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Dealing with Consumer Grievances

Whether the issue is about a product or a service, it is a fact that customers will complain, because products do fail and services are not always what the customer was expecting.  Whether or not you are legally responsible for the issue that the customer is complaining about (for instance, if you sold them a defective product), a proper costumer complaint system will ensure that you give both the customer and yourself a chance to resolve the issue to your mutual satisfaction, and possibly even to turn a negative event into a positive one by impressing the customer with how well you handled their issue. 

It is recommended that your business have a structured complaint management system. The following steps comprise such a system:

Listen to the Grievance

• Select someone to be your Customer Complaints Officer, so that complaints can be dealt with uniformly and efficiently;
• Write down the main points of the grievance. A complaint form will allow you to get essential information and help speed up the process. Keep a record of all visits and telephone calls, including who was present and what decisions were made;
• Be sympathetic, show concern;
• Ask questions and summarize to establish the circumstances causing the dissatisfaction;
• If possible, get the individual to suggest a solution to the problem;
• Don't commit yourself too quickly to any solution;
• Have written policies and ensure all staff are familiar with the policies and procedures;
• It may be helpful to prepare a leaflet for customers to explain how you deal with complaints.

Investigate

• Check the facts;
• Clarify all variables involved in the complaint;
• Review the company's policies, procedures, customs and practices in the same or similar situations.

Assess the Facts

• What are the pros and cons?
• Has there been a precedent in the past?
• What are the possible solutions?
• Should the grievance be passed to a higher authority?
• Don’t be afraid to admit fault.

Communicate what you propose to do

• Arrange a meeting with the individual and key staff;
• Have a secretary there to "minute" the meeting.  (The minutes from the meeting need to be made available after the meeting for signature by both sides);
• Ensure there is privacy and that there are no interruptions during the meeting;
• Present your proposals.  If no agreement can be reached or the proposed action is unacceptable, state the nature of future action or the procedure for an appeal; 
• If an agreement can be reached, agree to the solution and the solution time frame. Always fully explain the final decision to the customer first face and face and follow up with a letter so that your records and the customer have a written version of the final decision.

Follow Up

• Check that what was agreed has happened;
• Is the customer satisfied with the outcome?

Contact Consumer Affairs

If you cannot work out an acceptable solution, it may become necessary to refer the matter to Consumer Affairs. The Inspector assigned to the case will want evidence from both sides to show there was a reasonable effort to solve the problem. We can also suggest ways in which the problem can be solved.