The failure of a complaint handling process can have a major impact on an organization due to:

·          Loss of revenue when customers leave

·          Competitors use the source of the complaint to attract customers to their products

·          Increased sales training and marketing expenditure to attract new customers

·          Decreased profitability 

There are several potential causes of failure in Complaint Handling and they can be grouped as:

 People Factors

·          Poor business skills training

·          Lack of interpersonal skills

·          Unclear objectives and time management skills

·          Lack of motivation and management skills

·          Poor attitude

System Factors

·          Lack of measurement and accountability

·          Poor or absent planning

·          Inadequate communication systems

·          No customer focus in the activities

These failure factors can be taken into account when developing the complaints handling system and structures put in place to minimize the chance of failure being caused by the identified factors. 

Complaints are useful packages of information, even gifts that our customers bother to send our way.  It is the organization’s responsibility to make sure that a process is in place that will allow complaints to be handled effectively.  To do so the following points should be kept in mind:

·          You need to understand your customers to handle complaints effectively

·          Complexity does not mean efficiency

·          Standardization is essential

·          Learning is part of the process

·          Ownership of the process lies with the people who use the process

·          The solution must be appropriate

·          The system must continuously evolve

The customer advocates that are generated as a direct result thereof usually more than reward the degree of effort in handling complaints well.  There are benefits for the organization, the customer and the staff member when a well-designed complaint handling system can take the strain of a complaint and generate a winning outcome.  The critical factor once a system has been designed is to have people who understand the need for service and who will use the system to deliver excellent customer service leading to happy customers and ultimately to improved profits for the organization.

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