How to Manage a Claim Against Your Business (Without Damaging Your Brand)

entrepreneur-593358_1920The world of business has its perks. One has to overcome numerous challenges in the quest to attract, service and retain clients. In the course of these business interactions, clients get to know more about your business and its goods and services.

The enterprise also gains lots of information on their customers. Keep in mind that your business has a reputation and brand to maintain. Any negative depiction of your firm in the media or public domain carries dire consequences. An injury to your brand means loss of clients and business at large.

It all starts with customer complaints. Shrewd managers know they can use customer complaints as a stepping stone to improving the customer service and experience. Statistics at companies such as White Shark Media show that companies get way better reviews after improving customer service after receiving several complaints.

While most of the risks to your brand are external, there are internal factors that may bring your business to its knees. In this case, these claims result in crisis situations that need specialized skill sets to navigate. In international and multinational firms, the stakes are too high necessitating the services of a crisis and online reputation manager. Internal claims may come stakeholders such as employees, management figures, the board or clients.

In extreme cases, a business may find itself involved in a legal battle either as the aggressor or the victim. Legal battles constitute a long process, and most of the proceedings attract media attention. Of course, you never want to wash your dirty linen in the public domain. Therefore, it’s always advisable to reconcile with the other party. Your public relations manager can take care of the settlement without having to seek the services of a court of law.

Sometimes a client may receive bad service or a faulty product. It’s important for your firm to react in a timely and honest manner to such allegations. If the claim goes public, a public statement on the subject provides accurate feedback and takes away the power of the rumour mill.

It is much easier to deal with claims from your employees and other internal stakeholders. There must be a code of conduct enforced at the workplace. This code dictates the organizational code of conduct in every given situation. Therefore, there must be an office for handling staff claims that in most cases involve injury, compensation, welfare, and health. Your business needs to look after its staff and provide comprehensive insurance packages.

Lastly, a corporate enterprise must always comply with the laws and statutes that govern its sector. That explains the presence of legally mandated regulatory bodies to ensure compliance. You don’t want your clients and other stakeholders learning of the listing of the company on a list of rogue operators.

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