Customer complaint management is a system that analyzes where improvements need to be made in a business. Today, businesses use this tool to provide relevant information to satisfy customers and shield the company’s image by tackling complaints tactfully. Complaint management is basically the process of handling, responding to and managing customer complaints. These systems are put place to track the data captured by various complaint management processes. The system helps businesses in gathering relevant information, which is then captured to make amends in business policies.

Law and Consumer Complaint Management

Although the law has little to do with market-based initiatives here but disgruntled customers often take the complaint to court and businesses land themselves under acrimonious legal actions. Not to forget, bad publicity too. Looking from a customer’s standpoint, courts are the saving grace when other options prove insufficient. But not for small transactions, as they involve a lot of time and money.

However, getting to the courts also isn’t something that a consumer would prefer too. For instance, the United States has included the usage of a particular form of redress, even if it’s not convenient to make the deal fair to the consumer. These clauses have not gone down too well with the system. That being said, the law definitely requires a complaint management initiative to be used ethically without any anti-competitive means.

Courts can have applied legal notions to Customer Complaint Management initiatives to protect customers and the industry.

Types of Customer Care Management initiatives

Preventive Care Initiatives

At the name suggests, Preventive Customer Complaint Management initiatives are those that help organizations build relationships and maintain them even before a problem arises. They try and avoid any query from turning into complaints. These usually include activities that educate both the customers and businesses, guarantees, exchange policies, internal audits, benchmarks, etc. For instance, the Advertising Standards Canada has a pre-clearance method for all its advertisements. The members submit advertisements for review first by a panel of experts before it reaches the marketplace.

Internal complaint handling initiatives

Internal complaints-handling initiatives are those that companies use internally and these primarily address conflicts and complaints. These cover everything from assistance through toll-free telephone numbers to internal ombudsmen, adherence to customer care standards, etc. These are inward looking services.


These are also called private dispute resolution initiatives which are basically operated outside the firm against which the complaint was made. These are also outside the courts. There can be legal implications that one may face in these. The most common examples include arbitration, third party mediation, councils and tribunals.

The method used for any complaint handling initiative varies according to the depth and nature of complaint. Consumer handling systems are the way ahead for only once your consumer is happy that the business grows significantly.