HUNTSWOOD_RCX_OnBLACK 1
  • Capabilities

    Capabilities

    Huntswoodโ€™s suite of client services provide the people, processes and technologies your business needs to succeed, all supported by advisory expertise

    • Complaints excellence
    • Customer contact centres
    • Offshore customer support services
    • Recruitment process outsourcing
    • Past business review and remediation
    • Customer servicing
    • Operational resilience and continuity
    • Regulatory risk and assurance
    • Advisory services
    • Resourcing and recruitment
    • Outsourcing
    Linkedin
    Complaints

    Complaints Outlook 2024

    Our latest Complaints Outlook research report provides your firm with actionable insight for every stage of the complaints journey

    Learn More
  • Industries

    Industriesโ€‹

    We help clients transform their business to drive better customer, compliance and commercial outcomes

    • Financial services
    • Utilitiesโ€‹
    Linkedin
    Hunstwood

    We are Huntswood

    Learn more about Huntswood’s experience, high quality resource and bespoke solutions.

    Learn More
  • Company

    Company

    • Contact us
    • Media centre
    • Life at Huntswood
    • Environmental, social and governance
    • ResultsCX

    About Huntswood

    • About us
    • Our leadership team
    • Our client relationship directors
    • Our partners

    Off Payroll (IR35) Working

    • Off payroll (IR35) working - FAQs for clients
    • Off payroll (IR35) working - FAQs for associates

    Policies and Reports

    • Modern slavery statement
    • Huntswood tax strategy
    • Covid-19 workplace risk assessment
    • CXP gender pay gap
  • Insights

    Stay informed. Stay ahead.

    • All
    • Articles
    • Case studies
    • Regulatory updates
    • Whitepapers
    • Infographics
    • Videos and podcasts
    Linkedin

    Business outcomes
    that underpin your growth

    Watch video
  • ResultsCX
Recruitment

What have we learnt from complaints during the pandemic?

Resources

Article

Date

March 15, 2021

BACK TO ALL POSTS

What have we learnt from complaints during the pandemic?

Share

It's obvious to point out that over the last year firms have had to adapt quickly to find new ways of working to continue serving and supporting their customers. Many organisations rightly pushed initial customer contact online; focusing front line resources on those who are most vulnerable. Few will argue that this trend has resulted in an improved customer experience. The Institute for Customer Service Index for 2020 revealed the lowest levels of customer satisfaction since 2015, with the way complaints are handled being highlighted as a shortfall.

A plausible assumption is that consumers have been more understanding of the challenges that businesses are facing due to Covidโ€19. However, as lockdown restrictions ease, that patience is likely to run out. Customers expect firms to have implemented the necessary operational changes to overcome their resourcing challenges and return to the required standards of customer service. As the Customer Satisfaction Index shows, while customers are understanding that things will go wrong, it is how complaints are handled that matters.

So, what lessons can firms take from the last year to ensure they are delivering complaints excellence at a time when rebuilding trust really matters?

1. Firms need to show understanding because customers are complaining when it matters to them

While data from the FCA revealed that complaints in H1 2020 were at their lowest levels since 2016, with firms receiving just 2.96m complaints (including PPI) compared to 6.10m in the last half of 2019. Figures from the FOS indicated a slight increase in the overall number of nonโ€PPI complaints and the data found that, in the first six months of 2020, there were 76,624 nonโ€PPI complaints filed by customers, slightly more than the 75,887 lodged in the previous reporting period.

Part of this increase was due to a significant rise in the number of insurance complaints. Travel insurance complaints, in particular, surged by 500% from Q4 2019โ€20 to Q2 2020โ€21, as many families found themselves cancelling or cutting short their summer holidays.

Complaints about credit cards also rose. According to the FOS, new complaints increased by 26% (to 3,828) in Q2 2020/21 when compared to the same period in 2019/20. The spike came as more and more consumers turned to credit options to help them overcome the financial challenges brought on by Covidโ€19. This trend is likely to continue in 2021.

At the core of many of these complaints will be a sense of injustice and urgency. Customers are still making complaints when it matters as further travel chaos expected to continue, and pressures deepen on household finances. Empathy, fairness and efficient service will be critical to rebuilding customer relationships and lead to greater retention for firms as data from our Complaints Outlook 2021 report found that 80% of customers stay with their provider when complaints are resolved within the first two days.

2. Customers want to engage with businesses that reflect their values

Now more than ever customers are looking to engage with businesses and brands that embody their values, feelings, behaviours. Delivering excellent complaints experience help firms show that achieving good customer outcomes is important to them. One way to do this is by looking after customers when they need it most.

Complaints teams will need to become more skilled at identifying signs of financial or emotional distress as a rising number of households have been experiencing vulnerability and financial difficulty for the first time as the full effect of the pandemic is felt.

We are already seeing an increasing number of businesses put more effort into understanding the different circumstances that could make a customer vulnerable. Some of the UK's largest financial services and insurance firms have been partnering with appropriate charities to give their customer-facing staff firstโ€hand insight into the issues that are being exacerbated due to Covidโ€19.

However, despite the increasing recognition of vulnerability as an area of focus for firms, our research found that 8% of the firms still do not provide training in identifying and dealing with vulnerable customers wh an additional 9% only provide training with some of the time. The impact of this is that 100 of the 500 complaint handlers we surveyed either do not feel equipped or only feel somewhat equipped to identify vulnerable customers who are complaining.

3. Switching is on the rise - complaint handling can help firms retain customers

Ofgem recently published findings from a series of interviews held with energy customers in the UK that highlighted financial concerns relating to Covidโ€19.

The interviews found that one in eight people (13%) were falling behind on paying household bills and that consumers would rather opt to reduce their energy (55%) and credit card use (56%) than defer payment for it. The data also showed that the number of consumers considering switching suppliers is on the rise, with 23% of consumers actively considering a change.

While financial incentives and better deals are a key driver for customers switching, customer experience plays a major role in customer retention. Consumer perceptions data from Ofgem in April revealed a significant trend of declining customer satisfaction with the outcome of complaints, from 71% in Q4 2018 to 58% in Q2 2020. This highlights a commercial opportunity for firms that are willing to change tack.

At a time of increasing financial and emotional pressure, a wellโ€managed complaints process will help providers to retain customers. Having well trained, experienced call handlers in place to support increasing numbers of contacts can and will reduce customer attrition rates.

The way that complaints are handled allows firms to demonstrate to customers that they have their best interest at heart at a time of difficultly. As we continue facing the challenges of Covidโ€19, firms that put complaints excellence at the centre of their operations, providing fair and good outcomes, will be able to win customer trust and earn longโ€term loyalty. Again, highlighted by our research, 17% more customers will recommend the firm to others if they feel valued when making a complaint.

For more actionable insights on how to improve complaints handling, download our Complaints Outlook 2021 report today.

Author

Zein Al-Bader

Home
About us
Insights
Contact us
ResultsCX
Privacy Policy
Cookies
Terms and Conditions
Modern Slavery Statement
Carbon Reduction Plan
Promotion of Access to Information Act (PAIA)

ยฉ2025 All Rights Reserved. Huntswood. A ResultsCX Company.

Privacy Policy
Cookies
Terms and Conditions
Modern Slavery Statement
Carbon Reduction Plan
Promotion of Access to Information Act (PAIA)