5 reasons why it pays to be good at complaint handling

5 reasons why it pays to become good at complaint handling


  1. Improving customer retention – 80% of your new instructions will come from existing clients or recommendations from existing clients or contacts.  Satisfied clients will be loyal, use your services again and will tell others about you.  If you can turn a complaint into a positive experience in a timely way you will have a loyal client for life.
  2. Avoiding financial penalties - LeO can award compensation of up to £50,000 and have handed out awards of over £20,000 on 17 occasions in the last 12 months.
  3. Enhancing risk management – Legal Ombudsman data is monitored by the SRA and added to their risk registers.  Too many complaints will lead to an SRA monitoring visit.
  4. Reducing PI insurance – Complaints are very closely tied to negligence claims.  Claims often arise out of the same circumstances giving rise to complaints and are a possible symptom of something going wrong within a practice. Too many claims will lead to higher professional indemnity insurance premiums and in extreme cases to a firm becoming uninsurable.  Dealing with the root cause of complaints at an early stage will reduce negligence claims.
  5. Boosting profitability – Anybody who has been involved in a client complaint knows the emotional toll it takes on the person being complained about.  However, there is also the fee earner and senior management time which has to be invested in investigating and communicating with the client, and ultimately possibly with the Ombudsman.  It can run into hundreds of potentially chargeable hours.  Most complaints can actually be resolved at a very early stage when handled correctly – and that’s good for the individuals caught up in it, good for the firm’s reputation, and good for business proftability.