Much has been published about the need for complaint management systems. In the last 20 years, I have not met a sales manager who disputed it.
Does every company want loyal customers? I do not think so. Why should a monopoly worry about loyalty when customers have no alternatives?
Other companies avoid the effort of establishing an effective system, arguing that the work is too great and the investment apparently does not pay.
Why invest if customer losses seem tolerable? While acquisition works, motivation to introduce complaint management is limited.
Let's examine the three most important benefits.
1. Support loyal customer relationships
Systematic processes have repeatedly been shown to improve retention and satisfaction over time. But which companies are truly convinced? Do loyal customers exist at all? Customers want faster answers and solutions through every available channel. This requires investment and structured processes.
2. Improve products and processes
Record and analyse the causes of each complaint systematically. This needs investigation and good communication.
Much can go wrong and undermine internal acceptance. What does the complaint count relative to customer numbers tell you without understanding causes? The aim is to eliminate causes of dissatisfaction. Even force majeure or familiar problems may still be associated with the company from the customer's perspective.
3. Address regulatory requirements
The European Banking Authority (EBA), European Securities and Markets Authority and BaFin have adopted guidelines and requirements, including frameworks such as MiFID II, governing complaint management processes for financial service providers.
In travel, the EU Package Travel Directive and air passenger rights regulation protect travellers.
Many countries inside and outside Europe establish consumer protection programmes requiring professional complaint management in further industries.