# Complaints: From Cost-centre to Marketing Discipline Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-11-14 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: How Complaint Management Drives Profitability in the UK Meta Description: Discover how effective complaint management can boost profitability and customer loyalty. Learn how businesses can turn complaints into opportunities for URL: https://financedigest.com/complaints-from-cost-centre-to-marketing-disciplinehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-57-1736838720345-compressed.jpg) _By **Martin Ellingham,** director, product management compliance at [Aptean](https://www.aptean.com/uk/solutions/compliance-solutions/aptean-respond/), looks at how complaint management can drive profitability_ 2019’s UK Customer Satisfaction Index (UKCSI) compiled by the Institute of Customer Service found that customer satisfaction levels had dropped to their lowest levels since January 2016. While this could be explained by a simple drop in customer service, one could argue that customer expectations are now higher than ever before, with customers experiencing more good service and therefore expecting excellence at every turn. Where good used to be good enough, it’s no longer the case, with customer service excellence now a prerequisite for customers on a daily basis. Nowhere is this more true than with complaints resolution, where many businesses have upped their game considerably, recognising the not insignificant [business benefits](https://www.financedigest.com/how-choosing-the-right-mtd-for-vat-software-can-maximise-business-benefits.html "How choosing the right MTD for VAT software can maximise business benefits") to be garnered from a robust yet swift complaint management process. While it’s always been recognised that [effective customer complaint](https://www.financedigest.com/5-simple-steps-to-an-effective-customer-complaint-response-strategy.html "5 Simple Steps to an Effective Customer Complaint Response Strategy") management has a huge impact on customer retention, it’s often been difficult to calculate the profitability (if any) of successful complaint management. The long-standing mindset had been to ‘resolve and close’, [moving swiftly on to the next in the list](https://www.financedigest.com/sport-ronaldo-tops-forbes-highest-paid-athletes-list-in-2023-after-saudi-move.html "Sport-Ronaldo tops Forbes’ highest-paid athletes list in 2023 after Saudi move") of complaints or issues, with little or no follow-up or investigation into root cause analyses and the like. As such, complaint management was seen as a typically reactive business process, often regarded as a [cost](https://www.financedigest.com/trend-micro-vision-one-stops-threats-faster-streamlines-operations-and-cuts-costs.html "Trend Micro Vision One Stops Threats Faster, Streamlines Operations and Cuts Costs") centre, as opposed to a revenue generator, and was often the victim of cost cutting programmes or a prime target for cut backs. **_New opportunities_** Thankfully, a great deal of businesses have recognised the vital role that complaint management has to play not only as a crucial tool to nurture customer trust and loyalty, but how complaint management, when done properly, can be a [key driver](https://www.financedigest.com/packaging-and-textile-industries-key-driver-for-digital-printer-market-demand-2021.html "Packaging And Textile Industries : Key Driver For Digital Printer Market Demand 2021") of profitability. Turning complaints into opportunities is now the biggest [challenge businesses face](https://www.financedigest.com/overcoming-challenges-faced-in-business-from-one-woman-to-another.html "Overcoming challenges faced in business: from one woman to another"), using these valuable customer interactions and resulting information as a springboard to not only improve customer relationships, encouraging that all-important customer loyalty, but as a source of information to underpin far-reaching business improvements for the good of the wider organisation. In a way, complaint resolution is [potentially the best marketing](https://www.financedigest.com/functional-extracts-market-potential-growth-share-demand-and-analysis-of-key-players-forecasts-to-2029.html "Functional Extracts Market Potential Growth, Share, Demand and Analysis of Key Players – Forecasts to 2029") tool you didn’t know you had, putting you directly in touch with your customers for potentially valuable one-on-one time that, had it not been for the complaint, would never have occurred. However, it’s what you do with this complaint and the resulting information that makes all the difference. If handled in the right way, it can increase customer loyalty, secure repeat business and create reliable advocates for your business, arguably the most vital [marketing asset to possess in our current](https://www.financedigest.com/pharmaceutical-contract-packaging-market-current-impact-to-make-big-changes-2020.html "Pharmaceutical Contract Packaging Market Current Impact to Make Big Changes 2020") social-media fuelled marketplace. **_Actionable feedback_** So, what does a [business need](https://www.financedigest.com/3-reasons-your-business-needs-customer-reviews.html "3 reasons your business needs customer reviews") to do to turn complaints into opportunities? Well, first and foremost, it’s crucial to understand that the journey doesn’t end with a complaint being resolved. To a certain extent, this is the first [step in a potentially](https://www.financedigest.com/oil-firms-must-step-up-exploration-off-norway-to-unlock-potential-npd.html "Oil firms must step up exploration off Norway to unlock potential -NPD") valuable process. It’s only by collating [in-depth information and insight](https://www.financedigest.com/acth-deficiency-treatment-market-in-depth-insights-revenue-details-regional-analysis-by-2026.html "ACTH Deficiency Treatment Market In-depth Insights, Revenue Details, Regional Analysis by 2026") into the customer’s complaint experience that businesses can hope to turn complaints to their advantage. Using [customer feedback](https://www.financedigest.com/how-to-improve-your-customer-feedback-game.html "How to Improve Your Customer Feedback Game"), it’s possible to drive improvements across the business, not only in terms of complaint management but in terms of products, services and processes, too. The ability to gather actionable, insightful feedback is a must if businesses are to drive real efficiencies across the [entire](https://www.financedigest.com/asset-management-it-solution-market-asset-management-grow-crucial-for-various-organizations-to-evaluate-entire-business.html "Asset Management IT Solution Market – Asset Management Grow Crucial for Various Organizations to Evaluate Entire Business") business, resulting in a significant boost to profitability. If businesses are to turn complaints into profit centres, they need to own the entire process, leaving behind the ‘resolve and close’ mentality and treating complaints as opportunities to improve [customer experience](https://www.financedigest.com/getting-customer-experience-right-in-financial-services.html "Getting customer experience right in financial services") and the business as a whole. By using complaints as a [key marketing](https://www.financedigest.com/sodium-tetraborate-market-key-players-end-user-demand-and-consumption-by-2030.html "Sodium Tetraborate Market Key Players, End User, Demand and Consumption by 2030") tool, businesses can turn best practice into a key business differentiator, securing that all-important competitive advantage by making the most of the invaluable customer feedback that the entire complaints management process provides. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---