Making it Right: Driving Customer Advocacy in Remediation

The Australian Securities and Investments Commission’s (ASIC) “Making it Right” field guide is more than just a set of instructions pertaining to remediation; it’s a philosophy with customer advocacy at its core.

Understanding Customer Advocacy

Before delving into the guide, it’s crucial to define “customer advocacy.” In essence, customer advocacy refers to the actions and policies a company takes to prioritise and protect the interests of its customers.

It’s about going beyond mere service delivery to actively championing the needs and rights of customers. This involves listening to their feedback, addressing their concerns proactively, and continually working to improve their experiences.

In a sector like financial services, where trust is paramount, customer advocacy becomes a cornerstone for long-term business success. Customer advocacy must also be a key driver of customer remediation. 

Understanding the “Making it Right” Field Guide

ASIC’s “Making it Right” field guide is a comprehensive resource that outlines best practices in customer remediation. This guide serves as a blueprint for financial service providers to not only address issues when they arise but to proactively work towards preventing them. It underscores the necessity of fostering a culture that prioritises customer advocacy and fairness. 

Key Elements of the “Making it Right” Field Guide

1. Proactive Identification of Issues

• Description: A pivotal aspect of the guide is the emphasis on proactive measures. It encourages firms to regularly review and assess their products and services to identify potential issues before they escalate. This proactive stance not only mitigates risks but also helps in maintaining customer trust and promotes customer advocacy. 
• Example: A financial institution conducts regular audits of its loan approval processes to identify and rectify any unfair practices, ensuring compliance and customer satisfaction. 

2. Transparent Communication 

• Description: Clear and honest communication with affected customers is vital. The guide stresses the importance of keeping customers informed about the remediation process, timelines, and outcomes. This transparency is key to rebuilding trust and demonstrating a commitment to fairness. 
• Example: In the case of a data breach, a company promptly informs affected customers, providing details about the breach, its impacts, and the steps being taken to secure their data and prevent future occurrences. 

3. Customer-Centric Remediation Processes 

• Description: Remediation processes should be designed with the customer’s convenience and understanding in mind. The guide advocates for easy-to-understand, accessible, and hassle-free processes for customers.  
• Example: A credit card issuer, rectifying erroneous charges, sets up a straightforward online form for customers to submit claims and receive timely responses, simplifying the remediation process. 

4. Fair and Timely Redress 

• Description: It is critical to ensure that customers are compensated fairly and without unnecessary delay. The Making it Right guide highlights that efficient systems should be in place for the quick calculation and distribution of redress. 
• Example: An investment firm, recognising an error in fee calculations, promptly recalculates the correct amounts and issues refunds to affected clients, along with an apology for the error. 

5. Robust Governance and Oversight 

• Description: Appropriate governance structures and oversight mechanisms must be put in place to manage and monitor the remediation process and ensure it is effectively meeting its customer and compliance objectives.
• Example: A financial firm engages an independent party to oversee the remediation process, ensuring compliance with regulations and internal policies, and ensuring any issues that arise are addressed promptly.

Benefits for Customers and Businesses

Adopting the principles outlined in the “Making it Right” field guide is beneficial not only for customers but also for businesses. Customers benefit from fair treatment, timely redress, and the assurance that their financial service providers are accountable and transparent. For businesses, adhering to these guidelines helps in maintaining a positive reputation, fostering customer loyalty, and minimising the risk of regulatory penalties. 

CRC’s Role in Driving Customer Advocacy

At CRC, we understand that navigating the complexities of customer remediation can be challenging for businesses. Our expertise lies in providing tailored solutions that align with ASIC’s guidelines and your business needs. We assist in developing and implementing effective remediation strategies that prioritise customer advocacy and compliance. 

How We Can Help

If you’re looking to enhance your customer remediation practices, or if you need guidance on implementing the principles of ASIC’s guide, we’re here to help. Contact us to learn more about how we can support your business in driving customer advocacy through effective remediation.