PDF Developing an effective complaint classification system

Developing an effective complaint classification system

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Contents

Introductions3 Examples3

Regulatory requirements for classification4 Customer journey mapping7 Classifying outcomes, root causes and corrective actions10

Classifying the underlying cause - the root cause - and the corrective actions11 Summary12

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Introductions

Many organisations, whether using a paper-based forms system for recording complaints or a more sophisticated software solution, will develop a list or lists of `complaint categories'. The complaint category is often developed as a one-dimensional object to combine the products and services provided by the organisation with the most common causes of complaint to deliver a single list of options that a complaint handler will be prompted to select from when the details of a new complaint are being recorded (and/or used by an auditor when assessing the types of complaints received during a complaints audit activity).

Examples

A field service organisation builds up over time a set of complaint categories that attempt to define both the service and nature of complaint such as:

? `Arranged appointment not kept'; ? `Dissatisfaction with recommended action'; ? `Service not delivered to expected standard' ? `Repair delayed or not completed'; ? `General delay'; ? `Poor service'; and ? `Rudeness or attitude'

A financial services firms defines a list of complaint categories such as:

? `Failure to action customer request'; ? `Failure to send out a replacement card'; ? `Delay in sending out replacement card'; ? `Staff conduct'; ? `Technical problem'; ? `Mis-sold product'; and ? `Documents lost/missing'

A government organisation with responsibility for taxation and welfare benefits also defines a list of complaint categories as follows:

? `Tax administration'; ? `Business tax administration'; ? `Welfare benefits - delays'; ? `Welfare benefits - decisions'; ? `Welfare benefits - other'; and ? `Staff conduct'

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The categories or classifications described in the above example are used within each of the organisations' quality management systems. These systems have been developed to provide staff members with either a database or form (paper or electronic) to record information about the complaints received. Each list of categories has evolved from an initial list of options into a long detailed list as users (the staff members) began requesting that new items were added to deal with `new' types of complaints being handled.

However, a complaint is a multi-dimensional object and management information produced based on a one-dimensional approach will often fail to produce sufficient information for the relevant decision makers in the organisation to initiate corrective actions or even to allow targeted root cause analysis to take place. This is because the organisation would need to explore and evaluate the specifics of each and every complaint file in more detail to truly understand the problems that customers had been experiencing.

Using the field service management example, an assumption can be made that `Appointments not kept' has been identified as a recurring issue within a management information report that has been presented to the senior management team for consideration. However, the management team of the field service organisation will need to have a better understanding of the issues identified before allocating resources to fix the problem. Senior manager will not want to make decision based on assumptions or suggested reasoning. Senior managers will be prepared to take action where an informed decision can be made based on sound evidence. Therefore, senior managers are likely to want to make complaint management decisions that are informed by evidence such as the subject product or service, reason for complaint, cause of the problem and the effect of the problem.

Therefore, if we use the `Appointment not kept' category as our example complaint category, we can start to ask questions such as:

? are appointments being completely missed or the arranged time not being kept? ? are the appointments not kept for visits to customer's homes or appointments in a service centre? ? are these sales appointments or servicing appointments? ? are these appointments booked by the contact centre, online or at a service centre? ? are those appointments related to a specific service activity? ? are those appointments arranged for a specific department or outsourced provider?

If the data being analysed does not provide the answers, you will have to invest more time and resources in assessing the underlying complaint files to discover the answers to these questions. The presentation of complaint data is also important - the presented data should be clear, succinct and visual but also provide interest to the intended audience. Therefore, the collected data needs to provide sufficient detail and guidance for the decision-making process.

Regulatory requirements for classification

Sometimes, an organisation's collection of complaint information can be driven by regulatory requirements. Western Australia's regulator for utility companies provides guidance on the definition and categorisation of water, electricity and gas complaints. The electricity retailers are required by the regulations contained in the guidance to categorise complaints as:

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? billing/credit complaints ? marketing complaints ? transfer complaints ? other complaints

These are high-level categories. The billing and credit complaints category will of course incorporate a wide-range of lower-level issues: billing mistakes, incorrect billing of fees and charges, failure to receive a rebate, disconnection and reconnection problems and service restrictions due to billing discrepancies. It could be assumed that organisations in this sector will want to classify complaints in more detail than these high-level regulatory categories require.

In the UK, the financial services regulator introduced detailed rules for the handling of complaints that also require all regulated financial services providers to complete and submit a `complaints return', to the regulator, where they must categorise the complaints handled by both product and cause. The collected data from these submissions allows the regulator to better understand the types of problems being experienced by consumers across the various financial markets. More recent changes to these rules have also required the larger companies (those receiving more than 500 `regulated' complaints in a six-month period) to publish this complaints data using the regulatory categories and also to report upon complaints about individual financial advisers (similar to a model developed and implemented by the Financial Industry Regulation Authority, FINRA, in the United States).

The regulator's requirements provide for complaints to be categorised based on both a grouping category and a classification of the type of product or service that was the subject of the customer's complaint. Therefore, the regulator is able - for example - to get an understanding of not only how many consumers have complained about banking products but also how many complained specifically about a current account product.

Product/service group Banking Home finance General insurance and pure protection

Decumilation, life and pensions

Product/service Current accounts Credit cards Unregulated loans Savings (inc. Cash ISA) and other banking Equity release products Impaired credit mortgages Other regulated home finance products Other unregulated home finance products Payment protection insurance Critical illness Other general insurance Income protection Other pure protection Personal pensions and FSAVCs Investment linked annuities Income drawdown products Endowments Other decumilation, life and pensions

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