Nobody should be surprised that Australia’s specialist telecommunications regulator, the Australian Communications and Media Authority, has announced terms of reference for a sweeping inquiry into customer service and complaints issues in the telecommunications sector. Globally, telcos are suffering a seriously bad press as they grapple with the increased complexity of servicing customers in a converged, competitive environment at a time of heavy pressure to cut costs. Interminable waiting times and shoddy service are legendary.So it’s timely to ask how New Zealand compares. The answer, I suggest is that we are not as bad as Australia and improving – but it’s very uneven and there’s a long way to go. On the positive side, there has to be a bouquet for Telecom. A few years ago the TUANZ office seldom went a day without a frustrated Telecom customer phoning us as a last resort, but things have improved. I believe the turning point was the implementation of the TCF code of practice on Customer Complaints Handling around five years ago. Telecom took to heart the Customer Handling Principles it set out, and made a major effort to comply.That’s not to say Telecom is perfect – there are still many upset customers. But it does seem to have robust processes in place for people to use. At the opposite end of the scale these days are some of the smaller carriers. One or two in particular have attracted the attention of the Minister for the fact that the number of its customers complaining to him is out of all proportion to its market share. It’s notable also that those involved are not members of the Telecommunications Disputes Resolution Scheme, nor signatories to the Code. These are the ones whose customers most frequently come to TUANZ as a last resort.Many complaints relate to customers falling in the gap between two carriers due to a mishandled customer transfer. A recent example concerned an elderly lady who signed an agreement to change carrier with a door-todoor salesman who promised the switch would be made within 10 days. Three weeks later she had heard nothing, so when a salesman from a third carrier came knocking, she signed with him and had the change effected immediately.Days later the second carrier arrived to initiate the switch. The customer told them they were too late. The second carrier then entered the house on a pretext and, in the course of forcing the switch back to itself contrary to the customer’s wishes, cut the line completely. Imagine how many people that lady has told of her experience.So if the industry is going to improve its image, what should be the key areas of focus? Here are my suggestions:1 If you must employ itinerant, commissionbased door-to-door or telephone sales people, manage them properly. It’s your brand and your reputation at stake.2 Don’t allow customers to fall in the gap. “That’s not our fault, you’ll have to talk to Telecom” (or Vodafone, or Kordia) won’t wash. Sometimes you need to follow through, even though you know you’re not to blame.3 Don’t push the boundary between churning and slamming. Make sure the customer absolutely understands that they have made a contractual commitment. Take extra time with vulnerable customers.4 Sign up to the TDRS and put pressure on those carriers who resist. It’s a very costeffective piece of industry housekeeping. Not being a member leaves your customers exposed and will increasingly count against you in the market as the Scheme becomes more widely recognised.5 Answer the phone! There is no excuse for lengthy delays – it means one thing only: insufficient staff employed in the contact centre.Customer complaints are a fact of life in any business. A customer who is treated badly will sully your reputation at every opportunity. Conversely, a complaint well handled can make you a friend for life.
