Customer dissatisfaction costs general insurers and other businesses at least $720 per negative experience, according to an Ernst & Young (E&Y) report on complaints.

E&Y Advisory Partner Jenny Young says 39% of customers do not contact suppliers to have complaints heard or resolved, while nearly half raise the issue with friends, family or colleagues, or post social media comments.

“Suppliers need to develop social media policies to monitor and manage communications through this important and growing channel, minimising brand impact from publicly voiced issues,” she said.

About 15% of households have reported general insurance experiences that “could have been better”, the research shows. Price rises and not being competitive represent 35% of complaints, while poor customer service accounts for 17%.

The study also covers private health insurance, telecommunications, utilities and banking.

Only 8% of customers who complained to suppliers were satisfied with the outcome. Customers are more than twice as likely to “vent” on social media if they are dissatisfied with the outcome of their contact.

“As well as creating open and responsive channels, it is essential that staff have the knowledge and tools at hand to reconcile a customer’s enquiry quickly and efficiently, leading to a successful outcome,” Ms Young said.