Caroline Wells discusses the evolving landscape of complaints handling and customer experience. We explore the societal drivers of complaints, cultural attitudes within firms, and the tension between automation and human insight.
The discussion examines the influence of media and claims management companies, proposed Ombudsman fee reforms, and potential FCA–FOS alignment.
Lessons from other sectors can highlight the importance of inclusive design, flexibility, and transparent communication. The central theme is reframing complaints as strategic intelligence and embedding service design around real-life customer needs.
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Key Take Aways
- Societal pressures and reduced personal resilience are driving higher complaint levels, even when customer service has improved.
- Easier complaint mechanisms and proactive firm logging are inflating volumes, sometimes through over-reporting.
- Organisational culture defines whether complaints are seen as risk or opportunity.
- Transparent approaches—such as senior leaders openly discussing complaints—strengthen trust and loyalty.
- Complaints represent only the visible “tip of the iceberg”; underlying enquiries and grumbles are equally valuable.
- Self-service journeys risk losing the qualitative insights available from human interaction.
- Introducing measured friction in digital and complaint processes encourages customer reflection without blocking access.
- Media and claims management companies (CMCs) create spikes in volumes that do not always represent genuine consumer need.
- Ombudsman case fee reform could alter firm behaviours but must preserve fairness and correct decision-making.
- Closer FCA–FOS alignment could increase consistency but risks diluting independence if not carefully managed.
- Other industries offer lessons in inclusive design, affordability options, and clear communications that financial services can adopt.
- Products and services should be designed for real-life variability, not the “perfect customer” archetype.
Innovatation
- Executive-level transparency, with leaders communicating complaint themes and outcomes.
- Thematic analysis of large complaint datasets to quickly identify patterns.
- Mining customer enquiries and “grumbles” for leading insight rather than relying solely on complaints.
- Designing digital journeys with deliberate pause points to reduce unintended outcomes.
- Balancing accessibility with constructive friction in complaints processes.
- Applying flexible product and communication models from utilities and telecoms to financial services.
Key Statistics
- Trustpilot scores in some sectors are rising, while complaint volumes are also increasing.
- Analysis referenced of approximately 30,000 complaints to extract themes.
- Around 70% of CMC-driven complaints are denied.
- Current Ombudsman case fee in financial services is £250 per case, with proposals to vary fees by stage.
- Complaint data is published every six months.
Key Discussion Points
- Societal factors lowering resilience and tolerance, fuelling complaints.
- The paradox of improving service levels alongside rising complaints.
- Fear versus opportunity: organisational approaches to complaints handling.
- Value of transparency and publishing complaint data openly.
- Complaints as early indicators: the importance of capturing day-to-day frustrations.
- Risks of over-automation and lost insights in self-service models.
- Role of friction in ensuring thoughtful complaints without creating barriers.
- Customer pain points from mismatched digital and manual processes (e.g., cancellation barriers).
- CMC influence: lowering effort but increasing spurious claims and costs.
- Media-driven complaint spikes and their limited reach to the most vulnerable customers.
- Ombudsman fee reform: incentives for early resolution and justice concerns.
- FCA–FOS cooperation: benefits of consistency versus risks to independence.
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