When customers complain
Complaints provide an opportunity for you to show commitment to customers
Customer complaints can be an "opportunity", not a "threat".
All businesses have complaints, but by identifying and responding quickly to complaints, you can gain a competitive edge.
Research has proved that effective handling of complaints can result in:
- reduced costs (through quality of information)
- time savings (through increased efficiency)
- increased revenue (profits)
- increased goodwill and corporate image
- retention of customers (customer loyalty)
- improved staff morale
It has been estimated that it costs five times as much to win a new customer as it does to retain an existing one.
Customers will talk to their friends and families about dealings they have had with your business. Research has shown that, if complaints are not fixed quickly, they will tell up to 20 people; but on average will recommend your business to 15 friends if the complaint is sorted out in the store.
Consumer Protection also produces a range of publications related to competition policy and businesses:
- Competition Policy and customer focus
- Industry-based dispute resolution
- Complaint handling guidelines for traders
- Customer Charters and information disclosure
Copies of these publications and more information an be obtained by telephoning Consumer Protection on 1 300 30 4054 or calling at 219 St Georges Tce, Perth.