1. The Complaint-Recovery Process
By:Keith Spears
OISM 470W
4/22/2019

2. Complaint-Recovery
In this presentation, I will describe and explain how to properly design and execute a “complaint-recovery” strategy.
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3. Complaint-Recovery What is the complaint-recovery process?
- a process associated with resolving complaints
Complaint-Recovery is how well a company responds to and recovers from complaints made by their customers.
Main focus of Complaint-Resolution Process
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4. What is a complaint?
Complaint – anything or everything that someone does to let someone else know that they’re needs have not been met.
Basically saying, “I’m not satisfied, yet!”
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5. Complaint Complaints are not always a bad thing.
- people who complain want to be satisfied; and if you do it right, those same people who complained to you earlier, will come back later.
Must change complaining customers into satisfied customers. If you handle a complaint the wrong way, it could mean major losses for your company.(in terms of losing business with that customer and their friends)
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6. Complaint Take Walmart for example
- has a policy saying that they will replace anything that was bought from there store that is broken or defective, as long as they have it in stock, hassle-free.
- you need no receipt (in most locations)
The customer wants nothing more than to resolve this mishaps without any problems. If everything goes smooth, the customer will be willing to come back. This is yet another reason why Walmart is so successful.
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7. Complaint My experience with Walmart
- I returned a product that was defective.
- no resistance
- no questions asked
Returned defective tape-cleaner. Did not have to show any proof of purchase, although I still had my receipt. No problems. I have no problem going buying products from Walmart.
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8. Complaint-Recovery Process involves: - creating a strategy
- training employees
- implementing strategy
- learning from mistakes
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9. Creating a strategy Accommodation is the best strategy.
- figure out problem
- give what they want or possible alternative
Let customers know that you care about their concerns and opinions.
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10. Training Employees
Training your employees is the single most important aspect in resolving and recovering from complaints.
- they represent company
- first person to meet with complainant
If your employees do not handle the situation the way it should be, the problem could escalate into something bigger.
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11. Training Employees Train your employees to be empathetic
- give a soft, soothing apology
There’s nothing a customer likes more than an apology. Except for new or additional products or services.
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12. Training Employees Train to listen by communication
- ask questions to discuss the problem
- listen to what the customer is saying
- but do not interrupt or become defensive
Just listen to what the problem is. Do not be too forceful in asking questions. Definitely, do not do anything to make the customer even more upset.
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13. Training Employees Thank and Apologize
- thank customer for talking to you
- APOLOGIZE, again
Make sure to be curteous to complainant. Don’t talk too much, though. Majority of customers are upset already and don’t want to talk; they just want what they came for.
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14. Training Employees Offer solution
- give the customer what they want or possible alternative
The solutions depend on which type of company.
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15. Training Employees
Make sure that during training you create possible situations for the employees.
Like exercises, examples, etc.
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16. Implementing Strategy
Properly executing strategy will be easy if employees know what they are supposed to do (proper training).
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17. Learning From Mistakes
Strategy will not always work.
- must focus attention to those who are not affected by strategy
- learn through surveys, letters, etc
Must come up with ways to make those people, who are not affected by the strategy, happy.
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18. Learning From Mistakes
Annual Customer Satisfaction Surveys
- one way to find out what customers think of your products/services.
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19. Learning From Mistakes
Ex. Cheung Kong Holdings Goodwell Property Management
- winners of Hong Kong Management Association 2001 Quality Award
- adopted “customer suggestion promotions days”
Days organized periodically to proactively collect the views of customers. They provide the company with “broad, validated, and continuous input to stay current with market changes”.
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20. Learning From Mistakes
Performance Measurement Systems are another way to understand, align, and improve performance.
After all data are collected from the customers, the performance is measured by the company.
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21. Exercise(Question)
John had a Playstation 2(PSX) on reserve at a local Sony store. The day he took it home, the PSX did not cut on; it was broken( possibly from shipping or mishandling at the store). John comes into the store angry, yelling at the guy to the register, “Where’s the manager?” To John’s surprise, the guy at the register is the manager, which is you. What do you do?
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22. Exercise(Answer) First, you calmy ask John what the problem is.
- remember always to be kind, calm and curteous.
- if he continues to yell, continue to listen but assure him that you can hear; but say it nicely so not to get him even more upset.
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23. Exercise(Answer)
Second, ask John if he’s absolutely sure that something is wrong with the system and it’s not something he might be doing.
- now this might upset some people, so let him know that it’s company policy to ask those type of questions.
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24. Exercise(Answer)
Third, make sure that you know whether or not the problem can be resolved at that store.
- if the situation cannot be handled in the store, then you assure John that his problem will be taken care of as soon as possible and apologize for the trouble. Then refer to the store’s policy on the situation.
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25. Exercise(Answer)
- if the situation can be handled in the store, apologize to John for his troubles and immediately replace the broken product. Apologize to John again and assure him that if any other problems arise, they will be taken care of at once. (Because the PSX was so highly anticipated and costs so much money, you might want to apologize again and possibly offer some sort of certificate for Sony products to show that you really are sorry).
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26. Exercise(Answer)
Lastly, you report the problem to your bosses so that they can properly take care of the situation. The customer, John, might not trust expensive Sony products any more, so you should send him a letter of apology. You also should send him a card to fill out to let Sony know how their product is working, his feelings about purchasing other Sony products, etc and send it back.
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27. Conclusion
This concludes my presentation. I hope that you have learned something from these slides. Maybe I could have helped out where one company might have fell short. Always remember to focus on your customers, because your customers pay the bills in more ways than one!
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