COMPLAINTS MANAGEMENT

COMPLAINTS MANAGEMENT
Trainer
BAM BLANCO RAMIREZ
www.tek-infovision.com
bam@tek-infovision.com

WHAT IS A COMPLAINT?

Email me: bam@tek-infovision.com or visit our site: www.tek-infovision.com for more FREE TIPS, TOOLS & TRAINING
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”
3

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
4

• 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
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COMPLAINTS MANAGEMENT – COMPLAINTS AS A GIFT

Is a complaint a gift?
Why?
• 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
12

– 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

If a customer is complaining, you are being given a
chance to retain that customer
14

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 change
Example 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
15

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
16
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
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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

30
COMPLAINTS MANAGEMENT – COMPLAINTS PROCEDURE

COMPLAINTS MANAGEMENT – COMPLAINTS PROCEDURE

• 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 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
39

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
40

Excellent Service through
Excellent 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 tone
fits 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 proper
grammar, 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 to
gather new information and acquire additional information. Employees
ask 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”.

Food
for
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

60
More FREE training slides, tools and tips to
come! In-depth and customized in-house and
public seminars are also available. E-mail me at:
bam@tek-infovision.com

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