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Using Complaints

Six out of seven customers who should complain, do not complain. They silently take their business elsewhere and you may never know it. The one in seven customers that do complain are saying that if only you could correct the situation, they would like to continue to do business with you.

Customer complaints offer two opportunities. First, an opportunity to satisfy a customer with your positive response to the complaint, and second, as a readily available source of improvement requirements that you can use to set objectives for a systematic improvement program.

The first challenge, and a solid reason you need a systematic complaint management system, is to be able to record all complaints and not lose the information from (or the opportunity to satisfy) an existing customer. Many companies have no way to record a verbally received complaint and usually lose the opportunity to uncover a problem area. Other organizations have no way to receive any complaint, even a verbal one. 

There is a trap here: a low level of complaints may mean that you do not have an efficient way to receive them - not necessarily that you are doing well. We have all heard people say that customer complaints are down, so we must be doing better. The opposite may be true. You are at least getting ready to do better when you are able to gather more complaints, analyze them, and then use them for improvement.

OK, complaints are useful (and even valuable) and  more of them may be better than fewer of them. What do you need to do now? Shaw suggests that a complaint management system, will help you:

gather more complaints;

satisfy customers making complaints (and those who haven't bothered to complain to you, but are thinking of going elsewhere);

analyze those complaints to identify improvement opportunities;

select which complaint categories are priority improvement opportunities;

feed these opportunities to improvement resources, such as cross-functional improvement teams

The Shaw complaint management system has been proven over the last 12 years within complex, service-oriented organizations, creating relatively inexpensive improvements that show dramatic results in increased customer satisfaction and cost savings across the board.

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Complaints - Buried Treasure in Your Own Backyard

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The Complaint Prescription (for Health Care Executives)
 Click here to take the Complaint IQ Quiz
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