BUSINESS INFORMATION
Handling customer complaints
Effectively managing and resolving customer complaints can enhance your business reputation and streamline operations
At some point, your business is likely to face customer complaints. Addressing them positively and constructively can help retain customers and foster loyalty.
Often, dissatisfied customers may not voice their concerns directly to you but will share their negative experiences with others and switch to competitors. By quickly addressing and resolving complaints, you can improve business processes and encourage repeat business
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Complaints handling policy
Develop a clear complaint handling policy that reassures customers their feedback is valued and demonstrates your commitment to resolving issues fairly, efficiently, and promptly. The policy should:
- Outline how customers can formally lodge a complaint.
- Specify the steps your business will take to discuss, address, and resolve complaints.
- Highlight potential solutions offered to resolve issues.
- Emphasize your dedication to continuous improvement.
Complaints handling procedure
Once the policy is in place, establish a standardized procedure to ensure consistent handling of complaints. The process should be simple and clear, ensuring all employees can easily understand and implement it. It could include the following steps:
Listen to the complaint
Recognize the customer’s issue and express gratitude for sharing their feedback. Offer a sincere apology, take responsibility, and maintain a polite demeanour.
Record Complaint Details
Document the complaint thoroughly to understand the issue fully. Maintain a centralized record or register of all complaints to identify recurring problems or trends.
Gather All Facts
Verify that you have accurately understood and recorded the complaint details. Ask clarifying questions if needed.
Discuss Resolution Options
Inquire about the customer’s desired outcome, such as a repair, replacement, refund, or apology. Assess whether their request is reasonable.
Act Promptly
Strive to resolve the complaint as quickly as possible. Delays can lead to escalation and further dissatisfaction.
Honor Commitments
Keep the customer updated if there are delays in resolving their issue. Avoid making promises you cannot fulfil.
Follow up
Follow up with the customer to confirm their satisfaction with how the issue was resolved. Inform them of the steps you are taking to prevent similar issues in the future.
Ensure your staff are well-trained to follow the procedure and have the authority to resolve complaints efficiently. Encourage customers to provide feedback and voice complaints, as this allows you to identify and address problems proactively.
Tip
If your business provides goods or services, familiarize yourself with your obligations and rights under the Competition and Consumer Act 2010 (CCA). You can learn more about the CCA in the legal essentials section of our website.
More information
- Learn more about attracting, managing and keeping customers at Business.gov.au.
- The Australian Competition and Consumer Commission (ACCC) have information on dealing with customer complaints.
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