Unlocking the value of customer complaints has been saved
Unlocking the value of customer complaints
Complaints management as a strategic source of insights
Complaints management within most service-driven industries is not new. However, there is a broad spectrum of formality in processes and procedures, as well as how technology is employed. This paper explores the value organizations can unlock by moving up the complaints management maturity model.
- Customer complaint management
- Getting started: The complaints management maturity model
- Moving up the maturity curve
- How leaders are unlocking
- Get in touch
The current state of customer complaint management
In the past decade, regulators and consumers have recalibrated their expectations around how organizations, both within financial services and beyond, should handle customer complaints. Across some sectors, it is now an understood regulatory expectation that organizations holistically focus on customer outcomes, be it through their direct interactions or how their products and services are offered. Significant consumer-centric reform, our instant ability to reach a wide audience through channels such as social media, and a number of very public consumer-focused regulatory actions all point to a clear need for all consumer-facing organizations to ensure they are acting in their customers’ best interest, which includes the way in which they address their customer complaints.
Complaints management within most service-driven industries is not new. Many major organizations have formalized their complaints management program. However, there is a broad spectrum of formality in processes and procedures, as well as how technology is employed. Technology systems across industries (as well as between organizations within the same industry) range from basic (disconnected, incomplete, and reactive) to advanced (integrated, proactive, and semiautomated). This spectrum often underpins an organization’s general attitude toward complaints management; some organizations still view complaints as a negative and address remediation in isolation (or as required), whereas others are investing in their complaints management program, resulting in an increasing ability to unlock value from captured data and insights and improving their organization’s overall ability to manage customer complaints.
Getting started: The complaints management maturity model
Through our work with executives undertaking the journey to develop capabilities to more effectively manage their organizations’ complaints processes, we have identified five distinct maturity stages, increasing in level of the overall structure, proactive management, and use of technology and data analytics.
While many organizations in the United States have implemented elements of a complaints management program which could be considered elements of formal and structured (stage 4) and even optimal and intelligent (stage 5), there are very few organizations (or industries) that can lay claim to achieving a stage 5 maturity level. As organizations move up the stages of the maturity curve, the more proactive they are in being able to resolve customer complaints (including the ability to preemptively identify and resolve issues). These organizations often capture and leverage data and use more advanced technologies.
Moving up the maturity curve
Understanding where your organization falls on the maturity curve is the first step toward developing an optimal and intelligent complaint management program. Executives should look at their complaints management process and system across three general dimensions (people, process, and governance) to determine their current state. After determining the current state, it is imperative to understand the desired future state to identify needed enhancements.
By targeting actions, processes, and systems within the complaints process, resulting in a move up the Complaints Management Maturity Curve, organizations can expect to unlock increasing value, such as:
- Increased structure and efficiency, driving more transparent and timely outcomes
- Increased levels of customer satisfaction while improving the overall customer experience
- Increased risk- and issue-sensing ability; proactively identifying potential noncompliance and hotspots to manage complaints
- Reduced longer-term cost through decreased operational, legal, regulatory, and compliance risk(s)
How leaders are unlocking the value of complaints through improved technology and data analytics
Leading organizations are investing in advanced complaints management capabilities to improve process efficiency, proactively understand issues communicated by customers, and unlock value from captured complaints data. As a result, complaints are no longer just a cost of doing business, but can also be a strategic source of insights to improving the overall customer experience, help support business decisions, and influence brand reputation.
Learn more about how technology and data analytics can unlock the value of complaints by reading our full report.
For more information on the value a mature complaints management system can provide, we encourage you to contact one of our complaints management specialists: