How Can You Best Deal With Customer Disputes?

The Federation of Small Businesses published a report (Tied Up 2016) recently exploring the cost of disputes to UK small businesses.

Posted by Joseph Mulrooney

Joseph Mulrooney is a panel member of Mediatelegal. Mediatelegal is a panel of expert mediators, accredited to deal with civil disputes, commercial disputes, and workplace disputes. Established in 2016, and based in Liverpool, we offer a national service but aim to make Merseyside a leading region in the use of mediation. www.mediatelegal.co.uk

  • T: 0151 363 3972
  • E: help@mediatelegal.co.uk
Thu 23rd, Feb

The Federation of Small Businesses published a report (Tied Up 2016) recently exploring the cost of disputes to UK small businesses. In the report the FSB recognises the important role of mediation in reducing the impact of disputes.

The report finds that disputes cost smaller firms in England and Wales a staggering £11.6 billion each year. The report found that there were at least 3.4 million commercial disputes involving small businesses in England and Wales between 2010 – 2015, and 70% of small businesses had at least 1 commercial dispute between 2010-2015, with the average disputed amount equalling £18,000.00.

72% of commercial disputes for smaller businesses relate to late or non-payment of fees – this amounts to 2.4 million smaller businesses experiencing such a dispute.  The report also found that the most commonly reported source of a dispute was the customer or client (57%). Suppliers were the second most common source at 21%. Interestingly, disputes with competitors or internal disputes accounted for just 2% each.

Why does all of the above matter? Smaller businesses don’t often have the capacity or resources to deal with disputes. The impact can be devastating and might include key commercial relationships being lost, cash flow difficulties, or insolvency.

How can you best deal with customer disputes?

The best way to avoid a dispute with a customer is to agree exactly what it is the customer wants from you in advance, to then provide detailed information on how you will meet those needs, and to then deliver that service.

  1. Agree customer expectations
  2. Provide detailed instructions on how you will deliver on those expectations
  3. A clear and concise contract, signed by the customer.
  4. Provide your service in keeping with 1-3 above

As anyone in business will know though, you can never 100% remove all possibility of a customer dispute. People are people, information can be misinterpreted, and emotions can’t be written down in a contact. Disputes will happen despite your best efforts, but if you follow the above advice you should see your business benefit from more satisfied customers and less angry emails, telephone calls, or social media reviews.

What Else Can Be Done?

Let’s be clear, if a customer submits a complaint or brings a dispute against your company, the absolute worst thing you can do is to ignore it. It is unlikely to go away and the customer will not only be unhappy with the initial service, but will also have a valid complaint about the way in which the original complaint has been handled. All of a sudden you will be dealing with two issues rather than one.

What you should do is engage with the customer, discover the cause of their dissatisfaction, compare it with points 1-4 above, and provide a reasoned response, in writing wherever possible. The customer might not agree with your conclusion, but you have given them the opportunity to explain their position, and explained yours in turn.

Of course, a customer might continue with their dispute. Depending on your sector this might involve a complaint to a governing body – an Ombudsman for example. If this happens, and you have followed our advice above, you should have a good audit trail to support your case.

If there is no governing body, or if the customer chooses to ignore this route, you might find yourself receiving a letter of claim from a solicitor, perhaps alleging professional negligence. At this point it is essential that you don’t ignore the dispute. If you do, you could find yourself in court with no legal advice, or receiving a County Court Judgment against you/your company. Seek legal advice straightaway!

Free Mediation Clause

At Mediatelegal we offer businesses a free clause. This can be inserted into your company’s customer contract, and requires the customer to agree to attend mediation before they can commence court proceedings against you.

Returning to the above scenario where you have received a solicitor’s letter; you can respond by notifying the solicitor of this clause and advising that you want to use mediation to try to resolve the dispute without going to court.

What Is Mediation & Why Should You Use It?

Mediation is a form of Alternative Dispute Resolution (ADR). It is an informal way to resolve disputes quickly, confidentially, and inexpensively.  As the FSB report states, “many businesses see it as offering a value-for-money way of resolving disputes’.

Unlike court, mediation won’t see a verdict imposed on you by a judge, instead you and the customer are encouraged to communicate and work together to find an agreeable solution to the dispute. The mediator uses his/her skills to help you both with this process. For more information on the mediation process visit our website.

According to the CEDR 2016 Mediation Audit, 86% of disputes are resolved by mediation either on the day of the mediation or shortly afterwards.

A further benefit of using mediation to resolve disputes is that it can restore relationships which were previously damaged. Because both sides work together to discuss the dispute and also the solution, they are both being heard by one another and working together.

A recent report by the World Bank (Doing Business 2017) found that in the UK it takes 437 days from starting a case in court to enforcing a judgment at the conclusion. That’s a long time for a company to have to deal with a legal dispute – it will be expensive, time consuming, and very stressful. The report also found that legal fees will likely amount to almost 44% of the value of the dispute.

Let’s have a quick look at an example:

Earlier we told you that the average dispute value for small businesses in the UK was £18,000.00. Using the World Bank data, not only would it cost roughly £7920.00 in legal fees per party, but it would also take up to 437 days for a legal dispute to be taken through the courts.

To resolve the dispute using mediation would take up to 1 day. The mediation fee would be just £500.00 per party. 

What Next?

Hopefully this article has made interesting reading for you; maybe it’s even been useful for your business? If it has, please share it with your contacts – i would hope they will appreciate it.

If you would like more information regarding mediation or would like to discuss using our free mediation clause please feel free to get in touch either via our website at www.mediatelegal.co.uk.

—————————

Joseph Mulrooney is a panel member of Mediatelegal.

Mediatelegal is a panel of expert mediators, accredited to deal with civil disputes, commercial disputes, and workplace disputes. Established in 2016, and based in Liverpool, we offer a national service but aim to make Merseyside a leading region in the use of mediation.

If you would like more information regarding mediation or would like to discuss using our free mediation clause please feel free to get in touch via our website.

Read More
Leave a comment

Comments...

Posted by pengertian stroke

Pengertian Stroke-, Bagi anda yang terserang penyakit stroke ada baiknya anda mengetahui terlebih dahulu tentang Pengertian Stroke, sebagian besar orang mungkin telah mengetahui Pengertian Stroke, tetapi kami disini ingin menjelaskan lebih rinci tentang Pengertian Stroke. inilah beberapa Pengertian Stroke yang harus anda ketahui, Pengertian Stroke adalah kondisi dimana pasokan darah terputus akibat terjadinya penyumbatan atau pecahnya pembuluh darah, sehingga terjadi kematian sel-sel yang ada didalam otak. Pengertian Stroke lainnya yakni penyakit yang terjadi akibat penyumbatan darah atau pecahnya pembuluh darah sehigga mengakibatkan bagian otak tertentu berkurang bahkan berhenti suplai oksigennya. Pengertian Stroke lainnya yaitu suatu keadaan rusaknya sebagian dari otak, terjadi jika pembuluh darah arteri yang mengalirkan darah ke otak tersumbat atau robek maupun bocor. Berbagai Pengertian Stroke diatas menjadikan stroke salah satu penyakit yang harus diperhatikan oleh penderita karena dapat berakibat fatal jika dibiarkan.  Pengertian Stroke ini salah satu petunjuk bagi penderita untuk memutuskan penyembuhan penyakit stroke. Mengapa demikian ? Karena, dengan mengetahui Pengertian Stroke, penderita dapat memutuskan untuk mengobati penyakit stroke dengan cara kedokteran atau dengan cara tradisional. Jika anda ataupun kerabat anda terserang oleh penyakit stroke, Pengertian Stroke ini sangat penting untuk digali informasinya. Sekian Pengertian Stroke yang bisa kami sampaikan, semoga Pengertian Stroke diatas bermanfaat bagi anda yang sedang terserang penyakit stroke.

Posted by EVA HE

rs of college, the most happy years, but he chose to pay, chose to be selfless, every night I do not know tired of hard training, eighteen years old, published poetry 'border guards', 'Zhang Yang Youth ',' the messenger of the soul 'and so on more than thirty; prose' youth on the road you, not alone ',' love, thank you 'and so on. Become a well-known poet, he is good at doing ideological work, good at speech, the university along the way, he fruitful. At the age of eighteen in November, he was introduced by the teacher to enter the work of the City Association, the work of the road, he used innocent text for their own and its unit won a number of honors, in September, special newspaper into the work (civil servants ), He worked hard in the workplace, loved by the leadership and his colleagues, in 2009 appointed to edit the three groups leader, 2010 for love, to give up their beloved career, leave the newspaper, 2012 because of love, he has nothing , Lost the cause and its love. In 2012, he used his own Air Jordan 12 hands for his second venture to do the final fight, life once again into a fall, nothing so that he learned to not yield, learn a strong. He is not someone else, he is me, a man will not yield to dignified. The so-called pain let me understand the so-called reality, this is me, the young heart will not bow because of ups and downs, as long as alive, as long as there is a breath, I will start with the entrepreneurial in the end. We can cry, leave silent tears, we can talk, talk to us Cheap Nike Shoes For Men the pain of unknown, we can speechless, all the people bear, but we can not choose to abandon, can not fall on the starting line, with fragile face It does not matter. Life for each of us will not be calm, smooth sailing. Mentality determines our ideas, ideas determine the pace of our forward. Treat people and things depends on the attitude of the key, thanks to the cause of the success of the cause, the mentality is the cause of long-term protection. The vicissitudes of life will not give us mercy, ruthless will not give us sympathy, the sea will not give us a smooth sailing, heaven will not give us good weather, the reality will not give us the so-called heart of things. All this is their own change in their own experience in the choice of strong. Willow Yiyi, not the spring breeze awakened his soul, but he was glorious in the strong bloom, flowers for him in full bloom. The meaning of life is not that we take a good hand, but lay a good hand. We are not rich second generation, our father is not a millionaire, they are born in the mountains, longer than the mountains, facing the loess back overturned, creating a spark of life. Put away their own fragile, strong live out of their own. Lights are dim, who is writing for you, busy, who is waiting for you, my pen is not a wonderful pen flower, my pen is not spring. I was quietly waiting, quietly waiting for you in full bloom when the flowers shine. Three years ago this sentence I will not forget that you use life for my presence today, I will use this life to achieve your wishes, the next year flowers in full bloom, is for you bloom. Dance is the youth, publicity is the personality, you quietly left the moment, I use tears for you practice. Life on the road, I grew up, know the meaning of existence. In the text of the ocean drift, I found the real oneself, the word between the lines of floating among my wine love, once geometric, I am crazy in the text, had geometry, drunk half bell, I knocked out his life. Confused life Nike Air Max Kids Shoes lost me. Dark night, sleeping face hold up a heart not abandoned. I used to sleep sleepless nights, I used to accompany the night, wine drunk slightly drunk, half of the bell is not a beautiful scenery. On the young road, a bit more naive, a little le

Posted by check cashing lemon-grove

Wonderful content! Regards just for revealing content. Most probably this approach content comes with really helped others rescue many hours about shopping other sorts of matching reports simply look for the things Document wanted. At this time follow here check cashing lemon-grove Thanks.

Post a comment