POCKET GUIDE. toyota.com.au

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1 Serious Complaint HANDLING POCKET GUIDE toyota.com.au

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3 Dear Toyota Colleague, In 2009, Toyota faced a global public relations struggle, due to a number of unforeseen customer quality concerns. This had an impact on our customers trust for our Brand. In order to gain back our customer s trust with Toyota worldwide and continue to build our brand of Quality, Reliability and Durability and ultimately Superior Quality, we would like to ensure that we will always listen to our customers and sincerely respond to all customers requests and concerns, quickly and efficiently. Toyota worldwide and Toyota Australia must take responsibility to listen to our customers and particularly with regards to any Serious Complaints that we become aware of. To ensure the customer is treated with dignity and respect it s vital we understand the concern of the customer and the corresponding vehicle issue. Serious Complaints include fire hazard, unintended acceleration, airbag deployment or non deployment, accidents, third party issues and complaints sent to Toyota and Dealer Senior Management. Therefore, it is critical that whenever a Toyota employee learns of a Serious Complaint, that they immediately report it to their Toyota Regional Office. This Serious Complaint Handling Pocket Guide will assist you in understanding the importance of Serious Complaints, the best way to handle the customer and the process on how to report all Serious Complaints. This document is to be made available to all roles withing the dealership, such is the importance of dealing with Serious Complaints in a quick, efficient and respectful manner. Good Luck and Thank You. Tracey Townsend Manager - Customer Experience Operations Customer Relationship Management Toyota Motor Corporation Australia SERIOUS COMPLAINT HANDLING INTRODUCTION

4 Getting started checklist Nominate a Serious Complaint Manager Inform all dealer staff to direct Serious Complaints to the Serious Complaint Manager place the enclosed posters on a desk, or workplace wall where they re visible to all staff. Complete the Serious Complaint Handling elearning module on the Toyota Learning Management System ( Notes:

5 Contents Basic Philosophy 2 What is a Customer Complaint? 3 The Importance of Swift Action 5 The Effect of Complaint Handling Activities 6 Responsibilities of Toyota Australia and Dealers 7 Customer Experience Process 10 9 Categories of Customer Complaints 12 Serious Complaint Handling 14 Serious Complaint Handling Process 15 The 3-Point Philosophy 16 The 3-Action Principles 18 7-Steps of Customer Complaint Handling 20 CEC Contact Details 32 SERIOUS COMPLAINT HANDLING PAGE 1

6 Basic Philosophy Provide a consistent Customer experience through swift, sure and fair handling of Customer enquiries and complaints. TOYOTA S CUSTOMERS ARE: 1. Individuals driving Toyota vehicles. 2. Individuals interested in Toyota vehicles. 3. Individuals servicing at a Toyota Dealer. 4. All other individuals who are actual or potential purchasers of Toyota products and services. PAGE 2 SERIOUS COMPLAINT HANDLING

7 What is a Customer Complaint? A Customer complaint is something that has surfaced as a result of a gap between the Customer s expectations of Toyota products and services and what the Customer actually received. What the customer received Customer expectations UNVOICED Discover the source of complaints (from daily conversations) GAP Dissatisfaction Anxiety/Mistrust Handle complaints swiftly, surely, and fairly VOICED Customer complaint Resolve dissatisfaction Resolve anxiety/mistrust Achieve customer satisfaction Dissatisfied Customers can be categorised into two types: 1. Voiced: Those who voice their dissatisfaction. 2. Unvoiced: Those who do not voice their dissatisfaction. SERIOUS COMPLAINT HANDLING PAGE 3

8 What is a Customer Complaint? When a complaint is voiced, you can achieve Customer satisfaction by dealing with it sincerely. However, when Customers do not voice their dissatisfaction, only the feeling of mistrust toward Toyota remains, and such Customers may decide that they want nothing more to do with Toyota. Customers who make complaints are just the tip of the iceberg. Therefore, try to uncover the source of any anxiety and dissatisfaction through conversations with Customers and through sales and service activities. Any negative Customer feelings should be dealt with swiftly and proactively. VOICED COMPLAINTS ARE THE TIP OF THE ICEBERG COMPLAINTS UNVOICED DISSATISFACTION PAGE 4 SERIOUS COMPLAINT HANDLING

9 The Importance of Swift Action If a complaint is not dealt with, the Customer s dissatisfaction grows as time passes, like a snowball rolling downhill. When dissatisfaction increases like this, it becomes extremely difficult to handle effectively. The most important part of handling complaints is to proactively deal with and solve Customer dissatisfaction quickly while it is still small. At Dealer Dissatisfaction Dissatisfaction Complaint SNOWBALL EFFECT Complaint Complaint Dissatisfaction/ Complaint (Growth of mistrust) TMCA CEC TIME SERIOUS COMPLAINT HANDLING PAGE 5

10 The Effect of Complaint Handling Activities COMPLAINT HANDLING: AN OPPORTUNITY TO STRENGTHEN BONDS WITH CUSTOMERS When complaints are handled correctly, it can be an opportunity to establish a strong bond with the Customer. Responding swiftly, surely, and fairly to complaints will heighten Customer loyalty (i.e. their intention to purchase their next vehicle from Toyota). When assessing the Customer s intention to repurchase from Toyota, Toyota Australia CSI Sales data showed the following: Customers who answered No dissatisfaction or complaint resulted in a Customer loyalty rate of 59%, while Customers who answered Have dissatisfaction or complaint that was poorly handled resulted in a much lower loyalty rate of just 26%. However, the survey also shows that for Customers who answered Have dissatisfaction or complaint that was well handled, their loyalty increased to 55%. Additionally, when assessing the Customer s intention to continue to use the Dealership, CSI Service data showed the following: Customers who answered No dissatisfaction or complaint resulted in a loyalty rate of 58%, while Customers who answered Have dissatisfaction or complaint that was poorly handled resulted in a much lower loyalty rate of just 6%. However, the survey also shows that for Customers who answered Have dissatisfaction or complaint that was well handled, their loyalty increased to 60%. This figure represents a higher percentage than those Customers who had no complaint at all! PAGE 6 SERIOUS COMPLAINT HANDLING

11 The Effect of Complaint Handling Activities Customers who have a dissatisfaction or complaint handled well have a higher loyalty rate to repurchase a Toyota and continue to use the Dealership, than those who have never had a complaint or those who have had a complaint poorly handled. Customer intention to repurchase from toyota CUSTOMER INTENTION TO Continue Using Dealership 60% 60% 50% 50% CUSTOMER LOYALTY RATE 40% 30% 20% 10% CUSTOMER LOYALTY RATE 40% 30% 20% 10% 0% Complaint + Poorly Handled Complaint + Well Handled No Complaint 0% Complaint + Poorly Handled Complaint + Well Handled No Complaint SERIOUS COMPLAINT HANDLING PAGE 7

12 Responsibilities of Toyota Australia and the Dealer Network Handling enquiries from Customers Dealer Staff members at Dealerships (Sales, After Sales) are the Customer interface that is closest to the Customers. Responding swiftly, accurately, and sincerely to enquiries from Customers will improve their trust in the Dealer, leading to a stronger bond between the two. In the case of enquiries where a Customer is dissatisfied, their feelings should be grasped quickly and the enquiries handled swiftly to prevent them from escalating into complaints. Common enquiries Selecting vehicles. Specifications / Options. Maintenance, Warranty, and problems. Toyota Australia One of the important responsibilities of the Customer Experience Centre (CEC) is to provide support to the Dealer Network. The CEC is an exclusive Customer interface where Customers can feel free to ask anything. A wide range of questions are asked, and the Centre plays an important role in handling Customers who feel that their problem was not satisfactorily resolved, or who are hesitant to ask the Dealer for assistance. In order to respond quickly to enquiries from Customers, it is vital to have the latest information available in advance. This is achieved by collaborating with the Dealer Network as well as the Sales and After Sales Departments. PAGE 8 SERIOUS COMPLAINT HANDLING

13 Methods of encouraging effective Customer use of the Customer Experience Centre Toyota Australia continually ensures the highest quality level of CEC Consultant skills and abilities through a continuous upgrade of the quality of response time, staff knowledge and the amount of information being provided. What is a car navigation system? Something s wrong with the engine! What about servicing... The brakes are... SERIOUS COMPLAINT HANDLING PAGE 9

14 Suggested Dealer Process for Customer Concerns Customer contact with ongoing product issue Hi-Tech Technician conducts diagnosis If required, Contact Technical Help Desk Submit DPR Customer contact with serious incident (Fatality Severe injury) Advise Dealer Principal Contact Regional Office for Advice Customer contact for Out of Warranty (OOW) consideration Dealer submits OOW requests to WTY Dealer contacts WTY Help Desk Customer contact with ACCC/Court Proceedings Advise Dealer Principal Contact Regional Office Customer contact with Serious Complaints Advise Dealer Principal Contact Regional office for advice via SMART process PAGE 10 SERIOUS COMPLAINT HANDLING

15 Contact Regional Office CUSTOMER EXPERIENCE CENTRE SERIOUS COMPLAINT HANDLING PAGE 11

16 Serious Complaints Categories Important Safety Features. (including parts and servicing relating to safety standards). Airbag issues. (deployment / non-deployment). complaints that may develop into a civil lawsuit. PAGE 12 SERIOUS COMPLAINT HANDLING

17 Accidents. fire hazard. sudden unintended acceleration. case involving significant damages or injury. cases in which a third party is involved such as: police, fire dept. mass media Consumer organisation social network broadcast written complaints sent to senior management at toyota australia or dealer. SERIOUS COMPLAINT HANDLING PAGE 13

18 Serious Complaint Handling Process YOUR RESPONSIBILITY 1. Receive the complaint in a positive manner. 2. inquire as to injuries or damage (if applicable). 3. offer empathy to the Customer. Example: (a) I understand that this is a very serious matter. (b) I can see/hear that this situation is of grave concern to you. 4. Thank the Customer for bringing this matter to the Dealer s attention Example: (a) Thank you for bringing this matter to our attention. 5. Reassure the Customer of your Dealer s commitment to this concern Example: (a) Let me assure you that your concerns will be dealt with as a matter of priority. (b) I am confident that we can resolve this matter. (c) We are committed to getting to the root cause of this concern. 6. inform the Customer of the next steps: (a) Contact the Serious Complaint Manager. (b) inform the Serious Complaint Manager of the situation and all relevant information gathered. 7. it is the personal responsibility of each Dealer staff member to own any serious complaint that they may have uncovered, until such time as the Serious Complaint Manager has been engaged in the process. PAGE 14 SERIOUS COMPLAINT HANDLING

19 Serious Complaint Handling Process Flow chart Dealership Customer Experience Managers and those responsible for the handling of serious complaints should ensure every person within the Toyota Dealership is made aware of the Serious Complaints Handling Process. This simple flowchart can be used to ensure all staff are conversant with the key process steps. DEALER STAFF MEMBER Receive Inquire with Thank Reassure 6 complaint in regards to Offer Customer Customer for Customer that positive manner injury/damage empathy the information action will be taken 8 Documentation as required 7 Contact/inform Serious Complaint Manager Explain next steps to Customer SERIOUS COMPLAINT MANAGER 9 Receive information regarding serious complaint Listen & question Record all Make immediate information on contact with Repeat steps to understand fully Identify options SC form Customer 1-6 above customer concerns and determine and record best way forward Third Party Involvement NO YES TOYOTA AUSTRALIA Notify Toyota Australia through Smart Process THIRD PARTIES Police Fire Ambulance Legal Other SERIOUS COMPLAINT HANDLING PAGE 15

20 The Three-Point Philosophy Handle complaints sincerely from the perspective of the Customers. Be professional, proactive and patient. Empathy with the Customer and an apologetic attitude will provide clues as to how best to handle the situation. This will also help to identify and handle dissatisfaction that has not yet surfaced. In order to obtain Customer satisfaction be conscious that you are a professional in the automotive field, have the conviction and the confidence to solve the problem yourself, and deal with it proactively and patiently. Do not handle the situation with quick fix measures or on a personal level. Interact with Customers while always being conscious that you are a representative of Toyota. 1 2 PAGE 16 SERIOUS COMPLAINT HANDLING

21 Be swift, sure and fair, but also be firm if needed. Failing to handle the situation swiftly or surely may escalate complaints to the point of new or third party involvement, leading to an increase in the hours necessary to resolve the problem. Although you must deal with the situation swiftly and surely, do not be swayed by the Customer s temporary or one sided words or actions. Always be calm when making decisions. You will need to deal with all Customers fairly and sincerely, and act with firmness where called for. 3 SERIOUS COMPLAINT HANDLING PAGE 17

22 The Three-Action Principles Listen to and understand Customer s complaints. By listening with empathy to the words of the Customers, you will be able to accurately understand their feelings and state of mind. At times, listening to them will ease their feelings and you may gain important hints about resolving the problem. Your initial action after receiving a complaint will determine the Customer s overall satisfaction in the handling of this matter. Thoroughly investigate vehicle, parts, site etc. Thoroughly investigate the vehicle, parts, and any other location with your own eyes based on the description given by the Customer and others involved. Especially in the event of an accident, obtain detailed information from the Customer, police, and fire department personnel. 1 2 PAGE 18 SERIOUS COMPLAINT HANDLING

23 Review customer records. Study the Customer s past record of vehicle purchases and servicing to understand the kind of relationship that exists between the Customer and Toyota. This will enable you to understand the level of trust and expectations that the Customer has with Toyota, which can be used to handle complaints more effectively. It is important to know the vehicle s usage conditions and the Customer s driving record to understand the cause of the complaint and to determine where the responsibility lies. 3 SERIOUS COMPLAINT HANDLING PAGE 19

24 The Seven Steps of Customer Complaint Handling Receive Customer complaint listen carefully to what the Customer is saying and record it accurately. Any concern that can be dealt with on the spot should be handled immediately. After receiving a complaint, immediately report it to your manager or relevant departments and discuss possible countermeasures. PAGE 20 SERIOUS COMPLAINT HANDLING

25 Listen with your ears and eyes gain a full understanding of vehicle status as well as the Sales and After Sales situation. Check the Customer information and their relationship with Toyota. SERIOUS COMPLAINT HANDLING PAGE 21

26 The Seven Steps of Customer Complaint Handling Establish facts and identify causes investigate the reasons for the complaint (e.g. vehicle, Sales or After Sales). Thoroughly investigate the vehicle, parts, and other locations in question to determine the cause(s). PAGE 22 SERIOUS COMPLAINT HANDLING

27 Reappraise seriousness and make decision verify the gathered data and the complaint handling process again to determine the possibility that the complaint could escalate into a serious complaint. Based on the investigation results, determine the degree of responsibility and decide how to best handle the matter. for serious complaints, Dealers should report the incident to Toyota Australia via Smart Process immediately. SERIOUS COMPLAINT HANDLING PAGE 23

28 The Seven Steps of Customer Complaint Handling Explain decision to Customer Explain to the Customer the investigation process, results and how the situation will be handled. PAGE 24 SERIOUS COMPLAINT HANDLING

29 FOLLOW UP Confirm that the action agreed on with the Customer has been properly carried out. make sure the Customer is satisfied with the outcome. SERIOUS COMPLAINT HANDLING PAGE 25

30 The Seven Steps of Customer Complaint Handling Review and reflect on results to prevent recurrence After handling the complaint, review the results and share the information at regular meetings etc. Actively incorporate the Kaizen principles and review points as examples to prevent complaints and their recurrence. PAGE 26 SERIOUS COMPLAINT HANDLING

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32 Customer Experience Centre Ph: P.O. Box 197, Caringbah, NSW 1495 Eastern Region Ph: (02) Southern Region Ph: (03) Northern Region Brisbane Ph: (07) Townsville Ph: (07) Central Region Adelaide Ph: (08) Darwin Ph: (08) Toyota Distributor - WA Parts & Service Ph: (08) Sales Ph: (08)