Capturing Customer Complaint Costs
Kurt Moore
7 Posts
As a part of our efforts to capture the cost of quality, we are looking in to the cost of a customer complaint.  We know that the more accurate the cost estimate, the more time consuming it will be, and the more likely it won't get done.  We also realize that not all complaints are equal, so we don't want to assign a single value to every complaint.   Can anyone offer some guidance or point me to a resource for how to do this?  
2 Replies
Duke Okes
133 Posts
I've not done this before, but it might work.  I'm going to use a manufacturing example:

Create categories/types of complaints, such as:

- Level 1 - Minor issue (e.g., perhaps documentation error such as on an invoice or packing slip) that only requires correction
- Level 2 - Moderate issue that requires fixing and an investigation (e.g., wrong quantify shipped)
- Level 3 -  Major issue that requires returning product and shipping replacement, and in-depth investigation (e.g., a product defect)

For each level create an estimate the organization is comfortable using.  You can the count # of each type and compute total.

Remember the accuracy isn't as critical as the trend.
Kurt Moore
7 Posts
Thanks for the feedback. I was thinking of something like that as well. You make a great point that the trend is more important than the accuracy.