UK consumers haven't always been known for voicing their complaints. But times are changing. Now people are wising up to their rights, which in comparison to other countries, are well weighted in their favour.

Bad news for businesses, and the retail industry in particular? On the contrary, complaints can provide the backbone to future lasting customer satisfaction and repeat business. Here's why.

COMPLAINTS ARE IMPORTANT

Which scenario is better? The unhappy customer who vents their spleen, or the unhappy customer who says nothing, does nothing, and promptly takes his or her business elsewhere.

The former, for several reasons. Firstly, it gives you the opportunity not to lose that individual customer, and any others who they may go on to talk to about their problem, and secondly, because it can help you identify potential weaknesses within your business.

How much worse it would be if you are giving an unsatisfactory service and you don't even know it. Complaints, or perhaps more accurately, feedback, should be actively encouraged. Handle them well and they can be to your advantage.

RESPONDING TO A COMPLAINT

It's never easy dealing with someone who is angry or unhappy ñ especially if your business is the root cause of his or her problem.

• The first thing to do is to defuse the situation and let them have their say, irrespective of right or wrong. It may be satisfying to win an argument with a customer who is clearly in the wrong, but at the end of the day you'll lose anyway.

• Acknowledge their feelings. apologise without accepting specific blame. Empathise with what they are thinking and try to put yourself in their position. This will give you a better understanding of how you will not only resolve the complaint, but also how to use it to build better business practices.

• Respond quickly. While the customer is waiting, the chances are they will be talking to many people about their negative experience, damaging your reputation and costing you potential customers.

• Be concise and specific to the complaint in question, rather than generalising or shifting blame. And explain how you are going to rectify it. This is the most important part. You need to show you are true to your word by meeting, or preferably exceeding their expectations. If you go beyond the call of duty, you will be well on the way to creating brand loyalty to your business. Small things can make a difference and stress that they are important to you.

ENCOURAGE FEEDBACK

Think of the times when you are the customer. Are you always happy with the product or service you receive? Didn't think so, but do you always complain?

Many people don't. But you, the business owner, need to know what your customer is thinking. Make it easy by explaining, either at point of purchase or in sales literature that you welcome feedback ñ and that you will act on it.

People are more likely to fill in customer satisfaction surveys if they know their opinions will be personally acknowledged.

Even though it might seem like inviting trouble you should make it easy for people to complain.

INVOLVE STAFF

Make sure staff are well briefed on the complaints policy.

Also reassure them that they will not suffer from any complaints. Staff who fear the consequences of someone making a complaint might be tempted to keep it to themselves. Assure them that complaints are not a negative thing, but merely an opportunity to reinforce the strength of your service.

That way you should ensure that no customer feedback is missed.

CHECKLIST

• An unhappy customer who doesn't complain is a lost customer.

• An unhappy customer who does, is an opportunity.

• Never argue with a customer. Listen and remain calm, no matter how difficult it might be.

• Be swift in your response, and specific to the complaint.

• Go the extra mile and exceed their own expectations with regard to settling the dispute.

CONTACTS/INFORMATION

• The consumer and competition policy website of the DTI www.dti.gov.uk/ccp/ is a good starting point for more information and advice on how to deal with complaints, and for finding out whether the complainant is right.

• There is a business section on Trading Standards website www.tradingstandards.gov.ukincluding leaflets that cover among other things, consumer buying rights.

• A similar section at the Office of Fair Trading www.oft.gov.uk can help outline where you stand with regards to the law.

• You can get free info at www.freelawyer.co.uk on the various Acts, such as Sale of Goods Act, and the Trade Descriptions Act. Information related to your own personal circumstances is available for a small charge.