Sorry couldn't resist it But now I have your attention, ADR is an important subject that affects all business owners.
According to research from the Ombudsman Services, complaints from Scottish consumers has dramatically increased over the last 12 months.
- 5.1 million customer complaints in Scotland in 2015 – up from 3.7 million in 2014
- More than half (56%) of people in Scotland had an issue with a product or service at least once during the year – that’s 2.3 million people affected
- There was the equivalent of 2.75 issues per Scot in 2015, although only half of these were acted on, higher than the UK average of 2.44
- The most common sectors for complaints in Scotland in 2015 were Retail, Energy and Telecoms
Source: CONSUMER ACTION REPORT – SCOTLAND
Well at least it shows the UK as a whole is good at one thing, and that's complaining!
But it also shows that as business owners, there is no where to hide when it comes to customer service and ensuring you look after your customers.
Be prepared for when things do inevitably go wrong. If a customer has a dispute which you are struggling to resolve or they are unhappy with your decision, do you have an Alternative Dispute Resolution (ADR) policy in place?
If you are a member of a Trade Association or professional body, then the chances are they will have an ADR process you can utilise, or will use an independent organisation such as the Ombudsman Services.
There is now also the the European based online dispute resolution platform, which is available for consumers and traders.
ADR is a great idea and offers protection for both consumer and trader when an impasse has been reached or communication has broken down, allowing for agreement or settlement without going to court.
ADR Regulations
There has been some confusion with the introduction of the Consumer Rights Act 2015, particularly around ADR.
As per the regulations from the Chartered Trading Standards Institute:
The Regulations do not make use of ADR mandatory for traders although where sector specific requirements already exist for traders to use ADR (such as financial services, energy and communications) these requirements will remain.
However, from 01 October 2015 all traders selling to consumers, whether or not they intend to use ADR, will need to:
a. Give the consumer details of a certified ADR provider AND
b. Inform the consumer about whether they intend to use that provider
You can read the full ADR guidance notes from Trading Standards here:
ALTERNATIVE DISPUTE RESOLUTION REGULATIONS 2015
Citizens Advice also has a good page explaining about ADR:
Using alternative dispute resolution - Citizens Advice
So do you utilise an ADR process, or have you had need to get a third party to adjudicate between you and a customer?
Any success or horror stories?