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The Guardian - AU
The Guardian - AU
Lifestyle
Kat George

Why is customer service so poor at some corporations – and when should I complain?

Close-up of colourful hand-painted can telephone toy on white background
If you’re not having luck getting through to a customer service team on the phone, you could try social media or an online chat system. But it could be time to call the ombudsman. Photograph: Paralaxis/Alamy

Why do we get such universally poor customer service from large corporations? The endless mantras of “your call is important to us”, when it manifestly isn’t because you are then told “we are currently dealing with very high call volumes so you’ll have to wait”. Usually 20 to 30 minutes. We are told to shop around if we are not satisfied but many companies used in daily life seem to provide the same abysmal level of service.

Kat says: If you’re not having any luck communicating with a business’s customer service over the phone, there may be other avenues you could try. In the first instance, you should check the business’s website and see what other forms of communication they offer, such as email, chat, an in-app support function or a form on their website you can fill out. You can also try messaging them on social media.

But I’ll level with you: most of those options won’t make communication easier or quicker. And it’s worth noting the types of communication I’ve mentioned aren’t always accessible for everyone, so even if they are functioning well, they can’t be relied upon by all consumers equitably.

If you still don’t have any luck and you’re dealing with an industry that has an ombudsman – such as electricity and gas, telecommunications or private health insurance – call up that ombudsman and let them act on your behalf. The business has no option but to engage properly. The ombudsman will often require you to attempt to resolve the issue with the business first, but if you’ve called and received no response, you can tell the ombudsman that and they’ll take that as your attempt. Otherwise, depending on your issue, you can call the relevant consumer affairs body in your jurisdiction and make a complaint.

As to why this poor customer service happens, if you asked the corporations they might say something along the lines of: it’s not on purpose. Demands on call centres can fluctuate, making planning staff levels difficult, and the sector underwent massive disruption during the pandemic.

Those same corporations might tell you social media has also changed the customer service landscape, so that businesses often require you to slide into their DMs (private messages on Facebook, Twitter or Instagram) to get a response. And again, not everyone can access social media, and the results aren’t necessarily better or quicker.

It may sound cynical, but staffing call centres with enough real people to answer phones quickly, and to take the time to provide thorough and empathic support, is costly. It’s simply cheaper for businesses to have poor customer service. This includes the pesky AI chatbots you might have come across – which are much cheaper than human labour.

To get even more cynical, American researchers argue that, for US businesses with terrible customer service, the decision to leave phones ringing into the abyss is a strategy to minimise the amount of redress they have to pay consumers. The researchers suggest these businesses are “forcing customers to jump through hoops” to deter them from complaining – and claiming compensation.

It seems some businesses may not care much about their reputation either. For instance, when a business has a big enough market share, or is one of a few companies that controls an essential service, customer retention isn’t a high priority.

And, as you rightly point out, it’s not like consumers are spoiled for choice either.

  • For more information on contacting the relevant ombudsman or consumer affairs body for your query, see this guide from the Australian Competition and Consumer Commission.

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