As part of their efforts to decrease the likelihood of consumer problems
arising, and to respond effectively when complaints and difficulties do
occur, businesses employ a wide range of consumer complaints management
(CCM) techniques. In addition to addressing the immediate problems
of individual consumers, firms may develop Consumer Complaints Management initiatives in response
to competitive pressures, to obtain feedback on how to improve products
and services, and to reduce the likelihood of government having to intervene
to solve a problem. Consumer Complaints Management initiatives are applied by businesses, and
are not required by law. They may be developed by single firms, or created
for and applied by many firms.
Who Should Read the Guide
The objective of the Guide is to assist businesses and industry associations
contemplating Consumer Complaints Management initiatives, and those that have initiatives in place but
wish to consider ways of improving them. It is recognized that readers
may already be familiar with various aspects of Consumer Complaints Management, and that some
parts of the Guide may be more relevant to some audiences than others.
Organization of the Guide
The Guide first discusses what Consumer Complaints Management initiatives are, the business case for
Consumer Complaints Management, examples, and the strengths and weaknesses of Consumer Complaints Management, and then
provides suggestions for their effective development and implementation.
Types of Consumer Complaints Management
Consumer complaints management takes many forms, from preventive to
internal complaints-handling, external dispute resolution and comprehensive
approaches.
Preventive Consumer Complaints Management initiatives help build and maintain relationships by
reducing the chances that problems will arise in the first place and lead
to complaints. Initiatives include educational activities directed at both
consumers and businesses, improvements in the design of products and
services, customer service guarantees and policies, and codes that set
out service commitments and consequences for failure to meet those
commitments.
Internal complaints-handling initiatives are techniques employed
within a firm to address problems, complaints and conflicts. Examples
include toll-free complaints assistance and in-house customer service
representatives, published returns policies, ombudsmen and adherence
to complaints-handling standards.
External private dispute resolution techniques are used when complaints
cannot be adequately handled within the firm. Although there
may be legal implications flowing from the use of such techniques, they
operate outside the public court system. Examples include industry
association ombudsmen, third-party mediation, arbitration, and
private tribunals and councils.
Comprehensive Consumer Complaints Management initiatives combine preventive, internal complaints handling
and external dispute resolution elements to provide a graded
range of responses.
Consumer Complaints Management Implementation
The Guide sets out an eight-step process for creating and implementing
Consumer Complainst Management initiatives, from problem definition through to publication, review
and continual improvement. A summary checklist of elements of successful
consumer Complaints Management initiatives is included. A number of tips and suggestions are
provided, including the following:
- be flexible and adopt an incremental approach
- draw on existing institutional structures
- provide a range of options
- draw on the credibility and expertise of consumer organizations
- hire the right people to do the job
- draw on existing standards, criteria and benchmarks, when available.
Successful Consumer Complaints Management
Research suggests that effective Consumer Complaints Management initiatives are highly visible,
transparent, accessible, easy to use and affordable. The initiatives
typically have the explicit commitment of employees at all levels of the
organization. Successful programs operate quickly, provide a regular flow
of information to the people involved, ensure privacy and security, and
include incentives for compliance and disincentives for non-compliance.
Effective implementation depends on adequate financing, a good communications
plan, regular review, consistent, fair treatment, and open
and transparent processes.
More Information on Consumer Complaints Management
The Guide is intended as a primer, a stimulus for action. It cannot possibly
answer all of the questions that arise in various circumstances. For those
interested in exploring Consumer Complaints Management matters in greater depth, a list of useful publications
is provided at the end of the Guide.
Summary
Introduction
Market-based Consumer Complaints Handling Initiatives
Preventive Consumer 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 Consumer Complaint Handling Initiatives
Consumer Complaint Handling Initiatives and the Law
Developing and Implementing Complaint Handling Initiatives
Elements of Successful Consumer Complaint Handling Initiatives
Where Can I Get More Help?
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