ROLE OF COMPLAINTS HANDLING SYSTEM IN ENHANCING CUSTOMER SATISFACTION
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
ROLE OF COMPLAINTS HANDLING SYSTEM IN ENHANCING CUSTOMER SATISFACTION
Chapter one
INTRODUCTION
1.1 Background of the Study
A customer complaint is an expression of displeasure with a product, service, or purchasing experience (Nakibin et al., 2011). Tronvoll (2012) defines it as a formal or informal client report of a fault with a product or service. According to research, how a firm handles complaints can have a long-term impact on its financial success.
Gelbrich and Roschk (2010) argue that improper complaint management methods can harm the company-customer relationship and lead to customer discontent. It could generate negative word-of-mouth advertising, discouraging potential customers from doing business with the company.
It may result in low consumer loyalty and decreased possibilities of client retention. According to Awara (2010), bad customer complaint management eventually causes companies to lose clients
resulting in a loss of market share, while recruiting new customers through marketing campaigns costs money, diminishing corporate profitability.
When organisations maintain good customer complaint handling methods, they reduce customer attrition, raise customer satisfaction, boost sales numbers, and ensure client loyalty and retention (Robert-Lombard, 2011).
Several research have proposed various lists of methods to guide the customer complaint resolution process. Gelbrich and Roschk (2010) conducted a meta-analysis of firm complaint handling methods and how they influence future consumer responses.
The study found that listening to client complaints, interpreting them, taking down key points to gather relevant facts, discussing the complaint, and following up with appropriate solutions was a very effective complaint handling method.
Tronvoll (2012), on the other hand, denies a stationary approach, arguing that complaint handling procedures varies amongst organisations and have diverse degrees of success.
Komunda and Oserankhoe (2012) propose for a comprehensive customer complaints management system that includes complaint processing procedures, customer satisfaction surveys, feedback acquisition, and client retention strategies.
Customer happiness is critical to the success of any firm. Customers are always “first” when starting a firm, followed by profit. Companies who succeed in totally satisfying their clients will remain at the top of their respective markets.
Today’s businesses understand that customer happiness is a critical component for business success while also playing an important part in increasing market value. In general, customers are individuals who purchase goods and services from the market or business that suit their requirements and desires.
Customers buy things that match their financial expectations (Awara, 2010). As a result, companies should base their pricing on the quality of the product that attracts and retains customers over time.
The organisation should ensure that they are delivering full service in proportion to their monetary value. This will raise the number of consumers and maintain the customer’s long-term engagement with the organisation (Tronvoll, 2012).
And existing consumers will help to attract new customers by offering or sharing information about the company’s products and services. Satisfaction is defined as feeling content after achieving one’s intended outcome. It is tough to determine whether clients are pleased with the availability of the product or service.
As a result, providing customer happiness is a difficult undertaking because many various factors must be considered. Nowadays, competition between businesses and markets can be seen all over the place, and it has been one of the most difficult challenges for rivals.
Despite the fact that the industry is growing, rivals are efficiently developing their marketing channels (Komunda & Oserankhoe, 2012).
Globalisation has increased competitiveness in the marketing environment, necessitating the use of varied methods by businesses in order to remain competitive.
According to Tronvoll (2012), market competitiveness necessitates that businesses take steps to influence potential customers and keep existing customers, resulting in increased market share and profitability.
According to Komunda and Oserankhoe (2012), in order to expand market share, businesses must ensure customer satisfaction through countermeasures before, during, and after sales.
According to Gruber (2011), one of the most effective counter-measures that businesses can do is customer service, of which customer complaints management is an essential component.
Even when businesses do their best to satisfy their consumers, customer complaints are unavoidable and a normal aspect of conducting business (Fierro et al. 2015). Complaint handling systems are the final measure of a company’s customer orientation, as they attempt to provide adequate responses to consumer problems.
When grievances are not handled properly, a company risks losing formerly devoted clients. This means that current levels of customer satisfaction do not provide absolute protection from the effects of inefficient complaint handling.
Looking at the issue from the opposite side, effective handling of customer complaints may increase customer loyalty. Studies have found that investing in good complaint handling systems yields high returns (TARP 1986; Fornell et al. 2006; Fierro et al. 2015).
As a result, many businesses are working to establish such systems in order to promote consumer loyalty. In doing so, two unique ways have been cited: the first involves developing standard protocols to train complaint handling workers on how to deal with consumers in specific situations.
The second strategy is more open, focusing on teaching and pushing employees to accept a set of common values that are likely to result in the desired behaviours. As a result, this study focuses on the impact of a complaints handling system in improving customer satisfaction through a case study of First Bank PLC.
Need help with a related project topic or New topic? Send Us Your Topic