Customer complaints Top Ten

Citation

(2000), "Customer complaints Top Ten", Work Study, Vol. 49 No. 7. https://doi.org/10.1108/ws.2000.07949gaf.005

Customer complaints Top Ten

Customer complaints Top Ten

Keywords: Customer service, Complaints, Surveys

The "Top Ten" examples of how not to deal with customer complaints was recently revealed in a national survey of the UK complaints culture.

The research even found the majority of the country's organisations lacking in the ability to deal with complaints – plus a great reluctance by many individuals to take issue because they feel they are wasting their time.

The 2000 National Complaints Culture Survey, undertaken jointly by the Government supported Institute of Customer Service and Training Consultants TMI, says "The UK has huge potential for improvement".

It also reveals that, while many of the 44 organisations and 2,900 people surveyed feel they could do a lot more to improve the way they deal with customers' complaints, many patently fail to convert a negative situation into a positive one. As a result, says the survey, customer loyalty is decreasing, while the cost of gaining new customers continues to rise.

Examples of complaints of bad practice were:

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  Increasingly, our attitude to complaints is getting harder – "If you don't like it, take your business elsewhere".

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  I doubt whether any person in our organisation knows the true importance of good customer service and effective complaint handling – yet it is integral to our success.

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  We do not allow access to senior staff for customers except when things are serious. We are in business (in the interests of public/law) where things can and do upset people.

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  As a local authority the concept of customer turnover does not apply in a commercial sense. However, we need to be much more aware of the customer's role in the shaping of our organisation.

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  There is no shortage of support to the notion that a customer who is complaining is giving us a chance and could be a great ambassador. Unfortunately, we take little action to deal with the fact – we do not empathise with these customers nor have any urgency in sorting out issues.

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  I feel that customer service has taken a back seat since the merger.

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  Increased pressure in our department means they are a hindrance, very time-consuming and cause extra stress to the staff dealing with them.

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  More staff see complaints as getting in the way of normal service rather than a chance to impress/improve.

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  We make all the right noises but pay lip service.

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  Too many customers are now "motivated" by obtaining compensation.

"From first registering to final resolution, the UK complaints bill is estimated at a massive £8.3bn a year – and still rising", said Richard D. Brennan, managing director of TMI.

"The painful process has a tremendous and highly damaging knock-on effect on customers, staff and profits. Retention of all three, therefore is imperative because the cost of replacing any of them is increasingly prohibitive and, in some cases, can be crippling.

"The cost of recruiting new employees is generally accepted to be nine times higher than the cost of retaining existing staff. Meanwhile, winning new customers continues to become more difficult and more draining on resources.

"Organisations must take a common sense approach by training, trusting and empowering their frontline staff to ensure they can – and do – balance customer and corporate needs when dealing with complaints. It will always be the classic trust/empowerment compromise", said Mr Brennan.

"Organisational management throughout the UK must take a long, hard look at itself and its bad practices and then react positively by orchestrating a culture change programme to develop and inspire its people – both in the front line and internally – to tackle and overcome what is an endemic problem.

"Complaints provide crucial informational feedback to which organisations should relate to and respond positively in moving their activities forward. Communications – whether complaint or complimentary and from whatever source or level – must be used to close the information loop to ensure continuing improvement and increased positive response", added Mr Brennan.

The survey says: "The attitude of individuals and organisations towards complaints seems to be at the heart of the problem; hence the need for training – to provide people with the skills, encourage positive attitudes and so bring about the behavioural change that will ensure converted, loyal customers.

"It would appear that people intellectually understand the criticality of well-handled complaints. There is also evidence that emotionally we've a long way to go to truly welcome complaints – both from the service giver's point of view and that of the customer.

"Processes are cumbersome, restrictive and costly while common sense, delegation, trust and flexibility have been swamped by process and regulation. Complaints may be monitored, but are not used to educate or improve.

"Focus is on quality/cost and not quality/investment. Poor handling of complaints may be costing significantly more than it is saving. Organisations are seen to be paying lip service to customers and their complaints – while the lack of customer focus in design of systems and procedures is a cause for complaint in itself."

Employees surveyed are strongly critical of their own capabilities to deal with complaints, saying that they often do the best they can, but feel untrained, unsupported and discouraged.

"Ironically, the front line of many organisations faces as many battles internally as hassle from external customers. Additionally, some reward systems actively discourage effective complaint handling.

"Complaining customers care and invest their time and money in organisations; they want to put things right. They offer an opportunity to regain trust and cement loyalty. This point of contact – and satisfaction with resolution – may be the only differential for many companies in an increasingly competitive market.

"Public opinion will put pressure on regulatory/government bodies – and monopolies may not be so for much longer", says the survey in a clear message to some non-profit-making organisations and those who, for so long, have enjoyed sole rights in specific markets."