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Analysis: Staff training can help companies leverage the CPA

23 June 2011

Three years ago, Joe of Sandton was unhappy when the warranty on his car failed to cover an expensive repair due to faulty workmanship carried out before he bought the car.

The garage refused to cover the cost of the repairs. The finance company that provided his loan would not help either.

So all the advice pointed one way – he should take the garage to court for the cost of the repair. But because his claim was more than could be covered by the small claims court or consumer council, his case could not be entertained.

Therefore he would need a lawyer. If he lost, he would have to pay the other side’s expenses, including travel to court and expert witness fees.

If Joe won, his legal costs would be refunded and the garage would have to pay his expenses, loss of earnings and the witness fees as well.


Customer protection

Now thanks to the Consumer Protection Act (CPA), Joe has the right to expect goods and services to be safe and honestly sold to him.

He should also be able to claim compensation if those goods or services that are not up to standard.

The CPA is here. Customers and business owners need to know their rights. The act is a Bill of Rights for consumers, a form of compliance code for business and an improved tool for the enforcement of rights. Although these rights have existed in the past, they have never been properly enforced due to limited redress and weak enforcement capacity. In effect it is a codification of the common law.

It sets out the minimum requirements to ensure adequate consumer protection. It constitutes an overarching framework for consumer protection. All other laws that provide for consumer protection (usually within a particular sector) must be read with the CPA to ensure a common standard of protection.

Joe would benefit from Section 61 of the act. It provides that consumers are entitled to receive goods that will be usable and durable for a reasonable period of time and that are free of any product failure, defect or hazard that would render the utility, practicability or safety of the goods to be less than persons are generally entitled to expect, regardless as to whether a product failure, defect or hazard is patent or latent.


Eight world rights

South Africa is not the only country to promulgate such legislation. In 1962, US President John F Kennedy enacted consumer rights legislation and 23 years later the UN endorsed what is known as the Eight World Rights. The eight are: satisfaction of basic needs (adequate food, clothing, shelter, healthcare, education and sanitation), safety, information (including protection against dishonest or misleading advertising and labelling), choice, representation, redress (fair settlement of just claims against those who mislead or provide shoddy goods or unsatisfactory services), consumer education and a healthy and sustainable environment.

The UN guidelines for consumer protection were broadened in 1999, requiring that governments develop and maintain strict consumer protection policy and protect consumers from contractual abuses such as one-sided contracts and unconscionable conditions of credit.



Training

After the enactment of the CPA legislation two months ago, what is required now is the training of everyone who deals with customers on the ins and outs of the CPA and customer relations management.

For businesses to be in a position to take advantage of, and power future growth in, the opportunities provided by the CPA they must invest wisely in human capital.

Businesses must maximise and focus their training and development resources on customer-facing employees because these impact on the strength of customer relationships.

There are many reasons why supervisors should consider investing in training.

These include increased job satisfaction and morale among employees, increased employee motivation, increased efficiencies in processes resulting in financial gain, increased capacity to adopt new technologies and methods, increased innovation in strategies and products, reduced employee turnover and

an enhanced company image.



Customer abuse

In some cases, the training is put off by abuse from customers. On a daily basis, some customers think they can swear, be aggressive and threatening. Some customers seem to assume, wrongly, that because someone works behind a counter they are stupid and a target for rudeness and arrogance.

True, the majority of customers are nice people who are a pleasure to talk to but there’s a significant minority who are very unpleasant and ignorant.

The old adage “the customer is always right” sometimes encourages people to be rude and abusive. Indeed, enraged customers are an international phenomenon.

While it is justifiable to protect the rights of consumers, they should also protect the rights of sales staff.

In my experience, the abuse of power always begins with small things: using power to be right by decreeing that others are wrong, regardless of the facts; using might to make right; using power to arrange things for one’s own convenience rather than the good of the company; and, lastly, using power to punish or prevent criticism.

These behaviours are the doorway people have to go through before they can use their power to damage their company, their co-workers, their customers or their community.

Sales staff and business owners staff are just as deserving of fair treatment as customers. No staffer is obliged to endure abuse at the hands of a customer – they should just politely disengage, and know that they have the support of their superiors.

Complaints can be dealt with by focusing on the problems rather than by attacking people.

Consumers who respect this practice will always enjoy the best outcome.

Call centre workers say people are far quicker to get upset over small issues than they were a few years ago. Some tend to show bullying behaviour, and this is totally unacceptable. Even if one’s complaint is justified, there’s no need to scream, swear or resort to racist or personal attacks.

You’ve got far more chance of getting treated fairly if you’re assertive but calm.

That is why staff and business owners need to be trained on how to keep cool in angry times.

They should be taught on how to show emotional leadership in response to a livid customer – or to keep calm in the face of abuse.

My advice to sales staff is: acknowledge the customer’s emotions, listen with warmth and empathy, and apologise, even though you didn’t create the problem.

Personal responsibility

Lastly, as with any legislation and its potential for success, the cornerstone of the CPA will always be personal responsibility. Through enhanced choice and a robust free market, we believe that well-informed consumers will always be the best judges.

Let’s protect consumers from force and fraud, let’s empower them with effective and factual disclosure and let’s give our customers opportunities to enjoy the benefits of product innovations.

Legislation, no matter how well-intended, cannot be a complete substitute for personal responsibility.

Liza van Wyk is CEO of skills and development companies, AstroTech and BizTech. www.astrotech.co.za and www.biztech.co.za

Source:

thenewage.co.za.- Our Cities need to be well run