Creating an Effective Complaints Policy

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

An effective complaints policy is a must for any business, big or small. It is essential for providing customers with fair and impartial treatment, as well as safeguarding the company from potential legal action. To ensure that customer complaints are dealt with quickly and efficiently, businesses should create a policy that is tailored to their particular needs and regularly updated to guarantee its effectiveness.

The key goals of a complaints policy include responding promptly to customer grievances, giving customers reasonable access to submit their queries, providing staff guidance on the necessary procedures for handling these issues and protecting the firm from potential legal repercussions. A well-crafted complaints policy can also help boost customer trust in the company by demonstrating that it takes all concerns seriously.

The Genie AI team understands how important it is for businesses to have an effective complaints procedure in place. That’s why we provide free templates which millions of data points have taught AI what market-standard policies should look like. By using one of our templates, anyone can draft up high quality documents without needing to hire an expert lawyer – all without having a Genie AI account! Our comprehensive step-by-step guide on creating your own personalised policies will help you get started today. So read on below for more information about how to access our template library today!

Definitions (feel free to skip)

Complaints Policy: A written document outlining the process for handling customer complaints.

Legal Issues: Potential risks or consequences that arise from violating a law or regulation.

Objectives: Goals and aims that must be achieved.

Relevant Regulations: Rules and laws that pertain to a particular situation.

Roles and Responsibilities: The tasks, duties and expectations assigned to an individual or group.

Timeline: A sequence of events that occur over a specific period of time.

Contents

• Explain the importance of creating an effective complaints policy
• Outline the goals and objectives of the policy
• Identify the types of complaints that should be addressed
• Set out a timeline for responding to customer complaints
• Describe the process for handling each type of complaint
• Detail the roles and responsibilities of those involved in the complaints process
• Explain how to collect and store customer feedback
• Explain the procedure for documenting and responding to complaints
• Describe the process for escalating unresolved complaints
• Explain how to follow-up on customer complaints
• Identify any potential areas of improvement in the complaints policy
• Describe how to resolve complaints and prevent similar issues from occurring in the future
• Outline any relevant laws or regulations that must be adhered to when creating a complaints policy
• Explain the process for reviewing the complaints policy and making updates as needed
• Explain how to communicate changes to the complaints policy to staff and customers

Get started

Explain the importance of creating an effective complaints policy

• Understand why it is important to have an effective complaints policy in place
• Research best practices for complaints policies
• Identify any legal requirements that must be addressed in your policy
• Consider how your policy will prevent and address customer complaints
• Understand how your policy will be used to improve customer service
• Determine how the complaints policy will be communicated to customers
• When you have a clear understanding of the importance of an effective complaints policy, you can move on to outlining the goals and objectives of the policy.

Outline the goals and objectives of the policy

• Identify key stakeholders and how they will be involved in the complaint process
• Define the timeline for responding to and resolving complaints
• Outline the procedures and processes for handling complaints
• Describe the roles and responsibilities of those involved in the complaint process
• Explain the criteria for escalating the complaint if the initial response is not satisfactory
• Describe how the organization will review and monitor the success of the complaints policy
• Once you have outlined the goals and objectives of the policy, you will have a clear understanding of the scope of the policy and how it will be implemented.

Identify the types of complaints that should be addressed

• Create a list of potential complaints that customers may have with your business.
• Consider possible customer complaints related to staff, products, services, and other areas of your business.
• To ensure no complaints are overlooked, consult with staff, customers and other stakeholders who have knowledge of the business.
• Capture all potential customer complaints on your list and order them based on their importance.

How you’ll know when you can check this off your list and move on to the next step:

• When you have created a comprehensive list of potential customer complaints and ordered them in order of importance, the step of identifying the types of complaints that should be addressed is complete.

Set out a timeline for responding to customer complaints

• Determine the amount of time needed to respond to a customer’s complaint. This may vary depending on the type of complaint and the customer’s urgency.
• Establish customer expectations about the timeline for responding.
• Set up a system for tracking customer complaints to ensure timely responses.
• Create customer service standards for customer response times.
• Establish a process for escalating customer complaints to ensure timely resolution.

When you can check this off your list:

• After you have determined the necessary timeline for responding to customer complaints, set up a system for tracking customer complaints, created customer service standards for response times, and established a process for escalating customer complaints.

Describe the process for handling each type of complaint

• Identify different types of complaints that may arise and assign each complaint to an appropriate team or individual.
• Establish a standard procedure that outlines how each type of complaint should be handled.
• Make sure all personnel involved in the complaints process are aware of the procedure.
• Document the process for handling each type of complaint in the complaints policy.
• When the policy is finished, make sure to test it before putting it into practice.

Once the process for handling each type of complaint has been documented in the policy, you can check this off your list and move on to the next step.

Detail the roles and responsibilities of those involved in the complaints process

• Identify who will handle complaints and what their roles and responsibilities are in the complaints process
• Establish a ‘chain of command’ for handling complaints, so that each complaint can be directed to the appropriate individual
• Outline the roles, responsibilities and expectations of the customer and the customer service representative handling the complaint
• Identify the contact information for the customer service team and how customers can reach them
• Once you have identified the roles and responsibilities, you can check this step off your list and move on to the next step.

Explain how to collect and store customer feedback

• Set up a system for collecting customer feedback, such as a survey, phone line, or online form
• Designate a specific person or team to collect and store customer feedback
• Ensure that all customer feedback is stored in a secure, organized, and easily accessible system
• Establish a standard procedure for how customer feedback should be collected, stored, and processed
• Establish a timeline for regularly reviewing customer feedback and addressing any complaints
• When all of the above steps have been completed, check it off your list and move on to the next step of creating an effective complaints policy.

Explain the procedure for documenting and responding to complaints

• Set up a system for documenting customer complaints, including a way to track customer information and the details of their complaint.
• Develop a standard response to customer complaints that acknowledges the customer’s issue and offers a timeline for resolution.
• Assign a team member to review and respond to complaints in a timely manner.
• Monitor customer feedback to ensure customer complaints are being handled appropriately.
• Provide a way for customers to contact a representative if they are not satisfied with the response to their complaint.
• Keep a record of all customer complaints and responses for review.

Once the procedure for documenting and responding to complaints has been set up, you can move on to the next step which is describing the process for escalating unresolved complaints.

Describe the process for escalating unresolved complaints

• Develop a protocol for escalating unresolved customer complaints, including the timeframe and criteria for escalating.
• Identify the personnel who will be responsible for escalating unresolved complaints, including their contact information.
• Specify the steps for escalating unresolved complaints, such as who will be contacted and what actions will be taken.
• Determine the communication channels that will be used to escalate unresolved complaints, such as email, phone, and in-person contact.
• Outline the steps for tracking the progress of escalated complaints.
• When the above steps have been completed, the step for escalating unresolved complaints can be checked off and the next step for explaining how to follow-up on customer complaints can be completed.

Explain how to follow-up on customer complaints

• Set up a system to track customer complaints and responses
• Ensure that all customer complaints are responded to within a reasonable timeframe
• Follow up with customers after their complaint has been resolved to make sure they are satisfied with the outcome
• Keep customers informed of the progress of their complaint
• Document all customer complaints and responses
• Analyze customer complaints to identify any areas where the policy can be improved
• Use feedback from customers to improve customer service
• Once you have implemented the above steps, you can move on to the next step of identifying any potential areas of improvement in the complaints policy.

Identify any potential areas of improvement in the complaints policy

• Review the existing complaints policy to identify any gaps in coverage
• Consider what types of complaints you want to be able to address
• Identify any areas of the policy which could be clarified or improved upon
• Talk to staff and customers to get feedback on their experiences with the complaints policy
• Look at industry best practices to find ways to improve the policy

When you have identified potential areas of improvement and reviewed the existing policy with feedback from staff and customers, you can move onto the next step.

Describe how to resolve complaints and prevent similar issues from occurring in the future

• Establish a process for ensuring customer complaints are quickly identified and addressed.
• Ensure that staff are equipped to handle customer inquiries and complaints in an effective manner.
• Develop a method for tracking customer complaints and identifying trends or issues that may be systemic.
• Create a process for responding to customer complaints in a timely manner that is respectful and professional.
• Develop an internal system for logging, tracking and resolving customer complaints.
• Establish a process for learning from customer complaints to prevent similar issues from occurring in the future.
• Set customer service standards to ensure customer issues are addressed in a timely manner.

When you can check this off your list and move on to the next step:

When you have completed all the steps above and have a clear process for resolving customer complaints and preventing similar issues from occurring in the future, you can check this step off your list and move on to the next step.

Outline any relevant laws or regulations that must be adhered to when creating a complaints policy

• Research the relevant laws and regulations in your area that must be adhered to when creating a complaints policy
• Make sure to take into account any state or federal laws that apply
• Gather any legal advice or professional guidance you may need to ensure the policy is in compliance with all applicable laws
• Document all relevant laws and regulations in your complaints policy
• Once you have documented the relevant laws and regulations, you can move on to the next step in creating an effective complaints policy.

Explain the process for reviewing the complaints policy and making updates as needed

• Establish a timeline of when the complaints policy should be reviewed, such as every 6 months or yearly
• Outline who should be responsible for reviewing the complaints policy, such as a manager or designated team member
• Identify any changes that should be made to the complaints policy based on customer feedback, legal or regulatory changes, or changes in the business
• Document any changes that are made to the complaints policy
• Update the policy document with any changes that were made
• Check that the policy is up-to-date and accurate
• When the policy is updated, communicate the changes to staff and customers

You can check this off your list when you have established a timeline for reviews, identified changes that need to be made, documented and updated any changes, checked that the policy is up-to-date, and communicated the changes to staff and customers.

Explain how to communicate changes to the complaints policy to staff and customers

• Draft a memo to staff and customers outlining the changes to the complaints policy.
• Include a summary of the changes, and provide a link to the full policy in the email.
• Send out the memo to staff and customers, and encourage them to read the policy and ask questions if needed.
• Send out periodic reminders to staff and customers about the policy and any changes.
• When finished, you can check this step off your list and move on to the next step.

FAQ:

Q: What are the differences between UK, USA and EU jurisdiction when it comes to creating an effective complaints policy?

Asked by Sarah on 15th April 2022.
A: When creating an effective complaints policy, it is important to understand the differences between UK, USA and EU jurisdictions. In the UK, employers must have a written grievance procedure in place to allow employees to raise and resolve any grievances they have in relation to their work. The USA has similar legislation in place, with the Federal Labor Standards Act requiring employers to provide a grievance procedure to their employees. In the EU, the Working Time Directive requires employers to provide a formal procedure for handling complaints. Each of these jurisdictions has different requirements and implications for employers when it comes to creating an effective complaints policy.

Q: How should I adapt my complaints policy for my industry or sector?

Asked by Mark on 11th May 2022.
A: Adapting your complaints policy to the specific industry or sector you are in is key to ensuring that it is effective. Different industries or sectors will have different needs when it comes to handling complaints, such as specific regulations or processes that must be adhered to. It is important to do research into your specific sector and understand what is expected from you in terms of handling customer complaints. Additionally, it may be beneficial to look at other companies within your sector and use their policies as a template for your own.

Q: How should I adapt my complaints policy for my business model (SaaS, Technology or B2B)?

Asked by Emily on 28th June 2022.
A: Adapting your complaints policy for your business model is important as different business models require different approaches when it comes to handling customer complaints. For example, if you are using a Software-as-a-Service (SaaS) model, you will need to provide clear instructions on how customers can contact you if they have any queries or issues with the product or service they are using. If you are running a technology company, you may need to include procedures for how customers can raise technical issues they are having with your product or service. Lastly, if you are running a B2B business model, you may need to consider how customers can report any issues they experience with their interactions with your staff or company representatives.

Q: How should I tailor my complaints policy for my particular needs?

Asked by John on 17th July 2022.
A: Tailoring your complaints policy for your particular needs is important as every business will have its own unique requirements when it comes to handling customer complaints. Depending on the type of business you are running and the services you offer, you may need to implement specific procedures that cater specifically for the needs of your customers and business. For example, if you are running an online store, you may need to include details about how customers can return items that do not meet their expectations or refund processes if something goes wrong with an order. Additionally, if you offer services such as consulting or coaching, you may need to include procedures around how customers can cancel appointments or receive refunds if they are not satisfied with the experience they have had with your business.

Example dispute

Possible Lawsuits Referencing a Complaints Policy

• The plaintiff can raise a lawsuit which references a complaints policy if they believe that the company has broken their policy by not adhering to the stated terms.
• The plaintiff can demonstrate that the company has breached its policy by providing evidence such as emails, texts, or other documentation that the company did not abide by the policy.
• The plaintiff can also reference any applicable laws or regulations related to the policy that the company has broken.
• The plaintiff must demonstrate that they have suffered damages as a result of the company’s breach of the complaints policy.
• If the plaintiff can prove that the company is liable for damages, they may be entitled to compensation for those damages, such as lost wages, medical expenses, or even punitive damages.
• The plaintiff may also be able to negotiate a settlement with the company, rather than taking the case to court. A skilled attorney may be able to help them reach a fair settlement.

Templates available (free to use)

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