managing customer complaints-r2

8/4/2019 Managing Customer Complaints-r2

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MANAGING CUSTOMERMANAGING CUSTOMER

COMPLAINTSCOMPLAINTS

byby

VIRENDRA SAHDEVVIRENDRA SAHDEV



FINDINGS ABOUT CUSTOMERFINDINGS ABOUT CUSTOMER


The average customer with anThe average customer with anunresolved complaint will tell nine to 10unresolved complaint will tell nine to 10people; 13 percent tell more than 20people; 13 percent tell more than 20peoplepeople

Up to 70 percent of complainers willUp to 70 percent of complainers willreturn to your business if the complaintreturn to your business if the complaintis resolved. Up to 95 percent return if is resolved. Up to 95 percent return if the problem is resolved quicklythe problem is resolved quickly

For every complaint received, theFor every complaint received, theaverage company has 26 unhappyaverage company has 26 unhappycustomers it never hears from; six of customers it never hears from; six of these customers have problems thatthese customers have problems thatare considered serious.are considered serious.



CONSIDER THISCONSIDER THIS

For every customer who complains, 26 remain silent.For every customer who complains, 26 remain silent.Five complaints a week means there are 130 dissatisfied,Five complaints a week means there are 130 dissatisfied,disgruntled exdisgruntled ex--customers out there that you never hearcustomers out there that you never hearfrom.from. Silence from customers is NOT a good thing. It's theSilence from customers is NOT a good thing. It's thequiet clients who leave. They're the ones who don't makequiet clients who leave. They're the ones who don't make

a fuss about problemsa fuss about problems -- they let their complaints build upthey let their complaints build upto the point that they think it's easier to leave thanto the point that they think it's easier to leave thanattempt to fix all that's wrong.attempt to fix all that's wrong. µAccumulation of silences¶ comes from all the times that µAccumulation of silences¶ comes from all the times thata client experiences a problem and chooses not to saya client experiences a problem and chooses not to sayanything about it. Silences build up, anyone who asks ananything about it. Silences build up, anyone who asks aninnocent question like 'How's it going?' is likely to unleashinnocent question like 'How's it going?' is likely to unleasha floodgate of complaints that no one can fix because thea floodgate of complaints that no one can fix because thesituation's gone too far.situation's gone too far.Complaints come from customers who are trying to helpComplaints come from customers who are trying to helpyou with your business.you with your business.



CUSTOMERS REFRAIN FROM COMPLAININGCUSTOMERS REFRAIN FROM COMPLAINING

BECAUSE :BECAUSE :

They simply dread confrontation and avoid itThey simply dread confrontation and avoid itwhenever possiblewhenever possible

They are procrastinators, who allow problems toThey are procrastinators, who allow problems to

accumulate until they become angry and decideaccumulate until they become angry and decide

to do something about it.to do something about it.

They believe that this is an ongoing problem,They believe that this is an ongoing problem,that you have received many complaints aboutthat you have received many complaints about

it and have done nothing, so what's the use?it and have done nothing, so what's the use? They are busy people and thus seek the easyThey are busy people and thus seek the easy

way out: another vendorway out: another vendor



CUSTOMER COMPLAINTSCUSTOMER COMPLAINTS ± ± A GOLDMINE A GOLDMINE

An opportunity to correct immediate problemsAn opportunity to correct immediate problems

Provide constructive ideas for improvingProvide constructive ideas for improvingproducts, adapting marketing practices,products, adapting marketing practices,

upgrading servicesupgrading services A good recovery can turn angry, frustratedA good recovery can turn angry, frustrated

customers into loyal onescustomers into loyal ones

Shifts the emphasis from theShifts the emphasis from the cost cost of pleasing aof pleasing a

customer to thecustomer to the valuevalue of doing soof doing so Being properly prepared for dealing withBeing properly prepared for dealing with

customer complaints will help you use them tocustomer complaints will help you use them to

your advantage overallyour advantage overall



WHY HANDLE CUSTOMER COMPLAINTS ?WHY HANDLE CUSTOMER COMPLAINTS ?

Customers give businesses an opportunity toCustomers give businesses an opportunity tocorrect problemscorrect problems

Customers who complain about products andCustomers who complain about products andservices continue to frequent the businesses andservices continue to frequent the businesses andbuy the products they complain aboutbuy the products they complain about if if theytheybelieve the complaint was resolved fairlybelieve the complaint was resolved fairly

Negative wordNegative word--of of--mouth publicity frommouth publicity fromdissatisfied consumers means lost futuredissatisfied consumers means lost futurebusinessbusiness

Complaints and complaint trends tell businessComplaints and complaint trends tell business

how to do its job better by alerting managementhow to do its job better by alerting managementto problems that need prompt attention andto problems that need prompt attention and

correctioncorrection

They indicate longThey indicate long--range opportunities forrange opportunities forproduct innovation and problem preventionproduct innovation and problem prevention



DEALINGWITH CUSTOMER COMPLAINTSDEALINGWITH CUSTOMER COMPLAINTS

Listen to the CustomerListen to the Customer

Let Them Know You UnderstandLet Them Know You Understand

Clarify What the Exact Problem IsClarify What the Exact Problem Is

Ask Questions for InputsAsk Questions for Inputs

Apologize for the TroubleApologize for the Trouble

Paint Your Company in a Positive LightPaint Your Company in a Positive Light

Don't have a bad attitude towards the customers.Don't have a bad attitude towards the customers.Customers aren't impressed with grumpy staff Customers aren't impressed with grumpy staff who do not care about complaintswho do not care about complaints



METHODS FOR HANDLING CUSTOMERMETHODS FOR HANDLING CUSTOMER


Ask How to Make Things RightAsk How to Make Things Right

Believe the customerBelieve the customer

The Customer is Always Right«OnceThe Customer is Always Right«Once Let Them Know you UnderstandLet Them Know you Understand

Respond ASAPRespond ASAP

Thank ThemThank Them



USEFUL TIPSUSEFUL TIPS

Make them a priority :Make them a priority : Complaints are so important toComplaints are so important toyour business that customers should be encouraged toyour business that customers should be encouraged to

complaincomplain Plan for Them: Anticipate what's coming, and be readyPlan for Them: Anticipate what's coming, and be ready

when it doeswhen it does

Be professional: Regard the problem as "ours" insteadBe professional: Regard the problem as "ours" insteadof "yours," and that will, or should, guide yourof "yours," and that will, or should, guide your

conversationconversation Take responsibilityTake responsibility Assure the complaining customer that the "buck stopsAssure the complaining customer that the "buck stops

here"here"

Offer a solution: Make the customer a partner in thisOffer a solution: Make the customer a partner in this

processprocess Fix What's Wrong: Complaints can reveal importantFix What's Wrong: Complaints can reveal important

weaknesses in your proceduresweaknesses in your procedures "But I don't have time for all that," you might protest."But I don't have time for all that," you might protest.

Wrong. You do have time, you're just using it forWrong. You do have time, you're just using it for

something elsesomething else



MANAGEMENT¶S ROLEMANAGEMENT¶S ROLE

Demonstrate a commitment to complaintsDemonstrate a commitment to complaintsmanagementmanagement

Prepare written policies and procedures for speedy andPrepare written policies and procedures for speedy andfair complaint resolutionfair complaint resolution

Communicate procedures to relevant department,Communicate procedures to relevant department,emphasizing the accountability of individual employeesemphasizing the accountability of individual employeesto resolve complaints courteously and fairlyto resolve complaints courteously and fairly

Regularly review and, when necessary, find ways toRegularly review and, when necessary, find ways toimprove complaintimprove complaint--management procedures, payingmanagement procedures, payingparticular attention to refining communication andparticular attention to refining communication andcoordination between the complaintcoordination between the complaint--management andmanagement andoperating departmentsoperating departments

Regular followRegular follow--up of implementation of correctiveup of implementation of correctiveactions, by various functions, on feedback and analysisactions, by various functions, on feedback and analysisof complaintsof complaints

Review & Revise Quality System procedures based onReview & Revise Quality System procedures based onCustomer Complaints AnalysisCustomer Complaints Analysis



BASIC STEPS FOR EFFECTIVE COMPLAINTBASIC STEPS FOR EFFECTIVE COMPLAINT

MANAGEMENTMANAGEMENT

Designate a Location to Receive ComplaintsDesignate a Location to Receive Complaints Develop a System for RecordDevelop a System for Record--keepingkeeping

Record ComplaintsRecord Complaints

Acknowledge ComplaintAcknowledge Complaint

Investigate and Analyze the ComplaintInvestigate and Analyze the Complaint

Resolve the Problem in a Manner Consistent withResolve the Problem in a Manner Consistent with

Company PolicyCompany Policy

FollowFollow--UpUp

Prepare and File a Report on the Disposition of thePrepare and File a Report on the Disposition of theComplaint, and Periodically Analyze and SummarizeComplaint, and Periodically Analyze and SummarizeComplaintsComplaints

Initiate corrective / preventive actions to avoidInitiate corrective / preventive actions to avoid

recurrencerecurrence



CUSTOMER COMPLAINT ANALYSISCUSTOMER COMPLAINT ANALYSIS

Classify customer complaints: The nature of theClassify customer complaints: The nature of thecomplaint, along with the product or service thecomplaint, along with the product or service thecomplaint is about, requires classificationcomplaint is about, requires classification

Analyze and report trends: Analyze & ReportAnalyze and report trends: Analyze & Report

data on regular basis to identify themes or trendsdata on regular basis to identify themes or trends Take management action: Actions should remedyTake management action: Actions should remedy

systemic issues. Changes should be monitoredsystemic issues. Changes should be monitoredclosely to ensure actions result in fewer customerclosely to ensure actions result in fewer customercomplaints.complaints.

Continual improvement of the process: IdentifyContinual improvement of the process: Identifyareas for improvement through regular feedbackareas for improvement through regular feedbackfrom customer & improve the system on regularfrom customer & improve the system on regularbasis.basis.



CHECK LIST FOR COMPLAINT MANAGEMENT SYSTEMCHECK LIST FOR COMPLAINT MANAGEMENT SYSTEM

Written procedures for your complaintWritten procedures for your complaint--managementmanagement

systemsystem

Top management directly overseeing complaintTop management directly overseeing complaint--handling procedureshandling procedures

Complaint system easily accessible to customersComplaint system easily accessible to customers

FrontFront--line employees having clear responsibilities forline employees having clear responsibilities forresolving complaintsresolving complaints

Larger or more serious complaints being referred toLarger or more serious complaints being referred todesignated senior managersdesignated senior managers

Providing adequate training for your complaintProviding adequate training for your complaint--management staff management staff

System encouraging customer feedbackSystem encouraging customer feedback

System of complaint management useful for qualitySystem of complaint management useful for quality

control and problem preventioncontrol and problem prevention



CHECK LIST FOR COMPLAINT MANAGEMENT SYSTEMCHECK LIST FOR COMPLAINT MANAGEMENT SYSTEM

..contd...contd.

Swiftly generates systematic information about causesSwiftly generates systematic information about causes

of complaints and complaint trendsof complaints and complaint trends

Data meets management needsData meets management needs

Provides for circulation to top management periodicProvides for circulation to top management periodicreports of data from complaint records withreports of data from complaint records withsuggestions for action to prevent recurring problemssuggestions for action to prevent recurring problems

Coordinates complaintCoordinates complaint--management system withmanagement system with

others in the distribution chain for your productsothers in the distribution chain for your products



ISO 9001:2008 FOCUSISO 9001:2008 FOCUS -- CUSTOMERCUSTOMER

Top management shall provide evidence of Top management shall provide evidence of communicating to the organization thecommunicating to the organization theimportance of meeting customer requirementsimportance of meeting customer requirements(Section 5.1a).(Section 5.1a).

Top management shall ensure that customerTop management shall ensure that customerrequirements are determined and met in order torequirements are determined and met in order toenhance customer satisfaction (Section 5.2).enhance customer satisfaction (Section 5.2).

Inputs to management review shall includeInputs to management review shall includeinformation on customer feedback (Sectioninformation on customer feedback (Section5.6.2b).5.6.2b).

The organization shall determine and provide theThe organization shall determine and provide theresources needed to enhance customerresources needed to enhance customer

satisfaction (Section 6.1b).satisfaction (Section 6.1b). The organization shall monitor informationThe organization shall monitor information

relating to customer perception as to whether it'srelating to customer perception as to whether it'smet customer requirements (Section 8.2.1).met customer requirements (Section 8.2.1).

Data analysis shall provide information relating toData analysis shall provide information relating tocustomer satisfaction (Section 8.4a).customer satisfaction (Section 8.4a).



WHAT MAKES A GREAT SERVICES MANAGERWHAT MAKES A GREAT SERVICES MANAGER

Patient & articulatePatient & articulate

Good listenerGood listener

A good attitude towards the customersA good attitude towards the customers Ability to balance fairly the interests of theAbility to balance fairly the interests of the

company with those of the customercompany with those of the customer

Communicate legitimate consumer complaints toCommunicate legitimate consumer complaints tomanagement to help determine whether there ismanagement to help determine whether there isa need for changes in company policies ora need for changes in company policies orproceduresprocedures



CONCLUSIONCONCLUSION

Management RoleManagement RoleCommitment and continuing involvement of companyCommitment and continuing involvement of companymanagement is critical to successful complaint resolutionmanagement is critical to successful complaint resolutionand to the optimum use of complaints as a managementand to the optimum use of complaints as a managementtool to continually enhance customer satisfaction andtool to continually enhance customer satisfaction andimprove product quality.improve product quality.

Role of ManagersRole of Managersa)a) Resolving the problem in a manner consistent withResolving the problem in a manner consistent with

Company Policy & improving the complaintCompany Policy & improving the complaint--managementmanagementsystem.system.

b)b) Providing feedback for corrective & preventive actionProviding feedback for corrective & preventive actionc)c) Periodically Analyzing and Summarizing Complaints toPeriodically Analyzing and Summarizing Complaints to

indicate complaint trends, leading to alertingindicate complaint trends, leading to alertingmanagement to problems that need prompt attention andmanagement to problems that need prompt attention andcorrectioncorrection



COMPLAINT MANAGEMENT FLOW CHARTCOMPLAINT MANAGEMENT FLOW CHART

RECEIVE COMPLAINTSRECEIVE COMPLAINTS

LOG COMPLAINT

FORWARD TO SERVICES DEPTT

ANALYZE COMPLAINT

CLARIFICATIONREQUIRED

OBTAIN CLARIFICATION, ADVISECUSTOMER HOW IT WILL BE ATTENDED,

RECORDNO

YES




(CONTD«)(CONTD«)

FORWARD TO TENDERINGDEPTT

OBTAIN MATL

REQUISITION MATL

RECORD COMPLIANCE/ CONFIRMATION FROM CUSTOMER/ACTION TAKEN

FOC SERVICE

DEPUTE ENGINEER, PROVIDE SERVICE

YES NO




(CONTD«)(CONTD«)

ADVISE CUSTOMER

CARRYOUT ROOT CAUSE ANALYSIS

ENSURE CLOSURE OF CAPR

FORWARD REPORT TO QUALITY ASSURANCE DEPTT

ELINSRESPONSIBLE

RAISE CORRECTIVE/PREVENTIVEACTION REPORT ON CONCERNED DEPTT

YES

NO




(CONTD«)(CONTD«)

MONTHLY STATUS OF CPMPLAINTS RECEIVED/ ATTENDED/PENDING ± BY SERVICES DEPTT

REPORTS TO MANAGEMENT

NOMONTHLY STATUS OF CORRECTIVE & PREVENTIVE ACTIONS -BY QA DEPTT

HALF YEARLY REPORT OF TRENDS - BY QA DEPTT

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