Complaint Management

Whether customers complain or not depends in a variety of factors:

* The problem characteristic * The customer characteristic * The expected redress * The height of the complaint threshold

Kempen, 2009

Complaint management is a tool to prevent the migration of customers to competitors and when carried out effectively, can create satisfied customers,

Complaints are opportunities

Complaints are opportunities for organisations, as they can create long-term loyalty and help identify weak points in an organisations system. Complaints are also a good way to evaluate how well an organisation is doing and improve customer satisfaction. If a customer complaints, there is the opportunity for the company to improve their service delivery and to build a relationship with that customer.

Conclusion

Complaints should be regarded as opportunities for companies to improve their service strategy. Whilst some customers will abuse the complaint system, many complain because they want the issue to be solved and to improve service encounter for the future. Companies should ensure they have a designed complaint handling system, respond to customers quickly but, most importantly, tackle the root cause of WHY people complain

The expected redress

Customers balance the perceived trouble involved in complaining with the expected outcome. People are more likely to complain if they know WHERE and HOW to complain. Complaint rate is higher if they believe the organisation will quickly respond and if they think the outcome will be worthwhile. Therefore, communicating exactly how organisations can be contacted is vital.

The problem characteristic

Customers complain about significant problems and when there is the potential of financial loss. This is partly dependent on the type of and experience with the product or service.

Why do cux complain and why not?

Customers complain for many reasons and have a legal right to do so if the product they buy is not as advertised. Reasons why customers complain are: * To release anger * When their expectations have not been met * Because of the concern for others who will use the service in the future. For instance, one may complain about poor accessibility for disabled people. Meanwhile some people may NOT complain because they think it is a waste of time, their problem will not be addressed, or they do not know where to complain. This is an issue for organisations, as if customers cannot complain, organisations cannot rectify their mistakes.

Commutating how the organisation can be contacted

Ensuring customers can complain quickly is essential. Response time is incredibly important as satisfaction with complaint handling can only be achieved through a quick response. Several factors can help assist organisations in responding quickly, including; anticipating complaints, empowering front-line staff and prioritizing complaints. Front line staff should have the adequate skills to deal with irate customers and training procedures can ensure staff know the correct protocol and how to react when a customer complains. Front-line employees are the face of an organisation and should always know what to do when a customer complains

What is lowering the complaint threshold?

Organisations that do not encourage complaints will not be aware of their existing dissatisfaction from consumers and will consequently have no opportunity for service recovery, (Looy 2003). One objective of complaint management is to maximise the number of complaints and minimize the number of actual service problems.

The customer characteristic

People may complain even if there is nothing wrong with the service or product on offer. For example, it has been argued by Van Looy (2003) that assertive and self-confident people are more likely to complain. Socio-demographics are somewhat important as the average complainer has a high income, is relatively young, well-educated and has a high professional job status. Companies should remember that some customers will always complain, regardless of how good the service is, as it is impossible to please everyone. These customers are activist's aka terrorists. Stephens and Gwinner (1998) state that are four types of complainers; passives, voicers, irates and activists (terrorists).

Ryanair

Ryanair has been accused of breaking EU law, because it failed to inform customers where to complain and about their right to financial compensation. The budget airline has often faced criticism from passengers as their website does not clearly state where customers can complain. The airline evidently has a poor complaints management strategy and does not prioritise improving service quality. It is vital companies in the tourism sector inform customers where and how they can complain. If airlines, or any organisation, responds and deals with complaints effectively, it can lead to competitive advantage and improved relations between the consumer and organisation

The height of the complaint threshold

The level of the threshold consists of the sum of all perceived physical, emotional or monetary trouble involved in formulating a complaint.

Introduction

This answer will discuss why complaints are important in terms of enabling improved service quality for consumers, why customers complain and improving the expected redress and lowering the complaint threshold.

Cram 2001

When customers complain, there is an immense opportunity to rectify or destroy the relationship