Plenty lip, but not much service, from small firms

Customers met with contempt, aggression if they dare to complain

IT’S incredible just how unpopular this job makes me a lot of the time. Just this week, a major manufacturer accused me of scaring consumers for no good reason.

Such hostility is not unexpected; it is an occupational hazard familiar to most journalists. Those who have a problem with transparency are often quick to shoot the messenger.

But consumers, protected by powerful legislation since 2011, shouldn’t be subjected to such aggression and defensiveness. Sadly, many still are.

And the worst at handling complaints are not the big boys — most of the large chains know better — but South Africa’s small businesses.

This sector contributes about half our GDP and is responsible for providing about 60% of South Africa’s jobs. So what’s the problem? Defensive, aggressive, hostile business owners who think they are exempt from the Consumer Protection Act and treat customers with contempt.

According to the office of the Consumer Goods and Services Ombudsman, a voluntary organisation, up to 30% of such businesses don’t even respond to his office. These complaints are then referred to the National Consumer Commission.

Thankfully, where small suppliers do co-operate, disputes are usually resolved speedily and in favour of the consumer.

Ombudsman Neville Melville says the small business sector won’t grow, or be able to compete with large chains, unless it

Instead of welcoming complaints as valuable customer feedback, some small business owners tend to take them personally and become defensive, if not downright hostile

improves its customer service. Surveys show that up to 80% of customers are willing to pay more for excellent customer service.

He says his office has found that “small businesses seldom live up to, let alone exceed, the service levels of most retailers as far as complaint handling is concerned”.

“Instead of welcoming complaints as valuable customer feedback, some small business owners tend to take them personally and become defensive, if not downright hostile,” he said. (See below for examples.)

Melville says a shop owner told a complainant that the Consumer Protection Act was only for big business.

Another said his company’s approach was to tell anyone who complained: “Here is your money. Now don’t come back here again.”

The more serious complaints have involved humiliation and even assaults by security guards, as well as derogatory and racial slurs.

Based on statistics from the ombudsman’s office, the majority of small business offenders are furniture suppliers. Complaints are mostly product related — broken beds, diningroom and lounge-suite wood or leather splitting — and faulty appliances — fridges, washing machines and microwaves.

Other complaints involve slimming products, electrical devices, wedding and holiday venues, travel, cellphones, computers, online purchases, building supplies, share investment programmes and shoes.

Melville says small business owners often cite implementation costs as the reason for being unable to comply with the act.

“While it is true that some big businesses have spent literally millions in making their processes compliant, most of the provisions are common business sense and should be how businesses conduct themselves anyway,” he said.

If a supplier can’t treat customers fairly and honestly and provide quality goods and services at a reasonable price — the core expectations of the act — one must question why they should be allowed to conduct a business at all, he says.

Hear, hear. It’s not like it costs big money to treat consumers well. It’s just Customer Service 101 and it earns huge loyalty.

There are, of course, exceptions, says Melville, with suppliers immediately responding to his office and following up until there’s a full resolution.

The prompt handling of complaints is included in guidelines issued by the National Consumer Commission. So is treating customers with courtesy and keeping them informed of the progress of the complaint.

The guidelines also call for suppliers to be open to feedback and committed to resolving complaints.

Get more from Megan at 8.50am tomorrow on Power FM 98.7’s ‘Power Breakfast’