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Consumer Experience of Complaint Handling in Six Sectors Research Report Prepared for:

November 2011 Prepared by: James Hinde, Research Director and Gayle Higginson, Research Manager Tel: 01663 732721 Email: [email protected] [email protected] Website: http://www.djsresearch.co.uk Follow us:

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Contents

CONTENTS .......................................................................................................................... 2

EXECUTIVE SUMMARY ....................................................................................................... 4 Context for the research .................................................................................................... 4 Aims and objectives .......................................................................................................... 4 Research methodology...................................................................................................... 5 Making the initial complaint ............................................................................................... 5 Pursuing the complaint ...................................................................................................... 7 Abandoning the complaint ................................................................................................. 7 The Ombudsman ............................................................................................................... 8 The outcome ..................................................................................................................... 9 Drivers of satisfaction ........................................................................................................ 9 The ideal complaints process – recommendations .......................................................... 10

1. INTRODUCTION ......................................................................................................... 12 1.1. Background to the survey .................................................................................... 12 1.2. Aims and objectives of the research .................................................................... 12 1.3. Research methodology ........................................................................................ 13 1.4. Analysis ............................................................................................................... 16

2. MAKING THE INITIAL COMPLAINT ............................................................................ 18 2.1 Why consumers complain .................................................................................... 18 2.2 Satisfaction with aspects of making the complaint ............................................... 21 2.3 NET satisfaction by sector ................................................................................... 23 2.4 Information on the Ombudsman ........................................................................... 27 2.5 How far the complaint progressed ........................................................................ 27 2.6 Key issues and solutions...................................................................................... 28 2.7 The ideal process ................................................................................................ 31

3. PURSUING THE COMPLAINT .................................................................................... 32 3.1 Satisfaction with aspects of pursuing the complaint ............................................. 32 3.2 Agreement by sector ............................................................................................ 35 3.3 Key issues and solutions...................................................................................... 35 3.4 The ideal process ................................................................................................ 38

4. ABANDONING THE COMPLAINT ............................................................................... 40 4.1 Reasons for dropping complaints ......................................................................... 40

5. THE OMBUDSMAN ..................................................................................................... 42 5.1 Satisfaction with aspects of the service ................................................................ 42 5.2 Overall satisfaction with the Ombudsman ............................................................ 44 5.3 Comparison with the service provider .................................................................. 44

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5.4 Key issues and solutions...................................................................................... 45 5.5 The ideal process ................................................................................................ 46

6. THE OUTCOME .......................................................................................................... 47 6.1 What consumers achieved by making a complaint ............................................... 47 6.2 The explanation ................................................................................................... 49

7. DRIVERS OF SATISFACTION .................................................................................... 52 7.1 Initial complaint .................................................................................................... 52 7.2 Pursued complaints ............................................................................................. 52

8. OVERALL SATISFACTION ......................................................................................... 54

APPENDIX A. TELEPHONE INTERVIEW GUIDE............................................................... 56

APPENDIX B. ONLINE SURVEY ........................................................................................ 60

APPENDIX C. SESSION GUIDE ......................................................................................... 71

APPENDIX D. TECHNICAL REPORT ................................................................................. 76

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Executive Summary Context for the research Research into complaint behaviour reveals that only a fraction of dissatisfied consumers complain to businesses, and that for every complaint received there are other unhappy consumers who do not complain. Many will simply withdraw their patronage and criticise the company or the service to nine to ten other people. Moreover, the power of the Internet makes it possible for this figure to be much greater.

There are many reasons why consumers do not complain. Some of these reasons are practical and some are emotional. Consumers may not know how to raise a complaint, or with whom. They may feel that that it will be hard work and that the end result will not warrant the effort. They may believe that nothing will be done about their problem, or they are sceptical about business's willingness or ability to resolve disputes fairly. They may have been treated badly in the past when making a complaint, or they may simply not have the confidence to make a complaint.

Effective complaint management not only benefits the consumer who will receive a better and perhaps more cost effective service, it is also to the advantage of the service provider as it will help improve consumer satisfaction and retention.

It is therefore vital that consumers who receive poor service are given the opportunity and indeed the encouragement to make a complaint.

Consumer Focus acts as the voice of the consumer and makes a real difference to the lives of consumers. The organisation works with businesses across a wide range of sectors to bring about quick and effective results for consumers.

Consumer Focus identified a gap in its understanding of what makes some markets respond better to consumer complaints, what compels some consumers to abandon their complaint, and indeed what consumers want from a complaint process.

In order to address this knowledge gap, Consumer Focus commissioned DJS Research Ltd (DJS) to carry out a programme of research to help the organisation understand the consumer journey and experience when making a complaint. It was equally important to develop an understanding of why consumers abandon their complaints.

Aims and objectives

A benchmarking exercise was required to ‘help to identify weak areas and indicate what needs to be done to improve.’ Specifically Consumer Focus required research that would:

understand what consumers wish to achieve from making a complaint

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find out users’ experience of making a complaint in six sectors (legal services, financial services, Royal Mail, telecommunications, water and the energy sector)

find out what compels consumers to abandon a complaint

find out if consumers are satisfied with the complaint process, and if not, the possible changes they would suggest

discover the positives and shortcomings of complaint handling in the six sectors

explore what consumers would like to see changed in the process of making a complaint

find out whether disadvantaged or vulnerable consumers have special needs when it comes to making complaints and if these needs are met

find out if the information consumers get about how to pursue complaints is adequate for their needs

rate the sectors against consumers’ experience

Research methodology

A combination of quantitative and qualitative research was adopted comprising three phases.

• Phase 1: 18 in-depth interviews with consumers who had made a complaint within the previous two years equally split across the six target sectors. This included one within each market with a consumer whose complaint was resolved, a consumer who abandoned their complaint and a consumer who had taken their complaint to an ombudsman or independent panel

• Phase 2: An online survey with 825 consumers who had made a complaint about one of the six sectors within the previous two years. This was split between consumers whose complaints were resolved, consumers who abandoned their complaint and consumers who had taken their complaint to an ombudsman or independent panel

• Phase 3: Three group sessions were undertaken to develop an understanding of what consumers expect from an effective complaints procedure. These were with consumers who had experience of making complaints in one of the six sectors

Making the initial complaint

Consumers complain for a number of reasons; however most simply want an apology from the service provider. Many are seeking monetary recompense in the form of compensation or a refund or are looking for a change in how the service is provided. Only one in ten aim to change a decision that has been made by the service provider.

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The qualitative research helped us to understand the range of motivations in more depth. We found that these can be broadly divided into practical and emotional reasons. Practical motivations tend to surround a need to sort out a particular problem in the service, such as a break in supply or incorrect charges. These can range from relatively minor to much more serious issues such as a potentially dangerous situation (e.g. a hole in the ground left abandoned). Consumers may be looking to solve a particular situation or to make a change to the overall service. Emotional motivations tend to arise from some upset caused by the company. This is often a result of being poorly treated by the company either by causing offence, distress or behaving unfairly. Consumers are often motivated to ensure what happened to them does not happen to anyone else. The severity of the complaint ranges from a desire to sort out a particular problem to anger and distress or even a complete breakdown in the relationship with the company. Needlessly poor complaints handling at the beginning often escalates the complaint. Consumers are particularly disappointed with the quality of the information they receive when they initially make their complaint, with just one third finding this to be satisfactory. Other areas of frustration include: the level of understanding that the service provider demonstrates towards the problem, and the speed and tone of the response. Less than half find it easy to make a complaint. Poor call centres appear to be the single biggest cause of problems at the initial stage of the complaint and often contribute to its escalation. Consumers face a number of problems when making a complaint to a call centre:

• difficult to get through to anyone/no ownership • poorly trained staff • slow (or no) response • requirement to explain the problem over again on each call • bureaucratic procedures

Consumers were able to suggest some solutions to these issues. These included a number of practical answers:

• clear information on who to approach for what • the creation of a resolutions department with dedicated complaint handlers • trained staff with knowledge and skills to deal with the range of complaints • good communications skills and use of clear English • a clear understanding of timelines and an attempt to meet these where possible • reference numbers and case file at the initial enquiry

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• preference for phone over other channels • avoid lengthy forms

Pursuing the complaint Less than one third of consumers were informed by their service provider about an independent body to resolve complaints. The financial and the legal sectors are more likely to share this information. When pursuing the complaint with the service provider, consumers find the highest levels of frustration in relation to:

• the fact that their loyalty to, and past record with, the company are not taken into consideration (just 14% were satisfied that they are taken into consideration)

• being treated as an individual (15% satisfied) • being dealt with in a timely manner (18% satisfied) • being kept informed on the process of their complaint (19% satisfied) • having sufficient involvement with the process (27% satisfied)

Many consumers continue to encounter the same problems that they had when they made the initial complaint:

• unclear who can handle the complaint • poorly trained staff • slow (or no) response • requirement to explain the problem over again on each call • bureaucratic procedures

A number of solutions were suggested by consumers in our research including some quite practical ideas:

• better sign-posting of specific contacts for different complaints • a final tier within the company (people with authority) who have the power to make a

final judgement • a clear understanding of timelines and an attempt to meet these where possible • reference numbers and case file at the initial enquiry • deal with on the phone where possible • communicate the role of the ombudsman

Abandoning the complaint Around a fifth of consumers abandon their complaint rather than pursue it or approach the ombudsman. The key reasons for dropping a complaint include:

• the amount of effort required

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• feelings of futility • time taken to respond • difficulties in communication

The Ombudsman The main reason by far for consumers to approach the ombudsman is that they are not happy with the way the company manages their complaint. These consumers are dissatisfied with how the complaint is handled by the service provider and approach the ombudsman before they have followed the company’s complaints process to conclusion. A much smaller proportion approach the ombudsman because they have exhausted the company’s complaints process, but are not happy with the decision that is made by the service provider. Fewer than one in ten are referred directly to the ombudsman by the company itself. Awareness of the ombudsman appears to be low amongst consumers, and fewer than one in three (28%) are told by the service provider that they can take their complaint to an independent ombudsman. In addition consumers are often fearful of the process, believing it to be a serious next step and likely to be very time consuming. Many consumers who approach the ombudsman do so because they are seeking justice for the way they have been treated by the service provider. For some this experience is a “breath of fresh air” after the way they are treated by the company. Just over half of the consumers who approach the ombudsman are satisfied with the manner in which the ombudsman handles their enquiry, irrespective of the outcome. The majority are satisfied with a range of aspects:

• how easy it was to contact the ombudsman (62% satisfied) • the level of understanding of their particular issue (61% satisfied) • the independence of the ombudsman (60% satisfied) • the speed with which they received a response from the ombudsman (60% satisfied) • the information they received to keep them up to date with what was happening with

their complaint (55% satisfied) Criticisms of the ombudsman service amongst those less satisfied include:

• lack of information on the service • slow speed of handling with open ended timescales • no change to the status quo

“I was dealing with anonymous bodies in unreachable offices.” (Royal Mail)

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Again, some practical solutions were proposed by consumers to address these issues: • promote the ombudsman and their role • companies to refer to ombudsman where appropriate • introduce a “buffer” service that offers mediation rather than full investigation (whilst

some do offer this, awareness is low) • record and publicise complaints using this data to make changes to the industry

The outcome Generally the final decision (either made by the service provider or by the ombudsman) supports the consumer. Just over seven in ten consumers have a decision made in their favour and most achieve what they were hoping to achieve when they made the initial complaint. Whilst the decision itself tends towards the consumer, there is a lack of information on how the decision is reached. Nearly half of consumers are not given clear information on the outcome of the decision either by the service provider or the ombudsman. Overall, less than half of consumers are satisfied with the way their complaint is handled. Key reasons for dissatisfaction included:

• poor speed of handling • complaint left unresolved • failure to deliver consumers’ preferred outcome (although clearly it may not be

possible to deliver this in all cases) Drivers of satisfaction Using the quantitative data we conducted regression analysis to identify the key drivers on overall satisfaction (i.e. those areas which had most impact on overall scores) with making a complaint. When looking at those who had made an initial complaint only the key drivers were (in rank order):

• quality of information (24%) • understanding of the issue (19%) • whether the consumer felt they had to pursue the complaint (16%) • the tone of the response (13%) • whether the consumer dropped the complaint (12%) • whether it was easy to make the complaint (10%) • whether they were referred to an ombudsman (6%)

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When looking at those who had pursued a complaint the key drivers were (in rank order):

• treated as a valued individual (34%) • quality of information (29%) • dealt with in a timely manner (19%) • understood the issue (18%)

The ideal complaints process – recommendations In the workshops we asked consumers to design the ideal complaints process. A diagrammatic representation of the outcome of this follows:

CustomerService

Routine “issue”Complex/serious

problem

Resolutions department

1. Complaints process clearly publicised

2. Provide reference numbers and track complaint

3. Deal with respect4. Offer clear timelines and meet

them (or say why)5. Communicate using customers

preferred method6. Attention to vulnerable groups7. Pay attention to customers

desired outcome8. Final resolution letter so

explanation for outcome is clear

Final tier of company

If unsatisfactory

If unsatisfactory

OmbudsmanMediation

OmbudsmanFull investigation

The first stage is critical to prevent the complaint becoming more serious, taking up company resources and consumers’ time and potentially leading to a breakdown in the relationship. It appears that many complaints are handled badly at this first stage by poorly trained call centre staff with no ownership of the problem. The aim at the outset should be to resolve any issues with the minimum of fuss.

• “Resolution department” – It should be possible to contact a department who can deal with complex/serious problems that cannot be resolved by consumer services. The workshops suggested a “resolutions” department with trained and empowered staff and we agree with this. Consumer services should clearly explain how to access this department should consumers need it

• Keeping track of a complaint is critical to ensure timeliness, ownership and continuity of understanding – at minimum reference numbers should be allocated and records of an enquiry kept

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• Consumers’ expectations of time should be managed from the start. Some issues may take longer than others, but consumers will accept this if it is made clear from the start

• Pay attention to the consumers’ preferred outcome and try to deliver where possible. In particular if a change in service can’t be offered it must be clear why. Don’t try to fend consumers off with compensation in all cases

Clearly some complaints will progress beyond this second stage if the consumer does not accept the result. Again, this stage should be clear in terms of who to go to and likely timelines.

• A further tier above the resolutions department with power and authority to make a final resolution

• A clear written response once a complaint is finished outlining the decision, how it has been reached and the next steps

• The option of the ombudsman to be presented to consumers where necessary

The ombudsman is the final step in the process. Consumers should be better informed about the ombudsman service as awareness and knowledge is very low. The service can represent a good solution for consumers who have reached the end of the line with the company. In addition a mediation service should be introduced/promoted to prevent a lengthy investigation (which many consumers fear).

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1. Introduction 1.1. Background to the survey

Consumer complaints

Research into complaint behaviour reveals that only a fraction of dissatisfied consumers complain to businesses, and that for every complaint received there are other unhappy consumers who do not complain. Many will simply withdraw their patronage and criticise the company or the service to nine to ten other people. Moreover, the power of the Internet makes it possible for this figure to be much greater.

There are many reasons why consumers do not complain. Some of these reasons are practical and some are emotional. Consumers may not know how to raise a complaint, or with whom. They may feel that that it will be hard work and that the end result will not warrant the effort. They may believe that nothing will be done about their problem, or they are sceptical about business's willingness or ability to resolve disputes fairly. They may have been treated badly in the past when making a complaint, or they may simply not have the confidence to make a complaint.

Effective complaint management not only benefits the consumer who will receive a better and perhaps more cost effective service, it is also to the advantage of the service provider as it will help improve consumer satisfaction and retention.

It is therefore vital that consumers who receive poor service are given the opportunity and indeed the encouragement to make a complaint.

Consumer Focus

Consumer Focus acts as the voice of the consumer and makes a real difference to the lives of consumers. The organisation works with businesses across a wide range of sectors to bring about quick and effective results for consumers.

Consumer Focus identified a gap in its understanding of what makes some markets respond better to consumer complaints, what compels some consumers to abandon their complaint, and indeed what consumers want from a complaint process.

In order to address this knowledge gap, Consumer Focus commissioned DJS Research Ltd (DJS) to carry out a programme of research to help the organisation understand the consumer journey and experience when making a complaint. It was equally important to develop an understanding of why consumers abandon their complaints.

1.2. Aims and objectives of the research

A benchmarking exercise was required to ‘help to identify weak areas and indicate what needs to be done to improve.’ Specifically Consumer Focus required research that would:

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understand what consumers wish to achieve from making a complaint

find out users’ experience of making a complaint in six sectors (legal services, financial services, Royal Mail, telecommunications, water and the energy sector)

find out what compels consumers to abandon a complaint

find out if consumers are satisfied with the complaint process, and if not, the possible changes they would suggest

discover the positives and shortcomings of complaint handling in the six sectors

explore what consumers would like to see changed in the process of making a complaint

find out whether disadvantaged or vulnerable1

find out if the information consumers get about how to pursue complaints is adequate for their needs

consumers have special needs when it comes to making complaints and if these needs are met

rate the sectors against consumers’ experiences

1.3. Research methodology

A combination of quantitative and qualitative research was adopted comprising three phases:

Phase 1: Qualitative research

Depth semi-structured telephone interviews with 18 consumers who had made a complaint within the previous two years. The interviews were split equally across the six sectors, and one within each market was conducted with:

• a consumer whose complaint was resolved (although the outcome may not have been in their favour)

• a consumer who abandoned their complaint

• a consumer who took the complaint to the ombudsman or independent panel

1 For the purpose of this research, vulnerable consumers refers to those who are disabled, elderly, or may need extra help with understanding English.

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Table 1.1: Depth interviews

Resolved Abandoned Ombudsman / Postal Redress

Service

Legal services 1 1 1

Financial services 1 1 1

Telecommunications 1 1 1

Water 1 1 1

Energy 1 1 1

Royal Mail 1 1 1

Consumers were asked to describe the nature of their complaint and explain what motivated them to complain. They were then asked to describe how they felt during each stage of the process. Consumers who abandoned their complaint were asked to explain why they did so.

The interview script was semi-structured. This allowed the interviewer to delve into any particular issue, problem, barrier or area of best practice that was mentioned by the consumer.

The script was approved by Consumer Focus and a copy has been included in the appendices.

Phase 2: Quantitative research

This stage comprised of an online survey with 825 consumers who had made a complaint about one of the six sectors within the previous two years.

The survey covered a range of issues, including:

• what motivated the consumer to make a complaint

• satisfaction with aspects of the process involved in raising a complaint

• satisfaction with aspects of the process involved in pursuing a complaint

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• reasons why consumers abandoned their complaint

• motivation for taking the complaint to the ombudsman or independent panel

• satisfaction with the service they received from the ombudsman or independent panel

• suggestions for improvement

The questionnaire was approved by Consumer Focus and a copy has been included in the appendices.

In total 825 surveys were completed and this provides us with the data we need to compare satisfaction across the sectors. Table 1.2 shows the number of surveys undertaken within each sector.

Table 1.2: Online survey completed interviews

Resolved Pursued Abandoned Ombudsman

Legal services (64) 15 17 22 10

Financial services (150) 54 44 30 22

Telecommunications (251) 72 120 40 19

Water (92) 29 27 26 10

Energy (143) 50 48 30 15

Royal Mail (125) 54 31 30 10

During the fieldwork period it became apparent that complaints into the legal sector are less common. This has been demonstrated by the lower number of completed online surveys, and the fact that recruitment for the depth interviews was far more challenging in this sector. This makes sense as interaction with the legal sector is less common than with other sectors. We did not achieve the 100 online surveys that we hoped for in this market, however the 64 completed surveys do provide us with a sample that can be compared with the other sectors.

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Phase 3: Qualitative research

Three group sessions were undertaken to develop an understanding of what consumers expect from an effective complaints procedure.

The sessions were run on three consecutive evenings. The first session was held in a viewing facility in London on 29 March and was viewed by representatives from Consumer Focus. The second was held in Manchester on 30 March and the final session was conducted in Birmingham on 31 March.

Consumers were firstly asked to explain the nature of their complaint and were then asked to outline aspects of the complaints process that in their view are managed well, or could be improved.

The sessions then explored what consumers would expect from an effective complaints process including:

• what information should be made available at the outset and throughout the process

• what they would hope to achieve

• how the individual organisation should respond

• what they would expect from an independent ombudsman service

The groups involved a mix of consumers who had made their complaint into different sectors. This allowed the moderator to focus on common themes, ideas and suggestions for improvement that were noted by consumers irrespective of sector.

The topic guide was approved by Consumer Focus and a copy has been included in the appendices.

1.4. Analysis

Data from the online survey was analysed using SPSS. The results for each sector have been compared and where there are notable differences these will be mentioned in the report.

Additional comparisons have been provided in charts included in the report. However it should be noted that the small sample sizes do not allow us to draw significant inferences from the data.

In addition, we have conducted regression analysis to identify the key drivers of overall satisfaction, and this will be referred to in section 7. A copy of the technical report has been included in the appendices.

The findings of the qualitative research have been included in the report to add valuable insight to the quantitative findings. Transcripts of the semi-structured interviews and group

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sessions have been reviewed and used to clarify any common patterns and themes arising from the quantitative data.

Comments that were made by consumers during the telephone interviews or group sessions have been included in the report. Remarks made during the telephone interviews have been referenced to the sector into which the consumer who issued the remark made their complaint. Comments that were made during the group sessions cannot be referenced to a sector as they have not been attributed to the individual.

During the group sessions, consumers were asked to identify the key problems with each stage of the complaints process. They were then asked to suggest a solution to each issue. The key issues and solutions section notes the issue and then outlines the solutions that consumers made during the group sessions.

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2. Making the initial complaint Handling consumer complaints is one of the essential pillars of consumer service and consumer retention. However, developing an understanding of why consumers complain may help service providers to prevent complaints from happening in the first place. Understanding why consumers complain, and addressing concerns before they happen saves time and reduces the incidence of angry consumers.

2.1 Why consumers complain

Consumers often begin the complaint process with the practical aim of resolving a particular issue. These can range from fairly routine issues such as a disruption in supply, to more serious issues such as overcharging.

The severity of the complaint often escalates due to poor handling at this stage. A routine problem that should be resolved quickly becomes a persistent matter for the consumer who has to spend what they perceive to be too much time on the issue. This becomes a serious inconvenience and leads to a breakdown in relationship.

Consumers are also often looking for an apology where they feel they have been served badly. The apology not only shows that the service provider acknowledges that they may have made a mistake, but also shows the consumer that they are valued by the company. In many cases an apology and recognition of responsibility will prevent a situation escalating into a formal complaint.

The following quote typifies a consumer who simply wanted an apology from their water supplier. However when there was no admission of responsibility for an error that had been made, the consumer decided to make a complaint. This is a good example of a situation that could have been avoided.

Consumers want to feel valued by the service provider and this desire becomes stronger when a consumer has been with a company for a long period of time. Consumers will react when they feel that they are being disregarded and this will lead to some making a

“It was a matter that should’ve been dealt with and it was an on-going issue…I appreciate that people can make a mistake but it turned into a really long winded thing.” (Financial)

“If they’d have just said sorry on the phone, that it was a mistake, they didn’t apologise once they just kept on saying no-one here’s done anything wrong and I thought they were implying that we had. I thought that was bad customer service and there’s too much of it around so I thought I’d make a complaint.” (Water)

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complaint just to make their voice heard. This has been demonstrated in the following quote.

Following an apology, the next main reason why consumers complain is because they have suffered some form of financial loss. Many cases are quite clear cut with consumers looking for a refund when they believe that the service provider has failed to deliver on the service that they promise. Examples given during the research include incorrect charges and parcels that were lost.

When consumers are looking for compensation then this issue can be slightly more complicated or unquantifiable. For example, consumers will complain if they feel that they are out of pocket because they have received bad advice or poor service. They will also complain if they have spent money or time on a mistake that was made by the service provider. In such cases the justification for the complaint can be more questionable.

“I was up against it anyway right from the start but I felt strongly enough to think that, even though I was going to lose, I wanted to make my complaint heard.” (Financial)

“I was looking for some money back, either a full refund, or even some money back as a compromise would have been nice.” (Financial)

“I did make a complaint on my father’s behalf where he took a business loan and he was forced to take [payment protection insurance]. It was sold to him like he needed it and that was a waste of money.” (Financial)

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Figure 2.1: Reasons for making the initial complaint

Sample base: 470

When comparing the data across the service sectors we find that:

• legal consumers are looking mainly for compensation

• financial consumers predominantly want a refund

• the main reason telecoms consumers make a complaint is because they would like to see a change in the way that the service is provided

• in water ‘other’ predominated customers sought ‘a repair a main connection’ or ‘to carry out flood work’

• Royal Mail consumers largely wanted change in how the service is provided

This is demonstrated in table 2.1 overleaf.

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Table 2.1: Reasons for making the initial complaint

Legal Financial Telecoms Water Energy Royal Mail

Total

A change in how the service is provided

15% 17% 36% 21% 21% 27% 25%

A refund 30% 35% 20% 19% 17% 21% 23%

Compensation 35% 15% 9% 8% 12% 22% 15%

An apology 8% 13% 4% 13% 22% 19% 13%

A change to a decision made by the service provider

8% 11% 14% 13% 16% 1% 11%

Other 5% 9% 17% 26% 12% 10% 14%

Sample base: 470 - consumers giving a single response

2.2 Satisfaction with aspects of making the complaint

Consumers are generally dissatisfied with the service that they receive when they make their complaint. When thinking of five particular aspects of the service: how well the company understands their particular issue; the tone of the response they receive; the quality of the information; the speed of response and how easy it is to make the complaint, more consumers are dissatisfied than satisfied with the first four aspects.

When comparing NET dissatisfaction (consumers who are either ‘very’ or ‘quite’ dissatisfied) with NET satisfaction (consumers who are either ‘very’ or ‘quite’ satisfied), for all aspects with the exception of ‘how easy it was to make the complaint’, NET dissatisfaction is above NET satisfaction:

• for how well the company understood your particular issue, NET dissatisfaction (50%) is 13 percentage points higher than NET satisfaction (37%)

• for tone of response, NET dissatisfaction (44%) is five percentage points higher than NET satisfaction (39%)

• for quality of information, NET dissatisfaction (51%) is 18 percentage points higher than NET satisfaction (33%)

• for speed of response, NET dissatisfaction (57%) is 19 percentage points higher than NET satisfaction (38%)

• for ease of making the complaint, NET satisfaction (48%) is ten percentage points higher than NET dissatisfaction (38%)

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Consumers are the most satisfied with how easy it is to make a complaint, and this has been demonstrated in figure 2.2. However it should be noted that even though this aspect attracted the highest level of satisfaction, still fewer than half of consumers (48%) find it either very or quite easy to make a complaint. This leads us to recommend that service providers ensure that they offer clear guidance to consumers on how to make a complaint. The following quote shows that, for some consumers, this is not a simple or easy process.

This recommendation receives support from the fact that the main frustration for consumers when they make their initial complaint centres on the quality of the information that they receive (51% either very or quite dissatisfied with this aspect). This is of particular note as the aspect will be highlighted as a key driver of satisfaction later in the report.

Consumers are also dissatisfied with the level of understanding the company displays towards their particular problem (50% either very or quite dissatisfied).

Figure 2.2: Satisfaction with aspects of making the complaint

Sample base: 814 to 820

“I had problems initially of getting the number of someone to contact and they sort of messed you about with a number of someone you could talk to about making a complaint. Everything to do with this complaint was frustrating from getting the correct number of someone to speak to, to making the complaint, to everything getting resolved really. I felt like I was battling with them to get the information and getting it rectified.” (Financial)

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2.3 NET satisfaction by sector

Through comparing the data across the service sectors we begin to see a pattern developing whereby consumers making a complaint into the legal sector are more satisfied with the entire process than others, and consumers complaining about the service they received from their telecoms provider are the least satisfied. These sectors appear to be at the two ends of the spectrum and there is an indication that there are lessons that can be learned from legal services.

The difference between the average ranking achieved by legal services (65%) and telecoms (30%) is demonstrated in table 2.2. The table shows satisfaction (consumers either ‘very’ or ‘quite’ satisfied) by sector for five aspects of the service they receive when making their initial complaint, and the average score for each sector.

Table 2.2: Per cent either very or quite satisfied Legal Financial Telecoms Water Energy Royal

Mail

Ease of making the complaint

75% 46% 39% 56% 49% 48%

Speed of response 66% 33% 30% 45% 38% 42%

Quality of information 59% 31% 20% 40% 34% 39%

Tone of response 62% 34% 31% 48% 43% 39%

Understanding the issue 61% 34% 29% 44% 39% 38%

Average score 65% 36% 30% 47% 41% 41%

Sample base: 814 to 820 Ease of making the complaint

• 75% of consumers making a complaint into the legal sector are either very or quite satisfied with how easy it is to make the complaint and this is far above the average figure of 48%

• above the average figure of 48% are consumers making a complaint into the water sector (56%) and energy (49%)

• consumers face greatest difficulty when making a complaint into telecoms (39%)

Further detail on each aspect has been provided in figures 2.3 to 2.7.

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Figure 2.3: Satisfaction with ease of making the complaint by sector

Sample base: 820

Speed of response

• 66% thirds of consumers making a complaint into the legal sector are either very or quite satisfied with the speed with which they receive a response compared with the average of 38%

• above the average figure of 38% are consumers making a complaint into Royal Mail (42%) and the water sector (45%)

• consumers making a complaint into telecoms are least satisfied (30%)

Figure 2.4: Satisfaction with speed of response by sector

Sample base: 817

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Quality of information

• 59% of consumers making a complaint into the legal sector are either very or quite satisfied with the quality of information that they receive compared with the average of 33%

• above the average figure of 33% are consumers making a complaint into Royal Mail (39%), energy (34%) and the water sector (40%)


Figure 2.5: Satisfaction with the quality of information by sector

Sample base: 818

Tone of response

• 62% of consumers making a complaint into the legal sector are either very or quite satisfied with the tone of the response compared with the average of 39%

• above the average figure of 39% are consumers making a complaint into energy (43%) and the water sector (48%)


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Figure 2.6: Satisfaction with the tone of response by sector

Sample base: 814

Level of understanding • 61% of consumers making a complaint into the legal sector are either very or quite

satisfied with how well the company understands their issue compared with the average figure of 37%

• above the average figure of 37% are consumers making a complaint into Royal Mail (38%), energy (39%) and the water sector (44%)


Figure 2.7: Satisfaction with how well the company understood the issue by sector

Sample base: 814

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2.4 Information on the Ombudsman

Just over one quarter of consumers are told that they can take their complaint to an ombudsman or independent panel. The figure is slightly skewed by legal sector consumers who are given the information much more frequently than any other.

Figure 2.8: Consumers who were told of the Ombudsman service

Sample base: total across six markets 825

2.5 How far the complaint progressed

Quotas were set to ensure that consumers who took their complaint to different stages of the process were involved in the survey.

• For 33% the complaint was resolved by the company

• 22% chose to abandon the complaint

• 10% were referred to the ombudsman

• 35% pursued their complaint further with the service provider

The initial complaint was most likely to be resolved for Royal Mail consumers (43%). Legal sector consumers were the most likely to abandon the complaint (34%), or be referred to the ombudsman (16%). Telecoms consumers were the most likely to pursue the complaint (49%).

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Figure 2.9: Actions after the initial complaint

Sample base: 825

2.6 Key issues and solutions

In this next section we outline the key issues raised by consumers at the initial stage of the complaint and their proposed solutions .

Lack of information on how to make a complaint

Consumers need to know where and how to file complaints or make inquiries. The information must be clear and the process simple. Good publicity on the system that encourages consumers to voice their dissatisfaction shows that the company is taking these issues seriously and values the feedback that it receives. Consumers feel valued at this stage and the good intentions of the company become apparent.

Being kept waiting

Where telephone numbers are advertised then consumers want to be able to get through quickly and object when they are kept on hold for a long period of time.

“One simple thing Consumer Focus could do, stop this ringing and ringing and pressing of buttons, speak to a person immediately. This is one bit of legislation that the government could pass within weeks.” (London group)

“I think that it shows that they are professional in running their business to a certain degree. What they are trying to do for their customer relations. It is an assurance.” (Birmingham group)

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A lack of flexibility on how the complaint is registered

Consumers would like the flexibility of choosing how to make the complaint. For some the ease of picking up the telephone is attractive, whilst others prefer the reassurance of putting their complaint in writing so that they can refer back to it at a later stage.

Call centres outside the UK

When consumers are connected to a call centre outside the UK, some will find it difficult to understand the accent of the person handling their complaint. This can inflame an already tense situation.


Customer services departments are often configured to deal with routine enquiries and struggle with more complex situations.

Simple complaints are not always resolved with a single call

The speed of resolution is very important and ideally consumers would like to speak to a consumer service representative who understands the issue and can resolve the problem

“Get through to a dedicated resolutions department, talk to a named operator who logs your complaint with a specific reference number. Resolve the issue there and then or promise 24-48 hour resolution or call back promise.” (London group)

“You phone up and get a service from somewhere abroad who do not afford you the same courtesy as somebody around the corner would. You are trying to tell them what your issues are and this issue may have just been a niggle but it becomes a huge issue and after half an hour of trying to be very patient and tolerant you do get to the stage where you want to progress it further, you need to progress it further because you feel like you’ve hit a brick wall and gone as far as you can with that individual.” (Manchester group)

“I don’t really want to put things in writing, I want to be able to deal with and get it resolved. Some people get satisfaction from making complaints personally I think it’s the worst thing. You feel frustrated at having to do that anyway, just want to get to the point, get it dealt with and resolved, end of story and then go back to being positive about the company concerned.” (London group)

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immediately. Where this is not possible, then there is a desire to be connected to a more senior member of staff.

There is a lack of clarity on what will happen next

Consumers would like notification that their complaint has been received and will be dealt with. They are also looking for guidance on what to expect. Consumers understand that the more complex issues will take longer to resolve. However, companies need to provide a realistic timetable and a full explanation of what is being done to address the complaint. It is vital that these promises are upheld as trust and relationships are irreparably damaged when promises are not kept.

Responses are too generic

Consumers do not register complaints with only a casual interest in their outcome. Complaining involves some inconvenience and, possibly, expense. Consumers need to know that their complaint is receiving personal attention. This will reassure them that they are valued as individuals. Not only is it important to acknowledge the complaint, but where possible this acknowledgement should be personalised.

“You want to make a phone call to see if there’s a chance that you can sort it out on that one phone call, whether it is something that can be done there and then.” (London group)

“Automatically whether you email or phone, something should pop up to say 'this person has been a valued customer of ours for 10 years'. I find that most companies treat you all the same whether you have been with them for one year or 20 years, you are the same person.” (Birmingham group)

“I would like to see some legislation that every service provider has an obligation under the law. If someone makes a complaint to their provider, they have to send that individual a response within seven days with a letter. Some format that they have registered that complaint. It is an assurance that your complaint is going to be investigated by the company and you respect it.” (Birmingham group)

“There’s nothing worse than being told it’ll be sorted out in the next two weeks and they don’t”. (Birmingham group)

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2.7 The ideal process

Generally, a complaint will be made in two to three stages: making the initial complaint; pursuing the complaint and (for some) taking it to the ombudsman. For each stage of the process we have suggested a practice that would help improve the experience for consumers.

The ideal method for handling the initial complaint is outlined below. We will also suggest at the end of sections three and five, a model for managing the complaint as it proceeds and a template for complaints that are taken to the ombudsman.

Ideal complaints process flow – initial complaint

CustomerService


problem


If unsatisfactory

“I would want it resolved on the first phone call.”

“The thing is they should get back to you even if they can't answer the

question. Even if they phone back to tell you that it is taking longer than they

thought.”

“They should remind you what their policy is on receipt of a complaint and

what they intend to do.”

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3. Pursuing the complaint Consumers who are not happy with the initial response they receive from the service provider may pursue the complaint with the organisation. However they are not being given a clear understanding of what they should do next by the service provider. Almost three quarters (73%) are not given this information.

It has already been noted that consumers are looking for guidance on what to expect after making their initial complaint. It is also important to steer consumers in the right direction. Figure 3.1 shows that the clearest information is provided by the legal sector and the Royal Mail.

Figure 3.1: Whether the company gave the consumer a clear understanding of what to do next

63%

30%

19%

23%

28%

39%

38%

70%

81%

77%

72%

61%

0% 20% 40% 60% 80% 100%

Legal

Financial

Telecoms

Water

Energy

Royal Mail

Did the company give you a clear understanding of what you should do next?

Yes No

3.1 Satisfaction with aspects of pursuing the complaint

When consumers initially make their complaint they are frustrated with the lack of information that they are given. As the process develops annoyance moves more towards the timeliness of the service, or not being treated as a valued individual.

Another problem encountered by consumers is that no-one in the company takes ownership of the complaint. Consumers are often passed from person to person and have to repeatedly explain their complaint which they find very annoying. The whole process takes considerably longer, needs more time from the consumer who is left believing that the company does not care.

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Section 2.2 shows that generally consumers have a poor opinion of how they are treated when they make their initial complaint. Issues tend to deteriorate further as the complaint progresses.

When thinking of statements relating to five aspects of the service they receive as the complaint progresses: being dealt with in a timely manner; having sufficient involvement with the process; having their track record taken into consideration; being treated as a valued individual; and being kept up to date with progress, NET disagreement is higher than NET agreement. Whilst a direct comparison with the differences in NET figures outlined in section 2.2 cannot be made it is worth noting that the differences between the NET figures have increased.

Comparing NET disagreement (consumers who either ‘disagree’ or ‘disagree strongly’) with NET agreement (consumers who either ‘agree’ or ‘agree strongly’), for all statements NET disagreement is above NET agreement:

• for being dealt with in a timely manner, NET disagreement (69%) is 51 percentage points higher than NET agreement (18%)

• for having sufficient involvement with the process, NET disagreement (49%) is 22 percentage points higher than NET agreement (27%)

• for having their track record taken into consideration, NET disagreement (58%) is 44 percentage points higher than NET agreement (14%)

• for being treated as a valued individual, NET disagreement (66%) is 51 percentage points higher than NET agreement (15%)

• for being kept up to date with progress, NET disagreement (63%) is 44 percentage points higher than NET agreement (19%)

Figure 3.2 shows that 6% or fewer of consumers believe their complaint is dealt with in a timely manner, that they have sufficient involvement with the complaint process, that their track record with the company is taken into consideration, that they are treated as a valued

“That person didn’t have any understanding of my complaint though, and this is the way that things developed over the next three months. I was pushed from pillar to post and I was promised I was going to be contacted by someone and never was… By this stage I’d had enough…We’d gone from July into November, spent hours on the telephone to various people.” (Telecoms)

“We called them to find out what was going on, but each time we called we spoke to a different person and got a different case number, and kept being assured that someone would be round to fix the problem. Nothing ever happened, and months passed by… We kept complaining but nothing happened.” (Energy)

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individual or that the information they are given allows them to keep abreast of their complaint’s progress.

All of these features of complaint management are to an extent important; but not equally so. The qualitative research indicates the least significant matter to consumers is “the amount of involvement they have with the process”. Consumers are more interested in how quickly the complaint is resolved than with how it is resolved.

Also of importance to consumers is that they are treated as individuals rather than branded by the complaint that they are making. Consumers sometimes believe that their complaint is not treated as unique; rather that it is forced into a category or ‘type’. This makes it easier for the company to manage as there will be a specific process that they can follow to handle that ‘type’ of complaint. However for some consumers this is inappropriate as they do not feel that the complaint can be slotted into an existing classification and they also want to be regarded as a person rather than a category.

Consumers are also looking for some reciprocal loyalty from the service provider, especially where the consumer has been with the service provider for a long period of time. They do expect their track record of being good and loyal to be taken into consideration.

Figure 3.2: Agreement with statements


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3.2 Agreement by sector

Consumers pursuing a complaint into the legal sector continue to find the process better than those pursuing complaints into other sectors. Table 3.1 shows the results by sector; however the data must be treated as indicative only due to the low base sizes.

Table 3.1: Per cent either agreeing or strongly agreeing with the statement Legal Financial Telecoms Water Energy Royal

Mail The information I received kept me up to date with the progress of my complaint

41% 24% 14% 23% 19% 21%

I was treated as a valued individual

41% 11% 12% 23% 15% 17%

My past record with the company was taken into consideration

38% 15% 15% 15% 14% 17%

I had sufficient involvement with the process

47% 20% 25% 42% 27% 31%

I was dealt with in a timely manner

41% 20% 14% 31% 10% 17%

Average score 42% 18% 16% 27% 17% 21%

Base size 13-17 40-45 110-121 26 42-48 24-30


In this next section we outline the key issues raised by consumers when the complaint is pursued and their proposed solutions.

Nobody takes ownership of the problem

Consumers are universally frustrated when they are put through to different people each time they call. Frequently the person they speak to has no knowledge of the complaint and the consumer is expected to explain the situation over and over to different people within the company.

“Very difficult to speak to one person directly without being passed through several automated processes.” (Royal Mail)

“Every communication was a different person saying something else. I always had to explain everything from scratch.” (Financial)

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Two possible solutions were suggested to resolve this situation. The first was to have a named individual or case worker assigned to the complaint, and the second was the creation of a resolutions department. The resolutions department would be able to deal with complex or serious problems that cannot be resolved by consumer service. The staff would be trained and empowered to offer solutions.

Named individual

Having a named individual ensures someone takes ownership of the complaint, clarity of communication and allows a relationship to develop.


Customer services departments are often configured to deal with routine enquiries and struggle with more complex situations.

Consumers would like to see a final tier within the company that would look at the complaint if an unsatisfactory response was received from the resolutions department. This would be the last port of call before taking the issue to the ombudsman.

“Get through to a dedicated resolutions department, talk to a named operator who logs your complaint with a specific reference number. Resolve the issue there and then or promise 24-48 hour resolution or call back promise.” (London group)

“The resolution department should be powerful enough to take it forward as far as it can go in the organisation without referring to the ombudsman. That’s an ideal scenario. You are confident you’ve done all that you could. If you still reach an impasse then you have to go externally.” (London group)

“Personal contact, you get the name of someone, they take up your complaint and you constantly deal with that person and see it through to the end”. (Birmingham group)

“That you have a contact and that person responds to you or puts you in touch with someone who can answer your questions. That you have an actual point of contact as oppose to firing letters off and they get passed from pillar to post”. (Birmingham group)

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Accurate records are not made of the complaint, or are inaccessible

Consumers want the record of their complaint to be accurate and immediately available to the person they are speaking with. Good record keeping and internal communication are important to consumers. Records need to be precise from the outset and consumers would like to have a unique reference number allocated to their complaint that they can quote whenever they have cause to make contact.

There is a lack of information on the progress of the complaint

Consumers understand that complex problems will take longer to resolve, however they rely on information and regular updates throughout the process. Even if the update says that nothing has been resolved, they would prefer to hear something as they then know that the complaint has not been set aside or ignored. The information must be comprehensive and transparent. This will demonstrate to consumers that the company is treating the complaint fairly.

“There should be a semi autonomous group that could adjudicate on what the company is saying and what you’re saying before you go higher. Someone two stages higher from the person you speak to. Next one up to resolution department in the company, permanently there who can adjudicate on the company’s case and your case.” (London group)

“Constantly keeping you informed as to what is happening, what they are doing about it, what the situation is.” (Birmingham group)

“The Department of Works and Pensions recognises your phone number and they have all the information as soon as they answer the phone, comes up on the screen and I think that's good because they know who they are talking to, who you are, and you don't have to start telling them things that they already know.” (Birmingham group)

“When you ring up it is as if you’ve never actually rung in the first place. Let’s start from scratch and ask the same questions again, that’s when it got problematic.” (Manchester group)

“It is important that if you go onto the next level that you don’t have to explain yourself all over again which is where the reference comes in. It has all been recorded. If you have to go onto that second level they know about your case, you want to speak to someone who says they know what’s happening.” (London group)

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Equally important is feedback on the decision, and on how this has been made. A clear written response is required that outlines how the decision has been made, and the next steps. Consumers at this point want clear information on the role of the ombudsman.

Companies to provide and ask for feedback from the consumer about the complaints process

Consumers also appreciate the interest that a company demonstrates through following up the complaint to see if it was resolved in a satisfactory manner.


The diagram overleaf shows a proposed method for handling consumers as they pursue their complaint.

“If they collate all the complaints, even if they only do it as a tick chart, any company worth their salt would look at that, issues would stand out like a sore thumb. If they collate the evidence; look at it and then tell them what needs doing.” (Birmingham group)

“Once it’s been resolved it would be nice for them to come back and say so and so dealt with the complaint are you totally happy? It completes the circle.” (London group)

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Ideal complaints process flow – pursuing the complaint

Complex/serious problem



If unsatisfactory

“Senior management, supervisors, managers, someone with a bit more

authority.”

“It's keeping you informed is the main thing.”

“You would expect the company to give you an option as well in case they don't

resolve the complaint.”

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4. Abandoning the complaint Consumers who make complaints give businesses an opportunity to correct the immediate problem and restore goodwill. Experience shows that consumers who complain about products and services continue to frequent the business and buy the products they complain about if they believe the complaint was resolved fairly.

However, when a complaint is abandoned the opportunity to provide a satisfactory solution is removed, and the consumer may simply take their business elsewhere.

Developing an understanding of why some consumers abandon their complaints will help companies develop and improve their complaints processes and break down the barriers that consumers face when making a complaint.

4.1 Reasons for dropping complaints

The explanations that consumers give for abandoning their complaints fall into four broad categories.

The amount of effort required Making a complaint can simply take up too much of the consumers time and energy for little gain, leading them to abandon the complaint.

Feelings of futility Consumers can become disillusioned with the process if they feel they are not making any progress.

“I was so sick of hanging on the phone every evening after work, I just thought I wasn’t really satisfied but I’m tired of this. I have a long working day and it is the last thing you want to do when you get home. That is why I didn’t bother phoning them again, because I felt that nothing is going to happen.” (Water)

“It was too much effort to pursue and it seemed that I had put in a lot of time and energy and had not got anywhere. It was easier to drop the complaint and cancel the service.” (Financial)

“Because I clearly was not getting anywhere, they just were not bothered. It was costing me time and money to complain and there would be no result or change in their behaviour or attitude.” (Financial)

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Time taken to respond The length of time a complaint goes on with no progress can again lead to consumers abandoning the complaint as they become disillusioned.

Communication When consumers feel they cannot communicate effectively to progress their complaint this often leads to abandoning the complaint because of frustration.

“I complained once a month for nearly a year. They never phoned me back as promised. I eventually solved the problem myself.” (Telecoms)

“Each operator gave me different answers and no-one could resolve my problem.” (Telecoms)

“I was dealing with anonymous bodies in unreachable offices.” (Royal Mail)

“I felt that I was being fobbed off and taking it further would have meant my time being wasted for the same answers.” (Royal Mail)

“From the point of complaint in August 2010, to date no one has got back to me. I even telephoned them last week saying I had sent an email to the MD, yet still no response.” (Water)

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5. The Ombudsman Consumers generally take their complaint to the ombudsman when they are not happy with the way that it is being dealt with by the service provider. The complaint may still be under investigation, but the consumer feels that they will receive a better service from the ombudsman. This is the case for 65% of consumers.

One fifth will involve the ombudsman because they have followed the service provider’s complaint process to conclusion, but are not satisfied with the solution or response they receive from the service provider. A small number (8%) are directed toward the ombudsman by the service provider when they make their initial complaint.

For many consumers the journey becomes increasingly emotional the further they go through the process. By the time they decide to involve the ombudsman this may have reached a peak. Many consumers look to the ombudsman for some sort of justice.

5.1 Satisfaction with aspects of the service

Over half of consumers are pleased with aspects of the service they receive from the ombudsman including:

• the level of understanding that the ombudsman demonstrates towards the problem (61% are either very or quite satisfied with this aspect)

• the independence of the ombudsman (60% either very or quite satisfied)

• the information that they receive from the ombudsman on the progress of the complaint (55%)

• the speed of response (60%)

“Felt my grandma was being treated unfairly, feeling that we needed justice and her point heard by an independent organisation to make sure no-one would be treated like that. The process was a lot easier when it went to the ombudsman. Knowing that someone who knows the process will try and find out where it has gone wrong.” (Water)

“We were not getting anywhere. We thought if we took it to the next level they might actually do something. I have mostly been exasperated then frustrated, and then I got to the point where I thought “Right, can I put anything back on to them? They’re clearly in breach of their complaints procedure and why do we let these enormous companies carry on like this? That’s what the ombudsman is there for, let’s use them and see what they can do.” (Energy)

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• ease of contact (72%)

Many of the frustrations that consumers face when dealing with the service provider fade when they contact the ombudsman. During the qualitative interviews consumers spoke with much higher regard when talking about the service they received from the ombudsman.

Figure 5.1: Satisfaction with aspects of the service from the Ombudsman


Consumers were more satisfied with aspects of the service they received from the ombudsman than they were with similar aspects of the service they received when they made their initial complaint to the company. Table 5.1 shows the percentage of consumers who were either very or quite satisfied with four aspects of the service received during the two separate stages of the process. Please note that the fifth aspect (the independence of the ombudsman) was not comparable.

Table 5.1: Comparative satisfaction with service aspects

Service provider Ombudsman

Ease of contact 48% 72%

Level of understanding 37% 61%

Quality of information 33% 55%

Speed of response 38% 60%

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5.2 Overall satisfaction with the Ombudsman

More than half of consumers are satisfied with the manner in which the ombudsman handles their enquiry, irrespective of the outcome. This is shown in figure 5.2.

Figure 5.2: Overall satisfaction with the service from the Ombudsman

Sample base: 137

5.3 Comparison with the service provider

Consumers are generally happier with the overall service they receive from the ombudsman than from the service provider. This is demonstrated in table 5.2.

Table 5.2: Comparison of satisfaction between company and Ombudsman

Service provider Ombudsman

Very satisfied 11% 24%

Quite satisfied 30% 29%

Neither 13% 21%

Quite dissatisfied 18% 14%

Very dissatisfied 27% 10%

Consumers tend to receive a better and more professional service from the ombudsman. In addition, consumers who feel like they are facing a brick wall are relieved to go to an independent body who will act on their behalf.

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The ombudsman is in many cases the final step in the process; however awareness of the services offered by the ombudsman is low.

Consumers are looking to the ombudsman for an unbiased and impartial perspective. Suggestions were also made during the group sessions that the ombudsman should monitor complaints to see if certain companies are receiving an inordinate number of complaints. In instances where this is true, the ombudsman should conduct further investigations and make the information available to the public.

“Somebody specific was dealing with my complaint. Really good communication about what was going to happen, when it would happen, lots of letters and phone calls, promises to do something and actually following through on it, a detailed case worker. They were very helpful and empathetic with the situation and followed through on the actions. How swift and efficient they were. A lot of knowledge and understanding and the way they treated you as a customer.” (Water)

“You would hope that if an ombudsman or third party is getting a lot of complaints about a particular thing it would get flagged up and sorted out.” (London group)

“The procedure of this ‘court’ should be published like they have league tables in schools, league tables in culpability and inefficiency and we could all see. Any of these claims people could find out if they wanted. If you wanted to find out what BT’s record was you could go on the internet and see what these cases are.” (London group)

“Procedure needs to be more understood by the public so if there is an external ombudsman, how do you access it? Who do you speak to? How do you get in touch with them? What can you expect? I know it is there but I wouldn’t know how to access it.” (London group)

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The diagram below shows the ideal approach to managing complaints through the entire process from the initial complaint all the way through to the ombudsman.

CustomerService


problem


1. Complaints process clearly publicised

2. Provide reference numbers and track complaint

3. Deal with respect4. Offer clear timelines and meet

them (or say why)5. Communicate using customers

preferred method6. Attention to vulnerable groups7. Pay attention to customers

desired outcome8. Final resolution letter so

explanation for outcome is clear


If unsatisfactory

If unsatisfactory

OmbudsmanMediation

OmbudsmanFull investigation

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6. The outcome For most consumers the final decision (whether made by the service provider, or by the ombudsman) will be made in their favour.

Figure 6.1: The outcome

67%

76%

65%

73%

75%

72%

71%

19%

18%

30%

18%

21%

22%

23%

14%

6%

5%

9%

5%

6%

6%

0% 20% 40% 60% 80% 100%

Legal

Financial

Telecoms

Water

Energy

Royal Mail

All

Was the final outcome of the complaint in your favour?

Yes No Don't know / can't remember

Sample base: 635

6.1 What consumers achieved by making a complaint

Consumers generally achieve what they were aiming for when they made their initial complaint. Most will gain the apology or financial recompense that they were looking for.

• 21% received an apology (this is what 23% of consumers wished for when they made their initial complaint)

• 18% received a refund (required by 19% at the outset)

• 17% received compensation, monetary or otherwise (this is what 19% wanted at the beginning)

• 12% saw a change in how the service was provided (desired by 20% at the initial stage of the complaint)

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• 8% saw a change to a decision made by the service provider (required by 10% at the outset)

Figure 6.2: The result

Sample base: 578

When reviewing the quantitative data by sector we find that:

• 44% of financial sector consumers received a refund

• Water and Royal Mail consumers were the most likely to receive an apology (34% and 32% respectively)

• Telecoms consumers were the most likely to receive compensation (31%)

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Figure 6.3: The result by sector

Sample base: 578

6.2 The explanation

Whilst the decision may be made in favour of the consumer, there is a lack of explanation (either by the company or the ombudsman) on how the decision was reached. Figure 6.4 demonstrates that a greater number of consumers are not given clear information than are. For the ombudsman, slightly more are given clear information than are not.

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Figure 6.4: The explanation

12%

10%

30%

8%

35%

0% 10% 20% 30% 40%

I did not require any information

I was given clear information by theombudsman

I was given clear information by thecompany

I was not given clear information bythe ombudsman

I was not given clear information bythe company

Were you given clear information on how the decision was reached by the company, and if applicable, by the

ombudsman?

Sample base: 773

• The clearest information on how a final decision is made by both the company and the ombudsman is given in the legal sector

“They sent what was a final decision in the investigation. The final decision amounted to three bullet-points, a complete lack of detail. The letter of apology that they sent me is no such thing. All it was really was a printed form of what the ombudsman had instructed that they should do. Their apology hadn’t been sincere.” (Telecoms)

“I thought I deserved more of an explanation, also [the evidence] is not shared you’re just told ‘following the investigation we found your claim unsubstantiated’ but they never show you any of it. Then when the ombudsman tells you that you haven’t succeeded they also just say ‘from my investigation’, so you don’t really know why or see the evidence.” (Financial)

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• Consumers making a complaint into telecoms are the most likely to be left in the dark by the company

Figure 6.5: The explanation by sector

Sample base: 773

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7. Drivers of satisfaction Using the quantitative data we conducted regression analysis to identify the key drivers of overall satisfaction on making the initial complaint, and on pursuing the complaint.

7.1 Initial complaint

Figure 7.1 shows that the most influential factor was the quality of the information that was received by the consumer when they made their complaint. The second most influential factor for consumers was the level of understanding demonstrated by the company of their particular issue.

Figure 7.1: Drivers of overall satisfaction for all who made a complaint

24%

19%

16%13%

12%

10%6%


Understanding of the issue

Whether complaint pursued

Tone of response

Whether complaint dropped

Ease of making the complaint

Referred to ombudsman

Sample base: 825

7.2 Pursued complaints

For consumers who pursued their complaint, the focus moved towards being treated as a valued individual. Consumers also placed importance on the speed with which the company responded.

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Figure 7.2: Drivers of overall satisfaction with the complaints that are pursued

34%

29%

19%

18%

Overall Satisfaction Driver

Treated as a valuedindividual


Dealt with in a timelymanner

Understood the issue

Sample base: 825

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8. Overall satisfaction As we have seen through this report overall satisfaction with complaint handling is low amongst consumers. Figure 8.1 below shows less than half are satisfied across these sectors.

Consumers making a complaint into the legal sector are more satisfied with the way that the company handles their complaint than those making a complaint into other sectors. The lowest level of satisfaction is found amongst telecoms consumers.

Figure 8.1: Overall satisfaction with the company

Sample base: 818

Three key themes come through when consumers explain the causes of their disappointment with the way that their complaint is handled.

• poor communication

• the manner in which the consumer is treated

“They gave a real ‘couldn't care less attitude' in all their communications.” (Energy)

“They treated me like an idiot not somebody who had invested with them for over 10 years.” (Financial)

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• the length of time it takes for the company to address the complaint

It took two months to get a decision that should have been resolved in a few days.” (Financial)

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Appendix A. Telephone interview guide Introduction

• Who we are: an independent research consultancy working on behalf of Consumer Focus.

• About Consumer Focus: an organisation committed to promoting the rights of the consumer.

• Introduction to the research: to improve complaint procedures, Consumer Focus need to really understand the experience from the point of view of the person making the complaint. We would also like to ask the opinion of the consumer on how the process can be improved.

• Confidentiality and the MRS Code of Conduct: no-one will be able to trace what they have said back to them as an individual, unless they give us their express permission to pass their comments to Consumer Focus.

• Permission to record.

Cause of the complaint: 5 minutes • What did they complain about? Did they make the complaint on their own behalf, or

was it for someone else? o Ask for a brief description of the complaint, including to whom it was made

(job title, organisation). We are simply looking for a broad overview here. Please remember that we do not want to focus on the complaint itself, but on the process of making the complaint.

• What triggered the complaint? o Why did they decide to complain this time, instead of letting it go? What

made this stand out from other times they have seen or received poor service?

o What made this a ‘fight not flight’ situation? • What would have been the most convenient way for them to make the complaint?

o Would they have found it easiest to make the complaint via email, on the telephone, in writing….?

• Did they have to make their complaint in a certain way? o What was this? (Did they have to make a written complaint, telephone a

specific person…?) • How did they feel when they decided to complain?

o Please press for a description of the emotions and thought processes they went through, but do not put words in their mouths.

• What did they hope to achieve? o What outcome were they looking for? Was it a refund, monetary

compensation, an apology etc. • What sort of support were they looking for?

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o Were they looking for sympathy, or were they looking for a ‘no nonsense’ approach?

o How important was it to them to feel that something would be done? Did they feel that they were being taken seriously?

o How did they feel about the person they first made contact with? Were they professional, courteous?

• What were their initial actions? o Did they know how and to whom to make the complaint? o How did they find this out? How easy was it to find this out? o Was there enough information to enable them to act? Was the information

accurate? • Were they aware at this point that if they were unhappy with the decision made by

the service provider, then they could take their complaint to an ombudsman?

During the process: 20 minutes Please ask the consumer to talk you through each phase of the process they went through when making their complaint, from start to finish. Ask them to describe each stage, and then explore these in order. We are particularly interested in the ‘touch points’ within their journey which will generally be the times that they had contact with the service provider.

They may have different feelings about different parts of the process. For example, it may have been quite clear at the outset how to make the complaint, but they may have had to chase the service provider for subsequent updates, and this could have been quite frustrating. This is just an example situation; however it is this level of detail that we need to establish.

After they have described each stage please determine:

• How they felt at this point. o Again, press for a description of how they felt, but do not suggest any

emotions. • What, if anything, was done well at this stage?

o Is there anything they did that other service providers could learn from? Please press for details.

• What, if anything, could have been better? o Are there any areas for improvement that they can suggest? Please press for

details. • Did they have enough influence over each part of the process?

o Did they want to be more or less involved? Was it taken out of their hands? Was this a good or a bad thing?

o How confident did they feel that the service provider was actively pursuing their complaint? Were they happy to leave it in the hands of the service provider?

• Were they given a single point of contact, or representative, who helped them through the whole complaint process?

• How did they feel about the main person that they dealt with?

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o Was this person proactive?

The outcome • What was the outcome? (Dropped, resolved, went to an ombudsman).

o Do not focus on the outcome, we need to know what the outcome was, but we need to keep any negativity to a minimum. Please do not allow the consumer to go off track.

We will now ask different questions based on the outcome.

Option 1: complaint dropped • Why did they drop the complaint?

o What was the main reason? o Was there anything else that made them drop the complaint?

• What should have been done differently? o Could they have been persuaded to change their mind?

• With hindsight, was dropping the complaint the right thing to do? o Does the consumer have any regrets about dropping the complaint?

• How did their main contact react? o Were they sympathetic? o Did they seem to agree with the consumer’s decision or did they encourage

them to carry on? • Did anyone else contact them about dropping the complaint?

o If so, can the consumer remember who they were, and why they made contact?

Option 2: complaint resolved • Was the outcome in their favour? • Do they think that they were treated fairly, even if the outcome was not in their

favour? o If not, ask them to explain why they feel this way.

• Were they given a full explanation of the outcome decision, and how it was reached? • Do they think that anything will change as a result of their complaint?

o We are not asking if there will be any changes in policy, however we want to know if they think they will see a change in the service they receive?

Option 3: went to an ombudsman / arbitrator • Why did they take their complaint to the ombudsman?

o Was it because they were dissatisfied with the decision of the service provider; or because the provider did not respond to the complaint in the time allowed?

• Were they happy with the decision made by the ombudsman? o If they were not happy, please ask for very brief details on why this was the

case. However remember to keep the consumer on track. We do not want any negativity to affect the rest of the interview.

• How did they know about the ombudsman?

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o Did they find out for themselves, or were they told about the ombudsman by the service provider?

• What happened after they went to the ombudsman? o What were the stages?

• How did they feel at each stage? o Please again ask the consumer to talk through each stage of the process,

and probe for details. • What was good about the process?

o Probe for any positive feedback. We are looking to share best practice. • What, if anything, could be improved?

o Is there anything they can suggest to help improve the process of going to arbitration?

Closing questions • Ask the consumer to set aside the outcome, and give a score of between one and

five to how satisfied they were with the process. (One is not at all satisfied and five is very satisfied).

• Why did they give this score to the process? o Probe for detail.

Thank the consumer for their time and close.

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Appendix B. Online survey

Landing page.

Thank you for your interest in this survey.

The work has been commissioned by DJS Research Limited on behalf of Consumer Focus.

Consumer Focus acts to promote the rights of the consumer and is working to improve the journey people go through when they make a complaint. This survey forms part of a larger research programme designed to help Consumer Focus to really understand the complaints process from the perspective of the customer.

Please use the Next and Back buttons at the bottom of the screen to move between questions.

SECTION 1 – Screening questions

ASK ALL – SINGLE CODE 1. Have you made a complaint to a service provider within the last two years? Please

select a single response.

Yes 1 Route to Q2

No 2 Close using script ‘A’

Don’t know / can’t remember 3 Close using script ‘A’

ASK ALL – SINGLE CODE 2. Did you make your complaint into one of the following six service sectors? Please

select a single response. If you have made more than one complaint into one of the sectors, then please focus on the most recent occurrence.

Legal services (e.g. lawyers, solicitors) 1 Route to Q3

Financial services (e.g. banks, credit card companies)

2 Route to Q3

Telecoms provider (e.g. 02, BT, Talk Talk, Virgin Media)

3 Route to Q3

Water supplier 4 Route to Q3

Energy supplier (gas or electricity) 5 Route to Q3

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Royal Mail 6 Route to Q3

Other 7 Close using script ‘A’

Script A – We would like to thank you for looking at the survey, unfortunately on this occasion you do not fit the profile we are looking for. SECTION 2 –your initial complaint

ASK ONLY THOSE CODING 1 TO 5 AT Q2. TEXT ENTRY 3. Which company did you make your complaint to? Please enter the name of the

company.

_______________________________________________________________ Don’t know / can’t remember 1

Route to Q4

ASK ALL – MULTIPLE CODE 4. Which of the following describes what you were hoping to gain when you made your

complaint? Please select all that are applicable.

A refund 1 Compensation (monetary or otherwise) 2 A change in how the service is provided 3 A change to a decision made by the service provider

4

An apology 5 Other, please specify________________________

6

I was not hoping to achieve anything in particular 7 Don’t know / can’t remember 8

Route to Q5

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ASK ALL – SINGLE CODE EACH ROW 5. When you first raised your complaint, how satisfied were you with each of the

following? Please select a single response for each.

Very satisfied

Quite satisfied

Neither Quite dissatisfied

Very dissatisfied

N/A Don’t know / can’t

remember A How easy

it was to make the complaint

1 2 3 4 5 6

7

B The speed with which you received a response

1 2 3 4 5 6

7

C The quality of the information you received

1 2 3 4 5 6

7

D The tone of the response that you received

1 2 3 4 5 6

7

E How well the company understood your particular issue

1 2 3 4 5 6

7

Route to Q6

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ASK ALL – SINGLE CODE 6. Did anyone from (insert company name from Q3, if selected don’t know at Q3, insert

‘the company’) tell you that you could take your complaint to an independent body such as an ombudsman or panel? Please select a single response.

Yes – they told me this 1 Nobody told me this 2 Don’t know / can’t remember 3

Route to Q7 Route to Q8

ASK ALL – SINGLE CODE 7. Which of the following best describes what happened after you made your initial

complaint? Please select a single response.

The complaint was resolved by the company 1 Route to Q16

I chose to drop the complaint 2 Route to Q11

I was referred to the ombudsman 3 Route to Q12

I pursued the complaint further 4 Route to Q8

ASK ALL – SINGLE CODE 8. Did the company give you a clear understanding of what you should do next? Please

select a single response.

Yes 1 No 2 Not applicable 3 Don’t know / can’t remember 4

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SECTION 3 – the companies’ complaint process

ASK THOSE CODING 4 AT Q7 – SINGLE CODE EACH ROW 9. If you pursued your complaint, please think of the process that you went through and

say how strongly you agree with the following statements. Please select a single response for each statement.

Strongly agree

Agree Neither Disagree Strongly disagree

N/A Can’t recall

A The information I received kept me up to date with the progress of my complaint

1 2 3 4 5 6 7

B I was treated as a valued individual

1 2 3 4 5 6 7

C My past record with the company was taken into consideration

1 2 3 4 5 6 7

D I had sufficient involvement with the process

1 2 3 4 5 6 7

E I was dealt with in a timely manner

1 2 3 4 5 6 7

Route to Q10

ASK THOSE CODING 4 AT Q8 – SINGLE CODE 10. Which of the following best describes what happened next? Please select a single

response.

The complaint was resolved 1 Route to Q16

I dropped the complaint 2 Route to Q11

The complaint went to the ombudsman 3 Route to Q12

Don’t know / can’t remember 4 Route to Q16

ASK THOSE CODING 2 AT Q8, OR 2 AT Q10 – TEXT ENTRY

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11. Please explain the main reason for dropping the complaint.

_______________________________________________________________ Don’t know / can’t remember

Route to Q16

ASK THOSE CODING 3 AT Q8 OR 3 AT Q10 – SINGLE CODE 12. Which of the following reasons best explains why your complaint was taken to the

ombudsman or independent panel? Please select a single response.

I had followed the company’s complaints process too conclusion

1 I was not happy with the way the company dealt with my complaint

2 The company referred me to the ombudsman 3 Other, please specify______________________________

4 Don’t know / can’t remember 5

Route to Q13

ASK THOSE CODING 3 AT Q8 OR 3 AT Q10 – SINGLE CODE EACH ROW 13. Thinking again about the service you received from the ombudsman, please indicate

how satisfied you were with each of the following. Please select a single response for each.

Very satisfied

Quite satisfied

Neither Quite dissatisfied

Very dissatisfied

N/A Can’t recall

A How easy it was to contact the ombudsman

1 2 3 4 5 6 7

B The speed with which you received a response from the ombudsman

1 2 3 4 5 6 7

C The information you received to keep you up to date with what was happening with your

1 2 3 4 5 6 7

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complaint D The

independence of the ombudsman

1 2 3 4 5 6 7

E Their level of understanding of your particular issue

1 2 3 4 5 6 7

F The overall timeliness of the service

1 2 3 4 5 6 7

Route to Q14

ASK THOSE CODING 3 AT Q8 OR 3 AT Q10 – SINGLE CODE 14. Setting aside the outcome, overall, how satisfied were you with the way that the

ombudsman or independent panel handled your complaint? Please select a single response.

Very satisfied 1 Route to Q16

Quite satisfied 2 Route to Q16

Neither 3 Route to Q16

Quite dissatisfied 4 Route to Q15

Very dissatisfied 5 Route to Q15


ASK THOSE CODING 4 OR 5 AT 14 – TEXT ENTRY 15. Why do you say that?


Route to Q16

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SECTION 4 –the outcome ASK ALL – SINGLE CODE

16. Was the final outcome of the complaint in your favour (including the decision made by the ombudsman if applicable)? Please select a single response.

Yes 1 No 2 Don’t know / can’t remember 3

Route to Q17

ASK ALL – MULTIPLE CODE 17. What did you achieve as a result of making the complaint? Please select all that are

applicable.

Refund 1 Compensation (monetary or otherwise) 2 A change in how the service is provided 3 A change to a decision made by the service provider

4

An apology 5 Other, please specify________________________

6

I was not hoping to achieve anything in particular 7 Don’t know / can’t remember 8

Route to Q18

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ASK ALL – MULTIPLE CODE 18. Were you given clear information on how the decision was reached by the company,

and if applicable, by the ombudsman? Please select all that apply.

I was given clear information by the company 1 I was not given clear information by the company 2 I was given clear information by the ombudsman 3 I was not given clear information by the ombudsman

4 I did not require any information 5 Don’t know / can’t remember 6

Route to Q19

ASK ALL – SINGLE CODE 19. Setting aside the outcome, overall, how satisfied were you with the way that the

company handled your complaint? Please select a single response.

Very satisfied 1 Route to Q21

Quite satisfied 2 Route to Q21

Neither 3 Route to Q21

Quite dissatisfied 4 Route to Q20

Very dissatisfied 5 Route to Q20


ASK THOSE CODING 4 OR 5 AT Q19 – TEXT ENTRY 20. Why do you say that?


Route to Q21

ASK ALL – TEXT ENTRY 21. If you could suggest a single improvement to the process, what would that be?

_______________________________________________________________

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No suggestion

SECTION 5 – About you

ASK ALL – SINGLE CODE 22. Are you over or under 65 years of age? Please select a single response.

Over 65 1 Under 65 2 Prefer not to say 3

Route to Q23

ASK ALL – SINGLE CODE

23. Do you consider yourself to have a long term physical or mental problem that affects your day to day activities? Please select a single response.

Yes 1 No 2 Prefer not to say 3

Route to Q24


24. Is English your first language? Please select a single response.

Yes 1 No 2 Prefer not to say 3

Route to Q25

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25. Which of the following best describes your employment situation? Please select a single response.

Employed full time (more than 30 hours per week) 1 Employed part time (less than 30 hours per week) 2 Self employed 3 Full time student 4 Looking after the home 5 Carer 6 Retired 7 Looking for work 8 Long term disabled 9 Other 10 Prefer not to say 11

Route to Q26

Closing page.

Thank you – the survey is now complete.

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Appendix C. Session guide

Consumer Focus: Experience of Complaint Handling Research Focus Group Topic Guide

• Purpose of research and who we are – independent Market Research company 1. INTRODUCTION (5 MINS)

• Client identity: Consumer Focus, the statutory organisation campaigning for a fair deal for consumers - the voice of the consumer that works to secure a fair deal on their behalf.

• MRS code of conduct, confidentiality • That the workshop will be audio recorded for analysis purposes/viewed • Length of workshop: 2 hours • Honest opinions, no right or wrong answers, all ideas welcome • Incentive

We are working with Consumer Focus to understand how well organisations from various sectors (energy, telecoms, water, legal, financial and Royal Mail) handle complaints. This workshop is part of a wider research programme and the key aim is for us to design an “ideal” complaints process. We will need to stay focused on the complaints process itself as much as possible.

2. RESPONDENT INTRODUCTIONS (5 MINS)

• Name? • Where they are from, who they live with? Work / Free-time?

3. EXPERIENCE OF COMPLAINTS HANDLING (10 MINS)

MODERATOR SAY: Firstly, I’d like to understand a little about your experiences of complaint handling so far …

• What experiences do you have of making a complaint? • Why did you complain?

o Why did you decide to complain this time, instead of letting it go? What made this stand out from other times you have seen or received poor service?

• How did you complain?

o Was it clear how to complain? Why/why not? o Was it straightforward to make your complaint? o What happened next o What was the end result?

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SELECT THREE DIFFERENT COMPLAINTS AND WRITE ON FLIPCHART TO BE REFERRED BACK TO LATER

3. IDENTIFYING THE ISSUES (10 MINS)

MODERATOR SAY: I’d now like to identify some of the areas where organisations do poorly in their complaints handling. We will refer back to this later.

ADD TO FLIPCHART • Let’s list the areas where organisations tend to fall down in their complaints

handling o What is it that they do badly? o What are the implications of this? o Do you have any examples? o Who are the companies that tend to be worse than others?

ON SEPARATE FLIPCHART

• Which areas do any organisations perform well on in their complaints handling?

o What is it that they do well? o What are the implications of this? o Do you have any examples? o Who are the sectors that tend to be better than others?

4. INITIAL COMPLAINT (20 MINS)

MODERATOR SAY: We are now going to talk through the complaints process from beginning to end and decide on best practice for each stage. Please remember the three complaints we wrote down at the beginning as a reference point for this.

Some of your answers may depend on the type of complaint and that’s fine. Starting at the beginning when you make your initial complaint ….

RESPONSES TO BE COLLATED ON FLIPCHART

• What information should be available on making a complaint? Where should it be publicised?

• How would you like to be able to make the complaint? o In what format? Why? o Who to? Why?

• What would you hope to achieve from the complaint?

• How would the organisation respond to the complaint? o How long is reasonable? Why? o If further investigation is required by the company, what should the process

be? What information should you get when? o What should the response contain?

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Format Tone From who? Information

EXERCISE A: Moderator assign one of three complaints examples to each consumer. Now, I’d like you to draft a best practice initial response from the company to the complainant. REPORT BACK AFTER 5 MINUTES

5. COMPLAINTS PROCESS (20 MINS)

MODERATOR SAY: Sometimes the complaint is resolved immediately, but in others you may want to take the process further. RESPONSES TO BE COLLATED ON FLIPCHART

• What information should be available on this next step? Where should it be publicised?

• How would you like to be able to pursue the complaint? o In what format? Why? o Who to? Why?

• How would the organisation respond to the complaint?

o How long is reasonable? Why? o If further investigation is required by the company, what should the process

be? What information should you get when? o What should the response contain?

Format Tone From who? Information

o How personal do you expect the response to be? How much time should the company spend looking at each individual complaint?

• Which external bodies might you consult at this stage? What would you

expect from them? o Who? Why? o What would they do? What powers would they have? o What would their structure be? Government run? Charity run? Funded by

the companies in the sector? EXERCISE B: Going back to the complaint we had assigned to you, I’d like you to draft the next response from the company to the complainant. REPORT BACK AFTER 5 MINUTES

74

• What would you do if you were still not happy with the response?

o Who would you contact? o What would you hope they would do?


MODERATOR SAY: Sometimes the complaint gets to a stage where you feel you want to take the complaint to a higher authority.

• Who would this higher authority be? o How would you be made aware of them? o What would their powers be?

At the moment many sectors have an Ombudsman who deals with complaints which cannot be resolved between the consumer and the organisation. They can accept your complaint after you have spent a period of time (e.g. 8 weeks for the Energy sector) pursuing a complaint or if the organisation decides that you have reached “deadlock”. They will then review the complaint and make a judgement.

• Have you heard of the Ombudsman services? Could you name any? • What is your view on this?

o How should they be structured and funded? o What should their powers be?

• What would your expectations be of them?

o Initial consultation o Requirements from you to start the complaint o Length of process o Communication during the process o Final report

• If you were not happy with the final judgement then what would you expect to

happen next? o Who? o What?


MODERATOR SAY: I’d now like to explore your expectations at the end of the process.

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• What would you hope you had achieved? o Financial – compensation for nuisance/distress o Financial – for losses o Apology o Putting things right (replacing products that have gone wrong) o Money back o Change to company practice o Change to industry practice o Anything else?

What do you most dislike about the complaints process o Speed of stages o Feeling they are putting roadblocks in your way o Passing the buck and blaming someone else (e.g. retailer or installer)

REFER BACK TO EACH OF THE THREE COMPLAINTS

• What would have been a satisfactory outcome for these complaints?

8. FINAL THOUGHTS (20 MINS)

MODERATOR SAY: Finally, to conclude our discussions. SUMMARISE THE PROCESS AND SEEK ANY FURTHER FEEDBACK

• What needs to happen to install this process as best practice in the UK? o Attitude of organisations o Resources of organisations o Political intervention o External bodies o Behaviour of consumers

• Any other comments?

THANK AND CLOSE

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Appendix D. Technical report Key Driver Analysis

The attribute scoring by the 825 respondents was inspected for any missing data. Most attributes had some data missing, although, in general, it was at proportionately low levels and so the mean score for the attribute replaced the missing data points, with minimum potential for model distortion.

As the sample size was relatively large, and the responses to questions 5, 9 and 18 approximated to the normal distribution, then an ordinary least squares (OLS) regression modelling process was considered to be appropriate. Questions 4 and 7 did not lend themselves directly for inclusion in the modelling process. Each issue within the two questions was thus treated as a separate, dummy, variable, so that they could be tested, in turn, as potential key drivers.

Two separate models were developed; one using the full dataset of 825 respondents with questions 4, 5 and 7 as potential drivers. Question 9 only applied to 286 respondents and so this variable could not be used in a ‘full data’ model. The second ‘subsample’ model concentrated on those 286 respondents who had answered question 9. Such respondents filtered off one issue in question 7 and so the four issues of question 7 could not be utilised in the subsample model. Numerous iterations then took place for both models, to eliminate multicollinearity and identify all significant drivers of satisfaction.

The residual errors of the optimum OLS models were then tested to ensure all regression assumptions were met. As is common with models using such survey data, the OLS models was found to violate the unequal error variance assumption (heteroscedasticity). A weighted least squares (WLS) regression approach was therefore utilised to take the initial OLS model findings and produce a valid model, i.e. equal error variance (homoscedasticity). Note that the Davidson-MacKinnon test for heteroscedasticity identifies the independent variable, within each model, on which the weightings should be based.

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The two models are as below:

Full Model (R2 = 0.62)

Subsample Model (R2 = 0.56)

The t-value of each driver variable, in the two models, is significant to at least the 1% level.

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