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Receiving a complaint about your business can be daunting.
As a business owner it is important that you have an effective Complaints Handling Policy in place. This not only ensures that any issues raised by your customers are dealt with fairly, efficiently and effectively, but it also demonstrates your commitment to quality service in 2025.
Dealing with complaints is not every business owner’s favourite task; however, if you have the correct policies and mechanisms in place, you will be putting your business in the best possible position to continue its success.
What Is Considered A Complaint?
A complaint arises when a customer expresses their dissatisfaction with your business’s product or service.
Examples of situations in which a complaint may be made include when:
- A customer is dissatisfied with the process of receiving your product or service
- Your product or service did not meet the customer’s expectations
- A customer believes that your marketing was misleading
- A customer is unhappy with the way your employees treated them
In your business’s day-to-day operations, there are numerous occasions where the potential for a complaint exists.
While complaints can feel daunting and occasionally threatening to your business’s reputation, having robust procedures in place means you can address issues swiftly and maintain trust.
This is why it is necessary to implement adequate and effective mechanisms to manage complaints. Doing so ensures that any issue raised is resolved quickly and effectively, protecting both your business and your customers’ interests.
The Importance Of A Complaints Handling Policy
Whether your business receives many or only a few complaints, adopting a comprehensive Complaints Handling Policy is vital.
Establishing a policy specifically tailored to your business’s operations allows you to address issues constructively, with the ultimate objective of reaching a satisfactory resolution. In 2025, the NSW Ombudsman continues to emphasise that a well-defined Complaints Handling Policy is essential for managing disputes fairly, efficiently and effectively. You can review their guidelines here.
Your policy signals to your customers that you are dedicated to achieving the best possible outcome for both your business and them when a complaint is made. Moreover, when developing your policy, consider aiming to:
- Respond to complaints in a timely and cost‐effective manner
- Boost your customers’ confidence in your business’s administrative processes
- Utilise complaints as a tool to improve your products, services, staff and overall complaint handling process
What Should be In A Complaints Handling Policy?
1. How To Make A Complaint
Your policy should clearly explain how and where your customers can make a formal complaint. For instance, providing contact details and outlining various channels (such as email, phone, or an online form) allows customers to choose the most convenient method.
For example, UberEats maintains a clear and easily accessible process for lodging complaints. By incorporating predefined topics—such as ‘my food was not what I ordered’—you can help guide your customers when specifying their issues.
2. Detail How You Will Deal With The Complaint
Transparency is key. Your policy should detail exactly how complaints are discussed, assessed and resolved. This might include:
- How complaints are recorded (using a digital log or CRM system)
- Which team or individual is responsible for managing complaints (for example, your human resources team or a designated complaint officer)
- The timeline from when a complaint is received to when a resolution is reached
- Arrangements made for investigating the complaint (this may involve requesting further evidence from the customer)
3. Provide Potential Solutions For Complaints
Offering common solutions up front can enhance transparency and build trust in your process. For instance, reflecting the approach used by UberEats, you might offer a refund if an order was not delivered as promised.
4. Reiterate Your Commitment To Continuous Improvement
Your policy should reassure customers that your business is committed to continually improving its products, services and operations. Regularly reviewing and updating your policy to align with the best practices of 2025 underscores this commitment and helps maintain customer confidence.
The above points represent a starting framework for your Complaints Handling Policy. For further guidance, refer to the detailed template provided by the NSW Ombudsman.
What Else Should I Consider When A Complaint Has Been Made?
1. Listen To The Complaint
It is understandable that listening to a customer’s complaint isn’t always pleasant. However, giving your full attention when a complaint is made ensures you gather all the facts necessary to deal with it fairly, efficiently and effectively.
Listening is one of the first—and most important—steps in managing a complaint. Without accurate details, you risk an incomplete resolution and potential damage to your business’s reputation. So, remind your staff: when it comes to complaints, listen up!
2. Be Efficient
Once a complaint is received, it is crucial to act promptly. Addressing the issue immediately, rather than postponing it in the hope that it will disappear, reinforces your commitment to excellent customer service and builds trust.
Timely resolution not only boosts customer confidence in your administrative processes but also helps in maintaining a seamless operation. Efficient complaint management is a hallmark of a business that is continually striving to improve.
3. Stick To Your Promises
When a complaint is raised, it is vital to only promise solutions that you can deliver. While the urge to offer a quick fix can be strong, ensure that any proposal aligns with your policy and realistic business operations.
If you have proposed a solution and it is accepted by the customer, make every effort to follow through. In the event of any delays or issues, remain transparent and communicate updates as soon as possible.
4. Follow Up
After providing a solution, it is advisable to follow up with the customer. This step confirms whether the resolution was satisfactory, reinforces your commitment to continuous improvement, and helps to foster a positive ongoing relationship.
- Ensure the customer is satisfied with the solution provided
- Further demonstrate your commitment to continuous improvement
- Encourage a positive, ongoing relationship with that customer
The above list is not exhaustive, but it offers a solid foundation for managing complaints effectively. For additional strategies and useful insights, feel free to explore our legal tips and info sheets for business owners.
In 2025, many businesses are also embracing digital tools to streamline their complaint management. Utilising modern Customer Relationship Management (CRM) systems and automated ticketing solutions can help record, track and resolve issues faster while maintaining transparency. For guidance on integrating such digital solutions into your internal policies, consider our contract review services and our comprehensive online shop terms and conditions guide.
Need More Help?
Receiving a complaint about your business is not the end of the world. It is, however, vital that you have the correct policies in place to ensure a fair, efficient and effective complaint handling process.
Establishing an effective Complaints Handling Policy can be challenging. Whether you develop one in-house or require professional support, it is always a good idea to get a lawyer involved when setting up your policy. Our article on how small businesses handle legal challenges provides valuable insights into navigating these issues.
Reach out to our team for a free, no-obligations chat at team@sprintlaw.com.au or call us on 1800 730 617.
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