In the current recessionary time, there is ever increasing pressure to provide high quality customer service to ensure business survival.

The benefits of quality customer service can include:

• High level of customer loyalty
• Increased profits
• Stronger position in the marketplace
• Increased customer retention  
• Increased job satisfaction and staff morale

There are various legal procedures which, if properly implemented, will assist in strengthening customer loyalty and minimise the likelihood of complaints potentially resulting in litigation proceedings.

1. Terms And Conditions of Sale or Engagement
Contract review is an integral part of any enterprise’s critical business and risk management system. However “Terms and Conditions” are rarely given the critical examination that they deserve and are often considered as mere contingency details. It is imperative that each business organisation addresses the efficacy of its Terms and Conditions to ensure that they are legally binding and in compliance with current fair trading laws which, inter alia, prohibit the use of unfair terms, require that goods and services be provided to the required standard and prohibit conduct that is misleading, deceptive and unconscionable.
Typically terms and conditions of sale or engagement are provided on the reverse of the Order form or Invoice or when purchasing on-line, by clicking an ‘I accept’ icon at the foot of the Terms and Conditions section. It is critical that the Terms and Conditions are incorporated into the Contract between the parties and that they are not only delivered after the contractual relationship has commenced.  It is also important to building customer relationships that the Terms and Conditions are conveyed to customers in a clear precise manner.

The current e-commerce boom has resulted in a significant volume of legislation regulating e-commerce activities imposing obligations to provide certain minimum information to customers in an easy and accessible manner and requires sellers to adhere to certain procedural requirements in relation to products or services ordered online. Full compliance with governing legislation and any additional data protection obligations arising from personal data collected from customers is the foundation underpinning good customer service relations.
Once the technical contractual legalities are finalised businesses can concentrate on delivering the highest quality service to customers and strive to ensure continuous improvement in the standard of service provided. 

2. Complaints Procedures
Many organisations fail to fully appreciate the costs of negative customer feedback and the value of effective customer communications. It is estimated that a person with a complaint is likely to tell nine other people about their bad experience and name the business involved.  Loss of customers due to unresolved complaints invariably leads to lost revenue, not only from the customer affected but also from other potential customers who learn of the customer’s negative experience and this in turn leads to a loss of sales and money for the business.

It is imperative therefore for every business to have a detailed and well documented customer complaints procedure in place to empower all staff members to handle complaints more confidently, efficiently and effectively. From a managerial perspective, such a procedure helps identify potential weaknesses and, more importantly, opportunities for improvement.  A dedicated person or department focused on Customer Relations, where complaints can be immediately directed to for investigation is of assistance. This conveys a level of professionalism and reassures clients that complaints are taken seriously.  While the procedure itself can be quite simple, the benefits it will provide will be felt throughout the organisation. A systematic accounting of each complaint, along with a timely response and reaction, is essential to improving overall customer relations and customer retention. After all, the responsibility to provide a quality customer service does not cease as soon as the contract has been concluded.

This article was authored by Delia McMahon an Associate in the Litigation & Debt Recovery Department of William Fry.