32 Customer Complaint Handling System
Dr. Puja Waalia Mann
1.0 Introduction
Imagine a situation where you have been handed over a bill of Rupees five thousand of your mobile phone, for which the average monthly bill that you had been paying since last five years is not more than rupees one thousand. What would be your reaction? Would you like to shout and scream? Would you like to instantly scold the executive of the telecom service provider? Would you like to visit the nearest office of the service provider and personally see the executive and get the bill corrected? All this while, you must have also rehearsed the dialogues you would shell out at the organization for such a disaster in the bill computation. Do you think the service provider has also rehearsed the answers to be given to you? That too, more than the number of times you are practicing? This system of handling angry and complaining customers, like you, are a routine that a Service manager would expect all his executives to be trained in.
1.1. Learning Objectives
In this module, you will learn:
a) Meaning of Customer complaint
b) Importance of complaint handling in Services
c) Procedure of complaint handling
d) Ways of Handling Complaints.
1.2. Key Words:
Complaint Handling, Customer Complaint Handling, Procedure of Complaint handling in Services.
1.3. Customer Complaint
A consumer complaint is an expression of dissatisfaction with the performance of any product or a service as promised by the seller. Services are intangible in nature. For a consumer there is no standard yard of measurement to evaluate the service performance. The only way a consumer feels satisfied is his own expectations from the service and its comparison with his own perception of the service performance. In case of any discrepancy in the expectations and the perception, the consumer will be dissatisfied.
Generally, the consumer could be dissatisfied if he is not delivered a service quality which was promised at the time of service sale. The reasons for a poor service quality could be due to the lack of trained service staff or due to technical fault. The dissatisfaction could be the result of ill managed or poorly planned service delivery procedures. The support system or the infrastructural support also plays a very important role in the service performance. Any discrepancy in the working of the above mentioned dimensions of service quality may lead to dissatisfaction of the consumer resulting in a complaining behavior.
1.3.1 Dissatisfied consumer behavior:
Generally, there are a few patterns of behaviours that a dissatisfied consumer will reflect.
a) Silent consumer- The first commonly displayed behavior of a dissatisfied consumer is to keep quite but decide not to buy the same service again.
b) Loud consumer– The second complaining consumer could be loud in complaining and resisting others from buying the same Brand in future.
c) Redressal seeking consumer- The third behavior is when the disgruntled consumer approaches the customer service desk of the service provider and seeks a redressal to his complaint.
d) Legal redressal seeking consumer- The last behavior is for a dissatisfied consumer to approach the legal machinery of the land to seek redressal for his grievance.
For a service provider the most easiest consumer to manage is the third type. This is so because the consumer gives a chance to the service organization to satisfy the consumer and not let him be lost for future service consumption. Further, such complaints, actually are the feedbacks which can facilitate in improving the service performance and service delivery for future. More often than not, the consumers prefer making informal complaints and rarely approach the service desk, unless the stake in the claim is high or sensitive in nature. The customer may also avoid making a formal complaint to the service provider in case he does not expect a justifiable solution to be given by the firm.
CHECK YOUR PROGRESS
1. “Occurrence of Complaints in Service delivery is indispensible.” Do you agree? Why/ Why not?
2. Define Consumer Complaint , with the help of an example.
3. What are the different behaviors reflected by dissatisfied consumers ? Describe with the help of an example.
1.4 Importance of Complaint Handling
It is important to respond to the complaints made by the consumers. It is true that sometimes, false complaints may come up. Many a times, the reason for the complain may be an uncontrollable factor. Yet, it is in the benefit of the service organization to not only quickly respond to such a situation but also to ensure that this reason for complain does not occur again. While a dissatisfied consumer may have already developed a negative attitude about the service provider, his attitude may be changed by handling the complaint intelligently. In fact a well handled complaint may rather make the consumer more satisfied. Let us look at some of the reasons for having a well laid complaint handling procedure in service organization.
a) Lead by example- If an organization can develop and implement a quick and responsive complaint handling procedure, it can help overcome the formation of a negative image due to any err in the service delivery. Such a system is often attributed to only forward looking organizations which may lead in the industry by setting high service standards.
b) Minimise causes of Complaints – Having a well laid consumer complaint handling procedure means not only rectifying the consumer complaint but also learning from such complaints in improving the services by eliminating the reasons for complaints in future. Thus, for enhancing the quality of services by reducing the reasons for complaints, a formal complaint handling system is useful.
c) Positive Brand image– Every service organisation would like to create a positive Brand image for itself based on the services it offers to the consumers and the experience it creates for them. Having a complaint handling procedure facilitates the organization in identifying the causes of discrepancy in delivering high quality services to its consumers.
d) Upgrade technical snags– Often the reasons of complaints in a service delivery be due to some technical snag and not due to any shortage in the service delivery. If the same had been overlooked in the past due to any reasons, the complaints may be means to identify such snags and fix the same. For example, a hotel room may have a problem of water heater not working properly. Such an improvement in services is often brought to the notice of the service providers through consumers complaints.
It is important to understand that the cost of attracting a new customer is as high as five times the cost of retaining an existing consumer. Hence, the service organization should ensure that it treats a complaining consumer at high priority with the aim of retaining them.
CHECK YOUR PROGRESS
4. Why is it important for an organization to receive a complaint?
5. From a service organization point of view, what is the relevance of complaint management?
6. How can the technical faults be fixed through complaints? Explain with the help of an example.
7. How can an effective complaint management result in a positive Service Brand image?
1.5 Customer Compliant Handling procedure
No service organisation would like to hear a complaint in its service delivery or in the support system. However, complaints should be seen as opportunities for improvement in the service production and service delivery. Moreover, complaints also offer a chance to the service provider to win over a consumer and also expect a positive word of mouth from him about the consumer values by taking their concerns seriously and managing their grievances upto their satisfaction. Thus, it is important for all service organizations to have a standard customer complaint handling procedure. The following are the steps in developing the customer complaint handling procedure:
a) Have an organizational Plan for complaints receiving:
There should be a well thought, clear and open organizational plan for receiving customer complaints. The customer should feel encouraged to share a grievance directly with the organization rather than keeping it to himself and complaining to potential consumers of the service provider. The organization should look at a complaint from a positive angle that the consumer is spending his precious time in co-creating and improving the services of the firm.
b) Identify the sources of complaint receipt:
The organisation should make itself approachable from a number of channels for receiving a complaint. For example, the consumer should be able to reach to the concerned desk for registering his complaint in eth service consumption in person, through mails, through e-mails or through phone or text message. This gives a positive impression about the service firm in being positive and welcoming to acknowledging complaints and thus improving the service performance.
c) Generate a system of sharing complaints with all:
The organization should develop a system through which the received complaint should log into the service organizational system and reach up to all concerned staff and all authorities. This is important so that no complaint goes unattended and each complaint may leave something to learn for enhancing service quality for all.
d) Communicate to the Service personnel:
The complaint receipt system should be clearly communicated to and understood by the service personnel. This works in two ways. Firstly, the service personnel becomes alert that the quality of the services should be maintained as per the standards and secondly, they should be clear about the complaint handling mechanism for any future event of a complaint.
e) Train the Service Personnel in receiving and handling the complaints:
The service personnel should be trained in accepting and confronting the complaining customers and managing the situation in front of loud and angry consumers. The personnel should be given confidence and training in courtesy while accepting any complaint. Facing an angry and complaining consumer could be stressful. Therefore the service staff should be well trained to manage the situation by keeping calm yet proactive in receiving the complaint.
f) Fix authority for complaint handling:
The top management must identify the positions or persons in the service organizational hierarchy to handle the received complaint. The service staff should be well aware as to who should be approached to satisfy a complaint consumer. This person should not only have the authority to resolve the grievance but also should do it as a priority. A complaining consumer should not be made to wait or go unattended as this may lead to aggravation of his complaint.
Thus, the service organization need to design and implement a well thought out plan for the receipt and managing of a consumer complaint with a positive attitude. This plan is as important as a Marketing strategy or a Finance plan.
CHECK YOUR PROGRESS
8. Write a brief note on Consumer complaint handling procedure?
9. What are the common reasons of a complaint in Telecom services?
10. What are the different behaviors reflected by dissatisfied consumers ? Describe with the help of an example.
11. Why is it important for a service organization to fix the authority for handling a complaint?
1.6 Ways of handling Complaints
Reflecting back, as a dissatisfied consumer of services, you may think of a number of ways your complaint was handled by the service provider. More often than not, these responses you might have received from service personnel must have been out of the training workshops these service staff has undergone formally or informally. In the following section, a number of ways of handling complaints are being discussed:
a) Thanking consumer for complaining- This may sound a bit strange, but one of the most courteous methods of responding to a complaint is to thank the consumer for complaining. This is true as this complaint acts as a feedback to enhance the quality of the services. In fact the consumer would be spending time to share his experience which may provide first hand insight into the service delivery of the organization and may highlight the grey areas which may require immediate attention or improvement.
b) Apologizing for the inconvenience caused- Politeness is when the Service personnel says sorry to the consumer for the occurrence of the problem. This does not mean that the service personnel is accepting the blame for any inconvenience, this only means that the employee is being polite and sharing the concern of the complaining consumer. This is one of the most commonly used methods for any of the customer care executive talking with a disgruntled consumer on phone. This is a very effective method which may calm down an angry consumer, if an executive admits that he apologizes on behalf of the organization for any inconvenience caused.
c) Taking empathetic approach to the complaint– Many a times, the service staff is trained to take an empathetic approach towards the handling of the complaint by the consumer. Through this approach, the staff is not expected to answer in any programmed way, rather, he is given the flexibility to manage the situation by putting himself in the place of the complaining consumer and then look for a solution. Since the service personnel is in a better position to understand the way in which the services are produced and delivered, he would be in a better position to find and recommend a solution to the consumer if he can consider himself as a consumer.
d) Getting facts first- For a Service personnel facing an complaining consumer, it is important to explore and collect the facts concerning the complaint first and then look for a solution to be offered to the consumer. The consumer would be sharing his perception about the service inconvenience. However, the extent of compensation to be offered to the complaining consumer shall depend upon the facts related to the reasons for the dissatisfaction and the extent of discrepancy in service quality and service delivery. This time bought by the service personnel to gather facts shall also be useful in calming down an otherwise loud consumer.
e) Correcting the mistake- Having heard the complaining consumer and gathered the necessary and relevant details related to the complaint, it is important to set the problem right. Whatever the mistakes, it should be sought to be set right by the Service personnel handling the complaint. Very often, a free service or a gift is the commonly used tactics of pleasing an angry consumer. However, this method should be used with caution. There may be habitually complaining consumers. While a local service provider may be able to identify such consumers, large service organizations may not have this benefit. Therefore, the priority should be correct the mistake first and if need be please the consumer with a free gift.
To elaborate on this point, let us assume that there is a consumer who is dissatisfied with the taste or hygiene of a food item at a restaurant. If the consumer is complaining, one of the easiest methods to satisfy him is to replace his dish free of cost and if needed, offer him another dish free or may offer to have his complete meal of, depending upon the situation. In another situation, a telecom subscriber is complaining to a service center executive on phone about the faulty deduction of cash from his prepaid sim card. In such a complaint, the executive, after having gathered all the facts, may offer to revert the deducted balance and end the conversation. He may not proceed ahead to offer any further free service or gift. Thus, the personnel handling the complaint will be better able to decide whether or not to offer a gift depending upon the circumstances in which the complaint is made and the nature of the complaint.
The executive handling the complaint should be able to quickly judge what the consumer feels is a right way of solving his complaint. What may look right to the executive may not be perceived as right by the consumer. Thus, while offering a solution to eth complaint, it is important to understand the expected solution from the consumers point of view.
f) Learning from the complaint– As mentioned earlier, each complaint received is an opportunity to learn and improve the service quality. Whatever be the solution offered to satisfy the complaining consumer, it is henceforth important to ensure that the same reason for a complain may not occur again. This may require training of the staff, modification in the existing service delivery procedure, upgrading of the service production and delivery system, improvement in the support system etc. Whatever be the cause of the complaint should be looked into detail and all efforts should be undertaken to avoid the occurrence of a consumer complaint again due to the same reason.
CHECK YOUR PROGRESS
12. What is the meaning of “Getting the facts right,” in the context of Customer complaint handling?
13. Does apologizing for the complaint means the service organization is guilty of the poor service quality?
14. What could be the solutions offered to a disgruntled consumer of Car Insurance?
15. How far is it possible for a service personnel to take an empathetic view of the complaint? Describe with the help of an example.
16. What should be the first reaction of the Service staff on receiving a complaint?
1.7 Conclusion
A complaint is an expression of dissatisfaction with the way services are delivered as against the promises made by the service provider at the time of sale of services. Services being intangible in nature cannot have a standard quality parameter. A consumer would feel dissatisfied if his level of expectations from the service performance does not match the perception of the service performance actually delivered to him. In the event of dissatisfaction, different consumer may behave differently. Some consumer may prefer to keep quite but discard the future dealing with the service provider. Other consumers may complain but not to the organization. They may go about sharing their dissatisfaction with their family, friends and peers. The other set of consumers are the ones who may prefer to directly share their concern with the authorities in the organization. If the service organization fails to satisfy the complaining behavior, the consumer may opt for a legal recourse to his complaint redressal. It is important to satisfy a complaining consumer as his complaints provide an insight into the service delivery system and facilitate the improvement of overall service performance. Further, it is important to please such a consumer as otherwise he may create a lot of negative word of mouth for the service organization. It is necessary for organizations to have a well planned formal complaint handling procedure in place where all the employees are trained to accept complaints in the most courteous manner. Some formal authority is vested with the person entrusted with the responsibility of handling complaints for taking any decision to rectify the complaint and also to please the consumer that he leaves with a positive attitude. Complaints should be seen as a learning opportunity in enhancing the overall service quality.
Summary
While marketing intangible services, the seller attempts to create an image of the service in the minds of the potential consumer. If the actually delivered service quality does not meet the expected level of quality by the service, the consumer will be dissatisfied. Many a time, the service may be as per the expectations, but the behavior of any service staff or the working or performance of any support gadget may cause inconvenience to the consumer. There could be a situation where after the service consumption, the consumer may not think the worth of the service equal to the price he paid for the same. Due to any of the above mentioned reasons, a consumer could be dissatisfied and may have a reason for a complaint. Some consumers do not share their complaints with the right authority but may go around blaming the service organization. A good service organization ensures the creation and implementation of a formal customer complaint handling system which encourages and welcomes the complaints as learning feedback from the dissatisfied consumers. This feedback helps organizations to upgrade their services and enhance the quality of services delivered. The smooth implementation of a well intentioned complaint system requires training of the staff in dealing with the complaining consumers and requisite authority to the complaint management executive to rectify the mistake and ensure that the consumer walks off the organization pleased. For this, the complaining consumer needs to be addressed politely and facts should be gathered to address the concern of the consumer. This could be done by offering a gift or a discounted service, as the case may be.
Learn More:
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c) Gelbrich, K. and Roschk, H. (2010). A Meta analysis of organizational Complaint Handling and Customer Responses: Journal of Service research. 1, 1-20. Marketing Management, 22(5-6), 619-642.
d) Gruber, T., Szmigin, I. & Voss, R. (2006). The desired qualities of customer contact employees in complaint handling encounters. Journal of Marketing Management, 22(5-6), 619-642.
e) Homburg, C. & Furst, A. (2005). How organizational complaint handling drives customer loyalty: an analysis of the mechanistic and the organic approach. Journal of Marketing, 69, 95-114.