1. Resolve problems immediately. The faster the resolution, the better the chances for maintaining loyalty. TARP, Inc. found that ninety-five percent of complaining customers would remain loyal if their complaint was resolved on the first contact. That number dropped to seventy percent when the complaint was not immediately resolved. In fact, the speed of resolution has a greater impact on future loyalty than the resolution itself. Strive to resolve complaints on the first contact and when that isn't possible, final resolution should occur within 5 - 10 business days in order to maintain and build loyalty.

2. Strive to build rapport and create trust with unhappy customers. Psychologists tell us that when people feel rapport they are more forgiving of mistakes. Rapport is created by allowing customers to vent, active listening, demonstrating a sense of urgency in problem resolution, and conveying a helpful, willing attitude.

3. Apologize. Fifty percent of complaining customers report that no one in the company offered an apology. An apology can go a long way to appease customers and restore customer confidence. Offer an apology both when the company is responsible for the problem AND when the customer is responsible. An apology does not have be an admission of fault. For example, you can always use a statement like this when the customer is responsible for the error: "I'm sorry for any inconvenience this misunderstanding has caused."

4. Show appreciation for feedback and business. Complaining customers must feel their feedback is welcome and valued and will be used to eliminate the problem at the root. In a recent study, the amount of time representatives spent on the phone and their encouragement of customers to call again if there were more questions was rated very high. These findings suggest there is value in making customer feel their feedback and business is appreciated. Showing appreciation for feedback can be as simple as saying, "Thank you. We appreciate customers who take the time to let us know when things aren't right."

5. Give them something. Coupons and product samples have a definite impact on loyalty after a service failure has occurred. A recent study found that 58% of complaining consumers who received something in the mail following their contact with consumer affairs departments were delighted, versus only 40% of those who did not receive anything. Giving customers token items, such as coupons or product samples, after a service failure both increases the perception of value and serves to maintain loyalty.