BSBRES401 Research Report: Customer Service Complaints Analysis

This report delves into a customer service complaints research project undertaken by Spicy Hotpot Pty Limited, a Chinese restaurant in Melbourne. The research, conducted over twelve months, categorizes complaints related to staff, products, and external service providers. The analysis reveals that most complaints stem from staff-related issues, followed by product quality and external service. The report highlights the potential negative impact of these complaints on customer loyalty and the company's reputation. It recommends strategies for monitoring customer satisfaction through direct and indirect methods, storing information securely using CRM databases, and updating policies to address employee engagement and customer service standards. The report also includes a graphical representation of the complaint data and suggests training employees to improve service delivery and foster a customer-centric approach.

CUSTOM SERVICE COMPLAINTS RESEARCH
Student’s Name
Instructor’s Name
Course Title
Date
Table of Contents

1
Introduction...........................................................................................................................................2
Analysis of the Data Findings from the Scenario Provided...............................................................2
Findings from the Data Analysis and Its Impact on the Company.........................................................2
Data Analysis Method...........................................................................................................................4
Graphical Representation of Spicy Hotpot Pty Limited Customer Complains......................................4
How Spicy Hotpot Pty Limited will monitor its Customer Satisfaction................................................6
How Spicy Hotpot Pty Limited will Store Information for Future Reference........................................8
How will Spicy Hotpot Pty Limited store its Data Securely to protect its Intellectual Property?..........8
Policies and Procedures that Spicy Hotpot Pty Limited need to update to realize its Research Findings
...............................................................................................................................................................8
Bibliography........................................................................................................................................10

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Introduction
Spicy Hotpot Pty Limited is a well-known Chinese restaurant situated in Melbourne;
however, despite the company’s fame as the leading hotpot restaurant in Melbourne, it is
faced with some complaints such as customer complaints about its products, staff and
external service provider. As a result of the received complaints, Spicy Hotpot Pty Limited
had to compile a customer service complaints by undertaking a twelve months survey. During
the survey, the company grouped the customer complaints data into three main categories of
complaints include staff, products, and external service provider respectively according to the
complaint severity.
Analysis of the Data Findings from the Scenario Provided
In accordance to the customer complaints research, the total number of complaints for
the twelve months period was found to be 181, which consisted of 94 (52%) complaisant
about the staff, 52 (28.7%) concerning products and 35 (19.3%) about the external service
provider. Additionally, the data findings show that the most severe complains came from
staff particularly three staff members Basel, Kasyme, and Raquel. Basel registered the
highest customer complaints with 54 (57.4%) complaints while Kasyme and Raquel had the
same number of customer complaints with each receiving 20 (21.3%) complaints. These
results show that Spicy Hotpot Pty Limited is faced with a challenge regarding employee
handling of customers that need to be addressed with immediate effect to help save the
company’s image.
Findings from the Data Analysis and Its Impact on the Company
According to these findings, it reveals that the main source of complaints about Spicy
Hotpot Pty Limited emanated from its staff followed by its product and lastly but not least the
company’s external service provider. Basing on the analyzed data the company staff is the
leading source of complaint which means that there are somethings that the company

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employee are doing that is wrong regarding service delivery to the customers that need to be
addressed to save the face of the Spicy Hotpot Pty Limited. Indeed, it is the expectation of
customers to receive a warm treatment as a way to motivate them to come back for return
sales in future. However, with the heightened number of complaints by Spicy Hotpot Pty
Limited, it is beyond doubt that the company is likely to suffer a blow regarding return
customers due to unwelcoming staff. Consequently, such an outcome is likely to hurt the
business as it drives away both existing and prospective customers. Thus, the company stands
at risk of experiencing a decline in sales since customers are not motivated by the company’s
staff. On the same note, the company’s product has been found to be unsatisfactory by
clients, which indicates that the company has failed to provide its clients with the best quality
products. Consequently, the offering of unsatisfying products to customers may lead to
customers leaving the company and seeking quality products and services elsewhere. It is
very rare to find that customers will stick around with repeated experience of poor service,
particularly in a competitive market setting like this. Thus, customers will be forced to seek
for better service elsewhere. Consequently, the walking way of Spicy Hotpot Pty Limited
customers will mean that the company will lose revenue as well as the potential word-of-
mouth advertising which can only be offered by a satisfied customer.
As a result, Spicy Hotpot Pty Limited business reputation is likely to suffer when its
customers walk away. Indeed, such cases begin when unsatisfied clients go around talking to
people what they know regarding the poor service they received at the previous company
(Spicy Hotpot Pty Limited), such feelings can escalate at a fast speed expressed online. Since
Spicy Hotpot Pty Limited restaurant is operating in a digital era, the business can suffer a big
blow for poor reputation especially when its customers express their feelings online through
social media platforms such as Facebook posts, tweets as well as bad Yelp reviews which
takes a short span to go viral. Certainly, such statements are likely to last even forever if no

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immediate action is taken by the company. When a business is known for offering
unsatisfying service and products to customers, it can be hard to repair its reputation.
Consequently, the outcome can go past the loss of customers to other business not being
willing to associate with Spicy Hotpot Pty Limited since it is unable to retain its customers.
As a result, over time Spicy Hotpot Pty Limited may find itself out of the market since
investors will also find it difficult to invest in a business with a poor brand name.
Data Analysis Method
In this context, Spicy Hotpot Pty Limited employed a quantitative data analysis
method during the data gathering period. Spicy Hotpot Pty Limited used a quantitative
method since it is a simple approach that helps to determine the connection between two
variables in a business that is the independent variable and dependent variable. The
quantitative method mainly focused on measuring objectives through statistical, and
numerical analysis of data using surveys, questionnaires, and polls. Accordingly, Spicy
Hotpot Pty Limited used the quantitative methodology in collecting numerical data about
customer complaints concerning its service delivery. The reason for using quantitative
research, particularly by the use of online email surveys and customer feedback surveys is
because it is cost-effective and not time-consuming.
Graphical Representation of Spicy Hotpot Pty Limited Customer
Complains
Category Number of
Complaints
Staff 94
Product 52
External Service
Provider
35
Total 181

5
Staff
52%
Product
29%
External Service
Provider
19%
Number of Complaints
Staff
Product
External Service Provider
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
      
      
      

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How Spicy Hotpot Pty Limited will monitor its Customer
Satisfaction
Spicy Hotpot Pty Limited will have to employ two methods when it comes to
measuring its customer satisfaction that is by use of direct methods and indirect methods. 1
Direct methods: In this sense, Spicy Hotpot Pty Limited will have to directly contact
its customers to enable its get customer’s feedback about its products and way of service
delivery. Certainly, the direct method can involve various approached as follows:
 In-house call centers, direct marketing, and complaint handling department beings
treated as the initial point of contact for receiving customer complaint. The feedback
will then be compiled to analyze the perception of its clients.
 Collecting customer feedback using third-party agencies.
 Getting customer feedback through physical interaction through conversations and
holding meetings.
 Direct customer feedback using questionnaires and surveys.
 Getting customer feedback through appreciation or complaint letter.
On the other hand, Spicy Hotpot Pty Limited will also employ the indirect methods to get
feedback about its customer satisfaction using the following approaches:
Customer loyalty: This is a primary necessity for Spicy Hotpot Pty Limited to interact
and communicate with its consumers on a constant basis so that to heighten its customer
loyalty. 2 Through interaction and communication, Spicy Hotpot Pty Limited will be in a
1 Eichorn, Frank L. "Internal customer relationship management (IntCRM) a framework for achieving customer
relationship management from the inside out." Management 2 (2018): 1.
2 Ali, Faizan, Woo Gon Kim, Jun Li, and Hyeon-Mo Jeon. "Make it delightful: Customers' experience, satisfaction
and loyalty in Malaysian theme parks." Journal of destination marketing & management (2016).

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better position to learn and determine all its distinct customer wants and needs and be able to
respond accordingly.
Customer complaints: Customers’ problems and issues are supposed to be reported
to the company regarding a particular product or related service. Therefore, Spicy Hotpot Pty
Limited should categorize its complaints under different groups by the severity and
department. In doing so, Spicy Hotpot Pty Limited will be in a good position to identify the
complaints from each segment and be in a better position to act accordingly. Thus, this will
help to put its staff on toes, 3 which in the long run will result in reduced complaints from
customers regarding its product and service delivery.
How Spicy Hotpot Pty Limited will Store Information for Future
Reference
The best way for Spicy Hotpot Pty Limited to store its customer complaints
information is through the use of an electronic spreadsheet and then storing it on a computer
hard disk which is the simplest. Nevertheless, the best and most detailed information should
be stored using a customer relationship manager (CRM) database. 4 A CRM will be more
effective since it will play a big role in helping Spicy Hotpot Pty Limited in analyzing its
customer information to identifying its customer’s buying trends and identification of its best
3 Hill, Nigel, and Jim Alexander. The handbook of customer satisfaction and loyalty measurement. Routledge,
2017.
4 "Collecting And Storing Customer Information | Business Queensland".
2018. Business.Qld.Gov.Au.
https://www.business.qld.gov.au/running-business/consumer-laws/customer-service/
customer-information.

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customers. Nonetheless, because of future reference, it will be better if the same information
can be stored in the clouds for back up reasons.
How will Spicy Hotpot Pty Limited store its Data Securely to
protect its Intellectual Property?
Spicy Hotpot Pty Limited is supposed to store its customer information in the most
careful way that is in accordance to with the privacy laws. Indeed to be able to attain this, the
company should first let its employees aware of the confidentiality of customer information.
After then it can create a plan on how customer information shall be stored to avoid
breaching of customer’s confidentiality.
Policies and Procedures that Spicy Hotpot Pty Limited need to
update to realize its Research Findings
Spicy Hotpot Pty Limited should first of all train its employee to learn to act as if the
business is their own. Engaged workforce always arrives early and stay late while disengaged
employee target to do less as much as they can for the most money. Therefore, the company
should teach its employees to become engaged by showing them a new way of thinking so
that they can view themselves as self-employed and work hard to make the business to
succeed. Similarly, the best policy is being honest by owing the past mistakes. The company
should then communicate the plan that it intends to undertake to change or prevent a similar
mistake from recurring. 5 Moreover, the company should foster respect whereby all people
within the company should show love to customers because, without them, there will be no
business.
5 Lyon, Barb. 2018. "How to Ensure Strong Customer Service and Customer Satisfaction". Managementhelp.Org.
https://managementhelp.org/customers/service.htm.

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10
Bibliography
"Collecting And Storing Customer Information | Business Queensland."
2018. Business.Qld.Gov.Au.
https://www.business.qld.gov.au/running-business/consumer-laws/customer-service/
customer-information.
Ali, Faizan, Woo Gon Kim, Jun Li, and Hyeon-Mo Jeon. "Make it delightful: Customers'
experience, satisfaction, and loyalty in Malaysian theme parks." Journal of
destination marketing & management (2016).
Eichorn, Frank L. "Internal customer relationship management (IntCRM) a framework for
achieving customer relationship management from the inside out." Management 2
(2018): 1.
Hill, Nigel, and Jim Alexander. The handbook of customer satisfaction and loyalty
measurement. Routledge, 2017.
Lyon, Barb. 2018. "How to Ensure Strong Customer Service and Customer
Satisfaction." Managementhelp.Org.
https://managementhelp.org/customers/service.htm.