Customer Satisfaction Code of Conduct

Author - K. R. Singhal

You as a customer ordered a packed lunch to a hotel to be delivered at your office, but you did not receive the ordered lunch in time and it was delayed by 30 minutes resulting dissatisfaction to you. When you travel by train, your train arrives at the destination 2 hours’ late resulting loss of time as well as loss of engagements. You could not appear an interview only because you could not reach in time as the bus delayed by which you travelled. There are many such cases where organizations have significant challenge towards customer satisfaction.

Now thanks to International Organization for standardization that has issued following International Standards in 2007:
ISO 10001:2007 – Quality Management – Customer Satisfaction – Guidelines for codes of conduct for organizations
ISO 10003:2007 – Quality management – Customer satisfaction – Guidelines for dispute resolution external to organizations

In the year 2004, International Organization for Standardization published international standard ISO 10002:2004 – Quality management – Customer satisfaction – Guidelines for complaints handling in organizations.

Objective of this paper is to provide awareness on ISO 10001:2007 Standard. There is significant challenge for organizations to maintain a high level of customer satisfaction. Using a customer satisfaction code of conduct is one way meeting this challenge.

What is a customer satisfaction code of conduct? A customer satisfaction code of conduct consists of promises and related provisions, and these promises and provisions address issues, such as:
product delivery
product return
handling of personal information of customers
advertising
stipulations concerning particular attributes of a product, or
product performance

Example: Courier Company’s code of conduct – If sent article is not delivered within 48 hours to the addressee, the courier charges will be refunded to the customer, who booked the article.

A customer satisfaction code of conduct is a part of an effective approach to complaints management.

ISO 10001:2007 Standard provides guidance to organizations for planning, designing, developing, implementing, maintaining and improving customer satisfaction codes of conduct. This standard is compatible with ISO 9001 and ISO 9004 QMS Standards; however this standard can be used independently of ISO 9001 and ISO 9004.
Quick Journey to ISO 10001:2007

0.1 – General
0.2 – Relationship with ISO 9001 and ISO 9004
0.3 – Relationship with ISO 10002 and ISO 10003
0.4 – Statements regarding conformity

1 – Scope
2 – Normative references
3 – Terms and definitions
4 – Guiding principles
5 – Code framework
6 – Planning, design and development
7 – Implementation
8 – Maintenance and improvement

Guiding principles

Eight customer-focused guiding principles have been stated in the Standard. These can be represented by ‘3A 3C V R’ (A-A-A-C-C-C-V-R) – Accessibility, Accuracy, Accountability, Commitment, Capacity, Continual improvement, Visibility and Responsiveness.

Code framework

Code is defined as promises, made to the customer by an organization concerning its behavior, that are aimed at enhanced customer satisfaction and related provisions. A code should be supported by an organizational framework for decision-making and action to use. The code framework should be based on management systems (such as QMS, EMS or any other) of the organization and should be integrated with such management systems.

Planning, design and development

Following key activities are included in the planning, design and development of a code:
Determine code objectives
Gather and assess information related to code, such as, issues to deal with, how such issues arise, how such issues could be dealt with, how other organizations dealing such issues, statutory and regulatory requirements associated etc.
Obtain and assess input from relevant interested parties (such as customers, suppliers, industry associations, consumer organizations, relevant government agencies, personnel, owners) concerning code content and its use.
Prepare code based on the information and input collected. The code should be clear, concise, accurate and not misleading. The code should be in simple language. The code should include its scope, its purpose (appropriate to the organization and its customers), the promises made (and also limitations), definitions of key terms used, enquiry and complaint procedure and description of action taken if promises are not fulfilled. In preparing the code, ensure that the code can be effectively implemented. The provisions of the code should be in line with applicable statutory and regulatory requirements.
Prepare quantitative or qualitative performance indicators.
Prepare code procedures for implementation, maintenance and improvement. The procedure should also include the enquiries and complaints processes.
Prepare internal and external communication plan to make code and its supporting information available.
Determine resources needed

Implementation

Implementation activities should be managed as per plan in a timely manner. Apply relevant procedures, internal and external communication plans, provide appropriate remedies to customers and take necessary actions at appropriate levels within the organization. Keep record for resources usage in code application, training and instructions regarding the code received by the personnel, application of internal and external communication plans, handling of enquiries and complaints about the code, and remedial actions undertaken.

Maintenance and improvement

Following activities are included in maintenance and improvement of a code:
Collect information (including information, input and records mentioned in clause 6 and 7 of the Standard) needed for evaluation of code performance regularly and systematically
Evaluate (including verify and analyze) the performance of code regularly and systematically. Classify and analyze enquiries and complaints about the code or its use – this will help in eliminating the causes of complaints about the code.
Take regular and systematic action to determine customer satisfaction with the code and its use.
Review the code and its framework regularly and systematically – the purpose is to maintain suitability, adequacy, effectiveness and efficiency of the code, to address significant instances when code promises not fulfilled, to assess the need and opportunities for improvement, and to provide for related decisions and actions.
Continually improve (using preventive and corrective actions and innovative improvements) the code and code framework. Take action to eliminate the underlying causes of existing and potential problems leading to complaints.

Annex A of the Standard provides simplifies examples of components of codes for different organizations.

Annex B of the Standard provides inter-relationship of ISO 10001, ISO 10002 and ISO 10003 standards.

Annex C of the Standard provides guidance to small businesses.

Annex D of the Standard provides guidance on accessibility.

Annex E of the Standard provides guidance on input from interested parties.

Annex F of the Standard illustrates the organizational framework for decision-making and action to use in code planning, design, development, implementation, maintenance and improvement.

Annex G of the Standard provides guidance on adopting a code provided by another organization.

Annex H of the Standard provides guidance on preparing the code.

Annex I of the Standard provides guidance on preparing communication plans

ISO 10001:2007 standard can be obtained from the Central Secretariat of the ISO (www.iso.org) or from the national standards institute (Bureau of Indian Standards in India).

This article is for awareness purpose. Readers are advised to consult the Standard document published by the ISO.

We invite nominations for awareness seminar on “Customer Satisfaction Code of Conduct for Organizations”. Interested organizations / persons may send the nomination to ncqmajmer@gmail.com.