Before we dig into the specific steps that employees should take to handle customer complaints, it’s important to understand what policies and procedures are. A policy is a general rule that a company’s personnel should follow to avoid misunderstandings and to apply fair and consistent treatment to commonly faced situations. When a business’s managers develop policies, their main goal should be customer satisfaction, including making sure that all customers are treated fairly.

While policies should be consistent, they should also be flexible enough to give employees the ability to make certain decisions when resolving complaints. Be sure that you know your company’s policies concerning common complaints and that you understand how to handle exceptions.

A procedure is a step-by-step process that an employee follows when performing a specific task. When customers express complaints, employees should be able to follow a procedure that lines up with company policies. Complaint procedures will vary from business to business, but the following general steps will work for most situations:

Step One: Listen. Gaining your attention and having the chance to express her/his dissatisfaction helps place an unhappy customer in a better frame of mind. Be attentive and courteous, no matter what the customer’s attitude is. Do not argue with him/her. Use empathy to express your concern. Even if a customer’s complaint is not justified, your display of concern is important in maintaining goodwill.

Step Two: Thank the customer for bringing the problem to your attention. Let the customer know that you appreciate hearing about the problem so that you can resolve it and prevent other customers from experiencing it in the future. Doing this can really help calm angry customers. It’s difficult for them to remain angry when you’re letting them know how much you appreciate their information.

Step Three: Restate the complaint. To show the customer that you understand the problem, restate the complaint to her/him in your own words, making sure to include all relevant facts. This restatement eliminates misunderstandings by either party. Remember to allow the customer to correct any errors in your understanding of the complaint.

Step Four: Investigate the problem. Now that you understand the complaint, you must determine how it can be handled within company policy. Decide if the complaint is justified and how you can best resolve the situation. Prompt action is critical—any delay may be misunderstood as an attempt to avoid resolution.

Step Five: Explain company policy. State the specific policy, and explain how it applies to this situation. You may need to say, for example, “I’m sorry, but company policy states that we can’t give cash for returns without a receipt. I can offer you store credit, though.” Emphasize your desire to maintain fairness by applying company policy. Remember—your position is not to make policy but to follow it.

Remain calm, even if your explanation is interrupted. After you’ve explained, ask the customer if there are any questions about either the policy or how it applies to the case.

Step Six: Take action. Explain your plan of action to the customer as soon as possible. Your action plan should be based on your understanding of the complaint and possible solutions within company policy. When you take action immediately, the customer feels a sense of importance. This helps develop a favorable impression of you and of your company. If the customer doesn’t accept your plan of action and demands to see your manager, graciously introduce him/her to your manager or provide him/her with your manager’s contact information. Don’t hesitate to take action when it comes to resolving customer complaints. It will benefit the customer, your business, and you!