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1Best Practices, LLCStrategic Benchmarking Research & AnalysisCustomer Complaint Resolution Excellence:Capturing Insights ...
BEST PRACTICE2Copyright © Best Practices , LLCTable of ContentsProject Background Project Overview Benchmark Class Prof...
BEST PRACTICES,®LL3Copyright © Best Practices , LLCKey Topic Areas Probed:Study Objective & Research MethodologyResearch O...
Universe of Learning:Benchmark Class Profiles &Demographics
BEST PRACTICES,®LLParticipating Companies:5Copyright © Best Practices , LLCSixty representatives from 58 companies partici...
BEST PRACTICES,®LLResearch Participant Job Titles Include:6Copyright © Best Practices , LLCJob Titles of Research Particip...
BEST PRACTICES,®LL7Copyright © Best Practices , LLCCustomer Complaint Resolution Benchmarks:• Benchmark Companies Receive ...
BEST PRACTICES,®LL8Copyright © Best Practices , LLCDesignated Complaint Management Groups Often Lead KeyResolution and Lon...
BEST PRACTICES,®LL9Copyright © Best Practices , LLCLate Deliveries Most Common Source of Service ClaimsQ4. Please rank whi...
BEST PRACTICES,®LL10Copyright © Best Practices , LLCCompanies Typically Allow 30 Days to Report a Service ClaimQ9. How man...
BEST PRACTICES,®LL11Copyright © Best Practices , LLCFlexible Approaches Common for Key CustomersQ10. How rigidly or loosel...
BEST PRACTICES,®LL12Copyright © Best Practices , LLCBest Practices, LLC6350 Quadrangle Drive, Suite 200Chapel Hill, NC 275...
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Customer Complaint Resolution Excellence - Capturing Insights to Drive Business Improvements Report Summary

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Customer complaint groups play a fundamental role in delivering enhanced customer service by resolving complaints and getting customer feedback. However, the complaint groups that support a high volume of customer orders find it increasingly challenging to have an effective structure and resolution processes that provides maximum customer satisfaction.
Best Practices ®, LLC undertook this research to identify service claim resolution benchmarks that will help complaint groups to reduce overall claim volume and cost. Additionally the study also probes key strategies and tactics for translating Voice-of-the-Customer and customer complaint data into business insights and improvements.

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Transcript of "Customer Complaint Resolution Excellence - Capturing Insights to Drive Business Improvements Report Summary"

  1. 1. 1Best Practices, LLCStrategic Benchmarking Research & AnalysisCustomer Complaint Resolution Excellence:Capturing Insights to Drive BusinessImprovements
  2. 2. BEST PRACTICE2Copyright © Best Practices , LLCTable of ContentsProject Background Project Overview Benchmark Class Profile Key FindingsStudy Findings Complaint Resolution Groups: Structure, Roles & Responsibilities Listening to Customer Complaints to Glean Improvement Insights Service Claim Resolution Benchmarks Reducing Complaint Volume Complaint Process Automation & Analytics Driving Improvements via the Complaints Process Lessons Learned: Turning Customer Complaints into Business Improvements About Best Practices, LLC
  3. 3. BEST PRACTICES,®LL3Copyright © Best Practices , LLCKey Topic Areas Probed:Study Objective & Research MethodologyResearch Objectives:• Establish performance benchmarks forcomplaint and service claim resolutionprocesses among leading manufacturingorganizations, especially ones that support ahigh volume of customer orders• Gather innovative approaches to reduce claimvolume and cost, improve supply chaineffectiveness, and achieve maximum customersatisfaction (including insights for serving keycustomer segments)• Adapt lessons that improve complaintresolution processes (including processautomation) and maximize the impact of Voice-of-the-Customer information and other criticaldata gleaned throughout the complaintresolution cycleThis benchmarking research, conductedthrough a field survey instrument and aseries of interviews with selectedparticipants, delivers performance metrics,insights, and lessons learned on:•Complaint resolution group structures,roles, and responsibilities•Service claim resolution benchmarks•Processes for reducing complaint volume•Complaint process automation andanalytics•Driving business improvements throughthe complaints processThis benchmarking research study examines complaint resolution excellence, focusingon the areas of service claim resolution performance and the reduction of overallcomplaint volume. The study also probes key strategies and tactics for translating VOCand customer complaint data into business insights and improvements.
  4. 4. Universe of Learning:Benchmark Class Profiles &Demographics
  5. 5. BEST PRACTICES,®LLParticipating Companies:5Copyright © Best Practices , LLCSixty representatives from 58 companies participated in this research. All participantscontributed survey data. Deep-dive interviews were also conducted with severalparticipants to harvest additional key insights. The vast majority of benchmark companies,which are listed below, support either national or global manufacturing operations.Universe of Learning: Companies Participating in Study3MAbbott LaboratoriesAmway GlobalAgilent TechnologiesAlereAshland Inc.AutolivAvayaAvery DennisonBaxter HealthcareBayer HealthcareBecton DickinsonBritish American TobaccoCargill Corn MillingChevronCoca-ColaCooper Power SystemsCovidienDePuyDouglas PharmaceuticalsDow CorningEdwards LifesciencesExelFedExFresenius USA, Inc.GEGenentechGenzymeGlaxoSmithKlineHewlett-PackardHospiraIBMJohnson & JohnsonJohnson & Johnson HealthCare SystemsLORD CorporationLubrizolMarkem-ImajeMedImmuneNAMSANetcomNextGenTelNovartisPyrotecRedcats USARoche DiagnosticsRockwell AutomationSABIC Innovative PlasticsSandhill Scientific, Inc.Sartorius Stedim BiotechSazerac CompanySigma-tau PharmaceuticalsSolvay Advanced PolymersSun Motor GroupTata MotorsTelecom New ZealandTerasen GasThermo Fisher ScientificW.R. Grace
  6. 6. BEST PRACTICES,®LLResearch Participant Job Titles Include:6Copyright © Best Practices , LLCJob Titles of Research ParticipantsResearch data and insights were contributed by a seasoned class of respondents, fromvice presidents to managers. The diversity of the job titles and functions amongbenchmark partners – including Customer Service, Supply Chain Management, Quality, andBusiness Process Improvement – suggests the cross-functional character of complaintresolution excellence and execution at many leading companies.VP, Global QualityVP, QualityVP, Quality & RegulatoryVP, Supply ChainExecutive Director, Customer ServiceDirector, Customer ExperienceDirector, Global QualityDirector, LogisticsDirector, Operational EffectivenessDirector, Quality SystemsDirector, Regulatory ComplianceDirector, Supply Chain ManagementDirector, Wholesaler Channel OperationsManaging Director, Strategic Planning & QualityHead of Customer ServiceHead of Finance, SCM & OperationsHead of Service, Global Supply ChainService Claims Team LeaderGroup Business Process LeaderCustomer Service LeadSenior Manager, Regional OperationsSenior Product Complaint ManagerManager, Customer AdvocacyManager, Customer AssistanceManager, Customer Quality AssuranceManager, Customer ServiceManager, National Customer Service & MarketingCommunicationsManager, OperationsManager, Process ImprovementManager, QualityManager, Quality OperationsManager, Quality SystemsManager, Remote ServicesManager, Supply ChainBusiness Process ManagerCorporate Manager, Technical Sales & Client CareDepartment Manager, Customer DevelopmentGlobal Category Manager, SourcingOperational Regulatory ManagerProgram Manager, Customer Issue ResolutionBusiness Lean MasterMaster Black BeltCustomer AdvocateAnalyst, Supply ChainConsumer Affair AssociateLogistic & Customer Support, Supply Chain
  7. 7. BEST PRACTICES,®LL7Copyright © Best Practices , LLCCustomer Complaint Resolution Benchmarks:• Benchmark Companies Receive Service Claims on less than 2% of Customer Orders: Participatingcompanies manage an average of 25,812 total customer orders each month, fielding an average of 375 service claims.• Non-Centralized Structures Common for High-Volume Customer Support: Companies that support a largenumber of product orders and manage hundreds or thousands of service claims per month tend to distribute complaintmanagement across the organization, in hybrid and especially decentralized management models. Companies employinga centralized complaint management structure managed an average of just 8,547 customer orders and 169 service claimseach month. In contrast, companies employing de-centralized complaint management structure managed an average of64,605 customer orders and 1,725 service claims each month.• Benchmark Companies Deny Only 21% of Customer Service Claims: Of these denied claims, studyparticipants report an average denied claim recovery percentage of 51%. For companies currently recovering on less thanhalf of the claims they deny, there exists a substantial portion “unrecovered” revenue on all of these denied claims.Increasing recovery percentage represents a valuable opportunity to significantly boost revenue. Possible explanationsfor low recovery percentage of denied claims include:•Tracking/Reporting Issues: Some denied claims which are classified as “unrecovered” mayultimately be paid beyond an organizations standard tracking period•Terms & Conditions Policy: Comparatively short reporting window for customersto report common service claim types (shipment errors, damages, late deliveries, shortages,etc.) may cause recovery problemsThe following key findings emerged from this study.SAMPLE: Key Research Findings and Insights
  8. 8. BEST PRACTICES,®LL8Copyright © Best Practices , LLCDesignated Complaint Management Groups Often Lead KeyResolution and Long-term Improvement ActivitiesQ3. Which group at your company has the primary leadership role for the following complaintmanagement activities?(n=59)Benchmark Participants:: 25% 24% 2% 5% 19% 25%Primary leadership for many of the key complaint management and continuousimprovement activities probed in this research resides either in customer service or in adesignated complaint management group at a majority of companies.CustomerServiceDesignatedComplaintManagementGroupSalesDepartment /AccountManagersDistributionCentersSix Sigma /ContinuousImprovement OtherService claims creditapproval or denial 46% 14% 22% 3% 3% 12%Root cause analysis 25% 39% 3% 2% 19% 12%Complaint trends analysis 24% 43% 3% 3% 16% 10%Customer-complaint-driven ContinuousImprovement 22% 34% 3% 3% 24% 14%Includes mainly Quality Assurance departments
  9. 9. BEST PRACTICES,®LL9Copyright © Best Practices , LLCLate Deliveries Most Common Source of Service ClaimsQ4. Please rank which areas generate the largest number of service claims:(“6" = most service claims and “1" = least service claims)4.273.643.543.542.982.05(n=57)Late DeliveriesShipment Errors(e.g., wrong address)ShortagesDamages to Shipment(during transit)Pricing DiscrepanciesOveragesBenchmark companies most often confront service claims arising from shipmentproblems that may be, though are not necessarily, carrier-related. According to thebenchmark class, the areas which generate the largest number of service claims werelate deliveries, followed by shipment errors (e.g., wrong address).
  10. 10. BEST PRACTICES,®LL10Copyright © Best Practices , LLCCompanies Typically Allow 30 Days to Report a Service ClaimQ9. How many days does your companys Terms & Conditions policy allow for a customer toreport the following service claim types? (Responses given in days)(n=37)The Terms & Conditions policies at most benchmark companies provide a two-week to30-day window for customers to file shipping-related service claims. Policies generallyallow for a longer reporting period around pricing discrepancy issues. Companies inregulated industries such as healthcare tend to provide longer reporting windows aroundQuality and Product Safety issues.ShipmentErrorsLateDeliveriesShortages OveragesDamages toShipmentPricingDiscrepanciesHigh 180 180 365 365 365 36575th Percentile 30 30 30 30 30 44Average (Mean) 35 39 49 49 43 54Median 30 30 30 30 23 3025th Percentile 14 14 14 14 9 30Low 1 1 2 2 1 1
  11. 11. BEST PRACTICES,®LL11Copyright © Best Practices , LLCFlexible Approaches Common for Key CustomersQ10. How rigidly or loosely do you enforce your Terms & Conditions policies for keycustomers and accounts? (Please choose the option that best describes your complaintmanagement groups approach to key accounts)(n=49)20%35%43%Rigid EnforcementSomewhat Rigid Enforcement:Somewhat FlexibleEnforcementLoose Enforcement, 2%Almost half of benchmark partners adopt a “Somewhat Flexible” approach to enforcingTerms & Conditions polices for key customers and accounts, whereby reportingrequirements for various service issues may sometimes be relaxed. In contrast, only20% of companies deploy a “Rigid” approach to enforcing policies for this critical group.“We only relax our reporting policies on rare occasions.”“We hold all customers up to the same reportingstandards and timelines.”“We often relax our reporting policies.”“We hardly ever enforce our reporting policy.”Voices from the Field:The Marketing group does a lot of work aroundmanaging key customers: they do a lot of focusgroups and other key-customer-related things.That’s less often done in the complaint system, atleast in our company.--Director, Quality Systems
  12. 12. BEST PRACTICES,®LL12Copyright © Best Practices , LLCBest Practices, LLC6350 Quadrangle Drive, Suite 200Chapel Hill, NC 27517www.best-in-class.comAbout Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts work based on thesimple yet profound principle that organizations can chart a course to superior economicperformance by studying the best business practices, operating tactics, and winningstrategies of world-class companies.Link for Report: Capturing Insights to Drive Business Improvements
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