TVET PROGRAM TITLE: Accounts and Budget Support Level –III

MODULE TITLE Process Customer Complaints

LEARNING OUTCOMES:
At the end of this module the trainer will be able to
LO1: Respond to complaints
LO2 Refer complaints
LO3: Exercise judgement to resolve customer service issues

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TABLE OF CONTENTS PAGE
LO1: Respond to complaints .......................................................................................................... 3
1.1 What is Complaint ................................................................................................................ 3

1.2 How to Respond to Customer Complaints............................................................................ 3

1.3 Customer Complaints Procedure .......................................................................................... 6

1.4 Complaint handling system................................................................................................... 7

1.5 Customer Complaints and Types of Customers.................................................................... 9

1.6 Types of Complainers and How to Respond Effectively.................................................... 11

1.7 Developing a complaint handling procedure ...................................................................... 12

1.8 Customer service guidelines ............................................................................................. 15

1.9 How to Respond To Customer Complaints with Social Media .......................................... 17

LO2 Refer complaints................................................................................................................. 20

2.1 When to refer the complains of customer ........................................................................... 20

2.2 Refer a dispute to Conciliation Services ............................................................................. 20

2.3 Refer a dispute to Workplace Mediation Services .............................................................. 20

2.4 Types of complaining customers ........................................................................................ 21

LO3: Exercise judgement to resolve customer service issues ................................................. 22

3.1 Four Ways to Resolve Customer Service Issues................................................................. 22

3.2 How to respond to criteria about judgment......................................................................... 23

3.3 How to Apologize On Social Media ................................................................................... 24

3.4 Is The Customer Always Right? ......................................................................................... 25

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LO1: Respond to complaints
o Processing customer complaints using effective communication
o Obtaining, documenting and reviewing necessary reports relating to customer complaints
o Making decisions about customer complaints
o Negotiating resolution of the complaint and obtain agreement where possible
o Maintaining a register of complaints/disputes
o Informing customer of the outcome of the investigation

1.1 What is Complaint

Sworn statement filed by a party (the complainant, petitioner, or plaintiff) to a court to
commence litigation against another party (the accused, defendant, or respondent) in a civil
lawsuit. Complaint sets forth the alleged grounds (allegations) for the case and request for award
of relief (damages) or recovery of some asset such as money or property. In criminal cases the
complaint is filed by the public prosecutor, a government official also called petition
1. An expression of discontent, regret, pain, censure, resentment, or grief; lament; faultfinding:
2. A cause of discontent, pain, grief, lamentation, etc.
3. A cause of bodily pain or ailment; malady:
4. Law. The first pleading of the plaintiff in a civil action, stating the cause of action
A complaint is a description of your problem and all the procedures you have followed in order
to resolve it before reaching the point where you no longer know how to proceed.
1. A statement that a situation is unsatisfactory or unacceptable.
 A reason for dissatisfaction.
 The expression of dissatisfaction.
 Law the plaintiff's reasons for proceeding in a civil action.
2. An illness or medical condition, especially a relatively minor one

1.2 How to Respond to Customer Complaints

Take Down Your Defenses
Your company is not perfect. Go ahead and read that again if you need to.
Your company was built by humans and humans are not perfect. Your company is run by at least
some humans. Humans — it turns out — make quite a few mistakes. Do not ever think that your
company is impervious to complaints or concerns. Your company is not above it and if you act
as though it is you will find yourself in murky waters.
If you aren’t willing to skip defensiveness when reacting to customer complaints than you
might as well just stop reading here. The customer will know when you‘re defensive. The
customer will wonder why you‘re defensive. And the customer will dislike you even more than
when they complained. Oh and then they‘ll tweet about your horrible response. You cannot
possibly respond to customer complaints effectively if you approach them defensively.
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Responding to Customer Complaints
No matter how fantastic your product is or how high you set your customer service goals,
situations will arise in which a customer is not completely satisfied with their experience.

If you have a good policy for responding to customer complaints, your efforts can pay off in
droves. The cost of replacing an item or offering a refund is often recouped by the loyalty you
receive in return when you go above and beyond the call of duty to fix the situation.

Meanwhile, research has shown customers who have had a complaint satisfactorily resolved are
extremely likely to recommend a business to others - a bit of free advertising and a potential
bonus to be recorded by your customer management software.

Here are some tips for where to begin when a customer brings a complaint to your attention:

Take complaints seriously

Respond to a customer complaint promptly and with due attention to convey the message that
you take these issues seriously. Establish a standard system for logging and handling complaints
to ensure that all employees are using a similar approach. You can use your customer
management software as part of this system.

Use it as a learning opportunity

Ask some of the most successful business owners how they feel about complaints and you may
be surprised to hear them say, "Great!" Oftentimes, negative feedback provides the perfect
opportunity for you to learn where improvements can be made. Chances are if one person has
encountered a problem, another may be feeling the same thing but has just not spoken up.

Remain calm
Avoid engaging in an argument with a customer who has brought an issue to your attention.
Instead, take time to reflect on the matter and adopt a helpful and objective approach.

Don't make excuses

Concentrate on offering next steps and potential solutions to the customer's problem, rather than
trying to explain why something went wrong in the first place.

Identify with the customer's point of view

Step out of your business-owner shoes and imagine yourself in the customer's place. How would
you feel? Would you be upset? Be honest with yourself in your assessment and let these feelings
inform your response.

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Acknowledge their concerns
Even if you don't agree with what a customer is saying, it is important to demonstrate you have
listened to their point of view and can understand where they are coming from. Your language
may vary based on your assessment of the situation, ranging from "Sorry, we completely missed
the mark" if your business is clearly in the wrong to "I see that we did not fulfill your
expectations" if the customer's complaint is unwarranted.

Ask questions
Gather as much information about the situation as possible by asking questions and requesting
clarification if needed. Take notes to make sure you are capturing all aspects of the issue in
detail.

Keep a record
Use your customer management software to keep track of customer complaints and identify
potential areas for improvement. For example, if 10 people in the past month have complained
that their order arrived later than promised, you may want to focus more resources in this
direction or re-evaluate your policy. Documenting complaints with customer management
software is also important if the same customer has a problem in the future.

Offer an apology
You may be surprised by how much good it can do to simply offer an apology to a dissatisfied
customer. Even if the situation is not your fault, simply hearing words such as "I'm sorry you
have had this experience" can go a long way towards repairing a customer relationship.

Solicit suggestions for next steps

If you are not sure how to respond to a customer's complaint, you may want to turn the question
back around on them and solicit suggestions for a next step. If you don't like their answer, you
are under no obligation to honor their request.

Be realistic with your promises

If you can't do something, don't promise that you will. Only commit to offering realistic solutions
to the customer's problem.

Thank the customer

Because so few dis-satisfied customers actually take the time and effort to let a business know
how they feel, it is important to thank them for doing so. If you want to go one step further, you
could follow up with a letter down the line that explains how their feedback has helped you
improve your operations. Include a coupon or gift certificate as a token of your appreciation.
How to Manage Customer Complaints

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We consistently receive emails asking us to provide information on how to manage and handle
customer complaints. What should a company do, say or avoid? What steps or procedures should
be taken to solve current problems and avoid future ones?
Apology icons
The emails we receive are predominantly from the people on the front lines who've received no
guidance on how to manage the situation, or who have managers committed to traditional
approaches despite the costs or consequences.
The fact that so many employees (across various industries) continually seek our advice when
handling customers or when trying to craft their own perfect apologies suggests that many
organizations still don't appreciate the costs of negative customer feedback, and the value of
effective customer communications for their bottom line.
The first step for any organization is to have a documented customer complaint procedure. While
the procedure itself can be quite simple, the benefits it will provide will be felt throughout the
organization. A systematic accounting of each complaint, along with the response and reaction,
is essential to improving overall customer relations and customer retention.
For customers, a careful and consistent tracking of complaints and procedures shows a level of
professionalism and conveys to clients that their complaints are taken seriously.
For employees, it provides a road map, a set of standard operating procedures, and demonstrates
management support for those on the front lines. It also empowers staff to handle situations more
confidently, efficiently and effectively.
For management, it identifies potential weaknesses and, more importantly, opportunities for
improvement.

1.3 Customer Complaints Procedure

The general guidelines for any procedure dealing with customer complaints are as follows:
Make it easy for customers to be heard. Whether online, over the telephone or in person, make
sure that your customers can easily voice their complaint—without having to wait. Finding it
difficult to contact the right person will only add to their frustration and dissatisfaction.
Listen carefully to what the customer is expressing and give them (and their complaint) your
undivided attention. Don't interrupt them (if the complaint is being given in person); don't
presume you understand their complaint (based on prior experience) before they've had a chance
to fully explain their problem; and don't re-interpret their complaint based on what you think
their problem is. And do not simply scan written communications—read every word of the letter
to understand the issues from their perspective.
Once they have expressed themselves, follow up by asking if there is anything else that needs to
be addressed.
Agree with the customer that a problem is real and relevant—don't dismiss or disagree, and
never argue.
Apologize. Extend a perfect business apology.

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Resolve the issue. Ensure that your staff is empowered with the tools required to resolve the
matter. Define clear written guidelines for compensation/restitution as appropriate. It's important
that your staffs are able to quickly act on a complaint.
Once the issue is resolved, ask the customer again whether there is anything else that needs to be
discussed.
Thank the customer for bringing the matter to your attention, and for improving the quality of a
product or service.
NOTE: Make sure that each complaint is documented in a standardized format for internal
purposes and analysis. Identifying patterns can help identify weaknesses in an organization's
policies and procedures.
Apology icons
Customer service personnel (or anyone dealing with customer feedback) need to be trained on
how to handle complaints by laying out the procedures to follow—this is a critical first step.
Employees need to know the steps to take, how to communicate an effective business apology,
and what tools are at their disposal to resolve the issue. A clearly defined customer complaint
procedure will empower staff to handle a situation professionally, effectively, and in a timely
manner.

1.4 Complaint handling system

The major cause of a breakdown in communication when handling complaints is
misunderstanding, so it‘s wise to keep a record of all promises, agreements and undertakings
If you are a small business with few or no staff, it is still worthwhile to use the following steps as
a checklist so you are well-prepared to deal with complaints. All businesses can benefit from a
clear system for handling complaints.
Decide how you should handle complaints
 Obtain a copy of Australian Standard AS4269-1995 ‗Complaints Handling‘ from
Standards Australia. It provides an excellent guide for developing an effective policy.
 Involve your staff in developing the policy.
 Decide who will handle complaints, while remembering that handling complaints well is
ultimately everyone‘s job.
Anticipate potential problems or mistakes
Then work out possible solutions with your staff. For example, what do we do if:
 We‘re short staffed?
 The customer is angry after we‘ve apologized?
 We didn‘t deliver on time?
 The computer ‗goes down‘?
 The order went missing?
Write down your new policy and how it will work
Consider what you are required to do under the law. If you are uncertain about which laws apply
to you, contact Consumer and Business Services

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It may also be useful to consult the Retail Traders Association, your own trade association, The
Business Centre or Business SA.
Some industry groups have developed their own codes of conduct.
Spread the word
Make sure all staff understands the new policy, why it was introduced, how it will work and
what they should do. Be aware that some staff training will be necessary.
Make it worthwhile
Encourage and even reward your employees for finding disgruntled customers and handling their
complaints well. Remember, complaints are a great opportunity for improving your business and
for impressing and keeping even the most dissatisfied customer.
Make it easy for your customers to complain
Publicize your system – let your customers know that your business welcomes complaints. Invite
your customers to let you know if they were satisfied with the way their complaint was handled.
Test it
Trial the system for a set period of time; for example, two to three months
Monitor it
 Assess how well the new system is working and make any necessary changes.
 Discuss any problems that occurred with your staff and work out possible solutions.
 Use customer feedback to highlight any problems. This methodology will help you to
work out why you keep getting the same complaints and will allow you to prevent them
from happening again.
 Use complaint records to check how well and how quickly your staff are handling
complaints.
Effective results
Take time to handle complaints when they are first made. Prompt action will be more likely to
satisfy the customer. The faster a complaint is resolved, the less time you‘ll need to spend on it.
Be sympathetic and calm
Acknowledge there is a problem and that it may be annoying, inconvenient or unfortunate.
 You may not believe the customer‘s complaint is justified but remember that, although
they may not be ‗right‘ in your opinion, they are telling you because they are unhappy.
Their complaint is an opportunity to retain their custom.
 Stay calm. This attitude may be difficult if the customer is angry or has an irritating
manner, or if their complaint seems trivial to you, but getting angry yourself will only
make it worse.
Identify the problem
Find out the exact problem. Listen carefully to what the customer is saying, empathise with them
and make sure you understand by checking it out with them.
 Ask what they want you to do for them. Don‘t assume.
 Write it down.
Decide what can be done
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  Even in situations where the complaint may be unjustified, you still need to make the
customer happy again to keep their business. A simple explanation may be all that is
needed.
 Sometimes, even if you are not legally required to do anything about the complaint, it
may be worth doing more to keep the customer. For example, if a customer is entitled
only to a repair or replacement, you may be willing to offer a refund if that is what the
customer wants.
 Consider how important these problems are to customers. Try putting yourself in your
customers‘ place and imagine how you would feel if you were in their situation.
Keep a record
 Keep a written record of the complaint and what you have agreed to do.
 Record all contact about complaints, including whether they were face-to-face, by
telephone or in writing.
 Remember that simply filling out a complaint record form does not solve the problem.
Fix the problem
Once you have decided on your complaint policy, you will be able to resolve most complaints
quickly and efficiently.
 Tell customers what solution you can offer and make sure they understand.
 If customers accept your proposed solution, act straight away if possible; for example, do
the repair or replace the goods.
 Make sure there is always someone available to speak to customers about their
complaints. If a customer is promised a return phone call, make sure it happens.
 If it is not possible to do anything immediately, tell the customer when it will happen and
keep a record of your commitment.
 If customers want more than that to which they‘re legally entitled, or if their solutions are
outside your company policy and you feel they are making an unrealistic demand try to
explain their legal rights or refer them to us.
You can check your rights and obligations with us and ask for an independent third
option.
 Do what was agreed and finalize the matter with the customer.
 Never make promises you won‘t be able to keep.

1.5 Customer Complaints and Types of Customers

In this article we will discuss customer complaints and types of customers. Recent articles by
these authors discussed Superior Customer Performance. The handling of customer complaints is
an important component of providing Superior Customer Performance. Three important aspects
of the complaint process are actively seeking customer complaints, recognizing the type of
customer that is complaining, and responding appropriately based on the type of complainer.

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Actively Seeking Customer Complaints
It is important to realize that organizations that are totally customer-focused do not just respond
effectively to customer complaints; they actively seek them out. What specific activities does
your organization utilize to provide customers with easy opportunities to register their
dissatisfaction? Are these activities sufficient? Remember, research indicates that for every
complaint expressed there are over 25 unregistered complaints. Many dissatisfied customers just
quietly take their business elsewhere. Therefore, organizations that are truly committed to
delivering Superior Customer Performance work hard at providing their customers opportunities
to complain. What opportunities exist for your organization to more aggressively invite and
receive customer complaints? No organization is so perfect in the delivery of Superior Customer
Performance that significant levels of dissatisfaction (the source of complaints) do not exist. No
news from customers regarding your performance is not necessarily good news.

The Four Types of Customer Complaints You Should Pay Attention To

Stellar customer service is the cornerstone of a successful business, right? Then why is it that so
many companies are ignoring important feedback from their customers? Today, customer service
should be directly affected by customer experience. These four areas of customer experience
should not, under any circumstances, be ignored.

First-Time Complaints
it‘s tempting to ignore new customer complaints; after all, this is just their first time dealing with
your company. Maybe their bad experience was a fluke and they‘ll be happier as time goes on,
right? Wrong.

First-time complainers are maybe the most important of the bunch and their problems need to be
handled immediately. Customer service reps have to do some serious hand-holding when it
comes to new clients who are already upset. Give them extra attention and fix their problem
immediately, otherwise you may have lost your new customer before you even had them.

Serial Complaints
whether one customer is constantly complaining about the same thing, or several customers are
complaining about the same thing, a serial problem needs to be fixed. Since the problem keeps
arising, there‘s something wrong with the system; either the customer is unclear in their
expectations, or the process is faulty. Either way, the problem has to be fixed because it won‘t go
away on its own.

Good Customer Complaints

If 10% of your customers bring in 90% of your revenue, then you need to handle their problems
immediately. Even great customers get disappointed from time to time. The good news is that,

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since they‘ve had such a great experience with your company in the past, you should be able to
retain them as a customer if you start resolving the problem right away. Even if they‘re unhappy
at the moment, providing superior customer service will help instill even more trust in your
company.

Public Multi-Media Complaints

Say your customer has taken to Twitter, Face book and Yelp to publish their complaints. Don‘t
worry too much—since the problem is now public, the solution can be put at the front and center
of your company‘s image. Advises business owners to not shy away from complaints posted on
social media, This, she says, is your time to shine by resolving the issue quickly, thoroughly
and—best of all—publicly. A well-executed resolution will impress both existing and
prospective customers.

In order to run a successful business, management and customer service reps have to open their
ears to what people are saying. Listening isn‘t always enough, though—developing a process to
deal with these issues, particularly repeat problems, is the only way to keep your business on the
right track.

1.6 Types of Complainers and How to Respond Effectively

At least five types of complainers can be identified. Each type is motivated by different beliefs,
attitudes, and needs. Consider the following definitions of the types of complainers, how one
might respond to them, and the danger of not handling complaints effectively.
The Meek Customer, Generally, will not complain
Response: Must work hard at soliciting comments and complaints and act appropriately to
resolve complaints.
The Aggressive Customer, Opposite of the Meek Customer. Readily complains, often loudly
and at length.
Response: Listen completely, ask: "what else?," agree that a problem exists, and indicate what
will be done to resolve it and when.
Danger: Being aggressive in return. The Aggressive Customer does not respond well to excuses
or reasons why the product or service was unsatisfactory.
The High-Roller Customer Expects the absolute best and is willing to pay for it. Likely to
complain in a reasonable manner, unless a hybrid of the Aggressive Customer
Response: Is interested in results and what you are going to do to recover from the customer
service breakdown. Always listen respectfully and actively and question carefully to fully
determine cause. Ask: "what else?" and correct the situation. Like the Aggressive Customer, the
High-Roller Customer is not interested in excuses.
The Rip-Off Customer, The goal is not to get the complaint satisfied but rather to win by
getting something the customer is not entitled to receive. A constant and repetitive "not good
enough" response to efforts to satisfy this customer is a sure indicator of a rip-off artist.

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Response: Remain unfailingly objective. Use accurate quantified data to backup your response.
Be sure the adjustment is in keeping with what the organization would normally do under the
circumstances. Consider asking "What can I do to make things right?" after the first "not good
enough.

1.7 Developing a complaint handling procedure

Every complaint is different but the steps for dealing with them should be the same.

As well as having a complaint policy, it's also good to have a procedure to show staff and
customers the steps that you take when dealing with complaints.
A complaint handling procedure ensures complaints are dealt with the same way every time.
Here is a sample procedure for handling customer complaints consistently.
1. Listen to the complaint. Accept ownership of the problem. Apologise. Don't blame
others. Thank the customer for bringing the problem to your attention.
2. Be understanding. Remember, the person is complaining about your business, not about
you personally. Be calm, cheerful and helpful. Where possible, let the customer know
that you will take responsibility for resolving the problem.
3. Record the complaint. Detail the complaint so that you and other staff know exactly
what the problem is. Have one place to record complaints and the actions taken to resolve
them. This lets you see any patterns emerge over time. Complaints about a particular
process or product might indicate that changes need to be made. Staff can also see what
was done to resolve complaints in the past.
4. Make sure you have all the facts. Check that you understand the details while the
person is making the complaint, and ask questions if necessary. This will also let them
know that you are taking their complaint seriously.
5. Discuss options for fixing the problem. At the very least, a sincere apology costs
nothing. But think about what this complaint could cost you in lost business or a
complaint to the Equal Opportunity Commission. Maybe you can provide a free product
or discount a future service.
6. Keep your promises. Don't promise things that you can't deliver. In handling complaints
it is better to under-promise and over-deliver.
7. Be quick. If complaints take several days to resolve or are forgotten, they can escalate.
8. Follow up. Record the customer's contact details and follow up to see if they were happy
with how their complaint was handled. Let them know what you are doing to avoid the
problem in the future.
9. Reward your staff. Encourage and reward your staff for dealing with unhappy
customers and handling their complaints well.

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No matter what your company offers, people will complain.
If you sell a product that product will occasionally fail, if you sell a service that service will
occasionally be subpar, if you give someone a free house they will have to pay taxes, if you
establish world peace you will be forcing millions in the defense industry out of a job

Your company will never be all things to all people. And it shouldn‘t strive to be. A company
that offers everything offers nothing.

If a person reaches out to complain and they are at least moderately reasonable don‘t ignore them
(if a person reaches out and acts like all of the puppies in the world will just die if you don‘t give
them something for free, this post might not apply).
―We‘d like to talk to customer service please‖
Now, I don‘t expect every company to acknowledge the complaints of every Tom, Dick, and
Harry that tweets about it but I do expect the company to make an effort. Aside from those that
are vitriolic and not constructive, each complaint about your company or service should be
addressed and handled with care.
And that doesn‘t necessarily mean bending over backwards to give the customer what they want
or appeasing their every need. We‘ve talked before about finding the right customer for your
product. Sometimes helping a person with a complaint is as simple as realizing that they aren‘t
the right customer for your product and helping them to understand why. There‘s no one size fits
all solution to every customer complaint but there is an overarching strategy that can help guide
your responses to each individual complaint in a way that is constructive for both you and your
customer.

5 Steps to Handling a Customer Complaint

1. Listen and Understand First, always listen to the customer. They are concerned about an
aspect of your services. Let go of the temptation to respond in any quick fashion. Take the time to
listen and truly understand what is driving their concern.
2. Empathize Once you have listened to their concern immediately empathize with their position
to create a bond between you and the customer so that they know you have heard their concern and
are going to work with them to resolve the issue.
3. Offer a Solution Offer a solution to their problem. In this regard, always focus on what you can
do as opposed to what you cannot. There is always a solution. It may not be exactly what they are
asking for, but if you focus on what you can do versus denying them their requested remedy you
have still offered a solution and often merely having another option is sufficient to remedy the
situation.
4. Execute the Solution Solve their problem be it with their originally requested resolution or an
alternative you have proposed.
5. Follow-Up Once you have gone through the first four steps, make sure to follow-up with them
to make sure that they are satisfied with the solution and that you have taken care of their concern.

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Others Procedures for handling customer complaints
Customer complaints are usually about poor service, faulty goods or goods that don‘t meet the
customer‘s needs. A skilled employee can turn a customer complaint into a positive experience
for the customer.

If an employee receives a customer complaint it should be dealt with quickly and

sympathetically. The customer should be thanked for taking the time to highlight a problem with
service or product. The majority of customers who have a problem with a business don‘t
complain directly to the business - they just don‘t deal with the business again, and they tell their
friends about the faulty product or poor service they received. The ramifications for the business
are that they have definitely lost one customer and probably many more as the tale of their faulty
product or service is spread by word of mouth. The business can‘t do anything about it because
they don‘t know about it. Therefore the customer who complains is a person who is doing a
service to the business and they should be treated accordingly.
Here are some basic steps to follow when dealing with a customer‘s complaint.
 Greet the customer, smile and tell them your name.
 Ask the customer for their name (always be respectful and use their title Mr, Mrs etc).
Once they have given you their name continue using it throughout the discussion.
 Ask the customer the details of the complaint (it doesn‘t work, couldn‘t hear the
microphone or the technician arrived late). Try not to interrupt the customer as people
can become stressed when they are interrupted, particularly if it happens in the middle of
a sentence.
 Acknowledge their distress about the problem. This is important as they won‘t be
interested in a solution until they have had their chance to vent their anger.
 Paraphrase their problem back to them to ensure you have all the facts and they are
reassured that you have been listening to them.
 Offer a solution (exchange the faulty product, offer a reduction of fees).
 Give them something extra (an upgraded product, a discount on their next service, a
voucher they can spend in the shop).
 Thank them for assisting you by pointing out a problem and apologise for their
inconvenience. Take care not to admit liability for the problem, just apologise for their
inconvenience and distress.
 Record details about the complaint such as customer‘s name and contact details, the
product or service, how you dealt with it and how the customer reacted.
 Ring the customer a few days later to see if they are satisfied with their replaced product.
Follow up after a problem ensures repeat business.
Sometimes an easy solution is not possible, and the complaint is beyond your level of authority
to solve and must be passed on. If this is the case, write down the customer‘s details and the
nature of the problem, and, if possible, speak to the person you have referred the customer too.
Let the customer know what you are doing so they do not feel excluded. It is important that the
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customer doesn‘t have to repeat the problem to your supervisor, as this can become frustrating to
the customer. If immediate assistance from a supervisor is not possible, tell the customer that
their complaint will be looked at as soon as your supervisor is available. A follow up phone call
after any complaint is a very good way of ensuring the customer will be a repeat customer.

Sometimes a customer can be so angry that they will raise their voice at you immediately. Do not
take this personally and raise your voice back at them. Their intention is often to create a ‗scene‘
and to make other customers uncomfortable. They hope that this will make you give them what
they want immediately, to avoid upsetting other customers. In this situation, do not raise your
voice, stay calm and continue to question them about their grievance. Often you will have to
repeat a question as they were so upset they didn‘t answer it the first time you asked. Use
respectful language and don‘t be rude to the customer, no matter how rude and inconsiderate
they are being to you. Try to move them away from other customers, or maybe take them to the
office or a more isolated part of the shop. Without an audience they will settle down.

If you feel the situation is beyond your ability to deal with, call for assistance from your
supervisor. When your supervisor arrives, paraphrase the customer‘s problems so the customer is
made aware that you were paying attention. It also avoids the customer becoming upset again by
having to repeat the problem.

1.8 Customer service guidelines

Consumer and Business Services produce a set of Customer Service Guidelines for businesses
that include useful information about ten key service attributes:
 products and services information
 counter and face-to-face service
 telephone service
 taking customers orders
 follow-up documentation
 billing and managing payments
 visiting the customer
 making repairs
 handling complaints
 Managing the service culture.
Customer service charter
To enhance the profile of your business you may also like to consider producing a Customer
Service Charter. A Charter is a brief and concise document that sets out the standards of service
customers can expect when they do business with you. The Charter would normally contain
details about your system for resolving problems or
complaints and the ways customers can obtain information and feedback about your products
and services.

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Developing a complaint handling procedure
Every complaint is different but the steps for dealing with them should be the same.
As well as having a complaint policy, it's also good to have a procedure to show staff and
customers the steps that you take when dealing with complaints.
A complaint handling procedure ensures complaints are dealt with the same way every time.
Here is a sample procedure for handling customer complaints consistently.
Listen to the complaint. Accept ownership of the problem. Apologise. Don't blame others. Thank
the customer for bringing the problem to your attention.
Be understanding. Remember, the person is complaining about your business, not about you
personally. Be calm, cheerful and helpful. Where possible, let the customer know that you will
take responsibility for resolving the problem.
Record the complaint. Detail the complaint so that you and other staff know exactly what the
problem is. Have one place to record complaints and the actions taken to resolve them. This lets
you see any patterns emerge over time. Complaints about a particular process or product might
indicate that changes need to be made. Staff can also see what was done to resolve complaints in
the past.
Make sure you have all the facts. Check that you understand the details while the person is
making the complaint, and ask questions if necessary. This will also let them know that you are
taking their complaint seriously.
Discuss options for fixing the problem. At the very least, a sincere apology costs nothing. But
think about what this complaint could cost you in lost business or a complaint to the Equal
Opportunity Commission. Maybe you can provide a free product or discount a future service.
Keep your promises. Don't promise things that you can't deliver. In handling complaints it is
better to under-promise and over-deliver.
Be quick. If complaints take several days to resolve or are forgotten, they can escalate.
Follow up. Record the customer's contact details and follow up to see if they were happy with
how their complaint was handled. Let them know what you are doing to avoid the problem in the
future.
Reward your staff. Encourage and reward your staff for dealing with unhappy customers and
handling their complaints well.
Six Steps to Dealing with Customer Complaints
1. Listen carefully to what the customer has to say, and let them finish. Don't get
defensive. The customer is not attacking you personally; he or she has a problem
and is upset. Repeat back what you are hearing to show that you have listened.
2. Ask questions in a caring and concerned manner.
The more information you can get from the customer, the better you will understand his or her
perspective. I‘ve learned it‘s easier to ask questions than to jump to conclusions.
3. Put yourself in their shoes.
As a business owner, your goal is to solve the problem, not argue. The customer needs to feel
like you‘re on his or her side and that you empathize with the situation.
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 4. Apologize without blaming.
When a customer senses that you are sincerely sorry, it usually diffuses the situation. Don't
blame another person or department. Just say, "I'm sorry about that.‖
5. Ask the customer, "What would be an acceptable solution to you?"
Whether or not the customer knows what a good solution would be, I‘ve found it‘s best to
propose one or more solutions to alleviate his or her pain. Become a partner with the customer in
solving the problem.
6. Solve the problem, or find someone who can solve it— quickly!
Research indicates that customers prefer the person they are speaking with to instantly solve their
problem. When complaints are moved up the chain of command, they become more expensive to
handle and only add to the customer's frustration.
There is no getting around customer complaints, regardless of your industry. However, by
employing these steps and taking the time to review the issue with the customer, you can turn
challenges into something constructive.

1.9 How to Respond To Customer Complaints with Social Media

You‘re human. Mistakes will happen. Nothing is perfect and something will go wrong. Not
every customer will be satisfied. This is not a failure. The best businesses are the ones that mess
up and show how they fix their mistakes. They build their customer‘s trust and prove they are
listening to them.
When a significant other makes a mistake and owns up to it, do you dump them because they
messed up or do forgive them and trust them more because they were honest? Depending on the
situation, you‘ll forgive them and that will make your relationship stronger.
It‘s similar with business. Mistakes happen, but when a business owns up to it and apologizes,
they‘ll build a better relationship with the customer.
Listen To Your Customer Complaints
When customers complain, sometimes they just want someone to hear them out.
They had a poor experience, and no matter how big or small it was, the least you can do is listen.
What do you learn when you listen? You find out about problems that would have created more
dissatisfied customers in the future.
When you listen to a customer, you have an opportunity to establish a relationship with that
customer. By listening to them, you‘ll let them know you care. Just because a customer is upset
doesn‘t mean they are a lost cause, or gone forever.
Regardless of the size of the issue, let the customer know you heard their problem and
understand their frustration.
One of my first jobs was a clerk at a small drug store/gift shop. I was 16 and terrified when
customers complained because I had no idea what to do and no authority to do anything about it.
This is when I discovered if I let a customer vent their frustrations to me and apologize for their
poor experience, they would always leave happier than when they came in.
Business Is About Relationships

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It is easy to forget the fact that business is all about relationships. Relationships with your current
customers, but with vendors, former customers, clients, the community, and more
The Perfect Apology, a site dedicated to helping readers craft the perfect mea culpa, understands
this relationship connection between a business and customer. It offers the following strategy
about how to protect that relationship:
1. Look at the reason behind your business apology and who has been affected by the situation.
2. Determine the most appropriate way to apologize and when that apology should be given.
3. Ask and answer the following four basic questions:
What are you apologizing for?
Who are you apologizing to?
How do you apologize?
When should you apologize?
When someone complains, it‘s not the end of the relationship. Instead, it‘s an opportunity. It‘s a
chance to strengthen that relationship and rebuild it.
Business is about relationships. Complaints are a chance to preserve and build relationships.
How to Apologize Face-To-Face
When I was in the first grade, a teacher of mine told us that if we were going to apologize to
someone, sorry is never enough. When you apologize you should state their name, tell them what
happened, tell them why it happened, and that you‘ll never do it agin.
As I‘ve been doing research on business apologies, I‘ve been learning this form of apology is
what most businesses use. It‘s a five-step process.
Apologize. Actually say you are sorry. Don‘t say that you are ―sorry they feel that way‖ but say
―I am sorry.‖
State what you did wrong. Make sure you inform the customer what your business did wrong.
This is you owning up to your mistakes and taking ownership of them.
Acknowledge how they are feeling. Imagine yourself in their shoes, and let them know you
understand (or are trying to understand) how the situation made/makes them feel.
Express regret. Let them know you feel bad about the situation.
Promise it won‘t happen again. It‘s hard to promise that something will never happen again, but
you can at least mention how you will do your best to prevent a mistake from happening again.

A crisis is never fun but it does give you an opportunity to build a lasting relationship with your
audience. Of course, this is based on how you handle it.
Customers Value Apology More
What do customers value more? An apology or some form of monetary value in exchange for the
poor experience?
The Nottingham School of Economics conducted a study and found that unhappy customers are
more willing to forgive a company that offers an apology rather than monetary compensation.
Why would customers be more willing to forgive a company that offers an apology?

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Researchers theorized that when customers hear ―I‘m sorry‖, it triggers an instinct to forgive. It‘s
an instinct that is difficult for people to overcome.
I have to admit that the results of this study came as a surprise for me.
From my experience, I know customers always value a genuine apology. I‘m on the marketing
team for a sandwich shop and like anyone in the food industry knows, mistakes happen.
Typically when a customer complains, we apologize and offer to send them something in the
mail. That something is usually a free sandwich. We‘ll typically say something that directly
addresses their poor experience, apologize for it and ask for them to give us another chance to
make up for their poor experience. I believe this is a good balance between an apology and
compensation.
What‘s the big takeaway?
Don‘t use the word ―if‖. An apology that is ―if I offended you, I‘m sorry‖ is basically saying ―I
don‘t understand how you can be offended, but if you are so sensitive to being offended, let me
apologize.‖ That‘s not the vibe you want to give off to your customers. You don‘t want to insult
them again. Just say, ―I‘m sorry we offended you.‖ That‘s straight to the point and you took
ownership of the situation.
Don‘t give excuses. Excuses are tempting because there is usually a reason behind your actions.
Yet excuses are easily one of the most annoying things about apologies. ―I‘m sorry I offended
you, but I was just following customer policy.‖ Even if you have an actual reason as to why a
situation occurred, refrain from making excuses. You can explain the situation, but don‘t use an
excuse. It will make your apology less genuine.
Make it brief. Keep your apology short. It‘s easy to ramble on, but don‘t. Short and sweet is the
rule. This will make it seem more genuine and less about you.
The sooner the better, the time frame on giving an apology does expire. Don‘t delay an apology.
50% of consumers give a brand only one week to respond to a question before they stop doing
business with them, according to Right Now Customer Experience Impact Report. If possible,
apologize before the customer even knows about the situation. It will make the customer trust
you more. For business, trust is everything.
Value the relationship. You don‘t always need to be right. The value of a relationship will often
overshadow your need to be right. By arguing about who is right and who is wrong, you‘re doing
more damage. Does it matter who is right? Will it harm the relationship between you and the
customer? Is it worth it?
Create an apology policy. If you have multiple employees, it can be hard to keep everyone in the
loop on what‘s the best way to apologize. Even if you are the only person in your company, an
apology policy will help keep you on track with consistent and level headed responses. Method
for dealing with complaints, Starbucks‘ baristas are trained to respond to complaints by Listening
(L), Acknowledging (A), (T) Taking Action, Thanking (T), and Explaining (E). There is
emphasis on listening first and only lastly on explaining what happened. Try to create an easy to
remember policy that will help you and your employees deal with complaints.

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LO2 Refer complaints
o Identifying complaints that require referral to other personnel or external bodies
o Making referrals to appropriate personnel for follow-up in accordance with individual
level of responsibility
o Forwarding all documents and investigation reports
o Following-up appropriate personnel to gain prompt decisions

2.1 When to refer the complains of customer

Filing a complaint is an action that can be filed by anybody whose right has been violated. They
come in different kinds depending on the severity of the offense that has been committed. For
instance, there are those that are less serious and can be settled between the parties outright.
However, for those complaints that are very serious, a court action may ensue.
To ensure that your complaint is accordingly filed, it has to meet certain requirements. First, you
need to have a cause of action whereby you need to have a ground from which your complaint
must be based. It can be a missing laptop, a missed flight, a fraudulent collection letter or just
about anything that will give rise to a complaint. In addition, you will also need evidences to
support your complaint. These evidences can either be testimonies of able witnesses or
documents. Even the veracity of the documents

2.2 Refer a dispute to Conciliation Services

Conciliation is a voluntary process in which the parties to a dispute agree to avail of a neutral and
impartial third party to assist them in resolving their differences. The Labor Relations
Commission provides a conciliation service by making available Industrial Relations Officers of
the Commission to chair ‗conciliation conferences‘. These officers are sometimes referred to as
‗IROs‘ or as ‗Conciliation Officers‘.
Conciliation conferences are basically an extension of the process of direct negotiations, with an
independent chairperson present to steer the discussions and explore possible avenues of
settlement in a non-prejudicial fashion. Participation in the conciliation process is voluntary, and
so too are the outcomes. Solutions are reached only by consensus, whether by negotiation and
agreements facilitated between the parties themselves, or by the parties agreeing to settlement
terms proposed by the Conciliation Officer.
Either or both parties to an industrial dispute may request conciliation, by writing to the
Commission or, preferably, by using the On-line Conciliation Referral Form. In urgent
situations, Conciliation Officers may be contacted by phone with a request for conciliation.
As a matter of general policy, the Commission does not provide conciliation in unofficial
industrial disputes.

2.3 Refer a dispute to Workplace Mediation Services

Issues relating to workplace conflicts, breakdowns in working relationships, issues arising under
grievances and disciplinary procedures and certain industrial relations issues may be referred to
the Labor Relations Commission's Workplace Mediation Services. Either or both parties may
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request mediation, by writing to the Commission or, preferably, by using the On-line Mediation
Referral Form. Note that mediation in the case of equality complaints can only be offered by the
Director of the Equality Tribunal following receipt of an official complaint. Also, an early
resolution service in the case of workplace relations complaints may be offered to the parties to
the complaint.

2.4 Types of complaining customers

When customers are dissatisfied with the service you are providing they will be one of four kinds
of complainers: aggressive, expressive, passive or constructive. So how do you identify what
type of customer you are dealing with and the best way to respond?

The aggressive type is an extrovert who is controlling, practical and decisive. To get on their
wavelength, avoid small talk and get straight down to business. Give them options so they feel
they're staying in control. Aggressive complainers are most difficult to please and are often more
concerned with displaying their emotion than actually achieving a solution.

The expressive customer is also an extrovert but they are also more sociable and impulsive. They
will respond to an enthusiastic presentation style and need time to talk. Go for the big picture and
avoid too much detail if you want to win over an expressive customer.

Their social nature means that expressive customers are more likely to complain openly to others
but possibly not directly to you. They may use social media to express their dissatisfaction -
which will give their complaint a public airing. You should consider responding publicly, swiftly
and positively in return.

The passive person is an introvert. They are friendly but can be totally indecisive. You cannot
hurry this type of customer. They hate sales pressure and need assurance.

Passive complainers are the most lethal to a business‘s success, as they will complain to
everyone but the actual business. Since the business is left unaware of their error they cannot
correct it and the only thing a passive complainer succeeds in doing is depriving the company of
potential business.

The constructive customer is organized and critical. They are perfectionists who can suffer from
'paralysis under analysis'. Give them plenty of detail and proof to win them over. Constructive
complainers are most beneficial to a business since they are analytical and address their problem
to the business in a calm, rational and detailed manner. This means you can identify the exact
cause of the problem, making it easier to address and help you avoid future problems.

Whatever type of complainer they may be, it is important to deal with all complaints with the
utmost care. After all, the customer is essential to business success.
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LO3: Exercise judgement to resolve customer service issues
o Identifying implications of issues for customer and organisation
o Analyzing, explaining and negotiating appropriate options for resolution with customer
o Proposing viable options in accordance with appropriate legislative requirements and
enterprise policies
o Ensuring matters for which a solution cannot be negotiated are referred to appropriate
personnel

3.1 Four Ways to Resolve Customer Service Issues

When a customer has a bad experience with your business, they don‘t care whose fault it is. They
just want a solution. Turn unhappy customers into happy fans with these 4 steps. Customer
satisfaction
Sometimes things are out of your control. The weather, the postal service, or just plain bad luck
delays your shipments. Employee disorganization or a system error leaves someone‘s support
request unanswered. Whatever the situation may be, the bottom line is this: to the customer, you
are responsible for both the problem and a potential solution. How do you go beyond satisfaction
and delight the disappointed customer? By following these simple steps:
1. Make Them Feel Heard – this seems obvious, but the real problem comes from the customer
receiving a cursory, apologetic email followed by nothing. If your customer says there‘s
something wrong with the product, make contact with them. Spend a few minutes on the phone
or a few emails back and forth getting at the heart of the product malfunction and helping the
customer feel understood. Following that, make realistic pledges to fix and/or improve the
product. This makes customers feel like they are part of the solution. After making the pledged
improvements, send an email their way to let them know it‘s been taken care of.
2. Make Their Time Worthwhile – most of the time, the rapidity at which you address a
complaint is worth more than the manner in which you address it. The customer has something
to say, and no one wants to be ignored!
Don‘t allow more than one day to go by without responding to emails, phone calls, or
"comments" on your business site. If you can respond in less than a day, even better.
3. Make it a Fair Deal – this is how you can help the customer feel like you heard their problem:
give them what they lost. If the issue was a late gift shipment, refund their shipping cost—don‘t
ask for their input on product quality. If the product was faulty, replace it—don‘t just give them a
discount on their next order. If the customer has been ignored by support reps, give them all the
time in the world—don‘t just answer their question. Do what makes sense, because this is what
really solves the problem.

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4. Make it Better with a Little Extra – after you‘ve made it fair, then make it better. You can
easily do this without breaking the bank. Simply provide them with an extra percentage off their
next purchase. Or give them a $10 gift card. You could even send the customer a coupon code
for free shipping on their next order. The little things matter.
No matter what the situation, if you make the customer feel heard, worthwhile, and fairly dealt
with, your little extra at the end will delight them. The cost of obtaining new customers is far
above that of retaining repeat clients, so be responsible—for both the problem and the solution.

3.2 How to respond to criteria about judgment

Applicants can be stumped when tackling selection criteria about showing judgment,
intelligence and commonsense. We readily recognize poor judgment. We see plenty of examples
in the media of politicians, footballers and celebrities making choices that result in poor
consequences. But when it comes to our own behavior in the workplace, what can we say that
will reflect well on us?
First be clear about where these behaviors sit within competency frameworks. ‗Shows judgment,
intelligence and commonsense‘ falls under supporting and shaping strategic direction within the
APS capability framework, known as The Integrated Leadership System
In general, the relevant behaviors are:
 Researching information
 Analyzing issues and information
 Drawing accurate conclusions based on evidence
 Sees links between issues
 Breaks problems down and weighs up options
 Explores possibilities
 Identifies solutions
 Anticipates risks
 Suggests or makes improvements
 Participates in decision-making
What is your general approach to a situation? Over the years you will have developed a broad
approach to dealing with situations needing judgment. That approach will likely involve some of
the following steps:
 Looking at all sides of a problem or issue
 Weighing the options before making a decision
 Basing decisions on facts, filtering opinions, emotions, expectations, assumptions and
biases
 Objectively assessing the facts to arrive at a fair and balanced judgment
 Assessing the risks, including ethical risks
 Considering the best interests of all parties.

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When is judgment needed? If something is black-and-white, little judgment is needed. If it is
clear what needs to be done, because it‘s been done before, or there is a clear procedure, then
little judgment is needed. Judgment is needed in:
 Situations where emotions are strong, e.g. underperformance, breach of rules, errors,
strongly held views.
 Unique or uncertain situations where policies and procedures are unclear or ambiguous.
 New situations where there are little or no precedent.
 Sensitive situations that involve protocols, privacy, confidentiality, discretion.
 Situations where the evidence or facts are not clear-cut or widely agreed.
 Situations where information is lacking or insufficient.
What are specific examples of showing judgment? As with other behavior-based responses, you
can use the SAR structure.
 What was the situation or context in which you needed to demonstrate judgment?
 What actions or approach did you take in exercising judgment?
 How was the situation resolved?

3.3 How to Apologize On Social Media

One reason business owners don‘t want to go into social media is because they are afraid they‘ll
be on defense the entire time. Any time a customer has so much as a mediocre experience they
come flocking to their social media networks and complain, It seems like all they would do on
social media is apologize.
Happy customers tell 5 people. Unhappy customers tell 10. Treat complaints seriously.
According to research by Andy Beal, a reputation manager, a happy customer will tell 5 people
while an unhappy customer will tell 10. It‘s important to prevent an unhappy customer. When an
unhappy customer is using social media, those 10 people can easily turn into 100 and more. This
happens when they post a poor review, complain on their social networks, or write a blog post
about it.
Because social media influences others, it is important to treat a complaint as seriously as you
would a face-to-face complaint. What else do you need to know about apologizing on social
media?
Be present. Be on the same social media platforms your target audience is. When a complaint
comes your way, you‘ll be able to respond. If you don‘t respond, people will assume you don‘t
care. Show your customers you care by responding.
Get them away from the public eye. As I‘ve said before, I‘m on the marketing team for a
sandwich shop. When we get a poor review or a person complains on social media, we try to get
to the bottom of the situation, but away from the public eye. When there is an initial complaint
I‘ll say something like ―Can you message us the details of this experience so we can get to the
bottom of it and prevent it from happening again.‖ Before I say this, I‘ll acknowledge them and
their complaint. This gets the person to message you in private and vent the details to you. When

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other people read the complaint, it shows you care about what your customers say and take
action. People will trust a business that does something over nothing.
Respond to positive feedback. Social media allows you to build trust with your audience before a
complaint is even made. If you interact with your audience, retweet, mention, and ask questions,
they‘ll have a positive image of you. By building this relationship, if something does go wrong,
they feel like they can trust you, and will let you know in a nicer way.
Respond quickly. Don‘t check your social media accounts every few days, check them multiple
times an hour.

3.4 Is The Customer Always Right?

For many years, the most popular form of customer service has been, ―the customer is always
right.‖ Is that still the best policy?
That policy basically means you‘ll be apologizing no matter who is truly at fault in the situation.
This policy could be re-phrased. Instead of ―the customer is always right‖ it could be ―remember
how valuable the customer is.‖ The customer may not be right, but they are valuable. So, take
complaints seriously and respond with respect. It‘s true that social media blackmail does happen,
but most customers are legitimate with their complaints.
When a customer complains it can seem like they have a bad attitude. That easily makes you
have a bad attitude.
Remember: you never know what kind of day another person is having. We all have bad days. It
could be something as trivial as they woke up late or something as serious as they found out a
loved one passed away. Don‘t try to add to their stress, and instead, show them kindness and
respect. Most of the time, they will give you the respect you gave them. Even if they still end up
with a bad attitude, at least you didn‘t contribute to it.

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