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    ComplaintComplaint--Recovery ProcessRecovery Process

    Jason PasterJason PasterThe Pennsylvania State UniversityThe Pennsylvania State University

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    What will be covered today?What will be covered today?Improvements of the complaintImprovements of the complaint- -recoveryrecoveryprocess for your businessprocess for your businessClassifying customer complaintsClassifying customer complaintsResponding to the customerResponding to the customer

    The complaintThe complaint- -recovery process in actionrecovery process in actionA self evaluation of your businessA self evaluation of your business

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    What is the ComplaintWhat is the Complaint- -RecoveryRecovery

    Process?Process?The process where companies receiveThe process where companies receivecomplaints, process them, andcomplaints, process them, andcommunicate back to the customer.communicate back to the customer.

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    What is the goal?

    What is the goal?

    100% customer satisfaction100% customer satisfaction

    Documentation of customersDocumentation of customersproblems/concerns for future referenceproblems/concerns for future reference

    To fix the customers problem/concernTo fix the customers problem/concernwherever feasible, as soon as possiblewherever feasible, as soon as possible

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    How does your organizationHow does your organization

    measure up?measure up?What has your office done to makes sure it listensWhat has your office done to makes sure it listensto the voice of the customer?to the voice of the customer?

    How do the leaders in your organization viewHow do the leaders in your organization viewcomplaints?complaints?How does your organization make it easy forHow does your organization make it easy forcustomers to complain?customers to complain?

    What does your organization do to make it easyWhat does your organization do to make it easyfor employees to solve problems?for employees to solve problems?Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

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    How does your organizationHow does your organization

    measure up?measure up?How does your organization track and analyzeHow does your organization track and analyzecomplaints?complaints?

    How does your organization use informationHow does your organization use informationabout complaints to fix easy problems fast?about complaints to fix easy problems fast?

    How does your organization use informationHow does your organization use informationabout complaints to identify and addressabout complaints to identify and addressunderlying problems?underlying problems?Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.

    http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

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    How does your organizationHow does your organization

    measure up?measure up?How is customer service incorporated in yourHow is customer service incorporated in yourorganizations vision, plans and actions?organizations vision, plans and actions?

    How do you get complaint information to the CEOHow do you get complaint information to the CEOor top management?or top management?

    How does your organization measure customerHow does your organization measure customersatisfaction for your overall service?satisfaction for your overall service?

    Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

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    Classifying ComplaintsClassifying ComplaintsDevelop a system within your organizationDevelop a system within your organizationto rank complaints on urgency.to rank complaints on urgency.

    What is the magnitude of the complaint?What is the magnitude of the complaint?

    EVERY COMPLAINT IS IMPORTANT!EVERY COMPLAINT IS IMPORTANT!

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    ComplaintComplaint--Free CustomerFree Customer

    Service?Service?No one is perfect, everyone makesNo one is perfect, everyone makesmistakes!mistakes!

    Sounds nice, but it will beSounds nice, but it will becounterproductive in the long run.counterproductive in the long run.

    A good service accepts that things are wrong and fixes it.A good service accepts that things are wrong and fixes it.--Ken Birkby, head of customer service for Marks & SpencerKen Birkby, head of customer service for Marks & Spencer

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    ComplaintComplaint--Friendly CustomerFriendly Customer

    ServiceServiceIt should be easy for customers to get inIt should be easy for customers to get intouch with your company.touch with your company.Customers should always be treated withCustomers should always be treated withrespect and courtesy.respect and courtesy.The customer is AL WAYS right, even whenThe customer is AL WAYS right, even whentheyre wrong.theyre wrong.

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    Communicating to the CustomerCommunicating to the CustomerOrganizationOrganization

    PatiencePatienceUnderstandingUnderstandingAssuranceAssurance

    HonestyHonesty

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    Getting Customer Feedback

    Getting Customer Feedback

    Passively Solicited Customer Feedback Passively Solicited Customer Feedback W

    aiting for the customer to come to youW

    aiting for the customer to come to youabout grievances/gratitude's.about grievances/gratitude's.Actively Solicited Customer Feedback Actively Solicited Customer Feedback

    Asking the customer if he/she has anyAsking the customer if he/she has anygrievances/gratitudes regarding his/hergrievances/gratitudes regarding his/herexperience with your business.experience with your business.

    Foster, S. Thomas.Foster, S. Thomas. Managing Quality, an Interactive Approach.Managing Quality, an Interactive Approach. Upper Saddle River, NJ: PrenticeUpper Saddle River, NJ: Prentice- -Hall, 2001.Hall, 2001.

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    Implementation of a New SystemImplementation of a New SystemIssue a policy statementIssue a policy statement

    Establish an implementation teamEstablish an implementation teamEstablish a tracking systemEstablish a tracking systemDevelop recommendations forDevelop recommendations forimprovementimprovementImplementImplement

    Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

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    Some Suggestions forSome Suggestions for

    ImprovementImprovementMake it easy for your customers to complain andMake it easy for your customers to complain andyour customers will make it easy for you toyour customers will make it easy for you to

    improve.improve.

    Respond to complaints quickly and courteouslyRespond to complaints quickly and courteouslywith common sense and you will improvewith common sense and you will improvecustomer loyalty.customer loyalty.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

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    Key to SuccessKey to Success

    Doing the job right the first timeDoing the job right the first time++ Effective complaint managementEffective complaint managementMaximum customer satisfaction/loyaltyMaximum customer satisfaction/loyalty

    -- Toyota Motor Sales USA, Inc. has adopted this formula forToyota Motor Sales USA, Inc. has adopted this formula forcustomer satisfactioncustomer satisfaction

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    More Suggestions forMore Suggestions for

    ImprovementImprovementUsing technology is very important in a complaintUsing technology is very important in a complainthandling system.handling system.

    Recruit and hire the best for customer serviceRecruit and hire the best for customer servicejobs.jobs.

    Resolve complaints on the first contact.Resolve complaints on the first contact.

    Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.Federal Benchmarking Consortium , Best Practices in Resolving Customer Complaints, Internet.http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

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    Electronic Controls CompanyElectronic Controls Company

    (ECCO)(ECCO) --TH

    E PROBLEMTH

    E PROBLEMStarted receiving an unusually largeStarted receiving an unusually largenumber of complaintsnumber of complaints

    No way to keep track of complaintsNo way to keep track of complaints

    Management sensed they were getting theManagement sensed they were getting thesame complaints repetitivelysame complaints repetitively

    Finegan, Jay. The rigorous customerFinegan, Jay. The rigorous customer- -complaint form. ABI Inform. March 1994. V16 n3. P. 101complaint form. ABI Inform. March 1994. V16 n3. P. 101--103103

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    Electronic Controls CompanyElectronic Controls Company

    (ECCO)(ECCO) --TH

    E SOLUTIONTH

    E SOLUTIONThe customers information, complaint, andThe customers information, complaint, andcorrective action were all stored into a database.corrective action were all stored into a database.

    Hard copies of complaints were filed in twoHard copies of complaints were filed in twobindersbinders

    OpenOpen -- complaints which are pendingcomplaints which are pendingClosedClosed-- complaints which have been solvedcomplaints which have been solved

    Management was able to track the commonManagement was able to track the commonproblems to figure out the source of the problem,problems to figure out the source of the problem,which yielded a fix.which yielded a fix.

    Finegan, Jay. The rigorous customerFinegan, Jay. The rigorous customer- -complaint form. ABI Inform. March 1994. V16 n3. P. 101complaint form. ABI Inform. March 1994. V16 n3. P. 101--103103

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    ActivityActivityWrite down 4 ways to improve yourWrite down 4 ways to improve yourcompanys complaintcompanys complaint- -recovery process.recovery process.Do your improvements include:Do your improvements include:Less RedLess Red--TapeTapeBetter use of TechnologyBetter use of Technology

    More Knowledgeable Customer ServiceMore Knowledgeable Customer ServiceEmployeesEmployeesFaster Response TimesFaster Response Times

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    SummarySummaryThe complaintThe complaint- -recovery process is key torecovery process is key tosurviving in business.surviving in business.

    The process should be constantly reviewed forThe process should be constantly reviewed forimprovements.improvements.The customer should play an active role inThe customer should play an active role inevaluating your process.evaluating your process.

    With a winning process your customers will beWith a winning process your customers will behappier, which in turn will make your businesshappier, which in turn will make your businessmore successful.more successful.

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    BibliographyBibliographyBrown, Stephen W. Service recovery through IT: Complaint handling willBrown, Stephen W. Service recovery through IT: Complaint handling will

    differentiate firms in the future. Marketing Management. v6 n3. Fall 1997.differentiate firms in the future. Marketing Management. v6 n3. Fall 1997.p.25p.25--27.27.

    Complaint handling can increase customer loyalty. Management Today.Complaint handling can increase customer loyalty. Management Today.December 1998. p. 11December 1998. p. 11

    Federal Benchmarking Consortium , Best Practices in Resolving CustomerFederal Benchmarking Consortium , Best Practices in Resolving CustomerComplaints, Internet.Complaints, Internet.http://www.npr.gov/library/papers/benchmrk/bstprac.htmlhttp://www.npr.gov/library/papers/benchmrk/bstprac.html . (2/16/01). (2/16/01)

    Finegan, Jay. The rigorous customerFinegan, Jay. The rigorous customer- -complaint form. ABI Inform. March 1994.complaint form. ABI Inform. March 1994.V16 n3. p. 101V16 n3. p. 101--103103

    Foster, S. Thomas.Foster, S. Thomas. Managing Quality, an Interactive Approach.Managing Quality, an Interactive Approach. Upper Saddle River,Upper Saddle River,NJ: PrenticeNJ: Prentice--Hall, 2001.Hall, 2001.

    McClendon, Bruce. ComplaintMcClendon, Bruce. Complaint- -free customer service. Public Management. V79free customer service. Public Management. V79n3. March 1997. p. 21n3. March 1997. p. 21--23.23.

    S, Stephen. Customer evaluations of service complaint experiences:S, Stephen. Customer evaluations of service complaint experiences:Impliceations of relationship marketing. Journal of Marketing. v62 n 2. AprilImpliceations of relationship marketing. Journal of Marketing. v62 n 2. April

    1998. p. 601998. p. 60--76.76.