A customer who has had a good experience with a business will tell an average of five other people, some of whom will become new customers. Every business, regardless of its size or the price of its products, needs an effective policy for managing consumer complaints. Effective complaint management enhances a firm's reputation, builds consumer confidence and loyalty, and attracts new customers. 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. Effective complaint management can result in increased sales, better products, improved personnel performance, and business efficiencies.
Complaints are an inexpensive source of market research.
Careful complaint management can save unwanted costs. Importance of Policies and Procedures For Effective Complaint Resolution Management attitudes are reflected in the conduct of employees and the performance of the business. Management's responsibility begins with the preparation of written policies and procedures for speedy and fair complaint resolution. The complaint program and business policy on refunds, exchanges, and repairs will vary, of course, depending on the nature of the product or service, the terms of the purchase, and other factors. These policies and procedures should be put in writing and communicated to the appropriate personnel, with emphasis on accountability of each employee for fair and courteous complaint resolution.