Sep 17

Author: Azeez Nazar Sabri

In the era of consumerism, consumer is the king. Companies have throat cut competition to reach consumers to sell their products and services. The competition between the companies benefits consumers but some times, consumers are cheated by the companies or they received defective goods or deficient services. They purchase goods or hire service under the influence of advertisements which claim high, but find it substandard. If the consumer feels that he is cheated or received substandard goods or service, the remedy is available to him under the Consumer Protection law. He can knock the door of the consumer disputes redressal forum. These Forums are the quasi court and empowered to execute their order like the ordinary Civil Court. Consumer Forum can issue arrest warrant against the opposit party or pass an order for attachment of property.  These forums can also award compensation to the consumer.

Consumer has been defined under the Consumer Protection Acts, 1986 as who obtains goods or hire/avail service for consideration  either paid or partly paid or under any system of deferred payment but does not include the person who purchase the goods for resale or commercial purpose or avail service for commercial pupose.To sum up this we can say that the remedy is available only in case where money is paid to the seller of goods or service provider. There is no remedy if such goods or services are obtained or availed free of cost or obtained for resale or commercial purpose.However, commercial purpose does not include the use of such goods for earning livelyhood by means of self employment. Now the services of various kinds are covered under Consumer Protection Act,1986, i.e. Banking, Telecom, Airlines, Hospitalities, Amusement, Electricity and Water e.tc.

If there is any manufacturing defect in the goods or there is any shortcoming or deficiency in the service, the consumer can give a notice to the seller of goods or service provider to cure the grievances within a specified period. If the grievance is unheeded within the given time, the consumer can move to the consumer forum by filing a complaint against the other party, who has provided defective goods or services. The procedure of filing a consumer complaint in India is very simple. Section 11 of consumer protection Act,1986 provides the procedure to file a complaint. There is no particular format of complaint though some fee has to be attached with it in the form of postal order.The name of parties,  grievances and relief sought should be mentioned the complaint.The fee varied on the value of claim made in the complaint. For claim upto 1 Lac fee is Rs. 100 and for more than Rs. 1Lac to Rs. 5 Lacs fee is Rs.200, for Rs. 5Lacs and above but less than Ten Lac fee is Rs.  400 for more than Rs.10 Lac and less  than 20 Lacs fee is Rs. 500.The complaint is to be addressed to the president of the forum.The jurisdiction of the forum depends upon the pecuniary value of complaint and place of residence of the parties and cause of action. The hierarchy of the consumer forums is divided in three categories, i.e. District consumer forum, State Commission and National Commission. The complaint upto twenty lacs can be filed before District Consumer Former and Complaint above twenty lacs upto 1 crore can be filed directly before State Commission and complaint for more than 1 crore can be filed before National Commision. Appeal against the order of District Consumer Form can be filed before State Commission and Appeal against the State Commission can be filed before the National Commission.

Aug 19

Akhil Shahani

To my customer,
I may not have the answer, but I’ll find it!
I may not have the time, but I’ll make it!

Yes, this is the essence of managing customer complaints. A satisfied customer is the lifeline for any business. However, in real life it is not possible to keep your customers happy always. Even the best run businesses face problems or make mistakes which might cause customer dissatisfaction. While unhappy customers will and must complain, customer oriented businesses will and must tend to them! While no one likes a whiner, you must realize that customer complaints can actually be turned to your advantage. Viewing the complaint as an opportunity to gain insight that will help you improve takes you a step closer to ensuring customer loyalty.

Following are the two direct benefits for your business when you take good care of customer complaints:

1. Improvement: There’s no smoke without fire. If a customer is complaining, chances are that there is a real problem somewhere. Listening to the complaint will allow you to look for solutions.

2. Image: When you provide quick solutions, it shows your respect for the customer and makes him or her feel valued. In turn, the customer believes that you can be relied upon, even when things go wrong. What more can you ask for?

But, there is a third, much larger benefit that effective complaint handling can bring to your business. Research proves that customers who had problems that were satisfactorily solved are generally much more loyal than those who are simply happy with your product. So, how do you go about converting a complaining customer into a captive one?

Pay Attention: The best way to make dejected customers feel good is by listening to them. This shows that you care. Be friendly, polite, and helpful; and try your best to solve the problem. Even if a problem is not completely solved, the fact that your business did everything to help will make the customer feel much better about it. Sometimes you may find it difficult to help irate customers especially when the problem is not caused from your side – no matter what, grin and bear it, because the customer is always right.

Offer a Solution: Try offering a solution, always. If you cannot fix the problem right away, at least let them know that you are trying. Or choose between the following options:

1. Replace – Offer a replacement for a defective product. If an exact replacement is not available, suggest an alternative model. This might cost you a bit, but you get to keep your customer.

2. Refund – If a customer is disappointed with your product or service, he may want a refund. While this means loss of revenue, it may be the best solution at the time. In case of a minor complaint, a partial refund may douse the fire.

3. Discount – Sometimes you can offer the customer discount coupons that could be redeemed on their next purchase. This will ensure that they return to you, while also minimizing financial loss.

4. Apologize – An apology works like a charm almost always. In fact, do this first! It can be a verbal regret for minor problems, or a written apology for bigger issues. Don’t let your ego stand in the way.

While we’ve given you a bird’s eye view, books like ‘Resolve customer complaints’, ‘Dealing with customer complaints’ and ‘6 ways to benefit from customer complaints’ are great for gaining further insight.