Complaint Handling Assessment: Hilton Adelaide - Case Study Example

Complaint Handling Assessment: Hilton Adelaide Name (University Affiliation) Introduction Located in Adelaide, Hilton Adelaide is a five star hotel renowned for its excellent and modern accommodation facilities for all kinds of customer (Min and Min, 2006). However, business travelers makeup ninety percent of the Hilton’s total guests. A deeper assessment of the company’s record studies confirms that the hotel has been handling customers’ complaints. Evidently, research shows that whenever customers make complaints and no action is taken, fifty-two percent of the customers may not return to the hotel. In regard to Hilton Adelaide’s records, their commitment to act on customer complaints often make ninety-four percent of the customers to return for their services. Similarly, when there are no complaints, the same percentage of customers often return to the hotel thus maintaining loyalty. In regard to customer complaints handling, this paper will discuss a case concerning a certain customer, and how the Hilton Adelaide hotel handled that particular complaint. (a) What led to the complaint A regular customer to Hilton hotels once stayed in Hilton Adelaide for a week during his business trip in Victoria. Later in the week, the customer needed his three shirts to be dry-cleaned and as such requested the night manager to make necessary arrangements. To his dismay, twenty-four hours down the line his laundry bag was still lying in the open view at front office. When the customer inquired for an explanation of the debacle, the night manager blamed his co-workers for not reading a note that he had left behind concerning the laundry bag. Consequently, the customer had to use the same clothes for a multiple of days when meeting the same important client. It was embarrassing and frustrating to the customer since the meeting was to initiate a breakthrough in his business trip. (b) What the firm was expected to do in response to the complaint In response to the complaint, the hotel was supposed to first, express appreciation for the feedback by the customer. Consequently, the customer would feel important to the service firm as customers want to be valued and recognized (Nyer, 2000). Moreover, showing appreciation for the feedback would dilute the patron’s anger thus changing his prior decision about seeing for an alternative service in the future (Parasuraman, 2006). Second, the Hotel was expected to show empathy thus showing the customer that the hotel indeed understands the customer’s bad experience. Accordingly, showing empathy indicates that the hotel genuinely cares about the inconvenience the patron experienced while staying in the hotel. Similarly, empathy is often a powerful tool used in disarming an angry patron. Third, in response to the complaint Hilton Adelaide was supposed to apologize for the alleged inconvenience caused by the hotel during his stay. The golden rule in responding to a customer’s complaint is never to send out a response letter without an apology. A recent research indicates that when an apology is included in a response letter, the customer satisfaction increases by 10%. Moreover, when an apology is perceived as genuine, the customer satisfaction increases by 15% (Sousa and Voss, 2009). Importantly, an apology should be given both when the firm feels not responsible for the complaint as well as when the firm feels responsible. However, an apology does not mean that the firm is admitting the fault, but shows that it regrets the incident happening. Fourth, the firm is expected to respond with some sense of urgency as a customer will be convinced of the Hotel’s commitment in attending to his issue. Further, the patron will feel appreciated and important since his matter has been taken seriously. When responding to the complaint letter, the Hotel is expected to express a sense of urgency in the letter concerning the immediate regain of the patron’s goodwill. Statistics shows that ninety-four percent of complaining customers often remain as the firms’ patrons when their issues are addressed immediately. Conversely, 70% of the customer’s will maintain loyalty if there is an indication of a delay in solving the problem (Stauss and Schoeler, 2004). Thus, the firm needs to demonstrate a sense of urgency in order to maximize its opportunity of regaining the goodwill. When responding to a complaint letter, the firm should make it clear that indeed resolving the issue is as significant to the firm as it is to the patron. For instance, the hotel can demonstrate a sense of urgency through moving quickly to resolve the problem, as well as use urgency tone and words in the response letter. Next, the firm is expected to explicate to the patron the necessary steps or plan being put in place to solve the problem. For example, the firm can resolve to compensate for the damage caused or give a discount offer to the patron. Finally, in its response letter, the firm is expected to invite the patron in case he or she is not satisfied with the resolution plan. (C) The Resolution being Sought With that unfortunate experience, the patron felt that there was a need for the hotel to compensate for the bad customer service he received in the hotel. Apparently, the client had chosen Hilton Adelaide for his stay during his business trips since his previous experience with the sister hotels had always been wonderful. The excellent customer services he had received from Hilton Hotels could have been the reason his business was successful, since he had the peace of mind. Thus, the client had the right to request for some refund of the amount he had paid for the stay at the hotel. Although not enough, this would compensate for the negative image he had unintentionally displayed to his business clients (Homburg andFürst, 2005). The firm should also apologize for the inconvenience caused while the patron stayed in the hotel. Hilton Adelaide’s response to the Complaint Upon receiving the complaint, the Hotel manager did an instigation of the alleged complaint and did a letter in response to that. In Hilton Adelaide’s response, the firm acknowledged the customer’s feedback appreciating the customer’s effort in pointing out where the firm went wrong. Secondly, the firm apologized for the inconvenience caused and further explicated what the firm’s investigation depicted regarding the case. Equally, the Hotel went ahead and explained the mechanisms it had put in place to ensure that such a scenario would not happen again. In effect, the hotel asserted that it had developed new guidelines that were associated with the laundry department. In addition, the response letter affirmed that the customer would not experience such a problem when using the Hotel’s services in the future. The firm also assured the Patron for a compensation plan that include a fifty percent discount of the total amount he would be required to pay for his next visit. Analysis of the firm’s adequacy in its response Notably, the firm’s response was on time, therefore handling the complaint with a sense of urgency. Urgency plays an integral in responding to customer’s complaint as it displays the firm’s seriousness in addressing the matter. With the prompt response, the customer was convinced about the Hotel’s commitment in taking care of its patron. The firm also addressed the customers’ concern by developing new mechanisms that prevent such a debacle from happening again. The firm also showed its commitment in sharing the customer’s disappointments by willing to offer the customer a fifty percent discount during his next visit. The firm’s decision to give the customer a “double for his trouble” shows that the firm is professional in handling customer’s complaints (Maxham and Netemeyer, 2002). Research shows that firms that offer customers complementary products and services retain over ninety percent of patrons who experience bad service delivery (Oliver, 1999). The firm’s willingness to apologize shows that the firm prioritizes patrons’ interest as winning their loyalty means success for the business. However, the firm failed to address three important issues in its response. First, the response letter failed to address the customer’s request for a refund of fifty percent refund of the total price he had paid for his stay. Second, the firm failed to assure the customer if the firm would make any follow up about the issue. Finally, the firm did not give an alternative compensation plan since it favored one part. From a professional angle, the firm would have addressed the customer’s request for compensation by either complying with the customer’s request or proposing for an alternative compensation plan (Ndubisi and Ling, 2005). Second, the firm would have indicated in the letter of the specific date that the firm would contact the customer to update him of the resolution plan. Ultimately, the firm would have suggested about four alternatives in regard to the complementary services that it was ready to offer. For instance, fifty percent discount offer dictated that the patron travels to Australia in order to enjoy the discount. Tentatively, the customer may not be having any plans of traveling to Australia and as such, the suggested complimentary plans would not benefit the patron. Discussion When an organization receives a complaint letter from a dismayed patron, the reputation, expectations as well as beliefs concerning the firm can always influence how the patron expects the organization to react (Davidow, 2003). Accordingly, the fact that a customer may have experienced a poor customer service and decided to write a complaint letter does not mean that the firm has lost the loyalty of the customer. In such a situation, the company’s response to the issue largely determines the customer’s decision to continue using the firm’s services and products (Sloo, 1997). The efforts put by the firm in recovering from a negative perception plays an important role as far as marketing strategy as well as competitive advantage is concerned (Tjosvold, Morishima and Belsheim, 1999). However, if a firm is allowed to continue with poor service delivery, the situation may threaten the long-term survival of the company (Min and Min, 2006). As such, proper handling of complaints is imperative for any firm. When a customer writes a complaint letter, he or she expects a resolution response from the firm based on his or her requests. Consequently, the customer’s letter will always dictate on how the firm should respond to the customer’s complaint. For example, if the customer demands for compensation the firm’s response letter will have to address such a request. From the complaint handling analysis, the organization depicts competence and professionalism in handling complaint. Thus, the organization stands a chance of retaining almost 95% of patrons who have filed complaints with the company in the past (Resnik, and Harmon, 1983). In fact, when the firm receives the complaints it often changes the complaint into an opportunity as far winning the customer’s loyalty is concerned. When a customer raises a complaint, the firm realizes its weaknesses in time thus fixes he problem before potential customers can experience the same. The Customer who Complains Is the Firm’s Friend Notably, a complaining customer is always there to stay as they often believe that the firm can always work on its weaknesses. Accordingly, a customer who finds time write a complaint letter is to the firm often does that with the expectation that the company will correct its customer service delivery. More often than not, many customers who write complaints to firms have used the firm’s services more than once. Consequently, they often believe that the firm can always do better than it is always done. Thus, once a customer has been served with resolution response he or she will always return to the organization for more services (Rod &Ashill, 2010) Reflection on the Case From Hilton Adelaide’s case, I have learned that proper complaint handling is important for customer’s loyalty retention. Moreover, I have realized when a company handles customer’s complaint with urgency and certainty, the firm is in a position to get more patrons as a result of positive word-of-mouth from the customer. Accordingly, I stand a better chance of handling customers in the future; as I will pay more focus in all complaints and handle them with the seriousness required. For instance, when I receive a complaint I will make sure that I contact the aggrieved customer first and assure him or her of prompt official response addressing the issues raised accordingly. I will further, turn the complaint into an opportunity by ensuring that I follow up closely the issues thus creating a bond between the firm and the customer. References Davidow, M. 2003. Have you heard the word? The effect of word of mouth on perceived justice, satisfaction and repurchase intentions following complaint handling. Journal of Consumer Satisfaction Dissatisfaction and Complaining Behavior, 16, 67-80. Gilly, M. C., & Hansen, R. W. 1985. Consumer complaint handling as a strategic marketing tool. Journal of Consumer Marketing, 2(4), 5-16. Homburg, C., & Fürst, A. 2005. How organizational complaint handling drives customer loyalty: an analysis of the mechanistic and the organic approach. Journal of Marketing, 69(3), 95-114. Maxham III, J. G., & Netemeyer, R. G. 2002. Modeling customer perceptions of complaint handling over time: the effects of perceived justice on satisfaction and intent. Journal of Retailing, 78(4), 239-252. Min, H., & Min, H. 2006. The comparative evaluation of hotel service quality from a managerial perspective. Journal of Hospitality & Leisure Marketing, 13(3-4), 53-77. Ndubisi, N.O. and Ling, T.Y. 2005, “Complaint behaviour of Malaysian consumers”, Management Research News, Vol. 29 No. 1, pp. 65-76. Nyer, P.U. 2000, “An investigation into whether complaining can cause increased consumer Satisfaction”, Journal of Consumer Marketing, Vol. 17 No. 1, pp. 9-19. Oliver, R. 1999, “Whence consumer loyalty?”, Journal of Marketing, Vol. 63 No. 4, pp. 33-44. Parasuraman, A. 2006, “Modeling opportunities in service recovery and customer-managed interactions”, Marketing Science, Vol. 25 No. 6, pp. 590-3. Resnik, A. J., & Harmon, R. R. 1983. Consumer complaints and managerial response: a holistic approach. The Journal of Marketing, 86-97. Rod, M. and Ashill, N.J. 2010, “Management commitment to service quality and service recovery performance: a study of frontline employees in public and private hospitals”, International Journal of Pharmaceutical and Healthcare Marketing, Vol. 4 No. 1, pp. 84 103. Sloo, M. A. 1997. U.S. Patent No. 5,668,953. Washington, DC: U.S. Patent and Trademark Office. Sousa, R. and Voss, C.A. 2009, “The effects of service failures and recovery on customer loyalty in e-services: an empirical investigation”, International Journal of Operations and Production Management, Vol. 29 No. 8, pp. 834-64. Stauss, B. and Schoeler, A. 2004, “Complaint management profitability: what do managers know?”, Managing Service Quality, Vol. 14 Nos 2/3, pp. 147-56. Stephens, N. and Gwinner, K.P. (1998), “Why don’t some people complain? Tjosvold, D., Morishima, M., & Belsheim, J. A. 1999. Complaint handling on the shop floor: Cooperative relationships and open-minded strategies. International Journal of Conflict Management, 10(1), 45-68. Appendix A Customer’s Complaint Letter David Johnson, PO Box 7169, Poole, BH15 9EL, United Kingdom. The Manager, Hilton Adelaide, 233 Victoria Square, Adelaide SA 5000, Australia. 07 August 2014 Dear Sir, My reason for writing to you regards my visit to your hotel last Month on 12th. Unbelievably, I received poor customer service during my stay at the hotel. I often travel for business in various countries, and whenever I need a place to stay, Hilton Hotels have often been my exclusive choice. To ascertain this, kindly refer to my HHonors number, 6734. Accordingly, I am used to receiving excellent customer service at all Hilton Hotels, but to my disappointment, your Hilton Adelaide appears to be the exception. I stayed at Hilton Adelaide for a week and during my stay, I once gave the night manager three shirts to be dry-cleaned. Upon receiving the shirts, the manager gave me an assurance that the clothes would be ready by the next evening. When I checked at the front office at the agreed time, I was disappointed to learn that my laundry had not even been taken to the cleaners. In fact, the bag was still lying where he had placed it 24 hours down the line. To be sincere, that was astounding, as I never expected to have such an experience in any of the Hilton Hotels. In his defense, the night manager blamed his coworkers for not caring to read a note that he had left behind. Surprisingly, the night manager did not take responsibility for the debacle, yet he caused it. From my assessment, his story was looked disingenuous and strange as he could not look me in the eyes while explicating what had transpired. To look diplomatic, he apologized on his colleague’s behalf but never offered to even compensate for the inconvenience caused. Consequently, the following day I was compelled to meet the same important client in the same clothes as the previous day. Professionally, it is uncouth and embarrassing to wear the same clothes for a couple of days and can often degrade one’s image. I understand that it is typical for human beings to make mistakes, but my laundry had been sitting in the plain view thus any concerned worker could see it. I could be unaware of how often dry cleaning is taken out in your Hotel, but I am astounded that no one cared to ask why the bag of laundry had stayed there for long. Normally, a worker in his or her entire shift could have wondered why a laundry bag had been left unattended for a long time. Notably, not even one worker bothered to provide me with that typical customer care service within the 24-hour period. Dry cleaning is often a typical hotel service as bags are given to each patron in every room. Thus, dry cleaning is not a special service that is only available for HHonors members like me. Consequently, I expect this basic service from any hotel I visit as it is important to maintain a professional image with my patrons. Ultimately, I am considering stopping using Hilton Hotels’ services in my future business trips as I am uncertain of Hilton’s capability to provide basic customer care services. I thereby believe the only fair remedy for this debacle is for hotel to refund me half of the total amount I paid for my stay. Best Regards, David Johnson, Phone Number: 08705 909090 Email address: davidjohnson@gmail.com Apendix B Hilton Adelaide’s Complaint Response Letter Hilton Adelaide, 233 Victoria Square, Adelaide SA 5000, Australia. Tel/Fax (080) 0293229 14 October 2014 David Johnson, PO Box 7169, Poole, BH15 9EL, United Kingdom. Dear Mr. Johnson, Thank you so much for finding time to write to us. Further, we appreciate patrons who take courage of informing us when things are not right. It must have been very embarrassing as well as frustrating for you to wear the same clothes for several days when meeting important clients and we are sorry for that. We are sorry for the embarrassment and low moments you have experienced. As such, I am yearning to restore your perception as well as confidence in our Hotel. We have followed up the matter and for sure, the responsible night manager that caused the debacle was not in a position to justify his carelessness. The Hotel’s service blueprint dictates that when a guest requests for dry cleaning service, the customer should get his or her apparel within the next four hours upon request. Thus, the Night manager was not supposed to leave the bag of laundry at the front desk, but take the laundry bag to the laundry department where the necessary steps would have followed. In fact, it was not your responsibility to follow up the laundry, as it is the manager’s duty to ensure that the garments have been dry cleaned and taken to the guest’s room. Moreover, the manager would have asked for your feedback regarding the laundry upon delivery. Upon investigations, we found that on that particular day you requested your laundry to be done, the night manager did not follow the prescribed steps associated with guests’ laundry. Equally, we established that the night manager’s colleagues thought that the manager had put the laundry bag there with a different purpose hence never bothered to attend to it. Accordingly, the night manager asserted that on the very night, he was depressed and could not think clearly, as his daughter had been admitted in the hospital. As a course for action, the Hotel management has resolved to stipulate new procedures, which employees should follow in order to avoid such an occurrence in the future. First, the new procedure requires that a worker records the customer’s request for laundry, including the time of request. Secondly, the worker is required to take the laundry to the respective department and ensure that the laundry is done immediately. Ultimately, the responsible worker will take the dry-cleaned clothes to the patron’s room and ensure that the guest signs for the received clothes and indicate the time of receipt. With these new procedures in place, the workers will be personally liable for any inconvenience caused. Therefore, be assured that this will not happen again To express our goodwill, we would like to offer you a fifty percent discount on your next stay in our hotel regardless of the staying period. Tentatively, with this offer, we believe that you will accept that your initial request be overridden and in case of any objection, you are free to contact us. Best regards, Jefferson Brown, Managing Director, Hilton Adelaide, Email Address: mdhiltonadelaid@ gmail.com Read More