Resolving Consumer

ComplaintsHow to do it right!

Let’s take a look at real life…

Have you ever been unsatisfied with a good or service?

Have you ever written a letter of complaint?

Quick Facts… “A typical business hears from only about 4% of its

dissatisfied customers — 96% just go away … and 91% will never come back.”

“Most customers just go away because they believe their complaints will not do any good, not worth the trouble or personal stress, or don't know where or to whom to complain.”

“A dissatisfied customer will tell 9-15 people about it.  And approximately 13% of your dissatisfied customers will tell more than 20 people about their problem.”

“Customer service statistics”

What should I do first?1. Call and talk to Gina’s manager

2. Write a letter of complaint to Costco

3. Call and talk directly to Gina

4. Contact a mediator to help solve the problem.

5. File a class action suit and the sooner the better.

How to Handle a Complaint FIRST THINGS FIRST!

1. Identify the problem

2. Gather records

3. Go back Contact Description Actions Resolution

Do not contact company headquarters until you have first done the above steps!

Don’t Give Up! Call or Write a “Higher Power”

Find out the appropriate person!!! In most businesses, someone is responsible for

handling complaints. Call or do research to find out this person’s name.

Consumer office or the president of the company Where to Look

Library Better Business Bureau Consumer Protection Hotline 800-392-8222

What to Write

Be Brief. State your contact info. Include important dates, names, product info, and

warranty terms. State the problem and how you want it corrected. Be rational, more importantly: BE POLITE! Include COPIES of documents. Give time limit.

Still Not Happy? File a formal complaint

Attorney General Federal Trade Commission Better Business Bureau

Dispute Resolution Programs-less costly than court Mediation: 2 parties try to reach a resolution with the help

of a neutral 3rd party. If 3rd party suggests a remedy, the 2 parties can accept or reject it.

Arbitration: neutral 3rd party listens to both sides and reaches a decision. Binding: must accept decision

Still Not Happy? Legal Action

Small claims court Under MI Law, $5,000. or less do not need to hire

a lawyer. Lawsuit

Hire a lawyer and go to court Class Action Suit

Group of people with same problem

Hypothetical problems you can write your letter about:

Shoes purchased via the Internet or a mail order catalog never arrives. Your check for the shoes has been cashed.

A MP3 player purchased from your local Radio Shack doesn’t work one month after you bought it. The local store where you made your purchase has closed.

A deposit you made via an ATM machine is not credited to your checking account. Checks are coming back marked “insufficient funds.” The bank and the persons to whom you wrote the checks are charging you penalties for the bad checks.

You purchase a waterproof watch you found advertised in a magazine. The first time you wear it while swimming, water gets in and the watch stops working. The watch has a one-year warranty and you have only owned it for two months.

The lock on the door to your apartment building is broken. You contacted the manager of the building to get it fixed but nothing has happened. After two weeks of waiting, you decide it is time to contact the owner of the building.

For these hypothetical situations, you MUST make up any missing details such as date of purchase, product brand and price.

Before you leave today, write down…

3 important terms or ideas to remember about consumer complaints

2 ideas or facts you would like to know more about consumer complaints

1 thing that was helpful to you in today’s lesson