How to Build Complaint Handling Procedures for your Startup
- Rachel. M
- Sep 18
- 6 min read
Updated: 4 days ago
A Complaint Is a Gift — If You Treat It Like One
Complaints aren’t interruptions; they’re unfiltered truth about where your promise breaks. Handle them with clarity and care, and they become loyalty engines.
A Brisbane meal-prep startup was losing customers quietly. No angry emails—just cancellations. After an audit, we added a strategy for onboarding and installed a loop for handling complaints: follow up call with all new customers, acknowledge complaints within 24 hours of receiving, apologise, fix with a clear remedy, follow up to confirm satisfaction, and log the root cause. In eight weeks, refunds fell 18%, repeat orders rose 22%, and reviews shifted from defensive to grateful.
Most founders fear complaints. The best ones mine them. Every complaint is a free audit, a second chance, and an invitation to prove you’re trustworthy when it matters most.
What Is a Complaint Handling Procedure?
A complaint handling procedure provides the team in your business with a clear, repeatable strategies to receive, resolve, and learn from customer complaints.
Here’s what this includes:
Intake channels (email, phone, form, chat, social)
Acknowledgement & timelines (SLA targets)
Investigation & resolution (what you check and who decides)
Remedies (repair, replace, refund—aligned to Australian Consumer Law)
Escalation paths (manager → specialist → external)
Recording & reporting (log, categorise, trend)
Feedback loop (fix the root cause)
Each of these protects trust and margin—but only if you write them down, train the team, and track outcomes.
Why It Matters?
Trust beats friction
A fast, fair process turns frustration into loyalty. Customers don’t expect perfection; they expect ownership.
Protects you under Australian Consumer Law
Complaints often involve refunds, repairs, or replacements. A compliant process prevents “no refunds” missteps and avoids ACCC attention.
Reduces repeat problems (and costs)
Logged and categorised complaints expose weak points. Fix those and tickets fall, margins rise.
Drives reviews and referrals
Handled well, a complaint becomes your strongest marketing. “They actually listened—and fixed it” is rare enough to share.
What You’ll Need Before You Start
Business details (ABN, legal name, support contact hours in AEST/AEDT)
Channels you’ll monitor (email, phone, chat, social, web form)
SLA targets (acknowledge in X hours; resolve in Y days)
Remedy rules aligned to Australian Consumer Law (repair/replace/refund for major failures)
Escalation matrix (who decides what; manager on-call)
Templates (acknowledgement, apology, remedy confirmation, follow-up, ombudsman referral)
Logging system (helpdesk/CRM or spreadsheet with categories and cause codes)
How to Build Complaint Handling Procedures:
Step-by-Step
Step 1: Define “What Counts as a Complaint”
Write a one-sentence definition your team can repeat:“Any expression of dissatisfaction about our product/service where a response is expected or required.”
List included channels: email, phone, live chat, social DMs, public reviews, contact forms, in-person.
Add a simple decision tree in your SOP: Enquiry → Feedback → Complaint → Priority Complaint (safety/privacy/payment failure).
Add two examples of each so staff can classify quickly.
Publish the definition in your Support SOP and onboarding docs.
Step 2: Set SLAs (and Publish Them)
Choose business hours (e.g., Mon–Fri, 9:00–17:00 AEST/AEDT).
Set first-response targets (e.g., Email 24h, Chat 2–5 min, Phone 3–5 rings).
Set resolution targets by severity:
Critical: 4–24h
High: 2 business days
Medium: 3–5 business days
Low: 5–7 business days
Write a short public statement for your Support page outlining these targets.
Add an after-hours auto-reply that sets expectations and points to FAQs/self-serve.
Step 3: Centralise Intake & Logging
Pick one system: helpdesk (e.g., Help Scout/Freshdesk/Zendesk) or a shared inbox + form (basic).
Route every channel into that system (forward support@, connect chat, pipe web forms, assign social DMs).
Create a standard intake form with fields: source, customer, order #, category, severity, description, attachments, requested remedy.
Add status states: New → Acknowledged → Investigating → Waiting on Customer → Resolved → Closed.
Turn on case numbers and timestamps automatically.
Step 4: Acknowledge Like a Human
Reply within the SLA with: thanks, brief apology, what happens next, when you’ll update, and a case #.
Example:“Thanks for contacting us about [issue], this shouldn’t have happened. I’m looking into it and will update you by [time/day]. Your case number is [#].”
Log the acknowledgement time in your system.
If you need more info, ask for it in the same message with a clear list.
Step 5: Investigate and Decide the Remedy
Collect facts: order logs, screenshots, call notes, product photos, system events.
Classify the issue: product, shipping, billing, technical, service, other.
Check policy and Australian Consumer Law (ACL) obligations (repair/replace/refund for faults).
Choose a remedy: fix, replacement, refund, partial credit, goodwill gesture.
Get any required internal approvals (e.g., refunds over $X) and record the decision.
Step 6: Close the Loop (In Writing)
Send a clear outcome summary: what went wrong (plain English), the remedy, and the timeline.
If refund/credit: amount, method, and expected timeframe to appear.
If a fix/replacement: what’s being done, by whom, and the delivery/booking date.
Include a one-question check: “Did we put this right?” (Yes/No + comments).
Update status to Resolved, and Close once confirmed.
Step 7: Escalate When Needed
Define triggers: safety risk, privacy/data concern, repeated failure, high value (>$X), legal threats.
Map the path: Front-line → Team Lead → Specialist (tech/legal/ops) → Founder.
Set response timeboxes for each level (e.g., lead review within 2 hours for critical).
Record who approved what and when; keep all notes attached to the case.
Step 8: Capture Root Cause & Improve
Select a root-cause code (e.g., wrong SKU, packaging damage, unclear copy, system bug).
Create a corrective action: owner, deadline, and expected fix.
Add the case to a weekly review (top 5 issues, actions, due dates).
Once fixed, update SOP/FAQ/product copy to prevent repeats.
Step 9: Handle Sensitive Cases (Privacy/Safety)
Fast-track privacy or safety issues; mark Priority Complaint.
Follow your privacy/incident playbook: secure data, limit access, document timeline.
If required, prepare for OAIC/other reporting steps per your policy.
Communicate carefully, keep records, and confirm resolution in writing.
Step 10: Ask for (Earned) Advocacy
After the customer confirms they’re satisfied, invite a brief review or testimonial.
Provide direct links (Google, Facebook, industry directory) and a short prompt.
Log the outcome and thank them personally.
Add great resolutions to an internal “wins” board for team morale and training.
What It Costs and How Long It Takes
Here’s what to budget for:
DIY (your time): 6–12 hours to define SLAs, write templates, configure inbox/helpdesk, and train staff. Tools: $0–$50/month (Wix Inbox/forms), $25–$99/month (Help Scout/Freshdesk).
Hiring a Specialist (low time, high clarity):
Option | Cost Range |
CX/Complaints Specialist (freelancer) | $1,500 – $5,000/project |
Consultant (policy + training + review) | $250 – $500/hour |
Agency (CX design + helpdesk build + QA) | $3,000 – $15,000+/month |
Benefits of Hiring (What Noize Helps With)
Write compliant, human templates
Build the helpdesk, automations, tags, and reports
Coach the team on tone, de-escalation, and recovery
Money-Saving Tip: Start with one channel (email or web form), one SLA, and three templates. Add chat/phone later.
Costs can vary, but these figures will give you a reliable starting point.
Common Mistakes Founders Make
“Policy before people.”
Two lines of empathy beat ten lines of legalese. If your first sentence blames the customer, you’ve already lost them.
Ignoring social DMs and reviews
If you sell on social, complaints will arrive there. Treat them like tickets, not “noise.”
No timeframes, no trust
“Soon” is not a timeline. Publish SLAs and meet them—reliably.
Hiding behind “no refunds”
Under the ACL, major failures demand a remedy. Clarity and speed cost less than disputes.
Fixing the ticket, not the system
If you don’t log and trend complaints, you’ll fight the same fire next week.
What to Do Right Now
✅ Need help? Want it done for you? We’ll design your policy, build your helpdesk workflows, train the team, and set up reporting—so complaints become improvements. [Contact the team at Noize.com.au]
✅ Get the full StartUp Deck 200+ plays to operationalise trust—from policies to support to retention. [theStartUpDeck.com]
COMING in 2026...
✅ Download: Complaint Handling Guide/Checklist — Quick-start tool for founders who want faster resolutions and better reviews. [Download from ProDesk.com]
The Bottom Line
Complaints aren’t the enemy—silence is.
When you acknowledge quickly, fix fairly, and learn out loud, you turn critics into customers for life.
FAQs
How fast should I respond to complaints?
Acknowledge within 24 hours and provide a realistic resolution ETA. Faster is better; reliability matters most.
Do I have to offer refunds?
For major failures, the ACL provides for repair, replacement, or refund. For minor issues, choose a fair remedy and explain it clearly.
What channels should I monitor?
At minimum: email and website form. Add chat/phone as you grow, and treat social inboxes as official channels.
How do I handle abusive complaints?
Protect your team with a respectful-communication policy. De-escalate once; if abuse continues, pause the conversation and offer a formal pathway in writing.
What should I track?
Volume, categories, time to acknowledge/resolve, remedy type, repeat rate, and top root causes—review weekly.
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