100414 customer complaints

8/11/2019 100414 Customer Complaints

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CUSTOMER COMPLAINTS

Gifts or Hindrances?

Presenter: Rosemarie Price

AIM Breakfast 14 April 2010


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Overview of presentation

What is a Complaint?

Why do customers complain?

How is a complaint a gift?

Impact of Managements view of complaints handling Complaints handling in a global environment

What can be achieved with a Complaint is a gift

strategy- looking at complaints differently


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Why do customers complain?

Their expectations have not been met!


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Recent experience

Activity-1 minute Turn to the person sitting next to you and

discuss a recent experience where you handled

a complaint, focusing on how you reacted to

your complaint

Alternatively, discuss a recent experience

where you made a complaint, focusing on how

the business reacted to your complaint


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Recipients normal reaction to

complaints

Ignore complaints

Defensiveness

Anger

Concern re loss of trade, reputation

Annoyance, time consuming, rectification costs

Hindrance- wish they would just go away! Not believe some or all of what the customer was saying

These reactions are as a result of negative attribution blame is being attributed to us or our business. A complaintis evidence that, in the customers view, we have not met

their expectations.


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Customers manner

Lack Gracious Social skills to communicate Nervous

Harsh, one sided

Emotional Lack understanding of commercial/regulatory

limitations

Rude

Unreasonable complainant


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Complaint deterrent techniques

Apology only, no rectification

Blame

Promise but dont deliver

No response

Rudeness

Pass on to another department

Customer Interrogation


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How could complaints be gifts?

Underlying Principles1. There are 2 Levels of messages embodied in complaints

2. The customer has 2 separate needs when complaining-needs as individuals and needs relating to the complaint

3. The benefits of Customer recovery far outweigh the cost oflosing a customer or attracting another customer

4. The majority of customers are honest


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1. Two levels of messages in

Complaints

Example 1 Surface messageproduct is not working as expected

Underlying messageI dont understand the new

technology, I need help

Example 2 Surface message- I am disappointed with the service

during my last visit/purchasing experience

Underlying messageI am testing the value of my

loyalty to your business


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2. Customers needs when they

complain

Needs as individuals To be heard

To be understood

To be respected

Needs relating to the complaint

To have their concern dealt with quickly, fairly andproperly

To be given what they have been denied and perhaps anapology

To have action taken to fix a problem or address a

concern- a resultant process change


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3. Benefits of Customer Recovery

Only 4% of dissatisfied customers complain. 96% leavewithout any communication to business

Of the 96% who leave, 91% will never return

A typical dissatisfied customer will tell 8 to 10 people about

the issues with your business- significantly more in globalcommunications

1 in 5 dissatisfied customers will tell 20 people about the

issues with your business

It takes 12 positive service incidents to make up for one

negative incident

3 B fit f C t R


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3. Benefits of Customer Recovery

(contd)

7 out of 10 complaining customers will do business againwith you if resolve the complaint in their favour

Of complaining customers, 95% will do business with youagain if you resolve the complaint at the first contact

On average, a satisfied complainer will tell 5 people about

their problem and how it was solved It costs 6 times more to attract new customers than it does

to retain current ones

Customer loyalty is worth 10 times the price of a singlepurchase

How to win and Keep Customers Michael LeBoeuf

4 Th j it f t


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4. The majority of customers are

honest

1-4% of customers systematically cheat businesses

If complaining customers are treated with suspicion

or rudeness, customers will take a defensive

position


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The Gift

If a customer is complaining, you arebeing given a chance to retain that

customer


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Unwrapping The Gift

Free direct communication from customer about servicefailures, competitors offerings-no survey costs

Readily available market research-Complaints define what

customers want

Opportunity to increase customer trust

Opportunity to build long term relationships-customers will

re-purchase if they believe complaints are welcomed

Opportunity to rectify service failures

Opportunity of engaging customers as advocates

Engaging Customer as your


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Engaging Customer as your

Advocate

Customers becoming your advocates is basedupon reciprocity principle humans like to returnfavours

When businesses handle customer complaints in a

respectful way and a token of atonement is offeredbeyond their expectation, customers are likely toreciprocate with positive advocacy

Token of atonement can be financial, but can alsobe an apology, acknowledgement of making a

difference- recognition of their value

What are the elements of Complaint


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is a gift strategy (1)

Complaints Policy and guidelines based oncomplaint welcoming culture

Complaints data base to maximize complaintscapture

Complaint handling training, including empathy andconflict handling training- front line staff andinduction training

Target response and resolution times

Regular complaints reporting



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is a gift strategy (2)

Clearly defined Escalation path for difficultcomplaints

Specialist Complaints case managers

Customer Surveys

Continuous improvement focus Unreasonable Complainant conduct management

guidelines (demands, persistence, lack of co-operation, arguments, behavior)

Complaints Analysis- root cause analysis

Practical Implementation of Gift


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Practical Implementation of Gift

Strategy

Thank customer for contacting you Explain why feedback is appreciated

Apologize for service failure

Take responsibility and make commitment to customer to doall you can to rectify situation

Collect all information from customer Correct or facilitate correction of service failure as promptly

as possible

Check customer satisfaction

Prevent future service failures of this type-root causeanalysis (5 whys, causal factor tree analysis etc)

Impact of Management view of


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Impact of Management view of

Complaints Handling

Customer Charter set by management- includescomplaints handling

Focus on complaints welcoming not reduction ofcomplaints

Culture, Complaints Handling guidelines/policy,KPIs, reporting, escalation path for complaints

Management set mandate for staff re customerrecovery, give confidence/framework

Mindset of staff is easily sensed by customer

What can be achieved from a


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What can be achieved from a

Complaint is a Gift strategy

Improved Customer Experience Access to valuable source of knowledge- at no cost

Knowledge of most common service failures

Increased customer trust and loyalty

Opportunity to partner with customer as advocate

Opportunity to strengthen service quality

management

Increased satisfaction for complaints handling staff


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Application of Gift Strategy

Can be applied to large corporations, individualdepartments, small businesses, monopoly

businesses, government departments or

government owned corporations

Comment re monopoly/ businessesequallyimportantfocus is on improved customer

experience, improving complaint handling staff

experience, achieving best practice, reducing

external ombudsman costs

Using Complaint is a gift


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Using Complaint is a gift

knowledge as a Complainant

Be clear and specific in describing what you arecomplaining about

Be respectful

Describe the impact and what you are expecting as

a resolution Make suggestions re improvements

Give the business a chance to rectify the issue andretain your business

See your complaint as a gift

R di /R f


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Readings/References

Complaint is a Gift Janelle Barlow and ClausMoller 2ndedition, TMI

How to Win and Keep Customers, Michael

LeBoeuf

SUMMARY


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SUMMARY

Complaints are packages with 2 levels ofmessages waiting to be unpackaged

Complaints are given freely

Businesses can use the gifts in different ways-

correction of immediate and systemic issuesthrough direct communication of unmetexpectations

Complaints give businesses opportunities to retaincustomers business and loyalty

A ti t d


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A question to ponder

Putting yourself in the customers seat , what is yourpreference

Would you rather be dealing with a business that ignores

complaints or with a business that welcomes complaintsand sees them as a gifta powerful source of

information ?

Let your response to this question be the driver for your

approach in managing complaints for your business.


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Questions

100414 customer complaints

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