize. Now, you may not necessarily want to declare where you feel the fault lies or assign blame to the business (the question of liability can come into play here with some complaints). Sometimes, youโ€™ll know the business is not at fault. Nevertheless, you still need to perform this step.

The best apologies will convince the customer you are sorry they had a bad experience while guiding their thoughts away from their complaint and straight to the resolution youโ€™re about to provide. This step, performed well, will be the shortest of the five, but itโ€™s one half of what the customer is looking for. Provide it, carefully and diplomatically, then move on to providing a resolution.

Some example phrases include โ€œIโ€™m really sorry this happenedโ€ or โ€œIโ€™m sorry youโ€™ve had this experienceโ€.

Top tip: In this step, you need to make a judgement. If the complaint is fully justified and your business has made a mistake (particularly a bad one), your customer may need to hear you admit fault, and take responsibility before offering them a refund or a complimentary service. If this is the case, make your apology clear and sincere. On the other hand, unreasonable complaints may need careful phrases such as our examples above, which contain ambiguity that serves to deescalate the situation.

4. Communicate

After youโ€™ve listened and apologized for the situation, hereโ€™s where you seal the deal: communicate to the complainant how youโ€™ll rectify the situation. It could be that they donโ€™t want anything personally, in which case you can assure them youโ€™ll take steps to ensure the issue doesnโ€™t repeat itself. If theyโ€™ve complained about being hot or cold, you could assure them youโ€™ll adjust the thermostat; if they were letting you know there was an issue with a product or the standard of service, thank them for their feedback and promise to tackle the issue head-on.

If they seem really put-out, youโ€™ll likely need to offer them something proportional to what they feel theyโ€™ve lost. This could be a refund, or if theyโ€™re willing then a replacement could do nicely. Remember, the goal here is to retain this customer. If your offer doesnโ€™t satisfy them, when they walk out the door you may not see them again. A discount on their next visit could be a good way to ensure they come back while offering them something significant.

Itโ€™s important not just to make a perfunctory offer (nobody wants a complaint palmed away with 10% off next time), but one that seems to take the complaint into account. If they complained about the service, offer to take personal care of them the next time they come in, to show them yourself how high the businessโ€™s usual standards are. Show you listened when you try to resolve the complaint, and put your money where your mouth is.

Remember, people will hear (they even watch) how you resolve this complaint. Youโ€™re demonstrating how much you care about your customers and your standards.

5. Train

After you receive a complaint (and before the next one!), assess what led to the complaint and prepare your business to avoid such complaints in the future. Do you need better quality-control in your procedures? Do you need to upskill your staff in customer service, or in carrying out other duties? Do you need to invest in tools and equipment?

Most complaints (letโ€™s be honest, not all of them) tell you something about your business, so do all you can to learn from them. If a customer complains during one visit and sees the issue is resolved by the next, they will be pleased to know they were listened to and that their voice carries weight in your business.

But train doesnโ€™t just refer to fixing problems. You and your team also need to train in complaints handling. Regular drills, techniques for de-escalation, demonstrating emotional intelligence, and knowing company policies. These tools equip your team to know how to handle tough customers and nip complaints in the bud before they get out of hand!