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Measure and Evaluate Customer Complaint Management Process

In order to fully evaluate the impact of a customer complaint management process, it is necessary to undertake, where possible, a quantitative assessment of its impact and assign calculable values. Measuring the positive impact on the business and its customers will help to determine whether the methods used to manage complaints have been effective, what still needs improving, whether customers who have complained are still retained as customers of the organisation etc. The following provide some ideas on how customer a complaint management process can be assessed:

  • Number of customer complaints e.g.: number of customer complaints over a period of time or number of customer complaints per number of million units sold or shipped or, number of customer complaints divided by total number of orders. This measure provides a statistic on the number of customer complaints as a proportion of such factors as units sold or orders taken.
  • Time taken to resolve a customer complaint e.g.: average time taken to resolve customer complaints to the customers satisfaction. A key contributor to customer satisfaction, this measure indicates the average time it takes to resolve a customer's complaint to their satisfaction.
  • Complaint response time e.g.: average time to respond to customer complaints. This measure provides data on the length of time it takes to respond to a customer complaint. It does not indicate whether or not the complaint was dealt with satisfactorily but a quick initial response time can be a key contributor to the satisfactory conclusion of a customer complaint process by helping to contain or prevent further unnecessary build up of the situation on the part of the customer (who then knows the situation is in-hand).
  • Complaint resolution costs e.g.: costs of resolving complaints per period as a % of sales. This factor measures the cost of resolving customer complaints.
  • Call length e.g.: average total time online to satisfy customer`s inquiry/complaint/transaction. This data provides a measure of the effectiveness of the call Centre in providing fast and efficient service, and management of complaints.
  • Employee empowerment and customer pacification e.g. % customers` complaints or claims that are satisfactorily closed out by frontline customer contact staff This measure provides an indication of the level of the effectiveness of employee empowerment at pacifying early, customers experiencing dissatisfaction with a product or service delivered by the organisation. It is important to pacify these customers as soon as possible, this can increase the chances of transforming a dissatisfied customer into a satisfied one.
  • Frequency of types of customer complaints e.g. frequency of occurrence of complaint types such as delays, staff rudeness, breakages, quality etc.. This measure provides an indication of the most frequently occurring complaint which can help identify areas for improvement. Data collected can be transferred to a Pareto Chart for further analysis and reporting.
  • Customer complaints resolution e.g. % of customer complaints successfully resolved. This data measures whether customer complaints are resolved to the satisfaction of the customers` needs.

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