Wednesday, 9 July 2014

RTA Business, Complaints Effect Businesses in These Five Ways

As part of the RTA Business complaints series this week, we want to go a little deeper into why complaints are so bad for your company.

Complaints Are Really Bad for Business

When you eventually decide that it’s time to cash up, sell your company and move on, or that you want to expand your operations by buying a new business, come to us. RTA Business are business acquisitions specialists, who ensure that you walk away with the right deal for you.

We’ve talked a lot about complaints over the past few weeks – how to avoid them, how to deal with them, why people do it etc. and we’ve told you that they’re really bad for business, especially if a potential buyer finds out about them. This week we want to go a little deeper into that.

RTA Business and the Top Five Effects of Customer Complaints

The reality is that when a customer complains about your business, it has number of ramifications that have the ability to put off a potential buyer when you decide it’s time to sell your business, including:

1)  It Damages Your Reputation: The obvious effect is that it damages your reputation because a complaint suggests you can’t deliver what you’ve promised.

2) It Costs to Deal With: Whether it’s in man hours talking the complainant down, or giving them a replacement product etc. a customer complaint will cost you money, money which you could be using to make your business more attractive to potential buyers.

3) It Encourages More People to Complain: If a dissatisfied customer discovers they aren’t the only one, they’re more likely to be willing to complain; power in numbers and all that, further damaging your reputation.

4) It Has the Potential Generates Press: If a complaint is effective enough, it could generate bad press, which makes your company look far worse to a potential buyer than a single complaint ever could. Case in point: the payday loan industry.

5) It Could Prompt a Boycott: Worse comes to worse, it could spark a campaign against you, which would combine all the previous four effects of a single complaint. Translation; you can forget making any money off the sale of your business.

Just remember, there are a number of ways that a complaint can affect your business and drive away a potential buyer so do everything you can to avoid a customer complaint!

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