Why you should dress warmly if you have discomfort.

Most of us have experienced it before. A service or product is unsatisfactory. And we complain. If we are successful, it makes us truly happy. Otherwise, we are frustrated. In particularly serious cases of personally perceived deception, we leave a trace: a negative rating. In this article, we want to examine how large Austrian companies deal with this. Two things to note: Most companies in the retail sector do not fare well in the relevant customer ratings, but some companies take advantage of the opportunity to improve their products and services internally.

Jürgen Dostal: Beschwerdeführung bei Österreichs Unternehmen geht oft ins Leere.

What do complaints have to do with conflicts? Well, if you, as a consumer, are restricted in the use of a product or the use of a service, then this constitutes a conflict by definition. Even if the supplying company doesn't see it that way: "We don't have conflicts with our customers." I don't want to attribute empathy to the company (usually a legal entity), but I would like to see it in the employees providing the service. Anyone who has already gone through the painstaking process of handling complaints understands why many customers are frustrated. Yet this very circumstance is actually an enormous asset for the company. It is a constant source of potential improvements to services and products. I was personally interested in whether Austria's leading companies are also market leaders in the area of conflict/complaint management. And what we can derive from the insights gained.

What I looked at

The TOP 25 companies in Austria were examined, provided their core business is with consumers. Three ratings were considered:

• The Google rating for the company headquarters (reviews of any branches were not taken into account.)

• Trust Pilot : usually shows the service quality in the company’s online presence.

• Kanunu : here employees and applicants give their assessment of the company as an employer.

Only companies with at least 90 reviews recorded at the company headquarters were included in the analysis. Ultimately, eight companies were examined in more detail.

88% of consumers would use a business that responds to all of its reviews, compared to only 47% who would use a business that doesn't respond to reviews at all.

Source: BrightLocal, a global online market research institute. It is considered a trusted and established source in the SEO and online marketing industry.

The most important findings: Top companies are not necessarily top in conflict management.

• Only one of the eight companies, the retail discounter Hofer, achieved a rating of 4.2 on Google . All others ranged between 1.9 (poor) and 3.5 (average - needs improvement). The lowest ratings can account for up to two-thirds of the total.

• Only two of the companies examined provide feedback on reviews . Interestingly, the lowest-rated company is among them. My interpretation is that they have probably recognized the need to use complaints for business purposes. Spar Austria , however, is setting an example: The employees of this still family-run company respond to almost every complaint, and in a very individual manner. It is clear that text modules or bots are generally not used. The approach is personal and solution-oriented. Bravo. Other positive examples outside of the top 25 companies are IKEA and Möbelix, although the latter works exclusively with text modules, but still: On Google, this is rewarded with a rating of >4.

• Unfortunately, all companies perform similarly poorly on Trust Pilot , with scores ranging from 1.2 to 1.9 on a 5-point scale. The proportion of companies with the lowest rating of 1 is between 67% and 95%. In the pure retail sector, this may be in good company. However, in other industries, it appears that smaller competing companies sometimes perform better.

• Last but not least, all companies on Kanunu have similar ratings from employees and applicants. With ratings ranging from 3.7 to 4.1, all eight companies are relatively close together. The HR departments involved are likely doing a good job here. The proportion of rating providers who would recommend the company again ranges from 68% to 86%. However, there is still some catching up to do with companies that achieve 95% or more, albeit in the SME sector.

• It should not go unmentioned that in two cases of the companies examined, users complained that their ratings had been manipulated or deleted.

Why do end consumers put themselves through this?

The battle of a single private customer against a large corporation, sometimes with market-dominating power, seems like a David versus Goliath battle, or perhaps it's Don Quixote's windmills? A closer look at the complaints reveals a predominantly emotional mood:

I quote one complainant who literally wants to " pillory " the company. Obviously, one's own injury has enormous potential to make the company realize that one has suffered injustice and is seeking greater justice on social media. In a milder form, a larger portion simply feels unheard . In the confusion of the company's diverse communication channels, they have simply run in circles. The frustration of having wasted time without finding a solution manifests itself in emotional outpourings.

A smaller number attempt to document the issue with a detailed, technical account of what happened, hoping that someone might take care of the issue. And if that doesn't happen, the situation is documented in detail for other customers or to warn potential new customers . This is fatal for new business.

How does complaint management work for the company?

• Communication: An open, prompt, and solution-oriented response not only prevents the spread of negative opinions but can even shift the narrative to a positive one. A publicly visible dialogue with the customer demonstrates that the company takes problems seriously and acts proactively. Mistakes are acknowledged, and the company appears in an almost "human" light.

• Building relationships: A sign of appreciation

  By taking these complaints seriously, the company signals that the relationship matters. This strengthens the long-term bond and increases the likelihood that the customer will give the company a second chance.

• Insights for improvement: The opportunity in criticism

  Complaints are detailed and specific. Companies that collect and analyze this information can identify underlying problems and eliminate them over time. For example, recurring complaints about long delivery times could indicate a logistical issue that can be resolved through adjustments. I don't rule out the possibility that several of the companies studied do this, even though (except for two) they don't actively publish customer communications.

  
  

The most common complaints are outdated processes

It's a given that a large proportion of complaints are about products and services. The price is too high, the product is defective, the warranty has expired, and much more.

However, if you look deeper into the complainants' statements, it quickly becomes clear that the issue is actually about processes. Processes are either nonexistent or outdated because they have grown generically, which is why no satisfactory solution can be found for actual product complaints. The wheel is gaining momentum because this factor also affects employees, whom customers describe as incompetent, unfriendly, and not very solution-oriented. Ultimately, however, employees cannot help with deficient processes. Because we have long since said goodbye to one thing: employees no longer have any room for maneuver. Goodwill solutions are a thing of the past for most companies.

What we should learn from Amazon

Amazon has now discovered the field of customer-oriented goodwill solutions as a distinguishing feature of its profession, enabling complaint resolution at the individual level. Just recently, I found myself chatting with Amazon after an order I received from China didn't quite meet my specifications. The chat agent actually asked me what kind of solution I wanted. Just imagine. I guess I didn't overstep the mark, because my suggestion for a partial refund was accepted.

Amazon founder Jeff Bezos emphasized that one of the core principles of his success is prioritizing the customer. This philosophy has helped Amazon become a global leader. Bezos himself has actively addressed customer complaints in the past to further improve the company's strategic direction:

"If you make customers unhappy in the physical world, they might tell six friends. If you make customers unhappy online, they might tell 6,000 people." (Jeff Bezos)

I can confirm this from my own experience. My own reviews on Tripadvisor.com over the past seven years have been read by more than 53,000 people. And I'm not one of those frequent travelers.

Only the complainers complain

Many companies attach little importance to this topic. I also hear from companies that the data isn't representative because only the "complainers" complain anyway. To that, I say: Yes, that's true. You have to do a lot for a customer to go to the trouble of writing a negative review. On the other hand, only enthusiastic customers will give you a solid 5 (=top rating). The middle management, of course, makes up the majority of customers and represents the silent mass, who are also easily distracted by the advantages of the competition. Here's a suggestion if you, as a company representative, don't trust the substance of the data: Why not simply observe the ratio of 1 to 5? If there's a positive change here over time, then you're doing an excellent job.

My insights

• Company size isn't necessarily correlated with complaint management capabilities. Large companies have maneuvered themselves into a dead end with complex processes, but make little effort to address this in terms of communication. For competitors and even smaller companies, this presents a tremendous opportunity to acquire and retain new customers.

• Conflict cultures are not consistently present throughout the company. While the human resources department achieves quite respectable ratings in terms of employee branding, the ratings for customer relations are barely satisfactory.

• Family-run businesses are more likely to invest in conflict resolution, an activity that is difficult to quantify in advance, than shareholder-driven businesses. Especially in cases of market dominance, there are likely to be fewer motivating factors. Scaling and thus optimizing corporate profits are often considered incompatible with a positive conflict culture.

Conclusion

Effective complaint management offers companies not only the opportunity to strengthen customer loyalty but also to significantly improve internal processes and products. My brief overview of published rating data shows that many large Austrian companies, particularly in the retail sector, often fail to make optimal use of this opportunity. While there are commendable exceptions that stand out for their exemplary customer communication, overall, much potential remains untapped. Smaller and family-run businesses, in particular, can benefit from this, as larger corporations often fail due to complex and rigid processes.

Companies that not only take the "loud complainers" seriously but also systematically learn from criticism can sustainably improve their market position. Dealing with customer complaints openly and in a solution-oriented manner is not just a matter of empathy, but a strategic tool for securing competitive advantages. In an age where social media and review platforms have immense reach, establishing a positive culture of conflict resolution is more important than ever.