What is an acceptable Customer Complaint %?

J

Jonell

#21
Greg,
Here's another question that you might want to ask yourself in regards to the 2%. Are the CC's that you're getting now, costing the company more money or less money than they did in the last 2 years? Point being that if you are losing more sales dollars (lost customers, etc), then IMHO the percentage is irrevelant. I work in the stamping industry, and from my experience with looking at things like scrap as a percentage, well, it doesn't show a true picture. I could have 2% scrap for May and only 0.5% for June, but actually loose more money in June because of the dollar value of the items lost. Hope this makes sense?
Jonell
 
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R

ralphsulser

#22
Dave- In that case there are 2 options:
1)Go up the customer chain to find someone with "common sense"
2) Suck it up and initiate the root cause CA and contiue to monitor the gains.

Jonell-Ypu are right about how to quantify the percents, convert to dollars and look at where you get the most bang for the buck in prioritizing corrective action efforts.
 
R

ralphsulser

#23
Getting back to Greg B's original question of what is CC rate, or Return Goods rate acceptable.
We used to use a "rule of thumb" target of 0.05% max., but this was I was not in the automotive market.
 

Howard Atkins

Forum Administrator
Staff member
Admin
#24
The Taz! said:
I guess that depends on if the dimension is for a feature that hold the part together or one that makes it work. . . :2cents:
I agree but wanted to show the level of absurdity that some can go to show PPM levels
 

The Taz!

Quite Involved in Discussions
#25
Howard Atkins said:
I agree but wanted to show the level of absurdity that some can go to show PPM levels
Howard,

I missed your sense of humor in that post. . . I'll be more alert next time. . . .and yes. . .some people got to great lengths. . .
 
P

Phillip

#28
just pitting in...

i would just like to share our measurements for Customer complaints.
what do measure is the 'response rate' of the department/unit that the complaint is endorsed.

Since we are in the financial services industry, we welcome an increase in the number of complaints received. This will also show that our Customer feedback system is recognized by our customers (policyholders).

We also take note on the improvements that were ACTED upon by the process owner based on customer feedbacks i.e., turnaround time improvements and/or cost savings.

:)
 

RoxaneB

Super Moderator
Super Moderator
#29
Welcome to the Cove, Phillip! :bigwave:

Phillip said:
i would just like to share our measurements for Customer complaints. what do measure is the 'response rate' of the department/unit that the complaint is endorsed.
What do you mean by 'response rate'? Is this the time to reply/resolve a Complaint or the % of complaints replied to/resolved?

Phillip said:
Since we are in the financial services industry, we welcome an increase in the number of complaints received. This will also show that our Customer feedback system is recognized by our customers (policyholders).
Hmmm....I don't think I've heard anyone say they actually welcome an increase in complaints! :) But I do understand your logic. However, I would prefer simply asking Customers if they had a problem with our product, what would they do as a means of demonstrating the existence of our complaint system.
 
Q

qualitygoddess - 2010

#30
I agree that customer complaints is a hard number to allow at all, but reality is quite different. We're a software company, and we look at a couple of measures -- the # of bugs we "fix" after the newest version is released, and the customer returns as a % of sales. I'm happy to report that the % of sales number is 0.3%. We're working on the bug fixing number.

One Cover posted a cost of quality % that seemed high to me. too. To my knowledge, the total costs of quality at a company -- external failure, internal failure, prevention and appraisal typically runs 20-35% for a manufacturing company in the US.

--Jodi
 
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