Why is it important to treat customers fairly?
The Financial Conduct Authorityâ€™s (FCA) Treating Customers Fairly (TCF) initiative states that companies mustÂ â€œput the well-being of customers at the heart of how they run their business.â€
The importance of treating customers fairly may seem obvious â€“ customer feedback is fundamental to a companyâ€™s reputation, be it positive or negative.
But as the FCA points out, customer satisfaction cannot be seen to be entirely indicative of fairness, as noted in its â€˜Treating customers fairly â€“ guide to management informationâ€™ which states that â€œcustomers can be satisfied with unfair treatment yet dissatisfied with fair treatment.â€Any two customers could receive the exact same service but deliver contrasting reviews.
One of the factors set out by the TCF policy is that a customer understands what fair treatment is, in relation to their consumer needs and expectation of a service. With this in mind, a companyâ€™s acknowledgement of the policy and demonstration of how their services adhere to this is imperative.
It is not just an individual company or organisation that can benefit from the effects of following the guidelines of TCF, good practice in this area benefits the industry as a whole. Consumer trust in a sector can be influenced by whether or not a company treats its customers fairly. Â Raising and maintaining the standard of service across the board will instil confidence in consumers in general.
Compliance with legislation will inevitably result in the number of complaints across an industry being significantly reduced, which in turn leads to less scrutiny on sectors by regulatory bodies. Complaints that do arise should be dealt with in the correct manner, in line with the TCF policy.