Consumer complaints on the rise!

NEW figures released by the Warrington based Ombudsman Services show consumer complaints are on the rise with 38 million complaints last year – a complaint every 1.2 seconds.
But 40 million more complaints went unaddressed as consumers suffer in silence according to the figures from the first ever Consumer Action Monitor.
Consumers are also keener to take action when they have a problem, with nearly a third (32 per cent) saying they are more likely to complain about poor service now than they were a year ago.
The most common sectors for complaints were energy (17 per cent), retail (17 per cent) and internet telecoms (14 per cent), with transport (5 per cent) and holidays (6 per cent) also attracting consumers’ wrath.
But the new measure, from Ombudsman Services, also reveals that many who have a problem still take no action, with 40 million problems not pursued thanks in part to the perception that complaining is ‘not worth the hassle’.
These disgruntled customers deem the process of complaining to be potentially tiresome with time and effort identified as the main reasons holding them back.
This is explained in part by evidence that the legal process daunts consumers, with only around one in twenty (6 per cent) problems addressed through the small claims courts.
Cynicism about companies adds to this sense of frustration, with more than a third (36 per cent) of people believing that big businesses are only
interested in money and don’t care if something goes wrong with a product or service, a sentiment that also highlights the importance of trust between businesses and consumers.
Those that do take action are most likely to contact the company responsible first, but many disputes are now escalated to other independent third parties, with ombudsmen an increasingly popular route. Indeed Ombudsman Services reports that energy complaints alone have doubled in the last year.
Millions of consumers are also resorting to more direct action to get their problems dealt with, with social media frequently used as a way to gain
companies’ attention. This method is proving much more effective than traditional media (27 per cent (social) vs. 9 per cent (traditional).
Commenting on the findings, Chief Ombudsman Lewis Shand Smith (pictured) said: “Given that consumer trust in companies is low, the time is right for businesses to embrace third parties as a means of resolving disputes.
“The research shows that nearly a third of people would be more willing to buy a product or service from a company offering such a service, so transparency clearly has a big role to play in shaping consumer opinion and enhancing brand image.”