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Most companies understand the importance of complaint handling, customer satisfaction measurement and service recovery, and many firms have systems and procedures to do at least part of these activities. However, few companies have implemented integrated customer feedback systems to systematically collect, analyse and disseminate the various types of feedback coming into the firm and guide customer‐focused learning, continuous improvement and process redesign. A key reason is the difficulties faced in integrating various systems and procedures. This paper focuses on how to design, and cost‐effectively run, a completely integrated customer feedback system (CFS) that ensures continuous learning and improvement in service quality, as well as productivity.

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