managing customer complaints.pps

7/28/2019 Managing Customer Complaints.pps

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MANAGING CUSTOMER

COMPLAINTS

by

VIRENDRA SAHDEV


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FINDINGS ABOUT CUSTOMER

COMPLAINTS

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

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

For every complaint received, theaverage company has 26 unhappycustomers it never hears from; six ofthese customers have problems thatare considered serious.


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CONSIDER THIS

For every customer who complains, 26 remain silent.

Five complaints a week means there are 130 dissatisfied,disgruntled ex-customers out there that you never hearfrom. Silence from customers is NOT a good thing. It's thequiet clients who leave. They're the ones who don't make

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


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CUSTOMERS REFRAIN FROM COMPLAINING

BECAUSE :

They simply dread confrontation and avoid itwhenever possible

They are procrastinators, who allow problems to

accumulate until they become angry and decideto do something about it.

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

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

way out: another vendor


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CUSTOMER COMPLAINTS A GOLDMINE

An opportunity to correct immediate problems Provide constructive ideas for improving

products, adapting marketing practices,

upgrading services A good recovery can turn angry, frustrated

customers into loyal ones

Shifts the emphasis from the costof pleasing a

customer to the value of doing so Being properly prepared for dealing with

customer complaints will help you use them to

your advantage overall


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WHY HANDLE CUSTOMER COMPLAINTS ?

Customers give businesses an opportunity to

correct problems Customers who complain about products and

services continue to frequent the businesses andbuy the products they complain about if theybelieve the complaint was resolved fairly

Negative word-of-mouth publicity fromdissatisfied consumers means lost futurebusiness

Complaints and complaint trends tell business

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

correction They indicate long-range opportunities for

product innovation and problem prevention


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DEALING WITH CUSTOMER COMPLAINTS

Listen to the Customer

Let Them Know You Understand

Clarify What the Exact Problem Is

Ask Questions for Inputs

Apologize for the Trouble

Paint Your Company in a Positive Light

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


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METHODS FOR HANDLING CUSTOMER

COMPLAINTS

Ask How to Make Things Right

Believe the customer

The Customer is Always RightOnce Let Them Know you Understand

Respond ASAP

Thank Them


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USEFUL TIPS

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

Plan for Them: Anticipate what's coming, and be readywhen it does

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

Take responsibility Assure the complaining customer that the "buck stops

here" Offer a solution: Make the customer a partner in this

process Fix What's Wrong: Complaints can reveal important

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

Wrong. You do have time, you're just using it forsomething else


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MANAGEMENTS ROLE Demonstrate a commitment to complaints

management

Prepare written policies and procedures for speedy andfair complaint resolution Communicate procedures to relevant department,

emphasizing the accountability of individual employeesto resolve complaints courteously and fairly

Regularly review and, when necessary, find ways toimprove complaint-management procedures, payingparticular attention to refining communication andcoordination between the complaint-management andoperating departments

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

Review & Revise Quality System procedures based onCustomer Complaints Analysis


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BASIC STEPS FOR EFFECTIVE COMPLAINT

MANAGEMENT Designate a Location to Receive Complaints

Develop a System for Record-keeping

Record Complaints

Acknowledge Complaint Investigate and Analyze the Complaint Resolve the Problem in a Manner Consistent with

Company Policy Follow-Up

Prepare and File a Report on the Disposition of theComplaint, and Periodically Analyze and SummarizeComplaints

Initiate corrective / preventive actions to avoid

recurrence


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CUSTOMER COMPLAINT ANALYSIS

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

Analyze and report trends: Analyze & Reportdata on regular basis to identify themes or trends

Take management action: Actions should remedysystemic issues. Changes should be monitoredclosely to ensure actions result in fewer customercomplaints.

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


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CHECK LIST FOR COMPLAINT MANAGEMENT SYSTEM

Written procedures for your complaint-management

system Top management directly overseeing complaint-

handling procedures

Complaint system easily accessible to customers

Front-line employees having clear responsibilities forresolving complaints

Larger or more serious complaints being referred todesignated senior managers

Providing adequate training for your complaint-management staff

System encouraging customer feedback

System of complaint management useful for quality

control and problem prevention


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CHECK LIST FOR COMPLAINT MANAGEMENT SYSTEM

..contd.

Swiftly generates systematic information about causes

of complaints and complaint trends Data meets management needs

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

Coordinates complaint-management system withothers in the distribution chain for your products


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ISO 9001:2008 FOCUS - CUSTOMER

Top management shall provide evidence ofcommunicating to the organization the

importance of meeting customer requirements(Section 5.1a). Top management shall ensure that customer

requirements are determined and met in order toenhance customer satisfaction (Section 5.2).

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

The organization shall determine and provide theresources needed to enhance customersatisfaction (Section 6.1b).

The organization shall monitor informationrelating to customer perception as to whether it'smet customer requirements (Section 8.2.1).

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


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WHAT MAKES A GREAT SERVICES MANAGER

Patient & articulate Good listener

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

company with those of the customer

Communicate legitimate consumer complaints tomanagement to help determine whether there is

a need for changes in company policies orprocedures


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CONCLUSION

Management Role

Commitment and continuing involvement of companymanagement is critical to successful complaint resolutionand to the optimum use of complaints as a managementtool to continually enhance customer satisfaction andimprove product quality.

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

Company Policy & improving the complaint-managementsystem.

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

indicate complaint trends, leading to alertingmanagement to problems that need prompt attention andcorrection


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managing customer complaints.pps

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