EFFECTIVE COMPLAINTS MANAGEMENT SYSTEM CRUCIAL FOR BANKS - PART TWO

By Kelvin Mkwawa, Seasoned Banker.

Customer experience is very critical in the banking industry. One of the major aspects of ensuring excellence in customer service is the management of customer complaints. Customer complaints are part of the business life of any bank and complaints management is very important for banks. 

Last week I shared that, banks need to understand that customers have a right to register/report their complaints if they are not satisfied with the services or products provided by a bank. Therefore, banks should have complaints management systems in place to ensure that customers have access to all platforms to raise their complaints and that complaints are handled in an efficient and effective way. Banks can minimize instances of customer complaints and grievances through proper service delivery and a review mechanism system that ensures prompt redress of customer complaints

The complaint management system should help banks in quickly identifying shortcomings in services and product features. In addition, complaints help banks to detect flaws in their products and services hence improve quality. Every complaint received should be looked at as an opportunity to show customers that their time and opinions are valuable. 

Last week I shared why it is crucial for banks to have an efficient and effective complaints management system; it improves accountability and enhances good governance. This week I will share how banks can develop an effective and efficient complaints management system.

In general, complaints management system goes through two different stages; the first stage is the gathering of information. Once a customer files/registers a complaint, it is critical that the complaint is forwarded to the appropriate team that has expertise in that area of complaint. For example, if a customer complains about card issues, the complaint should be sent to the card services team for further review and resolution. 

The second stage is, examining the soundness of the complaint. Identifying and examination of the problem (complaint) as perceived by the customer is very critical towards ensuring excellent customer service. More importantly, complaints should be resolved at the level of daily interactions between customer and bank personnel since the success of retaining customers and preserving loyalty towards the bank brand rest on the social interactions between customers and bank staff. So how can banks ensure they have an effective complaint management system?

First by ensuring that contact personnel are well trained and equipped with necessary tools to listen to customers effectively. The second crucial element to have an effective complaint management system is undoubtedly complaints settlement time. The more the contact personnel of a bank react promptly to complaints, the more the customer is satisfied and the relationship easily restored. 

Banks should set up a competitive settlement time for resolving all complaints and guarantee customers a solution to their complaints within the agreed time. The third element to have an effective complaint management system is a classification of complaints. All complaints are not equally important, easily settled, or simply funded hence, banks need to classify complaints with a view of managing them better. The classification of complaints will enable banks to channel appropriate resources to each complaint to ensure it is dealt with effectively. The fourth element of having effective complaint management is following up on complaints. This element is very crucial as the success of complaints management depends heavily on follow up practices by bank staff. There are many ways to follow up banks can use: a phone call or customized letter after the complaint is registered and after the resolution to find out whether or not a customer is satisfied.

In conclusion, we have seen that banks should look at complaints as another chance to improve the quality of its service and win again the customer’s trust. It is worth to note that customers with problems and who complain remain loyal than those who remain silent about their dissatisfaction. One of the major aspects of ensuring excellence in customer service is the management of customer complaints. In the last two weeks, I shared why it is crucial for banks to have an efficient and effective complaint management system and how banks can set one up.

Written by Kelvin Mkwawa, MBA
Seasoned Banker
Email address: Kelvin.e.mkwawa@gmail.com