Hug Your Haters | Jay Baer

Summary of: Hug Your Haters: How to Embrace Complaints and Keep Your Customers
By: Jay Baer

Introduction

Ever wondered why companies invest massive amounts in attracting new customers while neglecting their existing clientele? In the book ‘Hug Your Haters: How to Embrace Complaints and Keep Your Customers’, Jay Baer handles this conundrum by emphasizing the importance of addressing customer complaints and prioritizing customer service. This summary explores how retainingjust an extra percent of your customer base can boost profits by 25-85% and how listening to grievances can lead to customer loyalty. Discover practical strategies to improve your customers’ experience and the techniques like H.O.U.R.S and F.E.A.R.S that can help you manage both private and public complaints.

Customer Retention

Companies invest huge sums of money in advertising to attract new customers but little in customer service. This attitude can lead to a loss of loyal customers, which can impact profits. Retaining a single extra percent of the customer base can increase profits by 25 to 85 percent. One effective way to ensure customers remain loyal is to listen to their complaints and address their grievances. When a customer complains, they are willing to stay with the company. Listening to them and addressing their issues can not only retain them but promote a sense of loyalty to the business. For instance, a co-owner of Fresh Brothers Pizza, Debbie Goldberg, personally responds to every Yelp review. She apologizes for the customer’s negative experience and acknowledges the problem, making it clear that the company is working on a solution. Finally, she offers them a gift certificate to make up for their trouble. This strategy helps Goldberg retain customers and the company’s reputation.

Embrace Complaints

Negative feedback is necessary to improve performance, and in business, customers’ complaints are a vital source of insights that can help you fulfill their needs. Only 5% of customers complain, so it’s essential to listen when they do. By paying attention to complaints, you can uncover the issues that your company needs to fix and keep all customers happy. Embrace negative feedback and use it to accommodate your customers as much as possible, creating a unique bond that your competitors can’t mimic.

Effective Customer Complaint Management

To handle customer complaints, the mnemonic H.O.U.R.S. can be used to maintain privacy, show empathy, avoid referring to other channels, and document complaints.

In a world dominated by digital communication, it may come as a surprise that most customers choose to file complaints privately rather than publicly on social media. As a business, it is in your interest to keep it that way. The acronym H.O.U.R.S. can help you handle complaints more effectively.

The first step is to be Human. By displaying genuine concern and personalizing interactions with your clients, you can establish an emotional connection with them. Dr. Glen Gorab, for example, is known to call all his new patients to address their concerns before their first appointment. He also stays in touch with them during the recovery period to assure them that he cares. Such attention to detail can prevent unhappy customers from taking legal action against your company.

The second step is to use just One channel to handle complaints. Refraining from referring clients to multiple departments or a FAQ page can minimize confusion and frustration. Customers seek quick solutions, and if you point them elsewhere, you risk losing them.

The final step is to Unify your data and produce the best solutions that Resolve your client’s issues with Speed. Such a process involves documenting all complaints and addressing them accordingly. Creating a comprehensive go-to document that highlights recurring complaints and their solutions can help your team serve customers quickly and reduce the number of complaints in the future.

By following the H.O.U.R.S mnemonic, you can manage customer complaints more effectively, maintain their privacy, show empathy, avoid referrals, document complaints, and provide quick solutions that retain customers.

Handling Public Complaints

Empathetic Responses to Public Complaints using F.E.A.R.S

When a company receives criticism from the public, they should not ignore it. F.E.A.R.S is a helpful tool in resolving public complaints, which stands for Find, Empathy, Answer, Reply twice, and Switch channels if necessary.

The first step is to use services like Google Alerts or Mention.net to Find complaints. The next step is to respond with Empathy, putting oneself in the complainant’s position. By answering publicly, showing concern, and providing a suggestion to the customer’s problem, empathy can build the company’s reputation.

It’s important to keep responses concise by only Replying twice and not allowing back-and-forth discussions. Switching channels may be necessary to answer a customer’s question in detail and protect their privacy.

Companies must handle complaints publicly to show they care about their customers’ opinions. By following the mnemonic tool F.E.A.R.S and responding empathetically, companies can turn public criticism into an opportunity to build a positive reputation.

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