Learner Guide:

Customer Care

SAQA US 7836:

Monitor customer satisfaction

Specific Outcome 3:

Handling customer complaints

https://www.obami.com/portals/Silulo_Ulutho_Technologies/CustomerCare/UnitStandard1/QR_SO1_3

SECTION 3: HANDLING CUSTOMER COMPLAINTS

Specific Outcomes

❖ Explain the importance of evaluating/dealing with complaints. (SO

5)

❖ Explain the importance of understanding company standards. (SO

6)

❖ Describe ways to rectify the complaints. (SO 10)

❖ Suggest possible ways to improve the procedure for handling

customer complaints. (SO 11)

Assessment Criteria

❖ Arrange or create an environment in which the learner

can be fairly assessed against the outcomes. (AC 1)

❖ Evaluate the learner's ability to meet the outcomes. (AC

2)

❖ Provide specific feedback to the learner on assessments

and the learner's ability to meet the outcomes. (AC 3 ;)

❖ Complete the declaration of competence and inform

the appropriate ETQA once the learner has

demonstrated the ability to meet all the outcomes. (AC

4)

❖ Counsel the learner on future assessments, necessary

learning and further qualifications. (AC 5)

3.1 INTRODUCTION

Customer complaints offer you an opportunity to rectify a

situation resulting in prevention of further complaints and

continuous improvement of service. You should react and

respond to all complaints to make sure you never receive the

same complaint twice. Always endeavour to identify and

work to eliminate the cause of the complaint.

Dealing effectively with complaints can result in:

• Elimination of product or service defects.

• Improved operating procedures.

• More skilful customer service behaviour.

• Higher performance standards.

• Complaints and customer feedback forces problems out into the open and people have to

examine them and work towards a solution.

• It enables Customers, as well as the hotel to state their goals and perhaps achieve them.

• Prevents hostilities and resentments from festering.

Common customer complaints

The following list is based on the most commonly accepted issues that irritate Customers:

• Waiting in line.

• Being put on hold.

• Being quoted on price for a room, then learning the real price is higher.

• Poorly informed or unprofessional personnel.

• Employees who say, “It’s not my section” and are reluctant to help Customers.

• Employees who talk down to the Customers.

• Employees who can’t describe how a service operates.

• Employees who speak on the phone while serving a Customer.

• Dealing with complicated forms and no one to assist.

3.2 HANDLING CUSTOMER COMPLAINTS (SO 10, AC 1, AC 2, AC 3, AC 4, AC 5)

As explained earlier, majority of customers do not complain but, they basically take their business

somewhere else. Therefore, the few who complain are actually doing us a favour by pointing our

weaknesses.

A complaint is defined as:

“Any expression of dissatisfaction by a customer or potential customer about service delivery by the

company or its agents, and/or about company or industry policy.”

Each staff member must understand the procedures for handling complaints. See the appendix for

an example of a complaints handling policy.

The following steps can be followed when handling a customer query or complaint.

STEP 1 Listen Carefully

STEP 2 Repeat the complaint and get acknowledgement

STEP 3 Apologise and acknowledge the customer’s feelings

STEP 4 Explain what action will be taken and do it

STEP 5 Follow-up to see if the problem is solved

STEP 1: LISTEN CAREFULLY

People don’t care what you know until they know that you care. The best way to show that you

care is by listening. Listening requires your active participation. For customer satisfaction it is

essential to listen for understanding. Listening also provides time to collect your thoughts.

Read the following comment of a customer and “listen” closely to what the customer wants and write it

in the space provided.

“I expect someone to help me immediately every time I call. I hate call backs! How long do I have to

wait for someone to confirm my booking? Why are you taking so much time- 30 minutes is too much?

Remember am a business women and time is of essence to me? If you can’t save customers then

why are you in business!

STEP 2: REPEAT THE COMPLAIINT AND GET ACKNOWLEDGEMENT

Customers do not always express themselves clearly. You have to state the problem in your own

words to ensure a clear understanding of the problem. You benefit in two ways by repeating your

understanding of a customer’s expectations. You benefit because:

a) You find out whether or not you understand exactly what the clients wants.

b) People calm down once they realise you understand what they want.

Here are some examples:

a) “To make sure I am on the right track, let me double check what your want.”

b) “To prevent a problem, let me summarise what needs to happen.”

c) “So the problem is….”

STEP 3: APOLOGISE AND ACKNOWLEDGE FEELINGS

By apologising you express your respect for the customer’s feelings and it will calm him/her down.

Some examples are:

a) “What you’re telling me is important”

b) “Thank you for telling me about this”

c) “Thank you for your patience”

d) “Let me make some notes about what needs to be corrected”

e) “I apologise for the inconvenience you have endured”

STEP 4: EXPLAIN WHAT ACTION WILL BE TAKEN AND DO IT

The tough part is when you cannot give people exactly what they want. In this situation, outline the

alternatives. Saying, “There is nothing I can do,” will set some people into an attack mode.

Suggest something else or say what you will do set the problem right. Ask your customer if that will

be all right.

A golden rule is to take action immediately – do it now! Whatever you have to do to solve the

problem, make sure that you follow it through. If you are not the right person to deal with the

complaint or query escalate it to the relevant person. In addition, inform the client that you are

going to escalate the enquiry.

STEP 5: FOLLOW-UP TO SEE IF THE PROBLEM IS SOLVED

Double checking for satisfaction on corrective actions, builds appreciation and loyalty. It is one of

the secrets of customer satisfaction.

It is sometimes another person’s responsibility to solve a problem for a customer. But because the

customer was complaining to you, it remains your responsibility to check whether the problem is

solved, not only with the person who sets the problem right but also if the customer is satisfied.

Card 2 - Dealing with dissatisfied customers

1. Say “I am sorry”. These should be the first three words out of your mouth. It cost

nothing. It isn’t admitting fault. You are just sorry they are feeling

inconvenienced. These are the most powerful words you can speak to a

complaining customer. Don’t get defensive, make excuses or argue. Even if their

position is clearly off-base. Their perspective is their reality and must be

honoured. By getting defensive, this will only make things worse for you and for

them. Resist the urge to protect yourself. Nobody ever won an argument with a

customer. Even if you “win” and prove you right, you lose!

2. Fully understand the problem. Ask questions and repeat back what you think you

have heard. Make sure everything is crystal clear.

3. Tell them what you going to do next and when you will get back to them. Seeing

you taking immediate and logical action will help them feel handled

competently. Don’t leave them hanging and stressed about the problem. If they

know exactly when you will be getting back to them, they will feel handled well.

4. Thank them for bringing the concern to your attention right away. You especially

want to do this with the little things, so they’ll keep bringing them up, rather than

silently going to your competition.

5. Do what you said you would do. Studies

indicate that the faster you resolve

problems, the less damage is done.

6. Thank customer/Bid Farewell

I. A customer approaches you and is visibly upset. He informs you that the table allocated

to him and his clients is “unbearable” because it smells strongly of cigarette smoke.

Neither he nor his client’s smokes and the odour is making them sick. He informs you

that he feels a company of this calibre and price should have better service. He demands

immediate action. What do you do?

II. Discuss the complaints handling policy for your organisation.

Critical points to remember when dealing with customer queries:

1. Act on the query/complaint immediately.

2. Always try and suggest a suitable course of action.

3. Always empathise and deal professionally with each objection to the customer’s satisfaction.

4. Be prepared to assist promptly.

5. With polite appreciation, never enter into an argument with customer.

6. Always make an effort to grant the request or find / offer a suitable alternative.

7. By always trying to understand the customer’s position, listening, and remaining calm and

focused on solutions.

Basic steps in offering services and checking for customer satisfaction

1. Greet the customer and welcome them to your lounge

2. Introduce yourself

3. Offer assistance

4. Listen to the customer with empathy

5. Tell them the correct person to speak to (if applicable)

6. Escort them to the correct person / department / supervisor / manager (if applicable)

7. Introduce the customer to the colleague (if applicable)

8. Tell the customer what you are going to do.

9. Check Satisfaction and offer further assistance.

10. Thank Customer/ Bid Farewell

TURNING COMPLAINING CUSTOMERS INTO LOYAL CUSTOMERS

Many people who write on customer service like to quote a study conducted by the

Technical Assistance Research Programs Institute. Here are a few things the study

revealed:

• It costs six times more to attract a new customer than it does to keep an old one.

So, attending to customer loyalty is a cost-effective endeavour.

• The average business never hears from 96% of its unhappy customers. Although

percentages vary from industry to industry, the truth is that most customers don’t

like to complain – especially about the little things. Yet, it’s the little things that

add up and cause customers to move to other businesses.

• For every complaint heard, the average company has 26 other customers with

the same problem. More evidence that customers will withhold their complaints.

• The average unhappy customer will remember the incident for 23 years. How

many people could they tell over that length of time?

• The average happy customer will talk about the pleasant experience for only 18

months. This means we have to do tons of great things for our customers to

overcome a pound of negative.

• Complainers are more likely than non-complainers to do business again with the

company that upset them.

• The bottom line is – encourage your customers to complain!

“Why would I want customers to complain”, you might ask? “Complaints are not much

fun.” You want your customers to complain for at least 4 reasons:

1. If they don’t complain, you will not know, and you cannot fix the problem.

2. If they are having a problem, then it is quite likely that other are having it as well.

3. Research indicates that if they do not complain, they are likely to quietly go to

your competition.

4. They are telling lots of other people about their bad experience.

3.3 IMPORTANCE OF DEALING WITH CUSTOMER COMPLAINTS (SO 5, AC 1, AC 2, AC 3, AC 4, AC 5)

By talking back when they believe they have not received their money's worth, consumers give

businesses an opportunity to correct the immediate problem and restore goodwill. Experience

shows that consumers who complain about products and services continue to frequent the

businesses and buy the products they complain about if they believe the complaint was resolved

fairly.

Research into complaint behaviour reveals that only a fraction of dissatisfied consumers complains

to business and, thereby, gives the company an opportunity to correct the problem. There is

evidence that some consumers do not complain because they are sceptical about business's

willingness or ability to resolve disputes fairly. Consumers simply withdraw their patronage and

criticize the company or the product to others.

Such findings underscore the importance to business of complaint management software that is

well-publicized and easily accessible. An unregistered complaint may do as much harm as one that

is mismanaged or not resolved.

Careful complaint management can save business unwanted costs. For example, negative word-

of-mouth publicity from dissatisfied consumers means lost revenue and necessitates additional

investment in advertising to attract replacement customers.

Complaints and complaint trends tell business how to do its job better by alerting management to

problems that need prompt attention and correction. Furthermore, they indicate long-range

opportunities for product innovation and problem prevention. A well-planned system for screening

and recording complaint data can provide business owners and managers answers to such

important questions as the following:

• Are products "oversold" or "over advertised?"

• Is advertising clearly understood?

• Are salespeople overzealous?

• Do product disclosures (such as labelling, warranty information and service agreements) need to be improved?

• Are user's manuals clear, complete and easy-to-read?

• Would changing warranty coverage reduce complaints?

Complaints also provide information about product quality:

• Are there opportunities for product improvements or better quality control?

• Are there indications of safety defects that should be reported and corrected, or that justify a recall?

To get this valuable feedback, complaint-reporting must generate information swiftly and

systematically to the appropriate managers or departments. Initial screening should trigger

immediate action, when necessary, and statistical summaries should identify trends and long-range

courses of action.

3.4 IMPORTANCE OF COMPLAINTS HANDLING POLICY (SO 6, AC 1, AC 2, AC 3, AC 4, AC 5)

A well-developed complaints handling policy gives your business a strategy, guidelines and clear set of

directions for handling customer complaints. Once you have created a complaints handling policy, it's

important to implement it within the day-to-day operations of your business.

Reasons for creating procedures for complaints

Putting a complaints procedure in place will help staff handle complaints, and will provide you with

a document that you can share with clients that to help them understand the process. In essence

a complaints handling standard will provide the following information to employees;

• How complaints are to be recorded and filed.

• Who needs to be notified, internally and externally, about different types of complaints?

• Who has authority for dealing with complaints?

• Timescales for investigating the complaint and responding to the client.

• Circumstances in which complaints should be escalated within the practice.

• Circumstances in which no action will be taken on complaints or communication with a complainant will cease.

• Guidelines on appropriate remedies.

IMPORTANCE OF POLICIES IN GENERAL

Let us look at some of the benefits of company standards;

• First, employees are provided with information that allows them freedom to carry out their job and

make decisions within defined boundaries.

• Second, employees understand the constraints of their job without using a ‘trial and error’

approach, as key points are visible in well-written policies and procedures.

• Third, policies and procedures enable the workforce to clearly understand individual & team

responsibilities, thus saving time and resources. Everyone is working off the same page;

employees can get the “official” word on how they should go about their tasks quickly and easily.

• Fourth, clearly written policies and procedures allow managers to exercise control by exception

rather than ‘micro-manage’ their staff.

• Sixth, clearly written policies and procedures provide legal protection. Juries apply the ‘common

person’ standard. If written clearly so that outsiders understand, the company has better legal

footing if challenged in court.

Having procedures in place will help you manage a complaint in 3 stages by:

1. finding out why your customer is unhappy

2. doing everything you reasonably can to make your customer happy

3. Reviewing the incident to consider potential improvements to service or complaints handling.

3.5 IMPROVING COMPLAINTS HANDLING PROCEDURE (SO 11, AC 1, AC 2, AC 3, AC 4, AC 5)

The following are ways that organisations can implement inorder to effectively handle complaints.

Step Action

1. Never ignore a complaining Customer. Give him or her your undivided

attention.

2. Listen carefully to the reason for the complaint. If you are not quite sure on the

point he/she is making, ask him/her to clarify the complaint.

3. Put yourself in the Customer’s shoes, and use positive and friendly words and

comments throughout the conversation.

4. Stay calm and if you feel irritated by the nature of the complaint, don’t’ show

it. You won’t get very far if you start being aggressive.

5. Ask pertinent questions so that you remain in control of the situation and

generate the information required to be of assistance.

6. Record all complaints, however trivial:

• Name of customer

• Date

• Nature of complaint

• Action taken

• Date complaint is resolved

• Any follow-up if necessary

7. Apologise and show the Customer that you are taking immediate action. E.g.

rectify the problem or take down all their details so that you can refer the

problem to your manager.

8. Explain to the Customer how the problem started and that it was not done

intentionally. Stick to the facts; don’t create false impressions or be dishonest.

Don’t tell a Customer her room is being cleaned when you know that the

cleaners are still on lunch.

9. When working on a complaint, keep the Customer informed. Inform the

Customer if there are going to be any delays in solving the matter.

10. Follow the complaint through to its logical conclusion and make sure that the

complainant is perfectly happy about everything before you close the matter.

11. Remember, a Customer’s complaint is always valid, no matter how outrageous

it is.

12. Mistakes happen and complaints will occur. Don’t get depressed by them.

Every complaint is an opportunity to demonstrate your commitment and

professionalism to your Customers and that can lead to increased Customer

loyalty.

13. Let the Customers know that, if they are unhappy about something, they will

find it very easy to approach the hotel with their complaint, and that complaint

will be attended to promptly.

You could say something like: “We’re sorry for the inconvenience you have

been caused”

3.6 ELEMENTS OF AN EFFECTIVE COMPLAINTS HANDLING SYSTEM

The following are the basic elements that must be in place for effective complaint management.

1. Designate a Location to Receive Complaints

Consumers need to know where and how to file complaints or make inquiries.

Select a place to receive complaints that is visible and accessible to consumers.

Publicise the complaint system to encourage consumers to voice their dissatisfaction and to make

the good intentions of the company apparent.

2. Develop a System for Record-keeping

Prepare forms for recording, categorising and filing complaint records. Design the system to perform

functions such as the following:

communicating complaint data to top management;

permitting swift identification and response when complaints need to be reported to other

departments or companies in the distribution network, or to law enforcement or regulatory

agencies;

providing market research through complaint trends; and

Enabling management to monitor the efficiency and effectiveness of the complaint management

system.

3. Prepare and File a Report on the Disposition of the Complaint, and Periodically Analyse and

Summarise Complaints

Circulate complaint statistics and action proposals to appropriate departments.

Develop an action plan for complaint prevention.

Make sure the consumer viewpoint is given appropriate consideration in company decision making.

4. Investigation procedure

Planning is key; not only to taking a systematic approach, but to ensuring consistency in the way

you handle complaints Investigation of a complaint should be thorough, impartial and

proportionate. The extent of investigation should be determined by the seriousness of the

complaint, the potential for a re-occurrence and the degree of injury or harm to the patient or

others. It is a principle of good practice that the investigation should be carried out by someone

other than the people involved in the complaint.

3.7 ESCALATING CUSTOMER ENQUIRIES

Not every staff member can have a solution to a customer enquiry let alone a complaint therefore;

a customer service issue escalation procedure must be in place. At a minimum the process should

include the following levels of escalation.

Level 1: FIRST CONTACT PERSON

This is the first person who is in contact with the customer either telephonically, face to face, email

or any other form of communication. The first contact person can be the receptionist, call centre

agent or sales representative. It is the responsibility of this first person to try and resolve the customer's

issue or problem in a pleasant manner.

Level 2: EXPERT

If the customer's issue is related to a technical problem or a specific product and the first contact

person does not have the information to help the customer, then they should pass the issue onto

an appropriate expert for resolution. At this point, it is important to let the customer know that an

expert will need to handle the issue.

Level 3: MANAGER OR SUPERVISOR

When there is no expert or the expert does not resolve the issue, the enquiry should be promoted

to the customer service supervisor or manager. Or the customer may request this third level of

escalation if they are unhappy with what they have encountered thus far.

1. Identify possible customer enquiries that you can handle without escalation.

2. Identify the nature of customer enquiries that you normally escalate to other parties.

Nature of customer enquiry To who: