In a concerning development for the Australian telecommunications industry, many customers facing issues with their telco services are opting not to raise complaints.
According to the latest report by the Telecommunications Industry Ombudsman (TIO) and the Consumer Policy Research Centre (CPRC), nearly half of Australians experiencing telco challenges do not file complaints.
This reluctance is primarily due to a lack of trust in the system and insufficient awareness of the support services available.
So let’s get into why customers are feeling this way, and what can be done to improve the overall experience.
The Reluctance to Complain
The report reveals that 46% of Australians who encountered issues with their telco service in the past year did not lodge a complaint.
Scepticism about the effectiveness of the complaints process primarily drives this lack of action.
Moreover, approximately 40% of those who chose not to complain believe that raising a complaint would not make a difference, reflecting widespread distrust in telco providers’ ability to resolve issues satisfactorily.
Barriers to Effective Resolution
For those who decide to lodge a complaint, the process often leads to frustration.
Many customers find the time and effort required to resolve their issues through telco providers overwhelming.
Only 10% of customers who made a complaint escalated it to the TIO, the independent dispute resolution service.
This low escalation rate is partly due to declining awareness of the TIO and its role in resolving telco disputes.
Declining Awareness of the TIO
Awareness of the TIO has significantly decreased over the past few years. In 2021, 52% of Australians were aware of the TIO, but this figure dropped to 43% in 2023.
Only 9% of respondents could correctly identify the TIO or “Telco Ombudsman” unprompted.
This lack of awareness poses a substantial barrier to effective dispute resolution, as many customers do not know that they have an external avenue for resolving their telco issues.
The Customer Experience
The report highlights that customers who raise complaints are often dissatisfied with the process.
Less than half (42%) of Australians who complained to their telco provider felt satisfied with the resolution process.
Common frustrations include the length of time taken to resolve issues, poor communication, and a lack of transparency.
Notably, satisfaction levels plummet among those with long-running complaints, with only 16% satisfied compared to the general satisfaction rate of 42%.
Lack of Faith and Distrust in Telcos
The pervasive lack of faith in the complaints resolution process is likely contributing to the telecommunications industry’s standing as one of Australia’s most distrusted sectors.
According to a recent Roy Morgan survey, telcos are ranked among the top 10 most distrusted brands in Australia.
This ranking underscores the deep-seated issues within the industry, where repeated failures to address consumer complaints effectively have eroded trust.
The high level of distrust can further discourage customers from engaging in the complaints process, creating a vicious cycle of unresolved issues and growing dissatisfaction.
What’s Needed To Improve?
In conclusion, this report underscores the urgent need to improve the telco complaints process.
Telco providers must prioritize transparency, timely resolution, and effective communication to rebuild consumer trust.
Moreover, increasing awareness of the TIO and making the complaints process more accessible will ensure that customers know they have support when issues arise.
Addressing these challenges requires a coordinated effort from all stakeholders in the industry, ensuring that the telecommunications sector can meet the needs and expectations of Australian consumers.
