Handling customer complaints

A complaint is the expression of a customer’s dissatisfaction with something or someone. A claim is the act of formally asking for or demanding something you are entitled to.

In Spain, the OMIC (Oficina Municipal de Información al Consumidor, the local consumer information office) is where a consumer files a complaint or a claim, and it is responsible for informing them about their rights.

Throughout this lesson, we will cover the main aspects of customer complaints and claims.

OBJECTIVES

Understanding the main conflicts and claims that can arise in a business context:

⦁ Customer conflicts and claims

Conflicts can arise within the relationships between consumers and businesses.

⦁ Types: Complaints and Claims

A complaint or claim can be made either in person, where the seller provides a paper form for the consumer to fill out, or remotely through different systems, such as:

Call center: also known as a telephone contact center, it serves as the link between the company and the customer and sits within the customer service department.

Website: every website should feature a closed complaint or claim form.

Fax: the customer can also be given a fax number and the name of the general manager for this procedure.

Complaint

A complaint is the expression of a customer’s dissatisfaction with something or someone.

Claim

A claim is the act of formally asking for or demanding something you are entitled to.

When a consumer files a complaint or a claim, the local consumer information office (OMIC) must inform the consumer of their rights.

Customers who complain or file a claim have shown that, despite the mistake, fault or inconvenience they experienced, they still trust the company to provide a solution. Their loyalty depends almost entirely on how successfully that situation is handled.

For both complaints and objections, it is essential that we communicate with the right degree of courtesy, consideration and respect, without losing sight of our responsibility toward the customer and the positive, unconditional respect that everyone deserves.

Persuade the people we are speaking with by relying on our good manners, consideration and respect, and by presenting our most valid reasons.

We can set out two approaches depending on the case:

Objections: the customer’s expression of disapproval or rejection.

• Listen carefully to the customer until they finish stating their objection.
• Ask questions to clarify any doubts about the objection raised.
  Tactfully correct any misunderstanding. Establish points of agreement to make the conversation easier. Look for alternatives to reach a genuine agreement.
• If necessary, ask further questions to uncover the real objection.
• Provide a solution and a commitment to act.

Complaints: an expression of dissatisfaction, displeasure or anger, especially when raised before an authority. It can also be described as a request or demand for a right, made to protest against what is considered unfair or unsatisfactory.

• Listen to the complaint with empathy.

• Confirm that the complaint has been fully understood. Thank the customer for raising the complaint. State our position openly.

• Do not show any sign of rushing or impatience. Demonstrate a shared interest for both parties. Try to reach an agreement on a specific future action.

• Follow up on the action agreed with the customer.

In both cases it is necessary to apply both empathy and psycholinguistics, since the final outcome depends on them. You have to try to persuade and to be flexible.

We can classify claims according to different aspects:

Quality claims

The most common tend to be:

• The product is in poor condition.
• The product does not meet the promised standard. The product is not what was specified.
• The product does not work for the use the customer intended. The customer wants to return the product for other reasons.

Service claims

Some claims can be due to:

• Delays and missed deadlines.
• Multiple visits to solve a single problem.
• The person who assisted the customer was not the right one.
• The service we provided was not satisfactory enough. The service does not meet what was agreed in the contract.

Price claims

The reasons are usually:

• An error applying the price to the order.
• An error applying the price to the invoice.
• Inclusion of VAT (IVA) that the customer had not anticipated.
• Awareness that the product is cheaper from another supplier.
• A misunderstanding on the customer’s part.

Technical claims

Some possible technical claims can be:

• General malfunction.
• Malfunction of a specific part.
• Too many breakdowns
• Failure to meet one of its specifications.
• Too much time spent on maintenance.

Claims about staff and service

The reasons are usually:

• The customer expects an unreasonably high level of attention. The customer was not properly assisted.

Handling claims

A claim arises when the company has explicitly advertised the quality of the products it offers and those products do not live up to the advertised quality criteria. In this case, the complaint becomes a claim outright.

The most frequent claims are caused by certain attitudes on the part of company staff that occur with some regularity. Claims essentially originate in:

• Delays in the initial delivery.
• Poor installation and setup.
• Problems that arise during the warranty period.
• Problems that arise once the warranty period has ended. Issues related to technical support, the warranty certificate, sales assistance, as well as administrative assistance.

Complaint forms: elements and completion

Complaint forms are defined as the institutional instrument that consumers and users can use to defend and protect their interests.

They allow you to express, before the company being complained about and before the authorities with jurisdiction over consumer affairs, your disagreement in cases where you believe that a product, good or service purchased from a company or shop does not meet the characteristics and requirements you are paying for.

How a complaint form is completed depends on the autonomous community (region of Spain) you are in.

If no response is received within ten days, or if the response is not satisfactory, the user can send the copy to the authorities so that they begin processing the claim.
Elements of the complaint form

The elements that make up a complaint form are:

• Company details.
• Consumer details.
• Reason for the complaint or claim.
• Request attached to the reason.
• The establishment’s allegations.
• Supporting documentation.

Resolving claims

When faced with a claim, the important thing is to focus on defining and pinning down the exact terms of the complaint or claim and to provide the most appropriate solution as soon as possible. The steps to follow in this case are as follows:

• Acknowledge the person’s irritation
• Listen carefully. Before responding, wait for the person to express their irritation.
• Keep an open mind about what is wrong and what should be done.
• Help the person cope with the situation when they realize they have behaved badly.
• If possible, kindly invite the person to a private area.
• Sit down with the person to talk calmly.
• Keep a calm tone of voice and lower your volume.
• You should hold back your own judgments about what the irritated person “should” and “should not” do.
• Empathize with the irritated person without needing to agree with them, once their hostility has subsided.
• Ask another person for help if you are unable to handle the situation.

Now, two scenarios can occur: the customer is right, or the customer is wrong:

– If the customer is right, it is essential to acknowledge it and thank them for the help they give the company by voicing their dissatisfaction, as it helps you improve.

– If the customer is wrong, the situation is more delicate. You must take great care not to reproach them for their mistake, whether directly or indirectly. On the contrary, you should try to justify the error, thank them for their trust and make yourself available for future occasions.

Below, the steps to follow are explained in more detail:

Respect the complaint or claim

Accept it as a natural fact that the customer is entitled to, using phrases such as:

“I understand what happened to you”, “I understand this has been an inconvenience for you”, “Thank you for letting us know”.

The key is not to downplay the problem with phrases like: “that’s not important”, “that’s not really worth filing a claim over”. For the customer it is worth it and it is important to them.

Pin down the nature of the problem

The interest shown here is decisive because it reassures the customer and helps define the problem precisely.

This is the time to ask for as many details as possible in order to assess the situation: dates, amounts, the person who assisted them, invoice or delivery note number, etc. But you also ask questions to understand how important the customer considers the problem to be.

Listening must be active from start to finish. In other words, you should summarize what the customer has said in order to:

• Show the customer that their request has been given attention.
• Confirm that you have understood the feelings it caused them (disappointment, fear, worry, anger, etc.).
• Avoid misunderstandings caused by a failure to grasp the message.

In these situations you have to be careful with the words you use, because instead of calming the customer they can create greater worry or discontent.

Negative words:

• False, lie
• Blame
• Deceive
• Complicated
• I disagree
• Problem

Positive words:

• That is not accurate
• Responsibility
• Honesty
• It is not simple
• I see it differently
• Inconvenience

Look for solutions

First, make sure to ask whether the customer has already tried other ways to solve the problem, so that you don’t suggest solutions they have already tried before without success.

If you need another person’s help to solve the problem, locate them as soon as possible and, if they are not available, take down the customer’s details and a contact number so you can call them back as quickly as possible.

If the error is obvious, the solution has to be immediate. In cases where responsibility is not clearly defined, you have to find out which options are satisfactory for the customer and negotiate the one that suits both parties.

When only a partial remedy is possible or you have to say no, you must explain the reason and point out that company policy has to be fair to all its customers, since it would be unfair to show favoritism.

Commit to the agreed solution

The company has to demonstrate its commitment to following up on the process, keeping the customer informed of the progress being made, or specifying the person and department the issue is being transferred to.

When the situation cannot be corrected without additional action or approval from another person, you must make sure the customer knows why. It is a good idea to find out whether, in the meantime, you can help them in some other way, as this may suggest something that serves as a temporary solution or even changes the requirements of the original complaint.

Rules for dealing with dissatisfied customers:

• Listen carefully to what the customer says and observe how they feel
• Ask questions
• Restate the complaint or claim
• Apologize on behalf of the company
• Express your intention to find the solution
• Thank them for the information they have provided

What not to do in front of the customer

• Refuse to listen.
• Reject the customer’s irritation or try to calm them down.
• Defend the organization or yourself before investigating the problem
• Shame the person for their bad behavior.
• Continue a shouting confrontation in a public area.
• Remain standing when there are places to sit.
• Raise your voice to “make yourself heard”
• Jump to conclusions about what the irritated person “should” and “should not” do.
• Argue and reason about the advantages of behaving differently.
• Hide your feelings after the incident.
• Keep trying even when you feel ill-equipped to handle the situation.

Above all, the attitude to avoid when facing a complaint or claim is:

• Making excuses to dodge responsibility.
• Blaming someone or something outside the company.
• Adopting a defensive or even aggressive attitude.

Technical claims are:

• An error applying the price to the order.
• An error applying the price to the invoice.
• Inclusion of VAT (IVA) that the customer had not anticipated.
• Awareness that the product is cheaper from another supplier.
• A misunderstanding on the customer’s part.
• General malfunction.
• Malfunction of a specific part.
• Too many breakdowns.
• Failure to meet one of its specifications.
• Too much time spent on maintenance.