Share
Customers judge brands on how they fix problems, not just how they sell.
There was a time when customer experience was largely defined by moments of delight, seamless onboarding and personalised recommendations. Brands invested heavily in creating memorable experiences designed to win customers over.
Today, the moments that matter most are often the ones that organisations may overlook. A delayed delivery, a billing error, a failed service interaction or a product that simply doesn’t work as expected.
In an era where customer expectations are higher than ever, complaints handling has become one of the most important determinants of trust. Increasingly, customers are not judging organisations by whether things go wrong. They are judging them by what happens next.
In our last Complaints Outlook report, we saw that this shift is more significant than many organisations realise. Based on feedback from 2,500 consumers who had recently completed a complaints journey, over a third (36%) said their impression of a company improved after making a complaint, more than double the level seen just three years earlier. Handled well, complaints can actively strengthen customer relationships and improve perceptions of a brand.
The brands that understand this are turning complaints into trust-building opportunities. Those that don’t are discovering that poor complaint experiences can undo years of brand investment in a matter of minutes.
Complaints are a test of brand authenticity
Every organisation has a brand promise. Websites are full of statements about putting customers first. Marketing campaigns celebrate customer centricity. Leadership teams talk about trust, transparency and relationships.
Complaints handling is where those promises are tested, a customer complaint creates a moment of truth. The organisation must decide whether its stated values are simply messaging or genuine operating principles:
- Does it make customers repeat their story multiple times?
- Does it hide behind policy?
- Does it make resolution difficult?
- Or does it listen, take ownership and act?
The reason complaints have become so brand defining is that they reveal what an organisation is really like when the pressure is on. They expose the gap between aspiration and execution. In many ways, the complaints process has become the most authentic expression of a brand.
The advocacy opportunity hiding in plain sight
We see that many organisations still view complaints through a defensive lens. The focus is often on reducing complaint volumes, shortening handling times and minimising regulatory risk. While all of these are important, they can distract from a bigger opportunity.
Our 2024 Complaints Outlook research found that complaints handled successfully can create meaningful levels of loyalty and advocacy. Customers who felt valued during the complaints process were dramatically more likely to remain with a brand. In fact, 74% of customers who felt valued during their complaints journey remained customers, compared with just 30% of those who felt unvalued.
The implications are profound, in a world where customer acquisition costs continue to rise, complaints offer organisations a rare opportunity to strengthen an existing relationship precisely when it is under pressure.