COMPLAINTS MANAGEMENT

COMPLAINTS MANAGEMENT

TrainerBAM BLANCO RAMIREZ

[email protected]

http://www.tek-infovision.com/

WHAT IS A COMPLAINT?


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What is a Complaint?• “An expression of dissatisfaction made to

an organization, related to its products or services, or the complaints-handling process itself, where a response or resolution is explicitly or implicitly expected”


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Why do customers complain?

• Their expectations have not been met!• To release their anger• To help improve the service • Because of concern for others who also use

the service




• What proportion of unhappy customers complain?– Generally 9% to 37% of unhappy customers make

complaints to the firms.– The rest never bother to complain

• Why don’t unhappy customers complain?– They think it is not worth the time or effort.– They further think that no one would be concerned

about their problem or solve it.– They do not know where to go or what to do.

Each unhappy customer will tell at least six other people


Most common complaints...• Wrong information• Poor customer service

attitude• Overpricing• Lack of adequate information• Delays• Unresponsiveness of service

providers• ….

– ……


• The customer is always the customer and this means simply that solving the problem is often more important than who is right.

• If you can solve their problem without blaming yourself or others, – you will reduce stress, – everyone will feel better and – you will be on your way to attaining CUSTOMER

SATISFACTION

The customer is not always right but...


Ways in which people can lodge a complaint

• Telephone• In person• Customer comment card• Mail• Email• Link from the website• Blogs and chat rooms


Why is good complaints handling important?

• Complaints provide a window on systemic problems

• Complaints can stimulate improvement• Good complaints handling can defuse a

crisis• The price of failure is high

McMillan, 2007


IDENTIFYING A COMPLAINT AS A GIFT


Is a complaint a gift? Why?

• Complaints are gift packages waiting to be opened because they:

– Are given freely– Are not solicited by the recipient organization– Are unexpected…they come as a surprise

(usually)– Hold the key to happiness for the recipient

organization• If they are well handled

COMPLAINTS MANAGEMENT – COMPLAINTS AS A GIFT





• A complaint gives you:– Free direct communication from the

customer about service failures, competitors offerings etc. without the added cost of conducting a survey

– Readily available market research: they define what customers want




– A complaint gives you the opportunity to:

• Increase customer trust• Build long term relationships-– customers will use your services again if

they believe complaints are welcomed and addressed

• Rectify service failures• Engage customers as advocates




Is a complaint a gift? Why?If a customer is complaining, you are being

given a chance to retain that customer





The customer’s needs when they complain

Needs relating to the complaint– To have their concern dealt with quickly, fairly and properly– To be given what they have been denied and perhaps an apology– To have action taken to rectify a problem or address a concern-

• a resultant process changeExample 1

Complaint – the product is not working as expected Underlying message – I don’t understand the new technology, I need

help

Needs as individuals– To be heard– To be understood– To be respected

Example 2 Complaint- I was disappointed with the service during my last visit Underlying message – I am testing the value you place on my loyalty to your

business





When the customer’s need is met…

• Who is your advocate???– A person who publicly

supports or recommends you– Someone who speaks, or

argues in your favor

You automatically Engage your Customer as your Advocate!




Encouraging complaints

People often don’t know how to complain.

They need to be encouraged:• Developing specific information and

resources: fact-sheets, posters, translated information, brochures

• Regular publications: newsletter, email alerts

• Website as a recognised source of information and useful links

• Flexible distribution strategies: email, face-to-face, mail-outs, libraries, government and community agencies

• Promotional ‘goodies’: fridge magnets, pens


People may fear complaining or lack confidence in the system

• Fear of discrimination or harassment– Inform clients that they will not be discriminated

against as a result of making a complaint– Establish internal follow-up procedures to address

the risk of discrimination against clients who lodge a complaint

• Staff may also have concerns


STEPS FOR HANDLING CUSTOMER COMPLAINTS


• How do you react to customer complaints about the way you do your work?

– Especially when you think you are doing your best???

• People react to customer complaints in different ways…– Some• Ignore complaints • Become defensive• Become angry or annoyed• Are concerned about the loss of trade or the damage to

their professional reputation

COMPLAINTS MANAGEMENT – HANDLING COMPLAINTS



• For others, it is – Smear Campaign

• Orchestrated by Competitors• Few Unsatisfied customers only (hidden

agenda)– A hindrance• They just wish the customer would go away! Or • They do not believe some or all of what the

customer is complaining about.


• Don’t be defensive• Be composed at all times• Don’t take criticisms

personally• Offer an apology even if the

disservice is not your fault• Show empathy by using such

phrases as: “I can understand how you feel”, “I appreciate what you’re saying.”

Attitude is Everything!


• Tell them what you can do…not what you can’t do

• Find out what it will take to turn their dissatisfaction into satisfaction

• If they agree to that solution, act quickly before they change their mind

• Follow up• And remember: You can never

win an argument with a customer


First steps in establishing a complaints handling system

• Identify good practice complaints handling principles

• Conduct a risk assessment:– Level of consequence

versus likelihood of recurrence


Next Steps for handling complaints

Acknowledge receipt of the complaint

It is important that you acknowledge the receipt of all complaints, verbal or written. Preferably allocate a complaint reference number and provide the customer with a contact point for further correspondence.Accurately

record complaint information and make it accessible

Make sure that your recorded version of the complaint matches exactly what the customer said. Also make sure that the complaint record is accessible by any branch of the organization that the customer may contact.Attach

timeframes for resolution of complaint

The company should attempt to resolve complaints on first contact, but if this is not possible, then a complaint should be finalized within a specific number of days eg. 30 days.

At the organization’s level, there is the need for a complaint handling system which will involve the following steps as a minimum:


Customers must be informed about any delays in resolving a complaint

As soon as you realizes that they are unable to resolve a complaint within the given timeframe, contact the customer, and inform advising him/ her of the delay and set a new timeline

Make staff aware of complaint handling procedures

The complaint handling procedures should be known to all employees and be part of regular training

Inform Customers Of Complaint Handling Procedures

Posting your complaint handling procedures on your office premises is a good way to inform customers. Also these procedures may be incorporated in the organization's brochure


Quality assuring

complaints handling

• Need for quality control measures in the handling of complaints

• Tracking a sample of complaints from initiation to closure


The complaints ladder

• First stage:

– The intake officer screens the complaint and registers it if it is

appropriate. Then front-line staff attempt to resolve it.

• Second stage:

– When clients are still dissatisfied, a more senior official or a

complaints officer investigates their complaints and reports the

results to them.

• Third stage:

– Consider using mutually acceptable, alternative dispute resolution

mechanisms such as mediation. If this is not possible, a third party

could arbitrate the matter.


SAMPLE COMPLAINTS HANDLING PROCEDURE

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COMPLAINTS MANAGEMENT – COMPLAINTS PROCEDURE





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SERVICE RECOVERY

• Service recovery is how you remedy a failed service encounter with a customer. In other words,– pull a customer from hell to

heaven in the shortest possible time.

– It involves:• apologizing,• solving the problem, • compensating the customer with

something of value

What is service recovery

COMPLAINTS MANAGEMENT – SERVICE RECOVERY

• 95% of customers who have a complaint that was handled efficiently and promptly will not only continue to do business but will become even more loyal (Wharton Business School)

• So how do you make amends or appease the customer?– Through

• product replacements, • good will gifts, • free of charge services,

etc…

Service RecoveryCOMPLAINTS MANAGEMENT – SERVICE RECOVERY


Some Important Statistics

• Only 4% of dissatisfied customers complain. 96% leave without any communication to the business

• Of the 96% who leave, 91% will never return• A typical dissatisfied customer will tell 8 to 10

people about the issues with your business• 1 in 5 dissatisfied customers will tell 20 people

about the issues with your business• It takes 12 positive service incidents to make up

for one negative incident





Some important statistics• 7 out of 10 complaining customers will do business

with again you if you resolve the complaint in their favour

• Of complaining customers, 95% will do business with you again if you resolve the complaint at the first contact

• On average, a satisfied complainer will tell 5 people about their problem and how it was solved

• It costs 6 times more to attract new customers than it does to retain current ones

• Customer loyalty is worth 10 times the price of a single purchase “How to win and Keep Customers” – Michael LeBoeuf




RELATIONSHIP MARKETING

Excellent Service throughExcellent Communication

Excellent Service through Effective Communication

“Quality in a service or product is not

what you put into it.It is what the client or customer

gets out of it.”

- Peter Drucker


SIX STEPS TO EFFECTIVE COMMUNICATION

1. Saying What You Mean and Meaning What You Say.

2. What You Don’t Say; Non-Verbal Communication.

3. Putting Words Together: Grammar Usage.

4. Asking the Correct Questions 5. and answering the Questions

Correctly.6. When the Customers Says “No”.

Listening Actively.


In your dealings with customers, be the one to initiate honest, respectful

and thoughtful communication. Because to them, you not only

represent the company….

YOU ARE THE COMPANY.

Always Remember:


Step 1: SAYING WHAT YOU MEAN AND MEANING WHAT YOU SAY

“The message has to get across the way you mean it ; otherwise you may not get a second chance. “

HOW TO DO IT?• Choose the right words.• Make sure the voice tone fits the message.• Adding welcome words.• Keeping business conversation professional.


• Choose the Right Words.

- choose the words that will be understandable to the customer.- opt for easy and familiar words when communicating, especially if

the customer is not so familiar with the company or product.

• Make sure your voice tone fits the message your sending.

- how to say something is more important than what you say.- pay attention to your listener’s nonverbal cues to make sure your

tonefits you customer.

• Add welcome words to your vocabulary.- using words that sound positive and confident projects a positive

and confident attitude.- “Yes, I’ll be happy to!”, “Sure, I can!”, “Absolutely!”

• Keep business conversations professional.- draw the line between being professional and getting personal.


Step 2: WHAT YOU DON’T SAY : NON-VERBAL COMMUNICATION

How you say something is more important than the words you choose, but what you do when you convey a message is also important .

STEPS TO IMPROVE NON-VERBAL COMMUNICATION Smile often. Make eye contact. Maintain good posture. Keep your energy level steady.


Step 3: PUTTING WORDS TOGETHER : GRAMMAR USAGE

Proper grammar is critical to effective communication. When you use propergrammar, it is easier to send the right message.

HOW TO PROPERLY COMMUNICATE WITH CUSTOMERS: Reflect your company’s personality. Speak clearly. Use everyday language. Avoid using jargon, company terms

and technical language.


Step 4: ASKING the CORRECT QUESTIONS and ANSWERING the QUESTIONS CORRECTLY

We ask questions for many reasons. As customers, we ask questions togather new information and acquire additional information. Employeesask questions to figure out how to solve a customer’s problem or to resolve a

customer’s complaint.

Open Questions require more than a yes or no answer and encourage the customer to give information.

Closed Questions require one word or short answer and are often used for clarifications.


TIPS IN MAKING GOOD QUESTION AND GIVING RIGHT ANSWER:

Keep your questions simple. Ask open questions when you need information. Ask closed questions to control the conversation. Take time to understand the customer’s question first before

answering it. Try to give more than a one word answer.


Tips in Making Good Question and Giving Right Answer (cont’d.)•Keep your questions simple.

- stick to one type of question.- do not lump series of questions together so that customer will be

able to answer correctly and completely.- e.g., “tell me about…”,“tell me more…”, “I’d like to get information on…”,“kindly describe….”.

• Ask open questions when you need information.- begin with what, why and how.- use when you need information and when you want to encourage

the customer to talk.- e.g. “ how do you…”, “what would you like…”, “what else…”, “how will…”.

• Ask closed questions to control conversation.- use when you need specific answer like “yes”, “no” or short answer,

or to clarify information.- start with “is”, “are”, “do”, “can”, “will” if you require only a “yes” or “no” answer.- start with “who”, “would”, “how”, or “where” if your require only a

short answer.- e.g. “are you..”, “do you think..”, “will you…”, “would you

like…”,”where do you..”, “how many…”


Tips in Making Good Question and Giving Right Answer (cont’d.)

•Understand the customer’s question before answering it.

- recap or rephrase the question or ask a clarifying question if you do not clearly understand the question.


Step 5: WHEN THE CUSTOMER SAYS “NO”

Always do what is right for the customers and uncover the reason for objections, even if you have offered a valid solution and the customer still says “no”.

STEPS ON HOW TO FIND SOLUTION TO CUSTOMER OBJECTION

• Listen to the customer’s objection• Acknowledge the objection• Follow-up with a question• Consider the customer’s action


Steps on How to Find Solution to Customer Objections• Listen to the customer’s objection.

- discover and understand the reason/s behind the customer’s objection by asking a combination of open and closed questions.

• Acknowledge the objection.- validate the customer’s reason, then respond with positive

statement.- empathize with customer’s objection, but make sure you put

additional benefit to the solution you proposed.

• Follow-up with a question.- make a follow-up question to validate or clarify if the customer

finally agrees on you’re your proposal.- e.g. “how do you find my proposal..”, “would that be fine with

you?...”

• Consider the customer’s answer.- the customer’s response will determine if you successfully

made the customer believe in you.


Step 6: LISTENING ACTIVELY

Effective communication is not just dependent on your ability to talk and write well.

TIPS ON HOW TO ACTIVELY LISTEN TO CUSTOMERS

• Focus entirely on your customer.• Listen completely.• Remain objective ; do not judge.• Listen to what not is said.


Steps on Listen Actively to Customers• Focus entirely on your customer.

- think of that customer you are helping is the only customer in your business so that you will be able to give your full attention.

• Listen completely.- pay complete attention to the customer while he/she is speaking.- do not think of any response yet while the customer is talking.

• Remain objective ; do not judge.- gathering all relevant information.- paraphrase the customer’s words or ask more questions to clarify.

• Consider the customer’s answer.- the customer’s response will determine if you successfully

made the customer believe in you.

•Listen to what not is said.- pay attention to customer’s body language and expression.- “reading between the lines”.


Email me: [email protected] or visit our site: www.tek-infovision.com for more FREE TIPS, TOOLS & TRAINING

Foodfor

Thought

• Try to erase the words “I can’t”. Instead, try to focus on what you can do by saying “here’s what I can do for you” if the customer is asking you to do something you can’t.

• Always be truthful about your products, services and policies. Never make misleading claims.

• We all carry emotional baggage. Never make your customers and co-workers suffer because you are having a problem. Remember that everyone has problems. Use your time to let go of personal baggage.

• Never comment negatively about competitors. If a customer asks for a comparison or leads you to say something negative, say “I don’t know about that but let me explain our policy..” or “I don’t know enough about that to comment”.

• Customer service begins when you are courteous to your customers.



QUICK QUOTES

•Actions speak louder than words

•Try very hard to avoid saying no

•Erase the words I can’t from your vocabulary

•Tell customers what you can do

•Never use inappropriate language with a customer

•Listen, listen, listen

•Listen for what is not said

•Never jump to conclusions

•Use language your customers understand

•Display empathy to show your customers you understand


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