Errors cost money and the later an error is discovered, the higher the cost to fix it. The “rule-of-ten” or rule of ten for error costs states that the costs of troubleshooting in each individual phase or stage of the value chain increase by a factor of 10. If the error is not discovered during planning, but only during development (x10), in production (x100) or only at the customer (x1,000), the costs for troubleshooting increase disproportionately. Of course, the rule of ten for error costs does not represent a scientific law, but rather empirical values.
What does a defined complaint management do for me as a company?
The aforementioned costs that can arise in companies are often based on the fact that there are few or no uniform process structures in which the handling of non-compliant results is regulated. Many companies simply lack a standardized process such as errors, or ISO 9001it is mentioned in chapter 8.7 “Control of non-conforming results”. Complaint management thus becomes a real cost factor and, on top of that, companies lose valuable customers. It is, examined by several studies, ultimately only a small number of customers who complain. Most customers simply turn their backs on a company when they are unhappy. This is precisely why complaint management is a great opportunity for companies to improve their services and thus customer satisfaction. A complaint is useful and valuable because it draws attention to a problem. Sources of error or performance deficits can thus be identified and remedied.
What can be done
If you don’t manage to score points with convincing complaints management as a customer experience factor, it will be difficult to keep disappointed customers. An efficient process, on the other hand, which asks itself in each phase whether the focus is still on the goal to be achieved, reduces your workload and thus the costs of complaint processing. At the same time, you increase customer and employee satisfaction and you don’t have to hide from your competitors.
The problems can arise with products, service provider delivery, employees or processes. If your customers are given the opportunity to openly communicate their complaints to you directly, you can investigate the matter and take appropriate measures to prevent errors and/or costs in the future. Only those who take the concerns and complaints seriously and solve them ensure enthusiasm and long-term customer loyalty.
Successful complaints management does not wait for complaints, but makes contact with the customer in advance. Examples of this monitoring of customer perceptions can be customer surveys, customer feedback on products and services provided, meetings with customers, analysis of market shares or even the recognition and warranty claims.
A clearly defined complaint management provides answers to many questions. Like a barometer, it can announce approaching “storms” and, like a lighthouse, offer orientation to companies in the complaint tower. Complaint management, also known as complaint management, gives the company methods on how to deal with customer complaints. If the relationship with the customer is troubled, a professional complaints management system can calm things down and bind the customer to the company. In this way, companies can learn from known mistakes and prevent future missteps.