BLOG: Complaints Can Be Beneficial – by Lisa Mitchell

Who’d have thought it? Well, the Financial Ombudsman Service for one.

In a recent newsletter, they refer to findings from the Technical Assistance Research Project (TARP) which states that customers who complain and are subsequently satisfied are 8% more loyal than if they had no problem at all.

Dissatisfied customers are more likely to tell people about their experiences than satisfied customers but businesses are often left in the dark. Sources suggest companies may never even hear from over 90% of their unhappy customers as they’d rather tell a friend or a colleague.

There’s nothing groundbreaking about these stats in themselves but they do emphasize the importance of investing in a robust complaints management system. Moreover, companies must review Management Information at a senior level and ensure that someone with the relevant knowledge and experience takes ownership of this area of the business. They must then establish rigorous, binding processes for others to follow.

But perhaps the biggest threat to companies today is the all consuming social media juggernaut. Facebook, Twitter and the like give individuals a platform on which to vent their frustrations. It’s not like telling your mum or your best mate, damning critiques can spread like wildfire in cyberspace and it’s nigh on impossible to suppress output of these commentaries.

Technology is extremely accessible in the modern era and attempting to curb circulation is likely to prove fruitless. But we should at least attempt to keep tabs on it and set about developing software that tracks customer feedback and generates profitable insights as a result.

Companies must focus on the fallout of these complaints, resolve them quickly and effectively and endeavour to treat every customer as the exception.

by Lisa Mitchell – Director of Compliance & Business Assurance, Jan 06 2011, 05:00 PM