How much are complaints really costing your business?

Complaint volumes in Ireland are rising sharply. The numbers tell a clear story about why your organisation cannot afford to get this wrong.

The scale of the challenge

In 2024, the Financial Services and Pensions Ombudsman received 6,185 complaints, representing a 14% increase from 2023 and a 27% increase from 2022. Across the public sector, complaints to the Ombudsman rose by over 30% between 2019 and 2024, with 4,478 complaints recorded last year.

The Competition and Consumer Protection Commission saw an 18% increase in contacts during the first half of 2024, with 22,347 consumers seeking help.

These figures represent real people with real problems who expect professional responses. Customer service issues accounted for 22% of all financial services complaints, showing a consistent pattern over three years. This suggests systemic problems rather than isolated incidents.

The financial impact of getting it wrong

Poor complaint handling damages your bottom line in ways many organisations fail to measure. Research shows that attracting a new customer costs 6-7 times more than retaining a current one. Increasing customer retention rates by just 5% can increase profits by 25% to 95%.

In 2024, the FSPO facilitated settlements totalling over €4.2 million through mediation alone, with an additional €1 million through formal investigations. These figures represent only the monetary outcomes and do not include other forms of remediation or the costs incurred by organisations in defending their positions.

The Irish Aviation Authority awarded €1.197 million in compensation for upheld complaints in 2024, alongside €360,104 in passenger refunds. These are direct costs that proper initial handling could have prevented.

The consequences are real

Nearly 50% of preliminary complaints were closed because complainants had not exhausted internal dispute resolution procedures. This suggests many organisations lack effective first-stage complaint handling, forcing issues to escalate unnecessarily.

The Coombe Hospital case demonstrates the reputational risk. A mother felt traumatised by her childbirth experience, but the hospital initially refused to investigate because the complaint fell outside their time limit. Only after Ombudsman intervention did they provide the comprehensive response that resolved the matter. The damage to trust was already done.

The opportunity in complaints

Research shows that customers who feel their complaints have been handled well become more loyal than those who never had cause to complain. The success rate of selling to existing customers is 60-70%, compared to just 5-20% for new customers.

Financial Services and Pensions Ombudsman Liam Sloyan noted that some providers successfully reduced complaint volumes through positive changes, demonstrating that proper handling benefits both consumers and organisations.

Moving forward

Your staff face these situations regularly. They need structured approaches, clear policies, and practical skills to turn complaints into opportunities for improvement and retention.

Professional complaint handling training equips your team to resolve issues at the first point of contact, reduce escalations, and protect your reputation. The cost of training is minimal compared to the cost of getting it wrong.

Book your place on La Touche Training’s Complaints Handling Investigation Management course 1 day course, or the half day course for client-facing personnel or contact us for advice.

Professional training gives your staff the confidence and techniques to handle even the most difficult complaints effectively.

References:

• KPMG Law LLP (2025). FSPO publishes Overview of Complaints 2024.
• RTÉ News (June 2025). Complaints to Ombudsman rose 30% in five years to 2024.
• RTÉ News (March 2025). Over half of FSPO complaints in 2024 about banking.
• Competition and Consumer Protection Commission (2025). Over 22,000 consumers contacted CCPC for help in first half of 2024.
• Irish Claims Board (June 2025). Irish Aviation Authority Reports Passenger Compensation for 2024.
• Salesforce & Harvard Business School research cited in QASSS (2025).
• Responsible 100 (February 2025). Learn more about Responsible Business and Complaint Redress.