U N L O C K I N G VA L U E T H R O U G H C O M P L A I N T S E X C E L L E N C E

COMPLAINTS
OUTLOOK
2019
2 COMPLAINTS OUTLOOK 2019
COMPLAINTS OUTLOOK 2019 3

TABLE OF CONTENTS

04 FOREWORD

06 RESEARCH METHODOLOGY

08 EXECUTIVE SUMMARY

20 THE COMPLAINTS LANDSCAPE

26 THE CUSTOMER VIEW

38 DRIVING DEEPER, MORE VALUABLE
RELATIONSHIPS WITH EXISTING CUSTOMERS

46 WINNING NEW CUSTOMERS THROUGH
ADVOCACY

52 MAKING THE COMPLAINTS PROCESS MORE
EFFICIENT AND RESILIENT

60 CONCLUSION

63 APPENDIX

77 ABOUT HUNTSWOOD

78 ABOUT THE AUTHORS

79 CONTACT US
4 COMPLAINTS OUTLOOK 2019
OUR LAST COMPLAINTS
OUTLOOK CAME AT A TIME OF
GREAT REGULATORY CHANGE
AND HEIGHTENED FOCUS ON
THE COMPLAINTS PROCESS
ACROSS ALL SECTORS AND
INDUSTRIES. IN THE THREE
YEARS SINCE THEN, FIRMS HAVE
ADAPTED TO THE CHANGES AND
THE COMPLAINTS LANDSCAPE
HAS EVOLVED AS A RESULT.
What became immediately clear from
this latest round of research is that
meeting regulatory requirements
remains vital and, in the vast majority
of cases, firms are achieving this.
However, the regulations in question
are only focused on achieving a
baseline standard and are at odds with
increasing customer expectations.
Ensuring that the right regulatory
outcomes are delivered to customers
should be, without a doubt, the core of
any complaints process. At the same
time, in this increasingly competitive
world, focus now needs to shift
towards delivering excellent customer
experience. This is how firms can use
complaints to drive real value for their
business.
This report highlights some of the
key findings from the research and
including considerations for firms.
Perhaps the most important of these
findings is the scale of the divide
FOREWORD
between firms’ understanding of how
well they’re handling complaints
and what customers actually think of
their complaints experience. We also
outline the impact of the ‘retention
cliff ’ and the sharp decline in the
rate of customer satisfaction that
occurs the longer a complaint remains
unresolved.
With the importance of customer
loyalty and the benefits of advocacy
from customers clearly evidenced,
the commercial value of delivering
an excellent customer experience
throughout the complaints journey has
never been greater.
Our research confirms that customers
want to feel their voice has an impact
and that there is still real work to
be done to engage customers on
this emotional level. This begins
with moving beyond the regulatory
minimums to setting ambitious targets
for customer journey improvement.
Technology is also offering firms
innovative improvements that add
value, both through reducing the costs
of complaints handling and increasing
customer retention. Our research
highlights customers’ willingness to
embrace technology as part of the
complaints process, but firms must
ensure they choose the right solution
for their business.
Finally, and most importantly, our
research shows there is tremendous
value to be unlocked through the
complaints journey. The question is
whether or not industries are willing
to shift their focus away from base
compliance (while continuing to
deliver fair outcomes) and begin to
look at complaints as an opportunity
to grow and strengthen the business.
Complaints leaders and senior
management need to shift the historic
view of complaints from being a
‘cost centre’ to a potential ‘profit
centre’ moving forwards, and arming
departments on the frontline for future
success in an environment where
customers’ expectations are being
rapidly transformed.
We trust that the Complaints Outlook
2019 will follow its predecessor in
remaining, for years to come, the
'go-to' document for all those firms
and teams seeking a better way to
deliver complaints excellence for their
customers.
PAUL SCOTT
CHIEF COMMERCIAL OFFICER
COMPLAINTS OUTLOOK 2019 5

PAUL SCOTT
CHIEF COMMERCIAL OFFICER
6 COMPLAINTS OUTLOOK 2019

RESEARCH METHODOLOGY
Three strands of research were undertaken to provide a holistic,
cross-sector understanding of key complaints issues:

1 INDUSTRY ENGAGEMENT
Data was collected from 31 financial services and utilities firms through intensive interviews in which a targeted question set
was employed. These interviews allowed us to understand firms' complaints handling operating models.

FINANCIAL SERVICES
COMPLAINTS OUTLOOK 2019 7

2 CONSUMER RESEARCH ⚫⚫ A nationally representative sample of 5,511 customers

COMPLETED THROUGH ⚫⚫ Detailed profiling data from YouGov’s deep

ONLINE SURVEYS CARRIED understanding of the members of their research panel

OUT BY OUR RESEARCH

PARTNER, YOUGOV

3 INSIGHT FROM THOUGHT

LEADERS AND INNOVATORS
⚫⚫ Professor Moira Clark of The Henley Centre for
Customer Management, Henley Business School

⚫⚫ Resolver, an independent issue resolution service

WE WOULD LIKE TO EXPRESS OUR SINCERE GRATITUDE TO ALL

THE FIRMS THAT TOOK PART IN THE RESEARCH AND ALSO TO
OUR BROADER PARTNERS, WITHOUT WHOM THE PRODUCTION
OF THIS REPORT WOULD NOT HAVE BEEN POSSIBLE.
8 COMPLAINTS OUTLOOK 2019

EXECUTIVE
SUMMARY
THE COMPLAINTS OUTLOOK 2019 USES
DATA DRAWN FROM INTERVIEWS WITH
LEADING FIRMS AND CUSTOMER SURVEY
RESPONSES TO MAKE IT CLEAR HOW
BUSINESSES CAN DRIVE VALUE FROM
COMPLAINTS
COMPLAINTS OUTLOOK 2019 9
10 COMPLAINTS OUTLOOK 2019

Building on our landmark 2016 paper,
this new edition arms firms with the
evidence and guidance they need to
enact real change in the complaints
journey. A better complaints
experience, after all, leads to numerous
benefits, including:
Since the release of our last
Complaints Outlook, firms have
taken positive steps forward. For
example, they now rightly view
regulatory standards as the minimum
when it comes to meeting customer
expectations.
Despite the positive steps already
taken by firms, within this report we
provide an argument for continued
improvement and investment in
complaints. This will be needed to
meet the changing expectations
of consumers and overcome the

DEEPER, MORE
challenges of an environment in which
Delivering fair outcomes, naturally, switching providers often proves easier

VALUABLE remains the priority for firms, with

82% measuring “customer outcomes
than raising a complaint.

RELATIONSHIPS delivered” as a key performance As well as looking at complaints

WITH EXISTING
metric. However, firms’ focus is now handling across the breadth of
shifting towards “customer experience” regulated industries, our experts in

CUSTOMERS as a measure of success. financial services and utilities have

provided insight into the key issues
This paper highlights the value that that they see on the horizon.
AN INCREASE IN NEW can be derived from the complaints

RELATIONSHIPS journey. It also challenges the historic

– and outdated – view of complaints
RESULTING FROM handling being a ‘cost of business’

CUSTOMER instead of a source of potential value.

ADVOCACY
EFFICIENCY
GAINS AND
COST SAVINGS
COMPLAINTS OUTLOOK 2019
DRIVING DEEPER,
MORE VALUABLE RELATIONSHIPS WITH EXISTING CUSTOMERS
CRUCIALLY, OUR RESEARCH
HAS REVEALED THAT THE
MODERN CUSTOMER IS
MORE LIKELY THAN EVER TO
SWITCH PROVIDER IF THEIR
EXPECTATIONS ARE NOT
MET. THE PROLIFERATION OF
COMPARISON WEBSITES AND
CAMPAIGNS THAT ENCOURAGE
SWITCHING PROVIDERS
HAVE MADE IT EASIER FOR
CUSTOMERS TO SWITCH THAN
MAKE A COMPLAINT.
Firms need to find ways to keep
customers happy and loyal if they wish
to remain competitive. In fact, we have
calculated that firms could increase
their long-term customer retention
rates from 49% to 75% by delivering
a speedier, more effective complaints
experience.
We have identified a significant
perception gap between how
well-equipped firms believe their
complaints teams are and the high
level of customer dissatisfaction with
complaints handling staff.
Firms need to be actively supporting
the continuing development and
training of complaints teams.
We also discovered that delivering 'first
point of contact' (FPOC) resolution is
the single most effective thing a firm
can do to drive deeper relationships
with existing customers. There is,
however, a clear disparity between the:
18%
OF CUSTOMERS WHO BELIEVE
THEIR COMPLAINT WAS
RESOLVED IMMEDIATELY
AND THE
49%
OF COMPLAINTS THAT FIRMS
BELIEVE THEY ARE RESOLVING
AT 'FIRST POINT OF CONTACT'
11
There are a number of improvements
organisations can make to ensure that
customers feel valued, listened to and
cared for, including:
⚫⚫ Ensuring that complaint and
interaction logging is firmly
embedded across all customer
contact channels
⚫⚫ Providing a single view of the
customer relationship through
effective data amalgamation,
enabling a holistic view of all
customer interactions and
activities so it is readily available
for any authorised staff member
⚫⚫ Upskilling and 'multi-skilling'
staff, empowering them to make
decisions and resolve issues
themselves. This is dependent
on increasing the capability of
not only specialist complaints
handling teams, but all teams
across the business
12
WINNING NEW CUSTOMERS THROUGH ADVOCACY
96%
OF FIRMS BELIEVE THAT
COMPLAINANTS CAN BE TURNED
INTO ADVOCATES
Our research proves that these firms
are absolutely correct.
However, yet again, there is a
significant difference between firms’
views of how often this is happening
and what customers are telling us.
57%
OF FIRMS FELT THAT THEY WERE
CREATING ADVOCATES IN OVER
HALF OF CASES
But there is more work to be done to
ensure that this is actually happening.
The commercial benefits of creating
advocates as part of the complaints
journey is outlined further within this
paper. What is clear is that the value
of positive advocacy throughout the
satisfied complainant population is
often overlooked by firms, meaning
that tangible commercial gains from
new customers are often not realised.
COMPLAINTS OUTLOOK 2019
1
12
OF CUSTOMERS TOLD US THEY
SHARED A POSITIVE COMPLAINT
EXPERIENCE
There is a positive snowball effect to be
seen here, as customers not only make
buying decisions as a result of what
they hear from others, but share those
stories more widely. This all leads to a
positive cycle of continuing advocacy –
if firms get the complaints experience
right in the first place.
Unfortunately, not everyone will give
you the chance to set things right. Our
research found that 43% of the UK
population has experienced a serious
issue for which they didn’t make a
well-warranted complaint.
Using root cause analysis data, firms
will be able to proactively identify
this non-complainant population and
potentially rectify the issues that aren't
'brought into the light'.
COMPLAINTS OUTLOOK 2019
MAKING THE COMPLAINTS PROCESS MORE EFFICIENT AND RESILIENT
TECHNOLOGY IS OFFERING
FIRMS OPPORTUNITIES
TO DRIVE EFFICIENCIES
THROUGH AUTOMATION,
MORE EFFECTIVE USE OF DATA
AND NEW CHANNELS FOR
COMMUNICATION.
Firms and customers are becoming
increasingly reliant on digital access
for managing their day-to-day
transactions.
1 Data breaches and cyber security
3 terms of the scale of attacks and
OF CUSTOMERS BELIEVE THAT
FIRMS ARE EMBRACING DIGITAL
TECHNOLOGY TO BETTER MANAGE
AND RESOLVE COMPLAINTS
With 89% of people in the UK now
using some form of internet-based
service and mobile devices becoming
a fundamental element of how people
manage their daily lives, system
failures can have a significant impact
– and not just on customers. When
tech failures occur, firms can be
inundated with unmanageable spikes
in complaint volumes.
12%
OF ALL COMPLAINTS WE NOTED
IN THE PAST YEAR HAVE RESULTED
FROM SYSTEM ISSUES, MAKING
THIS ONE OF THE TOP CAUSES FOR
COMPLAINTS
issues are also increasing, both in
customers' understanding of the
impact these attacks can have.
Firms should be prepared for potential
spikes in complaints as a result of
such incidents. This requires a high
level of operational resilience and
detailed stress testing, as well as the
development of resourcing models that
can be flexed to scale and pace.
13
In addition to preparing for the
unexpected, organisations need to be
continuously looking for opportunities
to streamline activities and use
more efficient processes. Customers
value speaking to real people, but
they are also open to self-service and
automation where it drives the right
outcomes.
HALF OF CUSTOMERS
WANT TO SPEAK TO A
REAL PERSON
ABOUT THEIR ISSUE,
REGARDLESS OF
THE OUTCOME
Regardless of whether or not they are
speaking to robots or humans, 7% of
customers say being passed around
departments is the most frustrating
part about the complaints experience.
Technologies such as natural language
processing can assess, in real-time,
the emotional state of a customer
and triage those who will most likely
benefit from the empathy of a highly-
skilled human complaints handler.
14 COMPLAINTS OUTLOOK 2019

WHAT
FIRMS
SHOULD BE THE COMPLAINTS
CONSIDERING LANDSCAPE
⚫⚫ Ensure your firm has a ‘single
view’ of each customer and makes
it available to all frontline staff.
Having this holistic view will
enable a seamless complaints
handling experience, even
between channels

⚫⚫ Prepare for further volatility in

complaints volumes as emerging
risk areas, new technology and the
increasing number of complaints
channels all come together to
increase demand on frontline
teams
COMPLAINTS OUTLOOK 2019 15

WINNING NEW MAKING THE

DRIVING DEEPER, CUSTOMERS COMPLAINTS
MORE VALUABLE THROUGH PROCESS MORE
RELATIONSHIPS ADVOCACY EFFICIENT
⚫⚫ Review the complaints target ⚫⚫ Firms should be reviewing their ⚫⚫ Build plans to ensure operational
operating model with a focus root cause analysis framework resilience. Your options could
on identifying opportunities to to ensure that it is effectively include:
reduce the time to resolution identifying opportunities for both
issue reduction and proactive ⚫⚫ Outsourcing for surge support
⚫⚫ Complete a 'training needs resolution
assessment' on staff with a ⚫⚫ Short-term external resource

particular focus on soft skills and ⚫⚫ Consider the additional value for surge support

relevant specialist knowledge that can be generated through

⚫⚫ Carry out a ‘mystery shopping’
exercise to test how well issues
are logged through all customer
contact channels and refine
training and / or the complaints
definitions off of the back of this
advocacy and not just the
commercial benefits of existing
customer retention
⚫⚫
⚫⚫ Cross-skilling additional
internal resources
Implement emerging technologies
that offer the opportunity to
deliver improved customer
experiences while simultaneously
reducing costs

⚫⚫ Implement secure webchat for

complaints
16 COMPLAINTS OUTLOOK 2019

THE VALUE
UNLOCKED THROUGH
COMPLAINTS
EXCELLENCE
IN THIS REPORT WE EXPLAIN
WHAT GOOD LOOKS LIKE IN THE
EYES OF CUSTOMERS – BUT IS IT
REALLY WORTH INVESTING IN THE
CHANGES NEEDED TO DELIVER
COMPLAINTS EXCELLENCE?

OUR RESEARCH HAS A

DEFINITIVE ANSWER TO THIS:

YES!
However, a lot of the value still to be unlocked
lies with those who are hardest to engage with.
Complainants who are dissatisfied, or those who
have neutral feelings towards their experience,
can provide the constructive criticism and
challenge your firm needs to really perfect its
complaints processes. But you need to know how
to draw the information from these customers.

By investing in complaints processes and

developing the skills of your frontline teams,
your firm can retain customers who may have a
higher propensity to leave and, thus, create more
potential advocates.

Non-complainants hold the same potential

value, but do not give firms the opportunity to
satisfy them, so pose a different challenge. Only
proactive activity can influence their behaviours.

Over the page, you can find an example of

the potential value that could be unlocked by
investing in complaints.
COMPLAINTS OUTLOOK 2019 17
18 COMPLAINTS OUTLOOK 2019

WHAT IS THE POTENTIAL VALUE OF IMPROVING YOUR COMPLAINTS PROCESS?

Our calculation model enables firms to quantify the potential financial impact of providing a poor complaints experience.
This can provide the business case needed for investment in the complaints process and changing the internal view of complaints
from a 'cost centre' to a 'profit centre'.

TO SEE THE VALUE THAT COULD BE UNLOCKED IN YOUR ORGANISATION, USE OUR
FREE ONLINE CALCULATOR AT: CO.HUNTSWOOD.COM

Here is an example of what you could discover through our calculator. In this case, our fictional firm has 1,000,000 customers,
manages 30,000 complaints and each customer is worth £300 annually to the company.

NON COMPLAINANTS SATISFIED COMPLAINANTS

16,154 7,800
(Assumes 65% of those affected by a (26% of complainants are likely to be
material issue complain, this figure satisfied according to our research)
represents the 35% who don't do so)

WHAT VALUE WOULD YOU £1,599,246 N/A

RETAIN IN YOUR BUSINESS (Difference between 75% retention for
IF THESE CUSTOMERS WERE satisfied customers and 42% retention
SATISFIED? for non-complainants)

WHAT VALUE WOULD YOU GAIN £2,900,451 N/A

THROUGH ADVOCACY IF THESE (Assumes, according to our research,
CUSTOMERS WERE SATISFIED? 35% of satisfied customers tell three
people, and 57% become customers)

TOTAL VALUE BEING TOTAL POTENTIAL VALUE

LOST BY CHURN FROM ADVOCACY

£3,834,846 £6,886,461
COMPLAINTS OUTLOOK 2019
NEUTRAL COMPLAINANTS
3,000
(10% of complainants are likely to be
neutral according to our research)
£162,000
(Difference between 75% retention for
satisfied customers and 57% retention
for neutral complainants)
£538,650
(Assumes, according to our research,
35% of satisfied customers tell three
people, and 57% become customers)
OVERALL POTENTIAL
VALUE
£10,721,307
DISSATISFIED COMPLAINANTS
19,200
(64% of complainants are likely to be
dissatisfied, according to our research)
£2,073,600
(Difference between 75% retention for
satisfied customers and 39% retention
for dissatisfied complainants)
£3,447,360
(Assumes, according to our research,
35% of satisfied customers tell three
people, and 57% become customers)
19
According to our research, satisfied
complainants have higher retention
rates and 1 in 3 will become brand
advocates. Firms need to be moving
customers from 'neutral' or 'dissatisfied'
to 'satisfied' if they are to access this
value. Non-complainants also have the
potential to be 'satisfied', but need a
different, proactive approach.
In the example we've given, it's clear
to see that the neutral, dissatisfied
and non-complainant population is
significantly larger than the satisfied
group. This means that there is a huge
potential to change the current outflow
of customers being seen. The size of
the potential value is driven by the
annual revenue per customer, which
in this case is £300. The larger the
individual customer value, the more
important it is to retain that value in
the long term and the more benefit
each new customer would bring to the
organisation.
20 COMPLAINTS
COMPLAINT OUTLOOK 2019

THE
COMPLAINTS
LANDSCAPE
ONE OF THE KEY AIMS OF THE
COMPLAINTS OUTLOOK 2019 IS TO
EXPLORE HOW TRENDS IN THE INDUSTRY
AND REPORTED PERFORMANCE HAVE
CHANGED SINCE 2016
COMPLAINTS OUTLOOK 2019 21
22
At the time of our last Complaints
Outlook in 2016, the financial
services industry was very focused
on complaints and their outcomes
(that were becoming, at the time,
more publicly visible). With the rapid
expansion of social media channels
and the publishing of complaints data
to the public, firms became concerned
about how this ‘open book’ policy
could impact the perception of their
business. However, these concerns
have not materialised into significant
issues for firms.
Another area of intense focus in
2016 was the issue of customer
vulnerability, and this hasn't changed.
The way that regulators, firms and
customers themselves understand
vulnerability has certainly developed
in the three years since our last report
was published. From a position where
93% of firms reported having no
training for their staff in this area,
firms have now moved to a place where
training of frontline staff has been
widely adopted. All of the firms we
spoke to have developed approaches to
vulnerability, although the maturity of
these, and the level to which they have
been implemented within policies and
processes, varies.
COMPLAINTS OUTLOOK 2019
The key challenge facing firms now is not only understanding and ensuring good
customer outcomes, it is how they continue to deliver these outcomes in a world of
rapidly changing customer expectations. Customers now have very different ideas of
how issues should be handled. Customers expect firms to embrace an increasingly
digital world while, at the same time, ensure empathy, understanding and the human
touch remain the backbone of complaints excellence.
2016 2019
Meeting the challenges of Fair customer outcomes
regulatory compliance delivered through excellent
customer experience
KEY LEARNINGS
⚫⚫ The “threat” of social media as a platform for public complaints has not
materialised to any great degree
⚫⚫ Customers are increasingly expecting a seamless – and private – omnichannel
experience between themselves and the organisation to which they are
complaining
⚫⚫ Ensuring the fair and equitable treatment of vulnerable customers remains a
challenge, especially in terms of managing the changing and often transient
nature of vulnerability
WHAT FIRMS SHOULD BE CONSIDERING
⚫⚫ Ensure your firm has a ‘single view’ of each customer and makes it available to
all frontline staff. Having this holistic view will enable a seamless complaints
experience, even between channels
⚫⚫ Prepare for further volatility in complaints volumes as emerging risk areas, new
technology and the increasing number of complaints channels all come together
to increase demand on frontline teams
COMPLAINTS OUTLOOK 2019 23

THE END-TO-END JOURNEY

IS UNLIKELY TO TAKE PLACE IN ONE CHANNEL

For a long time, ‘channel of choice’ has been seen as something static, with 70% OF CUSTOMERS WHOSE
customers having one preference that applies to all interactions. However, that’s no COMPLAINTS WERE NOT
longer the case. RESOLVED AT 'FIRST POINT OF
CONTACT' INTERACTED WITH
Channel choice really depends on several factors, including the type of interaction THEIR PROVIDER THROUGH
and the point in the journey the customer is moving through. Increasingly, customers AT LEAST TWO DIFFERENT
will use multiple channels through a single complaints journey, with the expectation CHANNELS DURING THEIR
that they can transition seamlessly between them. COMPLAINTS JOURNEY

EXAMPLE JOURNEY

MOBILE WEBCHAT EMAIL SMS

APP

The customer checks their
mobile app and notices a
charge which they don't
believe should be there
The customer goes onto the
provider's website and starts a
webchat to log a complaint - the
account needs investigation
before resolution
Following the webchat the
customer is emailed a copy of
the conversation and given
details of both contact options
and how they'll be updated
Automated, personalised
texts are sent with
updates on the case

SOCIAL EMAIL PHONE

MEDIA

The customer posts about The customer is emailed The complaint handler calls
their experience on social the final response to the the customer to discuss the
media complaint outcomes of their review

Social media as a complaints channel became a key concern for firms in 2016, yet we have not seen any significant uplift
in terms of use, with only 1% of all customers choosing to raise their issue through such platforms. Customers are much
more likely to contact their provider using private channels, with social media used more for sharing positive – and negative
– experiences to friends and family.
24 COMPLAINTS OUTLOOK 2019

BY 2025, THE AVERAGE

ORGANISATION’S SERVICE CHANNEL
MIX WILL BE VERY DIFFERENT TO WHAT
IT IS TODAY. USAGE OF NEW MEDIA
CHANNELS WILL SIGNIFICANTLY INCREASE
AS MORE CONSUMERS OWN DEVICES
THAT SUPPORT THESE CAPABILITIES AND
FEATURE SOFTWARE APPS WITH BUILT-
IN SERVICE OPTIONS. MANAGING THESE
CHANNELS WILL ALSO BE MORE COMPLEX
WITH CUSTOMERS FREQUENTLY CHANGING
THEIR CHANNEL PREFERENCES, MAKING
IT EVEN MORE DIFFICULT FOR
COMPANIES TO DELIVER

'THE STATE OF OMNICHANNEL IN UK CONTACT CENTRES:

A DREAM OR A REALITY'
UK CONTACT CENTRE FORUM, SEPTEMBER 2018
COMPLAINTS OUTLOOK 2019 25

AN 'INDIVIDUAL CIRCUMSTANCES' APPROACH IS THE PREFERRED

WAY TO DEAL WITH VULNERABLE CUSTOMERS

Vulnerability remains high on the
agenda of regulators and firms.
However, ensuring all customers get
the right outcome and experience
according to their individual
circumstances continues to prove a
challenge. A 'one-size-fits-all' approach
to complaints doesn’t take into
account the unique circumstances
customers may find themselves in. As
such, staff need to be both flexible and
sensitive in their approach.
In our 2016 report we found that
firms tended to adopt two different
approaches to customer vulnerability:
11. Categorising customers according
to specific areas of vulnerability,
often having decision trees that
grow out of these categories for
escalation within the firm
22. Treating each and every customer
according to their individual
circumstances
It is now clear, based on our research,
that most are moving towards an
System access to record changes and
new developments, made available
through a ‘single view’ file of the
customer, will become increasingly
important in the coming years.
Customer interactions across various
channels and journeys need to be
reflective of their circumstances at that
exact point in time.
ALL STAFF ARE TRAINED
TO IDENTIFY LOW-LEVEL
VULNERABILITY AND WE
HAVE SPECIALIST AREAS FOR
MORE COMPLEX CASES OF

75% ‘individual circumstances’ model over

OF FIRMS WE INTERVIEWED BELIEVE
THAT THEIR STAFF ARE EQUIPPED
AND EMPOWERED TO DEAL WITH
CUSTOMERS IN VULNERABLE
CIRCUMSTANCES, WHILE A
QUARTER FEEL THEY ARE ONLY A
PART OF THE WAY TO ACHIEVING
THIS
broader ‘categorisation’.
VULNERABILITY, INCLUDING
THOSE WHERE THERE IS A RISK
TO LIFE. STAFF ARE TRAINED
The next big challenge for firms is how
TO SPOT VULNERABILITY AND
they will deal with the shifting nature
TO EMPATHISE WITH THE
of vulnerability, as customers can move
CUSTOMER AS THEY WORK
in and out of vulnerable circumstances
THROUGH THE COMPLAINT,
over time. Ensuring a seamless
MAKING ADJUSTMENTS AS
journey for customers through these
NEEDED
transitions, and delivering the right
level of service without relying on
static flags, will require all frontline
staff to be able to hold effective
LARGE RETAIL BANK
conversations around vulnerability.

Some firms only train frontline staff

to identify vulnerability in order
to triage these cases into specialist
teams who then manage the customer
from that point. Others may have the
understanding and training needed,
but lack the tools to offer differentiated
solutions for vulnerable customers.
26 COMPLAINTS OUTLOOK 2019

THE
CUSTOMER
VIEW
THE CUSTOMERS WE SURVEYED WERE CLEAR
ON “WHAT GOOD LOOKS LIKE” WHEN IT
COMES TO MAKING A COMPLAINT. HERE,
WE WILL OUTLINE AN IDEAL CUSTOMER
JOURNEY – THAT IS, AT LEAST, AS IDEAL AS
ONE REALISTICALLY COULD BE
COMPLAINTS OUTLOOK 2019 27
28 COMPLAINTS OUTLOOK 2019

AN EXAMPLE COMPLAINTS JOURNEY

FROM A CUSTOMER'S POINT OF VIEW

FIND OUT HOW TO CONTACT INITIAL

TRIAGE
COMPLAIN CHANNELS INTERACTION

URGENT ISSUE

Get me through to Take it

Take it seriously
seriously and
and
the right person treat me as a valued
first time customer
customer
WEBSITE PHONE

APP WEBCHAT

NON-URGENT ISSUE

EMAIL
COMPLAINTS OUTLOOK 2019 29

ACKNOWLEDGE UPDATE RESOLVE CLOSE

THE
Fix my issue
COMPLAINT
immediately or as
HAS BEEN
quickly as possible
RESOLVED

Acknowledge
my complaint Get in touch
I expect
immediately and tell regularly when you
an apology
me when / how often say you will
you'll be in touch
30 COMPLAINTS OUTLOOK 2019

STEP 1
FIND OUT HOW TO COMPLAIN

WHAT ARE CUSTOMERS THINKING? WHAT GOOD LOOKS LIKE

The customer will, ideally, find out

MAKE IT EASY FOR I’M ANNOYED THERE’S
ME TO COMPLAIN AN ISSUE WITH MY
ACCOUNT. IF I CAN’T
FIND THE INFORMATION
I’M LOOKING FOR IT JUST
MAKES ME MORE ANGRY
ABOUT IT
HOW ARE FIRMS DOING?
how to complain quickly and simply
JUST GIVE ME THE
through clear sign-posting. Although
PHONE NUMBER.
the ‘three-click’ rule in user experience
I DON’T WANT TO
(which suggests that customers won’t
TRAWL THROUGH
make the effort to go more than "three
FAQS FOR AGES
clicks deep" into a website) is not
'hard and fast', it is still essential to
make sure that the journey is neither
long nor convoluted. Complainants
are already unhappy before starting
to look for the contact options, so
you don't want to inflame this with a
frustrating online experience.

3% 67% 44%

OF CUSTOMERS FAIL TO OF CUSTOMERS ARE SATISFIED

COMPLAIN BECAUSE THEY CAN’T OF FIRMS BELIEVE THEY ARE WITH THE EASE OF MAKING
WORK OUT HOW TO EXTREMELY EASY TO COMPLAIN CONTACT
TO, WITH THE REMAINING 33%
THINKING IT IS SOMEWHAT EASY
TO DO SO
WHAT CAN FIRMS DO?

TEST THE CUSTOMER JOURNEY TO FIND COMPLAINT CONTACT DETAILS:

⚫⚫ Is it quick and easy to see which ⚫⚫ If webchat is available, is it ⚫⚫ Is there an option to set expectations
channels can be used and to get triggered on the appropriate page? for customers, notify them of known
the right contact number? issues or promote certain channels
following an incident?
COMPLAINTS OUTLOOK 2019 31

STEP 2
CONTACT CHANNELS

WHAT ARE CUSTOMERS THINKING?

I DON’T HAVE TIME TO CALL I’M HAVING TO USE MY I WANT TO MAKE SURE I HAVE PUT THIS
RIGHT NOW BUT I CAN HAVE LUNCH HOUR TO MAKE IN WRITING SO I HAVE TIME TO THINK
A WEBCHAT WHILE I’M DOING THIS CALL. THIS BETTER BE IT THROUGH AND MAKE SURE I HAVE
OTHER THINGS SORTED QUICKLY! EVIDENCE OF WHAT’S BEEN SAID

WHAT GOOD LOOKS LIKE

44% EMAIL

OF CUSTOMERS WOULD 20% OF CUSTOMERS CHOOSE EMAIL HAS REPLACED PHYSICAL

PREFER TO USE THE PHONE WEBCHAT TO COMPLAIN WHEN LETTERS FOR CUSTOMERS
TO MAKE A COMPLAINT IT’S AVAILABLE NOT NEEDING AN IMMEDIATE
RESOLUTION

HOW ARE FIRMS DOING? WHAT CAN FIRMS DO?

Currently, phone is the most ⚫⚫ Open up customers’ preferred

used channel and most firms channels wherever possible for
focus their complaints handling complaints – specifically phone,

46%
operations on contact centres webchat and email where these
for this reason are not already options

Only a small number of firms ⚫⚫ Make sure all options are

surveyed have secure webchat advertised on ‘how to complain’

through which complaints can web pages

OF CUSTOMERS ARE be made
SATISFIED WITH BEING
ABLE TO USE THEIR
PREFERRED CHANNEL
32 COMPLAINTS OUTLOOK 2019

STEP 3
TRIAGE

WHAT ARE CUSTOMERS THINKING? WHAT GOOD LOOKS LIKE

Customers want to deal with staff who have the level of

knowledge and authority needed to understand the issue
I WANT TO SPEAK TO SOMEONE WHO UNDERSTANDS
they are facing and, where possible, resolve it.
WHAT I’M TALKING ABOUT AND CAN HELP ME

HOW ARE FIRMS DOING?

7%

ONLY 30% OF CUSTOMERS OF CUSTOMERS FIND BEING ONLY A SMALL NUMBER OF

ARE SATISFIED WITH THE PASSED AROUND DEPARTMENTS
KNOWLEDGE DEMONSTRATED THE SINGLE MOST FRUSTRATING
BY THE COMPLAINTS HANDLER THING ABOUT THE COMPLAINTS
PROCESS
FIRMS PROVIDE PRODUCT-
LEVEL PROFESSIONAL TRAINING
TO THEIR EMPLOYEES TO
ENSURE THAT THEY HAVE THE
DETAILED KNOWLEDGE NEEDED
TO DEAL WITH MORE COMPLEX
CUSTOMER COMPLAINTS

WHAT CAN FIRMS DO?

ASSESS THE BENEFITS OF IMPLEMENTING NEW CROSS-TRAIN COMPLAINTS

TECHNOLOGY SOLUTIONS TO IMPROVE CUSTOMER TRIAGE: HANDLERS TO ENSURE THEY
ARE ABLE TO DEAL WITH
⚫⚫ Is the technology effective in understanding the issue and identifying the right team? CUSTOMERS WITH A WIDER
VARIETY OF ISSUES AND /
⚫⚫ Is the technology able to effectively assess the emotional state of the customer?
OR UPSKILL COMPLAINTS
⚫⚫ How do customers respond to automated triage questions? Is the system flexible to HANDLERS WITHIN THEIR
allow these to be expanded upon? SPECIALIST AREAS
COMPLAINTS OUTLOOK 2019 33

STEP 4
INITIAL INTERACTION

WHAT ARE
CUSTOMERS THINKING? WHAT GOOD LOOKS LIKE

Being treated as a valued customer is the most important factor in overall satisfaction.

THIS ISSUE IS Consumers’ expectations relating to their treatment are that they will be treated with

IMPORTANT TO ME, respect, courtesy and empathy. They believe that they should be treated fairly and, above all,

I WANT IT TO BE TAKEN as a valued customer. As a result, more than half feel that their complaint should be treated

SERIOUSLY as an important or urgent issue (40% and 18% respectively). However, on average consumers
feel that their complaints are treated as everyday occurrences, and more than a quarter feel
that their complaints are treated as irrelevant or a nuisance

Understanding Consumer Experiences of Complaint Handling, Citizens Advice

HOW ARE FIRMS DOING? WHAT CAN FIRMS DO?

TEST THE
CUSTOMER EXPERIENCE:

3 ⚫⚫ ‘Mystery shop’ across all channels

4
that impact customer experience

⚫⚫ Provide training and development

wherever performance is not meeting
quality standards
OF CUSTOMERS DIDN'T FEEL
AS IF THE ORGANISATION WAS ⚫⚫ Build a culture that drives and

GENUINELY CONCERNED ABOUT rewards the right behaviours

THE ISSUE
⚫⚫ Complete a cultural assessment to
understand if internal culture is
effectively supporting a ‘customer-
first’ focus

61%
⚫⚫

OF CUSTOMERS WERE DISSATISFIED
WITH THE EMPATHY OF THE STAFF
THEY DEALT WITH AND LESS THAN
1 IN 3 FELT THE FIRM TOOK THEIR
COMPLAINT SERIOUSLY
41%
OF CUSTOMERS TOLD US THEY WERE
EXTREMELY DISSATIFIED WITH HOW
VALUED THEY FELT AS AN EXISTING
CUSTOMER
Ensure current performance
indicators are not inadvertently
driving worse customer experiences.
For example, a focus on reducing call
waiting times may mean complaints
handlers are rushed and customers
are made to feel unimportant
⚫⚫ Implement customer experience
metrics that drive the positive
behaviours needed
34 COMPLAINTS OUTLOOK 2019

STEP 5
ACKNOWLEDGE

WHAT ARE CUSTOMERS THINKING?

I WANT TO KNOW YOU’VE UNDERSTOOD MY

COMPLAINT AND WHEN I’LL HEAR BACK

WHAT GOOD LOOKS LIKE HOW ARE FIRMS DOING?

26% 58% 8%

OF CUSTOMERS EXPECT AN OF CUSTOMERS WERE OF CUSTOMERS TOLD US THEY

ACKNOWLEDGEMENT WITHIN DISSATISFIED WITH THE DIDN’T RECEIVE A RESPONSE
24 HOURS, INCREASING TO 56% TIME IT TOOK FOR THE FIRM TO THEIR COMPLAINT AT ALL
WITHIN TWO DAYS TO ACKNOWLEDGE THEIR
COMPLAINT

WHAT CAN FIRMS DO?

⚫⚫ Ensure complaints logging is effectively embedded across all channels and that staff are appropriately trained to make use of it

⚫⚫ Review the effectiveness of the complaints definition used in the business to ensure it is driving the right behaviours,
particularly within frontline teams

⚫⚫ Provide an acknowledgement for any complaint not resolved within 24 hours of logging, using automation where this delivers
responses in a more cost-efficient way

⚫⚫ Use technology, e.g. SMS or email, for quick acknowledgements

COMPLAINTS OUTLOOK 2019 35

STEP 6
UPDATE

WHAT ARE CUSTOMERS THINKING? WHAT GOOD LOOKS LIKE

WEEKLY UPDATES MONTHLY UPDATES

I UNDERSTAND MY I WANT TO KNOW MY

COMPLAINT IS COMPLEX, COMPLAINT IS BEING

56%
SO I GET THAT IT MIGHT DEALT WITH, NOT
TAKE SOME TIME TO
RESOLVE, BUT I WANT TO
JUST SAT IN A QUEUE
24%
AT LEAST KNOW WHAT’S
GOING ON

56% OF CUSTOMERS WHO RECEIVED UPDATES WEEKLY

FELT THIS WAS THE RIGHT AMOUNT,
REDUCING TO JUST 24% FOR MONTHLY UPDATES
HOW ARE FIRMS DOING?

63% 42% 64%

OF CUSTOMERS WERE OF CUSTOMERS EXPECTED OF CUSTOMERS HAD TO

DISSATISFIED WITH MORE UPDATES CONTACT THEIR PROVIDER
HOW THEY WERE KEPT TO CHASE FOR AN UPDATE
INFORMED THROUGHOUT
THE COMPLAINTS PROCESS

WHAT CAN FIRMS DO?

⚫⚫ Let customers know, ideally within the acknowledgment communication, when they will be updated and stick to this

⚫⚫ Explore automation and digital channels to provide these updates in a more cost-efficient and immediate manner. For
example, this could be done through the use of 'push notifications'
36 COMPLAINTS OUTLOOK 2019

STEP 7
RESOLVE

WHAT ARE CUSTOMERS THINKING? WHAT GOOD LOOKS LIKE

MY COMPLAINT IS SIMPLE, I
DON’T KNOW WHY IT’S TAKING
SO LONG
75%
YOU MADE THE MISTAKE,
SO WHY AM I BEING MADE
OF CUSTOMERS EXPECT THEIR WHERE THIS ISN’T ACHIEVED,
TO FEEL LIKE I’VE DONE
COMPLAINT TO BE CLOSED 90% OF CUSTOMERS EXPECT
SOMETHING WRONG
IMMEDIATELY THEIR COMPLAINT TO BE
RESOLVED IN LESS THAN
TWO WEEKS

HOW ARE FIRMS DOING? WHAT CAN FIRMS DO?

⚫⚫ Build a flexible and scalable

resourcing model that enables

1
spikes in volumes to be handled

35%
without lengthy delays

4 ⚫⚫ Ensure quality assurance

processes are testing the outcomes
that customers are receiving

⚫⚫ Use the outcomes from complaints

OF CUSTOMERS ARE
SATISFIED WITH THE SPEED
OF RESOLUTION, WITH FIRMS
TAKING 33 DAYS ON AVERAGE
TO CLOSE A COMPLAINT THAT IS
NOT CLOSED AT FPOC
ARE SATISFIED WITH THE
OVERALL OUTCOME OF THEIR
COMPLAINT
raised to the ombudsman in
root cause analysis to ensure
your approach is in line with fair
treatment of customers and that
systemic issues are identified and
remediated proactively

NEARLY A QUARTER OF CUSTOMERS FELT THAT THE WORST THING

ABOUT THE COMPLAINTS EXPERIENCE WAS THE LACK OF APOLOGY, THE
FIRM NOT ACCEPTING THERE HAD BEEN A MISTAKE OR BEING MADE TO
FEEL THAT IT WAS THEIR FAULT
COMPLAINTS OUTLOOK 2019 37

STEP 8
CLOSE

WHAT ARE CUSTOMERS THINKING? WHAT GOOD LOOKS LIKE

CUSTOMERS WANT FIRMS NEED TO

I WANT TO SEE THE PROMISED TO UNDERSTAND COMPLETE THE
ACTIONS COMPLETED
WHY THE REMEDIATION
OUTCOME HAS ACTION
BEEN REACHED, PROMISED TO
I WANT THE RESOLUTION IN IMMEDIATELY THE CUSTOMER
WRITING IN CASE THE COMPANY
DOESN'T DO WHAT THEY’VE SAID AND IN CLEAR, IN A TIMELY
THEY WILL JARGON-FREE MANNER
LANGUAGE

HOW ARE FIRMS DOING?

OF CUSTOMERS WERE
DISSATISFIED WITH THE
EXPLANATION THEY RECEIVED

62%
ABOUT THE OUTCOME OF
THEIR COMPLAINT

OF CUSTOMERS DIDN’T FEEL

37%
THEIR COMPLAINT WAS EVER
COMPLETELY RESOLVED

WHAT CAN FIRMS DO?

⚫⚫ Ensure that all customers receive confirmation of the outcome of their complaint immediately after the complaint is resolved
along with escalation options, if relevant

⚫⚫ Ensure that customer communications are written clearly in plain language

⚫⚫ Make sure any agreed actions are undertaken and that checking this forms part of the quality assurance process
38 COMPLAINTS OUTLOOK 2019

DRIVING DEEPER,
MORE VALUABLE
RELATIONSHIPS
WITH EXISTING
CUSTOMERS
OUR RESEARCH HAS REVEALED THAT
CUSTOMERS ARE NOW MORE LIKELY
THAN EVER TO SIMPLY SWITCH PROVIDER
RATHER THAN RAISE A COMPLAINT. WHERE
FIRMS DO HAVE THE OPPORTUNITY TO
RESOLVE A COMPLAINT, IT IS VITAL THAT
THEY DO SO EFFECTIVELY AND BUILD
A DEEPER RELATIONSHIP WITH THEIR
CUSTOMERS
COMPLAINTS OUTLOOK 2019 39
40 COMPLAINTS OUTLOOK 2019

Customers today are less likely to share their complaints experience, but are much more
likely to switch providers or avoid using the firm being complained about. This means the
stakes are even higher for complaints departments.

CUSTOMERS WILL SHARE THEIR COMPLAINTS EXPERIENCE,

WHETHER GOOD OR BAD, THROUGH VARIOUS MEANS

61% MENTION TO
MENTION TO FAMILY
FAMILY OR
OR FRIENDS
FRIENDS 43%
11% MENTION ON
MENTION ON AN
AN ONLINE
ONLINE FORUM
FORUM 5%
12% MENTION ON
MENTION ON SOCIAL
SOCIAL MEDIA
MEDIA 9%

2016 2019

2016 2019
CLOSE DOWN THEIR ACCOUNT
11% AND LEAVE THE COMPANY 17%
22% AVOID FIRM FOR FUTURE SERVICES 32%
15% USE THEIR ACCOUNT LESS OFTEN 9%
11% STOP USING THEIR ACCOUNT 23%

CUSTOMERS ARE NOW MORE LIKELY TO TAKE OTHER ACTION

AGAINST THEIR FIRM, RATHER THAN COMPLAIN

Firms need to start doing things differently if they are to stop the flow of customers out of their business and use
their complaints experience as an opportunity to make existing customer relationships more valuable.
COMPLAINTS OUTLOOK 2019
The unprecedented technological
disruption we are seeing across both
the financial services and utilities
marketplace means that it is much
easier today for customers to 'vote with
their feet' – and it seems that's exactly
what they are doing.
The quickening pace of service
innovation means there are now
more providers in the marketplace for
customers to choose from, providing
realistic alternatives to traditional
services that didn’t exist even just a few
years ago.
KEY LEARNINGS
⚫⚫ Digital innovation and new
'disruptor' businesses are making
it easier than ever for customers to
change provider, making it all the
more important to build deeper
relationships with customers
through the complaints journey
⚫⚫ Long-term retention rates can be
increased from 49% to 75% by
delivering a complaints experience
that satisfies customers, with
speed of resolution, a clear
indicator of likelihood to leave
⚫⚫ People remain the backbone of
complaints handling, but there
is a significant gap between
how firms view the skills of their
complaint handlers and the
customers’ view of this
41
WHAT FIRMS SHOULD
BE CONSIDERING
⚫⚫ Reviewing the complaints target
operating model with a focus
on identifying opportunities to
reduce the time to resolution
⚫⚫ Completing a training needs
assessment on their staff with a
particular focus on soft skills and
relevant specialist knowledge
⚫⚫ Carrying out a ‘mystery shopping’
exercise to test how well issues
are logged through all customer
contact channels and refining
training and / or the complaints
definitions off of the back of this
42 COMPLAINTS OUTLOOK 2019

ARE COMPLAINTS HANDLERS EQUIPPED TO DELIVER CUSTOMER SATISFACTION?

Firms have a positive view of how well equipped their complaints teams are for dealing with complaints, but this is not reflected in
how customers view the staff they are interacting with.

FIRMS CUSTOMERS

87% 59% 61%

BELIEVE THEIR COMPLAINTS ARE DISSATISFIED WITH THE ARE DISSATISFIED WITH THE
HANDLING STAFF ARE WELL KNOWLEDGE OF THE STAFF EMPATHY OF THE STAFF MEMBER
EQUIPPED TO DO THE JOB MEMBER THEY INTERACTED THEY INTERACTED WITH
WITH

This should not come as a massive LESS THAN Research carried out by The Henley

1 IN 3
surprise given that quality assurance Centre for Customer Management,
frameworks are primarily focused on Henley Business School, (based on
the complaint handler’s ability to follow complaints made through the Resolver
processes correctly and reach the right
outcome, rather than on the experience
COMPANIES online platform) showed that customer
sentiment during the complaints
ARE TRACKING CUSTOMER
delivered to the customer. journey only tends to rise after the
SENTIMENT THROUGH THE
customer's complaint is resolved.
COMPLAINTS PROCESS AND,
WHERE THIS IS HAPPENING, IT IS
ALMOST EXCLUSIVELY THROUGH
SURVEYS AFTER THE COMPLAINT
HAS BEEN RESOLVED
COMPLAINTS OUTLOOK 2019
OUR RESEARCH SHOWS THAT
96%
OF FIRMS RATE THE IMPACT OF
THE COMPLAINT HANDLER ON
CUSTOMER SATISFACTION AS
HIGH OR EXTREMELY HIGH
However, there is a disconnect between
this perceived importance and the
lack of focus on building professional
skills through recognised training
programmes and qualifications.
43
DO YOUR STAFF COMPLETE PROFESSIONAL COMPLAINT HANDLING
QUALIFICATIONS?
52% 43% 4%
NO YES YES Some choose to All expected to
Firms need to be looking at how they are training and developing their employees so
that they can deliver complaints excellence. Customer satisfaction is core to releasing
the value locked in complaints, and the investment in ensuring staff are equipped to
deliver first-class service will be money well spent. Investment in this area is more
than likely to deliver increased customer satisfaction, deeper customer relationships
and new customer acquisition through advocacy.
44 COMPLAINTS OUTLOOK 2019

LONG RESOLUTION TIMES ARE CAUSING CUSTOMERS TO LEAVE

Where customers feel their issue was resolved at 'first point of contact', 75% will
remain customers in the long term and 1 in 12 will deepen their relationship with the
organisation.
WE HAVE
However, as soon as the initial contact point passes with the issue left unresolved, the
opportunity to drive additional business from the customer disappears. Customers
FOUND THAT,
do, however, have an appreciation that their complaint may be too complex to resolve CONSISTENTLY
immediately and their expectations reflect this.
ACROSS THE
SECTORS, CASE
18 % C DURATION HAS THE
US
TO GREATEST IMPACT
49% M
F IR
M ON OUTCOME
ER

MEASURES
COMPLAINTS CLOSED RELATING TO
AT 'FIRST POINT OF
CONTACT', AS REPORTED
ADVOCACY AND
BY FIRMS AND SATISFACTION
CUSTOMERS
SCORES,
COMPARED TO
THE NUMBER OF
INTERACTIONS

As noted above, there is a large perception gap between firms and customers in how
often complaints are closed at 'first point of contact'. Much of this difference is likely
to be caused by issues not being logged at the frontline. This is backed up by the fact 'COMPLAINT HANDLING -
that 34% of firms feel that they don’t have a full picture of the complaints coming RESOLVING ISSUES'
into their business. A key challenge to unlocking value is gaining complete visibility PROFESSOR MOIRA CLARK &
on all frontline customer interactions. DR ANDREW MYERS, HENLEY
BUSINESS SCHOOL, JUNE 2018
COMPLAINTS OUTLOOK 2019 45

THE CUSTOMER RETENTION RATE IS TIED CLOSELY TO THE

AVERAGE TIME IT TAKES FOR COMPLAINTS TO BE RESOLVED,
WITH CUSTOMERS MORE LIKELY TO STAY IF THEY RECEIVE
IMMEDIATE RESOLUTION THAN IF THEY HAVE TO WAIT

90%
AVERAGE FIRM
80%
80% 75% PERFORMANCE
(33 DAYS)
RATE OVER A 5 YEAR HORIZON

70% 62.29%
% CUSTOMER RETENTION

60% 52.94%
48.39%
50%

40% 35.9%

30%

20%

10%

0
LESS THAN LESS THAN 1-2 3 -4 1 -2 3 MONTHS
A DAY A WEEK WEEKS WEEKS MONTHS OR MORE

TIME TAKEN TO RESOLVE COMPLAINT

If firms want to retain their existing customers, they need to start resolving complaints quicker.
The longer a complaint goes unresolved, the lower the long-term retention rate. The ‘retention
cliff-edge’ occurs where a complaint remains open for over a week and continues to decline from
there, with complaints open for more than one month usually seeing customer retention rates
reduce to below 50% five years post-complaint.

FIRMS ARE CURRENTLY EXCEEDING CUSTOMER EXPECTATIONS IN ONLY 1 IN 100 CASES.

1% 9% 90%

OF CUSTOMERS REPORTED OF CUSTOMERS REPORTED OF CUSTOMERS REPORTED

THAT THEIR COMPLAINT WAS THAT THEIR COMPLAINT THAT THEIR COMPLAINT WAS
RESOLVED QUICKER THAN WAS RESOLVED IN LINE WITH RESOLVED SLOWER THAN
EXPECTED EXPECTATIONS EXPECTED

However, on the rare occasions where firms did meet or exceed expectations,
customers were 16% more likely to remain a customer over the following five years.
46 COMPLAINTS OUTLOOK 2019

WINNING NEW
CUSTOMERS
THROUGH
ADVOCACY
96% OF FIRMS
AGREE THAT COMPLAINANTS CAN BE
TURNED INTO ADVOCATES AND OUR
RESEARCH BACKS THIS UP. AROUND
35% OF SATISFIED CUSTOMERS WILL
TELL THEIR FRIENDS AND / OR FAMILY
ABOUT THEIR POSITIVE EXPERIENCE
OF A COMPLAINT BEING HANDLED
WELL. HOWEVER, FIRMS BELIEVE
THEY ARE DRIVING THIS BEHAVIOUR
MUCH MORE OFTEN THAN THEY ARE
IN REALITY
COMPLAINTS OUTLOOK 2019 47
48 COMPLAINTS OUTLOOK 2019

KEY LEARNINGS

This disconnect in the understanding ⚫⚫ 1 in 3 satisfied customers

of current levels of advocacy is likely share their positive complaints
driven by the significant disparity experiences and these are valued,

96%
between the proportion of satisfied and acted upon, by those who hear
complainants that firms believe they about them
have and the reality.
⚫⚫ Advocates can also be created
FIRMS BELIEVE within the non-complainant
population by demonstrating
OF FIRMS BELIEVE THAT proactive resolution. Saving
COMPLAINANTS CAN BE customers the hassle of having

69%
TURNED INTO ADVOCATES to complain in the first place
is a good way to make sure the
complaint journey is a positive one

WHAT FIRMS SHOULD

57%
OF THEIR
BE CONSIDERING
COMPLAINANTS ARE SATISFIED

⚫⚫ Firms should be reviewing their

root cause analysis framework
to ensure that it is effectively

26%
OF FIRMS BELIEVE THEY ARE identifying opportunities for both
CREATING ADVOCATES IN AT issue reduction and proactive
LEAST HALF OF ALL CASES resolution

⚫⚫ Firms should consider the

additional value that can be
OF CUSTOMERS WERE ACTUALLY generated through advocacy and
SATISFIED WITH THEIR not just the commercial benefits of
COMPLAINTS EXPERIENCE existing customer retention

Advocacy is, of course, only possible

where customers have a positive story
to share, so firms need to focus their
efforts in driving satisfaction up if
they are to unlock the potential for
new customer acquisition through
advocacy.
COMPLAINTS OUTLOOK 2019 49

THE POSITIVE CYCLE OF ADVOCACY AND ACTION

Our research shows that a positive experience shared goes beyond the immediate Our research has identified that
social circles of the customer, creating a positive 'ripple effect' as their story is shared prospective customers are actively
further and wider than they might have expected. choosing their provider based on the
positive experiences of others, with the
resulting sales conversion levels being
those that marketing and business
development teams can only dream of.

If firms are able to accurately track

the satisfaction levels of customers
through the complaints process, they
will be able to quantify the benefits
of their processes on new customer
relationship volumes. Equally, firms
will also be able to see the ‘value at
risk’ from existing customers who
are dissatisfied with the complaints
experience.
50 COMPLAINTS OUTLOOK 2019

WORKING OUT THE COST OF COMPLAINING

For customers to raise a complaint with their provider,

they need to see the perceived benefit as outweighing
the cost of doing so.

VALUE Of customer X
making a complaint
about provider Y

= BENEFIT
Of customer X making a
complaint about provider
Y – including financial
outcome as well as perceived
procedural fairness

- COST For customer X making a

complaint about provider Y –
both tangible and intangible

For the customer, the cost of complaining has a tangible component (for example, the
effort needed to contact the organisation) as well as an intangible one (such as the
stress or discomfort endured during the process of making the complaint).
COMPLAINTS OUTLOOK 2019 51

USING ROOT CAUSE ANALYSIS AND

REMEDIATION TO EXCEED EXPECTATIONS

Firms are increasingly considering Firms’ current approach to root cause

their non-complainant populations: analysis, however, still results mainly
in tactical fixes, rather than the

43%
strategic change really needed.

Many of the challenges firms shared

73%
with us were related to being able to
deal with, and extract the value from,
the vast amounts of unstructured
data that the complaints processes
OF THE UK POPULATION HAS
generate. Many firms highlighted
EXPERIENCED A SERIOUS
their hopes around developing data
ISSUE FOR WHICH THEY DIDN’T
OF FIRMS NOW CONSIDER analytics technologies, artificial
MAKE A WELL-WARRANTED
THEIR NON-COMPLAINANT intelligence and natural language
COMPLAINT
POPULATION processing capabilities and how

The main reason for this is that these these could fundamentally transform

customers tend to feel that making a root cause analysis to enable more

formal complaint takes too much time proactive resolutions.

and effort. They feel that it isn’t worth

47%
it or that firms “just aren’t interested”.

Because of this, organisations need

to use the complaints they receive to
improve the experiences and levels of
advocacy for those who are affected
but aren’t complaining. This is a OF FIRMS CONSIDERED
real opportunity to exceed customer THEIR NON-COMPLAINANT
expectations and start to build a level POPULATION IN 2016
of trust in the organisation. This is
how you prove that you really are
interested in the experiences of your
customers.
52 COMPLAINTS OUTLOOK 2019

MAKING THE
COMPLAINTS
PROCESS MORE
EFFICIENT AND
RESILIENT
ONLY 1 IN 3 CUSTOMERS BELIEVE
THAT FIRMS ARE EMBRACING DIGITAL
TECHNOLOGY TO BETTER MANAGE AND
RESOLVE COMPLAINTS. THIS IS SLOWLY
CHANGING, BUT NOT AT THE PACE
CUSTOMERS ARE EXPECTING
COMPLAINTS OUTLOOK 2019 53
54 COMPLAINTS OUTLOOK 2019

15%

OF COMPLAINT UPDATES
RECEIVED IN THE LAST 12
MONTHS WERE STILL SENT BY
POST (DOWN FROM 40% FOR
COMPLAINTS RAISED FIVE
YEARS AGO)

From asking firms about a number of

emerging technologies, we discovered
a general attitude among the
marketplace that there is a reluctance
to invest in technology until it has
developed further. Firms don’t want to
invest in technology until the business
case stacks up clearly.
COMPLAINTS OUTLOOK 2019 55

WHAT FIRMS SHOULD

KEY LEARNINGS BE CONSIDERING

However, as this report shows, the
value generation potential within
complaints is massive. It is our hope
that this paper will help firms more
easily quantify the business benefit of
⚫⚫ Automation is being used
primarily in operational processes
outside of complaints handling to
reduce the number of complaints
from occurring in the first place
⚫⚫ Building plans to ensure
operational resilience. Your
options could include:
⚫⚫ Outsourcing for surge support

making these investments, particularly

⚫⚫
where they are able to drive down
the average time taken to resolve
complaints.
Communication channels and the
⚫⚫
automation of updates are areas where
tech solutions could be integrated for
immediate and tangible impacts.
⚫⚫
System issues and data breaches ⚫⚫ Short-term external
are increasingly driving spikes in resourcing for surge support
complaints and this trend is likely
⚫⚫ Cross-skilling additional
to continue
internal resources
Firms are reluctant to invest in the
⚫⚫ Implementing emerging
complaints process while it is still
technologies that offer the
seen as a ‘cost centre’. Using the
opportunity to deliver improved
demonstrable value generation
customer experiences while
opportunities identified in this
simultaneously reducing costs
report will enable a true ‘cost /
benefit’ analysis to be undertaken
⚫⚫ Implementing secure webchat for
complaints
Customers are actively choosing
new technology-driven
communications channels,
such as webchat, where they are
available
56 COMPLAINTS OUTLOOK 2019

OPERATIONAL RESILIENCE

Firms need to ensure that they have a flexible, scalable and highly-skilled workforce
ready to deal with surges if they are to maintain service levels during periods of
operational stress. Firms' operating models need to be designed to deal with the

12%
high level of customer contact generated by system issues and data breaches. When
these events do occur, customers are 15% more likely to use the phone to raise their
complaint and are significantly more likely to chase for updates. This shouldn’t be
surprising, given the significance of a system issue or data breach:

CUSTOMERS WILL CHASE FOR UPDATES MORE OFTEN IN THE EVENT OF

OF COMPLAINTS RECORDED SYSTEM ISSUES OR DATA BREACHES
OVER THE LAST 12 MONTHS
WERE RELATED TO SYSTEM
ISSUES OR DATA BREACHES 15%

This is a massive leap from only 7% 23%

for complaints made five or more 11%
years ago. A large part of this is driven 24%
by changes in customer behaviour
and the increasing reliance on digital
technologies for managing our day-to-
day lives.

System failures have a much more CHASED ONCE CHASED ON A COUPLE

significant impact than they would
OF OCCASIONS
have had even five years ago, and
with nearly 70% of complaints being
triggered by the severity of the issue,
it can only be expected that when
systems go down, complaints volumes
will rise sharply. 29%

35%

CHASED ON NUMEROUS
OCCASIONS

SYSTEM ISSUES AND DATA BREACHES OTHER CAUSES

COMPLAINTS OUTLOOK 2019
Frequent, automated updates to all
affected customers can help to manage
high call volumes. This allows resource
to be focused on resolution rather than
interaction and frees up staff to spend
more time talking to customers facing
issues that may need a human touch.
The traditional approach – that
is, using the natural fluctuations
between busier and quieter periods
in complaints to deal with backlogs –
doesn’t support a model of consistently
short resolution times and high
volatility in customer contact.
FIRMS THAT HAVE STATIC RESOURCE CAPACITY ARE THOSE MOST LIKELY
TO BUCKLE UNDER THE PRESSURE OF COMPLAINTS SURGES
COMPLAINTS VOLUMES OVER TIME
In many industries, the other major
element affecting complaints volumes
is the weather, with seasonality
causing significant differences in
complaint volumes across the year.
Some of this will be largely predictable
(we don't typically expect blizzards in
summer, but water shortages could
become more prevalent) but extreme
weather can lead to unmanageable
spikes in contact volumes.
RESOURCE CAPACITY OVER TIME
57
Firms need a flexible approach to
resourcing that can be upscaled at
pre-defined times in the year when
volumes are expected to increase. For
example, utilities firms might receive
more heating-related complaints
in the winter months. However,
weather incidents and other events
in the natural world can cause major
disruptions that are wide-reaching and
unpredictable. Planning for the worst
case is of paramount importance.
Ensuring complaints handling teams
have the right skills and resource to
deliver complaints excellence is even
more important during times of high
emotional impact for customers.
This might include, for example, a
highly publicised natural disaster or
bereavement. In these situations, our
research shows that the empathy and
knowledge of the complaint handler
has a higher impact on their overall
satisfaction than when the complaint
is more routine.
58
MAKING THE RIGHT INVESTMENTS IN TECHNOLOGY
Unsurprisingly, firms are nervous
about using their finite budgets to
invest in the complaints process.
Instead, many are focusing their
attention on improving operational
processes with the aim of reducing
the number of complaints being
generated in the first place. But, based
on the outcomes of this research, there
are two clear areas where emerging
technologies offer firms an opportunity
to drive a step-change towards
complaints excellence.
1
3
OF CUSTOMERS BELIEVE FIRMS
ARE EMBRACING TECHNOLOGY
TO BETTER MANAGE
COMPLAINTS
1. AUTOMATION AND A 'SINGLE
CUSTOMER VIEW'
Using robotics and data amalgamation
techniques to remove complex, manual
and resource-heavy data gathering
from across systems not only reduces
the time required to resolve each case
but allows skilled complaints handlers
to focus where their subjective
expertise adds the most value,
including:
⚫⚫ Having valuable conversations,
with all the information at hand to
give customers confidence in the
complaints handler's abilities
⚫⚫ Making informed decisions on
the right outcomes for customers
quicker and with more confidence
Additionally, where this single
customer view is available to all
frontline staff, they have a much
higher chance of being able to resolve
the complaint at 'first point of contact'
and open up the opportunity for a
deeper customer relationship.
COMPLAINTS OUTLOOK 2019
2. NATURAL LANGUAGE
PROCESSING AND ARTIFICIAL
INTELLIGENCE FOR TRIAGING
CUSTOMERS
7% of customers told us the single
most frustrating thing about the
complaints process was being passed
around multiple departments.
Technology exists that is able to
interpret unstructured language,
through voice or text, and identify
not only what customers are wanting
to achieve but also how they are
feeling. This advanced technology
opens up new possibilities for triaging
customers directly to people who are
able to help. It also serves to prioritise
channels of communication based on
the individual customer’s needs, even
identifying where vulnerability might
become a concern.
WE SEE THESE
TECHNOLOGIES
SUPPORTING THE
IDENTIFICATION AND
CATEGORISATION OF
COMPLAINTS UP FRONT
SO THAT IT GOES TO THE
RIGHT PLACE
MAJOR UK RETAIL BANK
COMPLAINTS OUTLOOK 2019 59

IS WEBCHAT THE ANSWER?

CUSTOMERS ARE INCREASINGLY CHOOSING TO USE WEBCHAT FACILITIES

WHERE THEY ARE AVAILABLE

For businesses that offer webchat,
around 20% of customers will
choose to use it to make their
complaint. For customers, it offers
the ideal combination of convenience,
immediacy and written evidence. For
firms, it enables more efficient use of
resource as multiple conversations can
be completed simultaneously. This is
also the perfect space for intelligent
technology to be used to reduce
resource requirements.
Interestingly, customers often don’t
know if they are talking to a chatbot
or a real person. Our data shows that,
for half of customers, this isn’t really
important – as long as they get their
issue resolved. Using real-time natural
language processing technology can
ensure that customers most likely to
need an immediate response from a
real person are triaged to someone
with the relevant skills. Meanwhile
those looking for a functional
resolution can be serviced by a
technology solution.
Uptake of webchat for complaints
has been relatively slow compared to
its use for general support activities.
Only three of the firms we spoke to
actively promote webchat as a channel
for complaints. The challenges come
with ensuring that messages sent
and received are secure, especially
when discussing the private details
of a customer's account. However,
every year there are more options for
providing secure webchat.

WEBCHAT ALLOWS YOUR COMPLAINTS TEAM TO RESPOND TO MORE

COMPLAINANTS AT ONCE, CREATING EFFICIENCIES WITHIN THE DEPARTMENT

PHONE WEBCHAT ONLY 60%

OF CONTACT
CENTRES
CUSTOMER 1 CUSTOMER 2 CUSTOMER 3
CURRENTLY
SUPPORT
CUSTOMER
CONTACT VIA
CUSTOMER 1 CUSTOMER 4

WEBCHAT

PHONE WEBCHAT

UK CONTACT CENTRE FORUM

2018 DIGITAL SURVEY
60 COMPLAINTS OUTLOOK 2019

CONCLUSION
FOR THE LONGEST TIME, COMPLAINING HAS BEEN
SOMETHING OF A ‘DIRTY WORD’, ESPECIALLY
WITHIN THE UK, WHERE CULTURAL NORMS DICTATE
WE SHOULD PUT UP WITH OUR ISSUES INSTEAD OF
TRYING TO FIX THEM.

In fact, the FCA has even made this an argument for part of its regulatory
strategy – 15 million Britons routinely miss out on remediation or refunds
by not making complaints when they have valid reasons to do so.

Generally, firms do not want to receive complaints if they can help it.
Complaints, after all, mean that something has gone wrong during the
customer journey, and no company wants to make mistakes. But firms
can’t simply ignore them and hope the issue goes away. Complaints, and
how they are dealt with, remain key drivers of any company’s success.

The Complaints Outlook 2019 has proven that good complaints handling
can not only drive deeper relationships with customers and ensure they
remain loyal but also that it leads to a positive snowball effect of customer
advocacy. If a third of customers would share the story of their positive
complaints experience with others, and roughly 50% of people would
consider making a purchase from a company after hearing about positive
outcomes from others, then there is an obvious commercial incentive for
achieving ‘complaints excellence’.
COMPLAINTS OUTLOOK 2019 61

On the flip-side, close to 90% of customers would consider leaving their

provider as the result of a poor complaints experience. Firms need to be
doing more to ensure that staff are trained to take a customer-centric and
empathetic approach when handling complaints. Currently, less than
30% of complainants believe this is the case.

Efficiencies can also be created through the use of technology such as

webchat and app-based complaints platforms. Despite only about 60%
of firms having a webchat function and the majority still not using it for
complaints handling, this type of technology allows complaint handlers to
manage their caseloads more efficiently. The fact that 50% of customers
don’t mind talking to an automated system, as long as it resolves their
complaint quickly, also strengthens the business case for employing
automation as part of the channel mix. In general, firms need to deliver an
omni-channel experience and effectively track their customers’ journeys.

Perhaps the most important point to draw from the Complaints Outlook
2019 is that a speedy resolution is becoming the expected standard, and
that those firms that can’t maintain (if not improve) service quality at the
same time will be left behind. This report should give you many of the
tools to transform your operations to meet this evolving standard.

In the end, “complaining” should not be seen as negative. We all do it.

And we should do it more. Only by making our voices heard, and by
listening to the complaints being made, can we improve the products and
services we use daily, and build a better, more stable, more universally-
beneficial marketplace.
62 COMPLAINTS OUTLOOK 2019
COMPLAINTS OUTLOOK 2019 63

APPENDIX
KEY DATA POINTS
BY SECTOR
64 KEY FINDINGS: FINANCIAL SERVICES

APPENDIX 1

KEY FINDINGS:
FINANCIAL SERVICES

Our research has revealed that, as a whole, financial

services firms are performing better than their
counterparts in the utilities industry and have improved
a great deal since our 2016 report. However, there
remain a number of lingering issues that firms should
address if they wish to unlock the value of complaints.

SATISFACTION LEVELS FOR COMPLAINTS

HANDLING ARE LOW

LEVEL OF SATISFACTION WITH HOW

ISSUES ARE HANDLED

22% SATISFIED

16% NEUTRAL

62% DISSATISFIED
KEY FINDINGS: FINANCIAL SERVICES 65

THE TOP FIVE REASONS FOR RAISING COMPLAINTS

(BASED ON ISSUES REPORTED)

1 2 3 4 5

15% 14% 11%

UNFAIR CHARGES ISSUES WITH SYSTEMS POOR CUSTOMER
9%
THE PRODUCT OR
7%
BAD ADVICE
OR CHARGES THAT SERVICE SERVICE DIDN’T
WERE HIGHER THAN PERFORM AS EXPECTED
EXPECTED

CUSTOMERS’ MAIN REASON FOR CONTACTING THEIR PROVIDER

93% of customers contact their provider when they

have an issue. The main reasons for doing so are:

61% 17% 9% 13%

THE ISSUE WAS SEVERE THE ISSUE HAD OCCURRED OTHER PEOPLE HAD OTHER
MORE THAN ONCE BENEFITTED FROM RAISING
THE ISSUE
66 KEY FINDINGS: FINANCIAL SERVICES

THE MOST COMMON CHANNELS FOR MAKING A COMPLAINT

Getting an immediate response 44%

is becoming ever more WITHIN THE LAST YEAR FIVE OR MORE YEARS AGO
important to customers and
this is evident in their choice
31% 30%
of channel for raising issues.
Increasingly, customers are
16% 17%
choosing phone, email and 15%
webchat over letters.
4% 5%
3% 2% 2% 2%
0% 1% 1% 0%
MOBILE SOCIAL
PHONE EMAIL BRANCH LETTER WEBCHAT RESOLVER
APP MEDIA

2% 1%
4% 3%
7%
14%
19%

PREFERRED CHANNEL

46%

CUSTOMERS EXPECT TO BE KEPT INFORMED

FIRMS SHOULD BE COMMUNICATING REGULARLY WITH CUSTOMERS ON THE STATUS OF THEIR COMPLAINT

Regularity of update received:

⚫⚫ DAILY – 9%

62% 44%
⚫⚫ WEEKLY – 15%
⚫⚫ BI-WEEKLY – 7%
⚫⚫ MONTHLY – 15%
⚫⚫ ONLY ONCE – 54%

of complainants said they had to contact received updates from their provider
their provider to chase for an update
KEY FINDINGS: FINANCIAL SERVICES 67

SPEED OF RESPONSE IS CRUCIAL TO

SATISFACTION (WHEN NOT AT FPOC)

On average, one in ten financial

services customers reported their
provider responded to their complaint

24% 25%
within 24 hours.

HOW LONG DID IT

TAKE TO RECEIVE AN
ACKNOWLEDGEMENT?
WERE SATISFIED WITH THE
of financial services customers were 70% SPEED OF INITIAL RESPONSE
satisfied that they were being kept OR ACKNOWLEDGEMENT
informed throughout the process.

Despite complainants moving away 51%

from letter-based communications,
41%

8%
financial services firms are still treating
this as the primary communication
channel to provide updates:
26%
⚫⚫ LETTER – 52% 23%

⚫⚫ PHONE – 35%
OF CUSTOMERS STATED
⚫⚫ EMAIL – 25% 8% THAT THEY NEVER RECEIVED
⚫⚫ MOBILE APP – 3% A RESPONSE AT ALL

⚫⚫ RESOLVER – 3% PERCENTAGE PERCENT

OF RESPONSES SATISFIED WITH
⚫⚫ SOCIAL MEDIA – 2% THE SPEED OF
RESPONSE

24 HOURS

1-5 DAYS

LONGER THAN 5 DAYS

The remaining either did not receive

an acknowledgement or do not
remember receiving one.
68 KEY FINDINGS: FINANCIAL SERVICES

EXPECTATIONS FOR FPOC THE QUICKER FIRMS RESOLVE COMPLAINTS,

RESOLUTIONS ARE HIGH THE HIGHER THE LEVEL OF SATISFACTION

HOW LONG DID IT TAKE TO RESOLVE THE ISSUE?

44%

76% 37%

26% 25%

15%
OF COMPLAINANTS EXPECT
THEIR ISSUE TO BE RESOLVED
IMMEDIATELY UPON
CONTACTING THEIR PROVIDER WITHIN 24 LESS THAN 1-2 WEEKS 3-4 WEEKS LONGER
HOURS A WEEK

PERCENT SATISFIED WITH

SPEED OF RESOLUTION

ONLY 26% ONLY 29% ONLY 22%

20% OF FINANCIAL SAID THAT THEY FELT THEIR
SERVICES FELT THE STAFF
SHOWED EMPATHY
PROVIDER WAS
CUSTOMERS GENUINELY
OF CUSTOMERS REPORT REPORTED THEY CONCERNED
A FPOC RESOLUTION FELT THEY WERE ABOUT THE ISSUE
TREATED FAIRLY
THROUGHOUT
BUT FIRMS REPORT THE COMPLAINTS
JOURNEY

46%

ARE RESOLVED AT FPOC

KEY FINDINGS: FINANCIAL SERVICES 69

THE BEST AND THE WORST ASPECTS OF THE COMPLAINT

EXPERIENCE

BEST

⚫⚫ THE ISSUE WAS FIXED

⚫⚫ I RECEIVED FAIR COMPENSATION

⚫⚫ THE FIRST PERSON I DEALT WITH TOOK MY COMPLAINT SERIOUSLY

WORST

⚫⚫ THE PROCESS WENT ON FOR AGES BEFORE BEING RESOLVED

⚫⚫ THEY MADE ME FEEL IT WAS MY FAULT

⚫⚫ THEY DENIED THERE HAD BEEN A MISTAKE

84%
OF FINANCIAL SERVICES CUSTOMERS REPORTED THEY
WOULD BE MORE LIKELY TO STAY WITH A COMPANY
IF THEIR COMPLAINT WAS HANDLED EFFECTIVELY.
THE SAME AMOUNT WOULD AVOID A COMPANY THAT
FAILED TO DO SO.
70 KEY FINDINGS: UTILITIES

APPENDIX 2

KEY FINDINGS:
UTILITIES

75% of the issues brought up by utilities customers are related

to gas or electricity providers, with the most common issue
being unfair or higher charges than expected. Customer
expectations are not being met across the complaints process
in this sector, with less than a fifth saying they were satisfied
with the time it took to have their issue acknowledged.

THE VAST MAJORITY OF UTILITIES

CUSTOMERS ARE DISSATISFIED WITH HOW
THEIR ISSUES ARE HANDLED

OVERALL, UTILITIES CUSTOMERS ARE EVEN LESS

SATISFIED THAN FINANCIAL SERVICES CUSTOMERS

12% SATISFIED

14% NEUTRAL

74% DISSATISFIED
KEY FINDINGS: UTILITIES 71

THE TOP FIVE REASONS FOR RAISING COMPLAINTS

(BASED ON ISSUES REPORTED)

1 2 3 4 5

33% 19% 12% 9%

UNFAIR CHARGES POOR CUSTOMER ISSUES WITH SYSTEMS PRODUCT OR SERVICE
8%
UNREASONABLE,
OR CHARGES THAT SERVICE DIDN’T PERFORM AS OR LONGER THAN
WERE HIGHER THAN EXPECTED EXPECTED, DELAYS
EXPECTED

CUSTOMERS’ MAIN REASON FOR CONTACTING THEIR PROVIDER

97% of customers contact their provider when they

have an issue. The main reasons for doing so are:

59% 28% 3% 11%

THE ISSUE WAS SEVERE THE ISSUE HAD OCCURRED OTHER PEOPLE HAD OTHER
MORE THAN ONCE BENEFITTED FROM RAISING
THE ISSUE
72 KEY FINDINGS: UTILITIES

THE MOST COMMON CHANNELS FOR MAKING A COMPLAINT

Getting an immediate response 82%

is becoming ever more
important to customers and
this is evident in their choice
of channel for raising issues.
Increasingly, customers are 57%
choosing phone, email and
webchat over letters.

WITHIN THE LAST YEAR FIVE OR MORE YEARS AGO

21%

7% 8%
5% 5%
2% 2% 1% 1% 1% 1% 1%
0% 0%
MOBILE SOCIAL
PHONE EMAIL BRANCH LETTER WEBCHAT RESOLVER
APP MEDIA

0% 1% 1% 1% 1%
7%

23%
PREFERRED CHANNEL

65%
KEY FINDINGS: UTILITIES 73

SPEED OF RESPONSE
CUSTOMERS EXPECT TO BE KEPT INFORMED (WHEN NOT AT FPOC)

FIRMS SHOULD BE COMMUNICATING REGULARLY WITH CUSTOMERS On average, just over 1 in 10 utilities
ON THE STATUS OF THEIR COMPLAINT customers reported their firm
responded to their complaint within
24 hours. Satisfaction with the
speed of acknowledgement drops off
significantly the longer it takes for the

81% 13%
firm to respond.

HOW LONG DID IT

of complainants said they had to
contact their provider to chase for an
update
TAKE TO RECEIVE AN
ACKNOWLEDGEMENT?
60%
of utilities customers were satisfied
that they were being kept informed
throughout the process

36%
Utilities providers are embracing email
31%
to provide updates to customers: 29%

37% ⚫⚫

⚫⚫
EMAIL – 51%

PHONE – 46% 11% 10%

⚫⚫ LETTER – 20%

received updates from their provider ⚫⚫ WEBCHAT – 4% PERCENTAGE PERCENT

OF RESPONSES SATISFIED WITH
THE SPEED OF
⚫⚫ MOBILE APP – 3% RESPONSE
Regularity of updates:
24 HOURS 1-5 DAYS
⚫⚫ SOCIAL MEDIA – 2%
⚫⚫ DAILY – 9%
LONGER THAN 5 DAYS
⚫⚫ WEEKLY – 16%

⚫⚫ BI-WEEKLY – 9%

⚫⚫ MONTHLY – 15%
OVERALL, 17%
WERE SATISFIED WITH THE
SPEED OF INITIAL RESPONSE
⚫⚫ ONLY ONCE – 50%
OR ACKNOWLEDGEMENT
74 KEY FINDINGS: UTILITIES

EXPECTATIONS FOR FPOC THE QUICKER FIRMS RESOLVE COMPLAINTS,

RESOLUTIONS ARE HIGH THE HIGHER THE LEVEL OF SATISFACTION

HOW LONG DID IT TAKE TO RESOLVE THE ISSUE?

57%

78%
33%

OF COMPLAINANTS EXPECT
THEIR ISSUE TO BE RESOLVED 17%
IMMEDIATELY UPON 12%
CONTACTING THEIR PROVIDER
6%

WITHIN 24 LESS THAN 1-2 WEEKS 3-4 WEEKS LONGER

HOURS A WEEK

12%
PERCENT SATISFIED WITH SPEED
OF RESOLUTION

ONLY 17% ONLY 21% ONLY 14%

OF UTILITIES SAID THAT THEY FELT THEIR
OF CUSTOMERS REPORT A
CUSTOMERS FELT THE STAFF PROVIDER WAS
SHOWED EMPATHY
FPOC RESOLUTION
REPORTED THEY GENUINELY
FELT THEY WERE CONCERNED
TREATED FAIRLY ABOUT THE ISSUE
BUT FIRMS REPORT THROUGHOUT
THE COMPLAINTS
JOURNEY
54%

ARE RESOLVED AT FPOC

KEY FINDINGS: UTILITIES 75

THE EASE OF SWITCHING IN THIS SECTOR IS

RESULTING IN CUSTOMERS ‘VOTING WITH THEIR FEET’

86%

41% OF UTILITIES CUSTOMERS REPORTED

THEY WOULD BE MORE LIKELY TO STAY
WITH A COMPANY THAT HANDLED THEIR
COMPLAINTS EFFECTIVELY

OF CUSTOMERS WHO HAD AN ISSUE WITH

THEIR PROVIDER ARE STILL WITH THAT 85%
SAME PROVIDER

WOULD AVOID A COMPANY

THAT FAILED TO DO SO

WHILE WATER SUPPLIERS ARE CONSIDERED IN THESE STATISTICS,

THERE IS CURRENTLY LIMITED SCOPE FOR CUSTOMERS TO SWITCH
PROVIDERS. IF CUSTOMERS WERE GIVEN MORE POWER TO SWITCH
PROVIDERS IN THIS SECTOR, THE FALLOUT COULD BE HUGE.
76 COMPLAINTS OUTLOOK 2019
COMPLAINTS OUTLOOK 2019 77

ABOUT HUNTSWOOD

WE HELP
CLIENTS GOVERN,
TRANSFORM AND
OPERATE COMPLEX
REGULATED
PROCESSES

We help firms govern, transform and

operate their businesses to drive better P

RO
E
PL
outcomes.

CE
PEO

SS
WE
COMBINE
When our clients need support, it
almost always involves customer
TEC
considerations, it is often multi-channel H N OLOGY

and always requires an approach that is

compliant with regulation and suitable
to high levels of risk.

We are, above all else, collaborative RESOURCING

RESOURCE OUTSOURCING ADVISORY

and always at the forefront in the

development of innovative, tailored
and transformative solutions. These
ACROSS A
typically combine people, processes and
RANGE OF
technology to drive better customer, INDUSTRIES
commercial, and regulatory outcomes.

Our services include resourcing and TO

outsourcing solutions, backed up by an OPERATIONAL

EXCELLENCE
expert advisory capability.
COST &
We have a solid reputation for being EFFICIENCY

easy to work with, earned through our

DRIVE
BETTER
MITIGATE
culture of continuous improvement and
RISK
consistency in exceeding our clients'
OUTCOMES
expectations throughout all stages of
CUSTOMER
delivery. EXPERIENCE

INNOVATION
78
ABOUT THE AUTHORS
KATE WOOLLARD
ENGAGEMENT & BRAND MANAGER
Kate is a passionate advocate for
improving customer experience.
She strongly believes that business
outcomes can be improved by
delivering better, more efficient
and more satisfying experiences for
customers. She currently works at
Huntswood, leading research into
‘complaints excellence’ across a range
of regulated industries, from both
business and consumer perspectives.
Prior to her time at Huntswood, Kate
gained a high level of product and
customer management knowledge
in financial services, specialising in
mortgages and general insurance. She
has previously led teams of subject
matter experts in the delivery of
strategic complaint root cause analysis,
complex complaint escalations,
customer outcomes frameworks,
vulnerable customer policy and digital
customer journeys. Before this, she
worked as a market researcher in the
technology industry.
MATT DRAGE
HEAD OF EXTERNAL ENGAGEMENT
Matt is the Head of External
Engagement for Huntswood, leading
the development of Huntswood’s
external engagement strategy, to help
position and support our brand and
services within the marketplace.
Matthew has a background in conduct
regulation and professional services
having worked as a supervisor at the
Financial Conduct Authority (FCA)
and for two of the "Big 4" advisory
firms, where he led and contributed to
work in relation to Conduct Risk.
Matthew is a Fellow of the
International Compliance Association
(ICA) and is a member of the
Chartered Institute for Securities &
Investment (CISI).
COMPLAINTS OUTLOOK 2019
SIMON GORYL
SECTOR LEAD
Simon specialises in providing
regulatory advice and guidance across
multiple sectors, and has a wealth
of experience in complaints related
reviews.
Simon has managed and delivered
a number of high profile complaints
projects, including the design and
implementation of policy and process,
testing operational controls, and
delivering large-scale remediation
projects.
He has supported a number of firms
in aligning their complaints handling
operating models to regulatory
expectations while under FCA
scrutiny.
Simon led the development of
Huntswood’s complaints operating
model testing tool and has experience
of working on risk management plans
and s.166 engagements.
COMPLAINTS OUTLOOK 2019 79

GET IN TOUCH
T: 0333 321 7811
E: enquiries@huntswood.com
W: huntswood.com

@Huntswood
Search ‘Huntswood’
80 COMPLAINTS OUTLOOK 2019

Huntswood CTC Limited

Abbey Gardens, Abbey Street,
Reading, Berkshire RG1 3BA
0333 321 7811
enquiries@huntswood.com
huntswood.com

@Huntswood
Search ‘Huntswood’

NOTES RELATING TO HUNTSWOOD

This document and its contents are confidential and proprietary to Huntswood or its licensors. No part of this
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and conditions. A full summary of terms and conditions is available on request. Huntswood CTC Ltd trades as
Huntswood, Abbey Gardens, Abbey Street, Reading RG1 3BA, registered company number 03969379.