Clear information for customers
Have clear information for customers. This might be:
- a refund sign next to your till
- a plain English contract
- an easy-to-navigate website.
This is useful because:
- if customers can see you know and respect their rights under consumer laws, it gives both sides confidence in the sale
- it helps head off complaints you’re unlikely to accept.
If you display a sign that says, “No returns if a customer changes their mind”, customers know they can’t bring back a dress that turns out to be unflattering. If they try to return it anyway, it’s your right to refuse.
You can print out our visual guide to the Consumer Guarantees Act (CGA) and pin it up where you and any staff can easily check it – for example, the break room or the back of the staff toilet door.
Supply chain providers
Some customer complaints come from supply or manufacturing issues – for example:
- a faulty part or ingredient in a product you’ve made
- delayed shipments that hold up your work
- breakages caused by your courier.
Once you’ve confirmed it’s a genuine complaint, either:
- give your customer a remedy
- let them know you’re working with your supplier to resolve the problem and update them regularly.
Complain to your supplier
Once you’ve given your customer a remedy, check your contract or sales agreement to see if:
- any terms have been broken
- it sets out any rights to compensation
- the supplier has contracted out of consumer laws when selling to other businesses.
Then you can contact your supplier to fix the issue.
Business-to-business sales often include a written statement contracting out of the Consumer Guarantees Act (CGA) – meaning the buyer can’t use this law to claim a remedy if something goes wrong. This law protects those buying for domestic or household use only. You may also be able to claim under other laws or the terms of your contract.
It’s important to build strong relationships with your suppliers. If something goes wrong, they should want to take steps to prevent it happening again – even if they’ve contracted out. Otherwise, they risk losing your business.
Product damage during delivery
Product damage in transit can be frustrating for both you and your customers. It can also impact your reputation and bottom line. Fortunately, there are practical steps you can take to reduce the risk.
Start by testing different packaging materials and methods. The goal is to strike a balance between protection and cost. You want to prevent breakages without overspending on packaging. Try sending test parcels to yourself or a trusted contact to assess how well your packaging holds up during delivery. This also gives you a chance to evaluate the reliability of your chosen courier service.
If you or your staff handle deliveries in-house, take time to review how items are packed and loaded into vehicles. Even small changes in how goods are stacked or secured can make a big difference. Make sure everyone involved in the delivery process understands how to handle products with care.
If you use a third-party delivery company, check their terms and conditions carefully. Understand who is responsible if items are damaged in transit – you, the courier, or the customer. It’s also worth asking about their claims process and whether they offer any insurance or guarantees.
Taking these steps can help you protect your products, reduce costs, and keep your customers happy.
Reduce the risks of a customer going against your advice
Understand the desired result
Ask the customer about the result they’re aiming for. For example, a specific finish on a paint job or a particular look from a hair treatment. This helps you understand their expectations from the start.
Recommend how to achieve that result
Based on your expertise, explain the best way to get the outcome they want. This might involve a certain product, method, or service provider.
Explain how alternatives may affect the result
If the customer suggests a different option – like using a different product or using a junior staff member – let them know how that could change the result. Be clear and factual about the potential differences or risks.
Proceed with care if the customer chooses their own option
If the customer decides to go ahead with their choice, you’ve reduced the risk of complaints by giving them detailed information about how to get the result they want. They’ve been informed and have made the decision with that in mind.
Make a note of what was discussed with the customer
This doesn’t need to be in writing but having someone else there – like a supervisor or trusted worker – helps. It’s a good idea to note details in an email or quote to show the customer accepted any risks involved.
Analyse complaints data
When dealing with a customer complaint, it’s a good idea to:
- collect details on what went wrong
- store that information in a complaints log
- sort complaints by type and cause of the problem
- note any remedies given.
This will:
- help you monitor complaints and identify problems that come up again and again
- streamline how you deal with complaints, as you’ll be able to check how you handled similar problems.
By working out what’s going wrong, you can take steps to fix it or stop a new problem before it escalates.
This might mean:
- checking what your workers tell customers at the point of sale
- offering extra training, like job skills or product familiarity
- improving a product you make or a service you offer
- trying a different product line
- raising issues with suppliers or your delivery company
- switching to a new supplier or delivery company.
By sorting out recurring problems, you save yourself time and money, and make your business run more smoothly and easily.
Handling complaints on social media
- Step01
Plan ahead
Assign one person to manage social media feedback. This might be you or a trusted staff member. Prepare a plan – for example, a decision tree that covers how to respond and how quickly.
- Step02
Keep across it
Set up alerts to be notified immediately when someone posts a comment.
- Step03
Review carefully
Read each comment thoroughly. Don't delete negative social media comments. A business page with no complaints can raise suspicions, but one where customer complaints have clearly been resolved can build trust. Only delete comments that are inappropriate, like abusive or racist – but if these inappropriate comments include a genuine complaint, respond privately.
- Step04
Respond quickly
Reply quickly with thanks, an apology and a promise to investigate it promptly. Be open, polite and professional. You should:
- move the conversation onto a private channel to get a good understanding of the problem – for example, Facebook Messenger, email or phone
- do all you can to solve the problem
- go back to the original comment and ask the person publicly if they are satisfied.
- Step05
Learn and improve
Feedback offers valuable information about your business. It’s also a chance to test and enhance the way you handle complaints.
Training your staff to handle complaints
Your staff should also be confident in dealing with customers and know when to offer returns, refunds or replacements.
It’s best if one person investigates and decides what remedy is required, if any. You may want all workers who have contact with customers to be able to handle minor complaints. For more serious complaints, it’s best if someone senior takes over as soon as possible.
Regularly remind your workers:
- to be polite at all times
- to not agree on the spot to all requests for a refund, return or replacement – give examples when this is ok and when it’s not
- that one person should handle a complaint from start to finish, with your support if needed
- to pass on a complaint to you or a trusted staff member if they aren’t confident about handling it – and tell the customer who will look into it.
Communication is key. If a customer feels misled, it will not reflect well on your business. The customer is more likely to complain to others, either on social media or in person. And if they take it to court or a disputes tribunal, lack of action will count against you.
Steps to train your staff to handle complaints
- Step01
Give new staff examples of customer complaints
Explain to new workers what to do if a customer complains. Give examples from your business so they can familiarise themselves with real-life scenarios they may encounter.
- Step02
Run regular staff check-ins
Try a spot quiz or ask staff to act out a common complaint. Talk about what to do and what not to do.
- Step03
Help staff know the products or services on offer
This reduces the risk of over or underselling, and it means better customer service.
- Step04
Roster an experienced staff member when you're not present
If you’re not at work, try to roster on a trusted or experienced staff member to help handle tricky complaints in person. Make sure workers can contact you if needed.
- Step05
Keep helpful resources handy and up to date
This might be printouts of our complaint checklist by the counter, or a one-page explainer on consumer law.
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