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| Elements of Successful Customer Complaint Handling Initiatives | | | |
A Summary Checklist for Individual Firms
For many firms, the elaborate approach to developing Customer Complaint Initiative initiatives
outlined above may be unnecessary, and may exceed available resources.
Even when the eight-step model is inappropriate, there is still much that
can be done by individual firms to decrease the likelihood of complaints
arising and to properly respond to them when they do occur. The following
represents a summary checklist of key elements of successful Customer Complaint Initiative initiatives within individual firms.
- Develop and communicate policies and procedures to decrease the
likelihood of problems arising and to ensure certain positive outcomes
should problems occur.
- Designate a location to receive complaints that is visible and accessible,
and publicize its existence.
- Develop a system for record keeping, so that complaints data can
be easily communicated to top management, analyzed and used to
monitor the efficiency and effectiveness of complaints response.
Process and record complaints as they occur, in appropriate categories.
Assign complaint handling to the appropriate person.
- Acknowledge the complaint, preferably personally, bearing in mind
any special needs of the customer.
- Investigate and analyze the complaint fairly, getting both sides of the
story and keeping records of all meetings and developments.
- Resolve the manner according to company policy, keeping the customer
informed throughout the process, including prompt notification of a
proposed settlement.
- Follow up with the customer to ensure that he or she is satisfied. When
necessary, refer the complaint to a third party dispute resolution service.
- Prepare and file a report on how the complaint was resolved, and
periodically analyze complaint data.
Tips and Suggestions for Developing Customer Complaint Initiative Initiatives
The following tips and suggestions are of potential use to those developing
and implementing comprehensive, multisector Customer Complaint Initiative initiatives or
more modest single-firm Customer Complaint Initiative programs.
Be flexible and patient. Original conceptions of the problem and
possible solutions will likely change as new information becomes available,
difficulties develop or circumstances change. Developing Customer Complaint Initiative initiatives is, in large part, a learning process.
Draw on existing institutional structures. For many firms, industry
associations represent known quantities — trusted intermediaries with
the profile and experience to bring parties together and broker differences.
Associations can provide forums for discussion and serve as a
basic institutional structure for moving Customer Complaint Initiative initiatives from concept
to implementation. However, as discussed earlier, implementation may
necessitate creation of new, more specialized structures beyond the
capability of conventional industry associations.
Don’t assume that “if you build a Customer Complaint Initiative initiative, they will come.”
Once a program has been announced, ongoing efforts are needed to
ensure that Customer Complaint Initiative initiatives are visible and accessible to customers at the
right time and in the right place. The following are examples of techniques
to maintain the profile of a Customer Complaint Initiative initiative:
- a logo on a retailer’s door
- a notice on a company’s invoices and statements and in electronic
communications
- a clickable logo on a merchant’s Web site that takes customers to more
detailed information
- pamphlets placed at the point of transaction.
Provide a range of options. When it comes to matters of customer
complaints management, one size definitely does not fit all. The nature
of customer problems differs significantly depending on the particular
issue, the product, the customer and other factors. When a number of
Customer Complaint Initiative options are available, the likelihood increases that the appropriate
response will be found, and both the customer and the merchant will be
satisfied. Comprehensive services, from prevention through internal complaints
handling to external dispute resolution, provide maximum choice.
Set a time limit for each stage of the process. Time limits provide a
pre-determined structure for both the customer and the merchant, and
give guidance about what to expect. Customers and staff alike need to
know the deadlines and the consequences for missing them.
Draw on the credibility and expertise of customer organizations.
In addition to being involved in the development of initiatives, customer
groups can provide ongoing assistance through participation on advisory
panels or committees, membership on the board of directors, participation
in a formal panel, or direct involvement in implementation, monitoring
and dispute resolution.
Hire the right people to do the job. Effective complaints management
personnel have the following characteristics:
- good communication skills
- the ability to empathize with unhappy customers
- enthusiasm for and a commitment to effective, fair and efficient
complaints management
- thorough knowledge of the organization’s structure and processes
- the ability to objectively assess all relevant factors about complaints
from the point of view of both the customer and the company
- the ability to identify systemic complaints and to devise strategies to
deal with them
- training in mediation, facilitation or arbitration, as appropriate.
Dispute resolution providers must have sufficient skills and training
to competently fulfill the function. While formal legal training is not
required, knowledge of basic legal concepts and relevant laws, standards,
codes and international agreements is essential.
Draw on existing standards, criteria and benchmarks. Standards
Australia, the British Standards Institution and the Argentinian Standards
Organization have all developed complaints-handling standards, and
Standards Australia has published a guide to preventing, handling and
resolving disputes. The International Organization for Standardization
(ISO) is developing an international standard on complaints handling.
The Canadian Standards Association and the Bureau de Normalisation
du Québec are developing e-commerce standards for customers.
A complaints-handling approach could be built into a company’s
overall approach to quality management, such as the ISO 9000 quality
management system. The multistakeholder Principles of Customer
Protection for Electronic Commerce is another useful benchmark on
which to draw. The American Arbitration Association developed the
Model Standards of Conduct for Mediators for customer mediators to follow
(http://www.adr.org; click on Rules/Procedures in the menu on the left side of
the screen, and then Ethics and Standards; the title of the document will appear
as a clickable link in the main part of the screen).The Society of Professionals
in Dispute Resolution developed ethical standards for dispute resolution
professionals (http://www.acrnet.org/about/committees/ethics.htm).
Protect the personal information of customers. While complaints oriented
data can help businesses improve their products and services,
great care must be taken to ensure that the personal information of
customers is fully protected, in keeping with federal and provincial laws.
Summary
Introduction
Market-based Customer Complaints Handling Initiatives
Preventive Customer Complaint Handling Initiatives
Internal Complaints Handling Initiatives
External Private Dispute Resolution Initiatives
Comprehensive Complaints Handling Systems
Characteristics of Effective Online Trustmark Programs
Online Redress
The Need for Effective Customer Complaint Handling Initiatives
Customer Complaint Handling Initiatives and the Law
Developing and Implementing Complaint Handling Initiatives
Elements of Successful Customer Complaint Handling Initiatives
Where Can I Get More Help?
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