1. Mechanisms for Complaint Resolution

2. Objectives Recognize the importance of resolution of client complaints
Understand different types of complaints mechanisms and how they can be used effectively.

3. No Complaints ≠ Completely Satisfied Customers
If your institution does not receive concerns or complaints, be careful:
Clients could be happy with your products and customer service, or
Clients might not feel empowered to share their concerns and complaints or
They might not know how to do so, or
Clients might not feel like they can complain without this affecting their business relationship with the institution.
Discussion – Clients don’t complain does not mean they are all satisfied (1 min)
Institutions that argue “our clients don’t complain, so we do not have any dissatisfied clients!” may be wrong. If your institution does not receive complaints, customers may be completely satisfied OR:
Clients might not feel empowered to share their concerns and complaints, or
They might not know how to do so, or
Clients might not feel like they can complain without this affecting their business relationship with the institution.

4. Philosophy to consider
1 min (Flash to stimulate the participants)
Complaints and suggestions are GIFTs to the institution. They help an institution understand client needs and innovate for improvement.

5. Examples
the Macro Dreams Customer Response Department:
Call the 3rd party/Agent Customer Response Line:
Call the Macro Dreams Customer Response Line:
Send an SMS to the Macro Dreams Customer Response Line:
Leave a comment card in the Suggestion Box at your branch
Visit a Customer Service Desk. Call for locations:
Discuss – 1 min

6. Surveys indicate clients don’t know how to complain
Campaign research indicates that clients are not aware of communications channels for complaints, grievances, and queries, or lack such options all together

7. Of clients who have had reason to complain, many do not do so
It’s not that clients don’t have complaints
Of clients who have had reason to complain, many do not do so
“It is so expensive to complain, then sometimes it has no use.” – Woman, Telavi, Georgia
“If you go to complain to [the MFP] office, or elsewhere, you won’t get another loan.”
– Man, Parakou, Benin

8. Mechanism for Complaints Resolution
The Principle in Practice:
Providers have a mechanism for collecting, categorizing, analyzing, and responding to customer complaints in a timely manner.
The mechanism is incorporated into staff performance reviews and rewards and it is used to improve product and service quality.
Consider this:
Suggestions boxes and/or client satisfaction surveys are not substitutes for a complaint mechanism.
Lecture – Principle CPP 7 in practice (5 mins)
Ask the participants to volunteer to explain the bold and highlighted words.
This is the Campaign’s definition of the principle “Mechanism for Complaints Resolution.” An institution puts the principle into practice by having a mechanism for collecting, categorizing, anlayzing, responding in a timely manner, and resolving problems for customers. The mechanism is used to review, reward and resolve individual complaints and improve products/services.
Many institutions use suggestion boxes, but these are not usually sufficient to receive and respond to complaints in a timely way. They are also inaccessible to illiterate clients. This presentation will discuss alternatives to suggestion boxes. Also, using client satisfaction surveys is not enough and cannot substitute the GRM.

9. The FI has effective system to receive and resolve complaints.
CPP 7: Standards of care
The FI has effective system to receive and resolve complaints.
The FI informs clients about their rights to complain and how to submit a complaint.
The FI uses information from complaints to manage operations and improve product and service quality.
Lecture – 5 mins (2 min each principle)
There are three standards of CPP 7
The FI has an effective system in place to receive and resolve client complaints.
The FI informs clients about their right to complain and how to submit a complaint.
The FI uses information from complaints to manage operations and improve product and service quality.
There are 14 indicators of 3 standards and all are important.

10. CPP 7: Standards of care
Frontline staff are not only complaint contact
Far branches and 3rd party complaints heard
2+ channels; reflect needs & preferences
Resolution prioritizes severity
System in place to effectively receive and resolve complaints.
The FI informs clients about their rights to complain and how to submit a complaint.
Clients informed about channels
Displays at branches, use agents and flyers
Clients notified of progress and status
The FI uses information from complaints to manage operations and improve product and service quality.
Lecture and Discussions – 12 mins.
The FI has an effective system in place to receive and resolve client complaints.
Clients can submit complaints to the FI through someone other than their main point of contact for obtaining the product and that person's supervisor.
Complaints about the FI's third-party providers can be submitted directly to the third-party providers or to the FI. If submitted to the FI's third-party provider, the FI needs to get reports of the complaints.
Mechanisms to submit complaints are adapted to clients' needs and preferences and easily accessible (toll free number, etc.). Suggestion boxes are not sufficient, and at least two channels are available. Client Surveys are not the substitute.
Resolution of complaints is prioritized based on their severity, and almost all complaints are resolved within one month (some exceptions may be permitted due to complexity).
There is a clear and secure system in place so that complaints from branches and (if applicable) agents reach the FI's complaints handling staff and/or management.
The FI informs clients about their right to complain and how to submit a complaint.
Front line staff and agents inform clients on how to submit a complaint during the product application process. This includes how to submit a complain to a mechanism other than the FI, if available (e.g., self-regulatory organization or public sector ombudsman).
Information on how to submit a complaint is displayed visibly in branch offices, at agents and/or included in product documentation.
Clients are notified when complaints are received and when they are resolved.
The FI uses information from complaints to manage operations and improve product and service quality.
- Management regularly reviews KPIs (e.g., percent resolved, average time to resolve) and takes corrective action to resolve mis-handled cases and improve systematic shortcomings.
The FI has an internal control process to verify uniform application of policies and procedures for complaints handling, including review of a sample of cases. The FI can produce evidence of corrective measures taken in case of partial or incorrect implementation of the policies and procedures, to ensure an adequate compliance with these in the practice.
Complaints and their resolutions are taken into account in staff bonuses or performance evaluations.
The analysis of complaints data, satisfaction surveys and reason for drop-outs contributes to improving operations and services.
The FI's complaints handling training covers how the complaints mechanism works, the role of complaints staff, how to appropriately manage complaints until they are resolved, and how to refer them to the appropriate person for investigation and resolution.
The FI verifies that third parties (agent network managers, etc.) train their own representatives on how the complaints mechanism works, the role of complaints staff, how to appropriately manage complaints until they are resolved, and how to refer them to the appropriate person for investigation and resolution.
Regular review of KPIs
Internal Control and sample reviews
In staff appraisals and bonuses
Data analysis used for improvement
Staff and 3rd party training covers

11. Immediately Up to 14 days Good Practice: Multiple Complaints Channels
Good practice: Assess the complexity and urgency of the complaint then use an appropriate mechanism.
Suggestion/ Complaint on-site
Branch Teller
Written suggestion / complaint
Branch Manager
Suggestion/ Complaint via feedback mechanism
Complaints Agent
Sharing – 2 mins
This is a good practice example from Banco Solidario (Ecuador).
An institution can implement a single system for receiving and resolving client complaints, or an institution may chose to deal with client complaints through several systems, based on the severity, complexity, and/or urgency of the complaint, and who is involved in the resolution (credit staff, management, etc). This graphic depicts how Banco Solidario uses three channels for collecting client grievances, based on the urgency and complexity of the complaint. The ‘feedback mechanism’ referenced in the third stage can be a customer service hotline, an online communication system, or an automatic escalation from one of the other channels.
(Note: Starting in 2008, the Center for Financial Inclusion carried out a fourteen month-long research project called Beyond Codes. In this project, fourteen MFIs piloted the implementation of pro-client policies and practices. Their experience revealed good practice examples of client protection. The good practice examples used in this presentation come from the Beyond Codes project.)
Immediately
Up to 14 days
Source: Adapted from Banco Solidario

12. Tools available from the Smart Campaign
These, and dozens more tools are available for free on the Smart Campaign website.

13. Tools available from the Smart Campaign
These, and dozens more tools are available for free on the Smart Campaign website.

14. Key Messages At least two channels for complaint resolution
Collect, analyze, notify, and respond on time!
Management does regular review, incentives, and analysis to improve product/service quality.
Internal control - verify policies and procedures for complaints handling. Field checks on sample basis.
Staff and third parties are trained and clients are informed