Corruption Matters - December 2020 | Issue 56
Complaints management: return on investment
A research team from the University of Newcastle has demonstrated that public sector agencies can expect a positive return on investment (ROI) from effective complaints handling.
Complaints-handling teams across the public sector understand that their work makes a positive difference at a systemic level, as well as for individual complainants. For example, complaints can lead to changes in policies, practices and service delivery, clearer communication and enhanced customer satisfaction. This new research supports those teams by demonstrating the financial and other benefits gained from effective complaints handling.
The challenge for agencies wanting to measure and monitor their ROI is to first capture comprehensive data about spent resources as well as the outcomes from their complaints-handling processes. The ROI research team found that the participating agencies did not systematically collect this complaints management cost and benefit data, which made calculating the ROI challenging.
Over many years, the NSW Ombudsman has been recommending that public sector agencies gather comprehensive data about complaints and regularly report on the analysis of trends and issues to their executive in order to identify solutions and opportunities to improve.
One of the whole-of-government complaint handling commitments focused on data collection and analysis, and a subsequent review by the NSW Ombudsman found that more needed to be done to lift capability in this important area.
Collecting the data is, however, just the beginning. The real challenge is in the analysis – connecting the dots and identifying ways to address systemic issues and improve polices, practices and service delivery.
The research also emphasised the need for agencies to measure customer satisfaction at the conclusion of every complaint process. Measuring complainant satisfaction is particularly important in the public sector as our “customers” cannot simply take their business elsewhere.
We need to be aware of complainants’ perceptions of the complaints process so we can address any concerns and avoid the potential for negative experiences to diminish trust in government services or lead to repeat or escalated complaints.
The ROI of Effective Complaints Management research was undertaken by the University of Newcastle for the Society of Consumer Affairs Professionals (SOCAP) Australia. The project is the second phase of research which was an extension to a similar project measuring the ROI of complaints handling for private organisations. The project was supported by the NSW Ombudsman and other Australian and New Zealand Ombudsman and government departments through a collaborative steering committee.
The full report can be found on SOCAP’s website.