Internal Dispute Resolution – Improving Partnerships for Fewer Complaints

1. Internal Dispute Resolution – Improving Partnerships for Fewer Complaints Janine YoungGeneral Manager Operations 15 August 2006

2. Workshop agenda • A bit about EWOV • Understanding dispute resolution acronyms • What does complaint resolution look like within organisations? • What are customers telling EWOV? • How should providers and external dispute resolution agencies work together? • What is working for EWOV?

3. A bit about EWOV • Victorian electricity market reforms in 1994, gas 1999, water 2001, liquefied petroleum gas (LPG) 2005 • Licence/legal/industry code joining requirements for industry participants • Constitution / Charter – rules – what we can /cannot investigate

4. A bit about EWOV(cont) • Independent advice and referral • Complaint investigation and resolution • Systemic issues • Community and industry links

5. A bit about EWOV (cont) • Complies with National Benchmarks for Industry-based Customer Dispute Resolution Schemes • Accessibility • Independence • Fairness • Accountability • Efficiency • Effectiveness

6. A bit about EWOV (cont)

7. Understanding Dispute Resolution Acronyms • IDR – Internal Dispute Resolution • EDR – External Dispute Resolution • ADR – Alternative Dispute Resolution • ADR can be incorporated into both IDR and EDR processes. Methodologies include: • mediation, arbitration, conciliation, negotiation and expert evaluation

8. ADR’s main advantages (compared to legal processes) • Time and cost savings • Confidentiality • Convenience • Flexibility of process • More creative solutions • Preservation of customer/provider relationships • Enables risk management • Facilitates understanding of customer concerns

9. What does complaint handling look like in your organisation?

10. The pathway to internal dispute resolution • Customer has a complaint • Contacts contact centre • Escalated to team leader • Escalated to customer service team • Escalated to a Manager • Escalated to an Executive

11. What outcomes are achieved through internal dispute resolution? • Contacts contact centre – resolution or escalation • Escalated to team leader – same offer, increased offer, resolution or escalation • Escalated to customer service team same offer, increased offer, resolution or escalation • Escalated to a Manager same offer, increased offer, resolution or escalation • Escalated to an Executive same offer, increased offer, resolution or escalation

12. Do the solutions change? Should the solutions change? What impact does this have? Is this a good business case for empowerment?

13. So, the complaint is fixed – or is it? • What else should happen? • Process review • Staff training – all staff • Brochure/website update • Escalation process reinforced • Product fix / recall • Redress to other affected customers Why – to prevent future complaints to you or other agencies

14. In a perfect world, all customers would direct their complaints to their provider, the provider will fix all the complaints, and the causes, and all EDR organisations will cease to exist

15. But ….. we all know our world is not so perfect Where will your customer choose to go?

16. External Dispute Resolution choices? • Engagement of a solicitor • Court action • Fair Trading • Consumer Affairs • Tribunal • Statutory Ombudsman scheme • Industry Ombudsman scheme – alternative dispute resolution processes • Media involvement – radio, press, television • Internet – www.notgoodenough.com.au

17. So why do customers go outside of your organisation?

18. What customers are telling EWOV Why did you call EWOV?(1/7/2005 to 30/6/2006) • Want action now – 5,163 – 29% • Saw 1800 number on my bill – 2,202 – 12% • Didn’t know who else to call – 2,115 – 12% • Unhappy with outcome – 1,960 – 11% • Wanted to clarify my rights – 1,632 – 9% • No response – 807 – 4% • Unable to access call centre/IVR – 190 – 1% • Told to call by the person I spoke to – 152 – 1% • Told to call EWOV by alternative supplier – 93 - 0.5% • Refused to escalate call to T/L/Mgr -57 - 0.3%

19. What can you do about this? • Find out why your customers contact your affiliated EDR scheme • Identify the big drivers • Escalation process • Empowerment levels • Care level – culture • Fix the drivers – because you know why, it is easier (not easy) to approach • Test your flexibility - policies

20. How long will your customers wait for action?

21. What customers are telling EWOV When did you call your provider? • Same day contact – 4,988 – 28% • 1-2 days – 2,329 – 13% • 3-7 days – 2,198 – 12% • 8-14 days – 1,067 – 6% • 15-31 days – 803 – 5% • Over 1 month – 1,006 – 6%

22. What can you do about this? • Commit to an action within a set timeframe • Follow it up • Provide a name and contact number • Contact your customer – with no news • Check to see if the problem is fixed • Respond to letters and emails

23. How many opportunities do your customers give you to fix something?

24. What customers are telling EWOV How often did you call your provider? • Once – 5,083 – 29% • Twice – 2,500 – 14% • Three to five times - 3,620 – 20% • Six to nine times – 725 – 4% • Ten or more times – 388 – 2%

25. What can you do about this? • Find out how many of your customers have multiple contacts • Calculate the cost to your business • Can your CRM identify multiply contacts – same issue/different issues? • Escalation process review • Training – respond to customers who say‘I’ve called four times’

26. Who do your customers speak to?

27. What customers are telling EWOV Who did you last speak to? • Call Centre – 8,862 – 50% • Specialist Dept (credit, claims, other) –1,443 – 8% • Team Leader – 649 – 4% • Manager – 674 – 4% • Email/letter – 366 – 2% • Field Officer/Sales Rep – 287 – 2%

28. What can you do about this? • Implement effective escalation processes • Train everyone in complaint handling • Create a culture that makes it safe to share special customers

29. Do your customers always give you the chance to fix things?

30. 5,317 – 30% of customers called EWOV first! Since 1 June 2006 we’ve been asking why? • Thought I was calling my provider – 196 – 34% • Not sure – 96 – 17% • Wanted to clarify my rights – 68 – 12% • Thought EWOV was a better option – 60 – 10% • Dealt with EWOV previously – 35 – 6% • Kept on hold too long – 34 – 6% • EWOV has a free number – 29 – 5% • Can’t understand my providers’ phone system – 26 – 5% • Referred to EWOV – 18 – 3% • Previous bad experience – 11 – 2%

31. What can you do about this? • Find out why your customers contact your affiliated EDR scheme • Make contact with your organisation easy for your customers – for complaints as well as sales • Check your IVR system – is it designed to be easy for you or easy for your customers

32. How should providers and external complaint handling agencies work together?

33. What EWOV has been doing to reduce complaints to EWOV • Extending the relationship and maintaining independence • Improved reporting • IDR workshops • Complaint review meetings • Scheme participant training • Industry training

34. Extending the relationship and maintaining independence • What is the relationship? • Positive • Challenging • Frustrating • Rewarding • It’s like any relationship – if you don’t work hard to make it work, it won’t work • Contact Centres, Credit/Billing/Claims Departments • Training by scheme participants • Visits to facilities

35. Improved reporting • Timing and method of reporting • Sharing what customers are telling us • Ad hoc reporting on specific issues • Specialised presentations • Customised reporting

36. IDR Workshops • Independently facilitated • IDR process and complaint handling • Industry sector – November 2005, March, July, October 2006 and ongoing • Melbourne and regional areas • First formalised complaint handling training for over 30% of participants • Complaint handling workshops

37. Complaint Review Meetings • EWOV or Scheme Participant office • Shared list of identified complaints • Focus on age or issue • Staff involvement • Involving relevant departments

38. Scheme Participant Training • Generic approach • EWOV or scheme participant office • Team training with lunch • Shared understanding of roles • Encourage issues to be raised – ongoing • Right first time resolutions • Fair and reasonable assessment tools

39. Industry Training • Provided at EWOV or during site visits • Focus on specific issues – distribution, generation, water treatment • Industry overview – by sector • Internal processes and approaches

40. What could be developed between EDR and IDR?

41. So, how do you make it work • Improve information flow • Training • How both organisations work • How they could work together • Specialist - IDR workshops, technical training • Relate with all parts of the business • Understand and respect each other’s role

42. What can you leverage from EDR? • What can you learn from the organisation – their expertise is in dispute resolution • How can you work together to keep your customers and resolve complaints quickly – development of KPI’s • Ask questions / raise issues / seek advice • Spread the knowledge across your organisation

43. Key points • Continue to encourage a collaborative relationship • Further develop training – industry to EDR – EDR to industry • Identify drivers for complaints to EDR and act on them • Continue the discussion…………

44. Why? • Despite the best intentions, • despite giving your customers exactly what they ask for, • I’m guessing that you, and us will continue to receive complaints …..