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Why Vendor Complaints Matter and Why You Should Care

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Vendor complaints happen and you should care about them.

Customer complaints are a fact of life in the world we live in today. This is why you need to also monitor your vendor's complaints as a critical part of third party risk management. Listen to this week's 90-second podcast for more information.  

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Podcast Transcript

Hi – my name is John with Venminder.

John Daugherty CIRCLE

In this 90-second podcast, you’re going to learn why vendor complaints matter and how they can impact your organization.

Here are just a couple of reasons why vendor complaints matter:

  1. First and foremost, vendor complaints can impact your reputation. Reputation risk is the risk arising from negative public opinion. Specifically, your reputation risk could heighten if the vendor is speaking directly to your customers. This can also lead to silent attrition.

  2. A second reason is that the consumer financial protection bureau (CFPB) has a public complaints database where any customer can submit a complaint or vendor issue. There’s a high likelihood that many of your future customers and/or vendors may review this database to see what is being said about you. So, it’s best to try and keep any possibility of a complaint to a minimum.

That’s just two reasons why vendor complaints matter. Here are three actions you can take now to help protect your organization:

  1. First, monitor websites such as the vendor’s social media, the CFPB complaint database and complaint websites like Also, set up Google News alerts.

  2. Second, implement complaint management requirements into your vendor contracts.

  3. Third, log and address every single complaint. Each one!

I hope this gives you a little more understanding about why vendor complaints matter and what you can do to be proactive and address them early.

Thanks for tuning in; catch you next time



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