processing angry customer’s: sour apples into cider
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M A H O N E Y ‘S. M A R K E T. Processing Angry Customer’s: Sour Apples Into Cider. Ed Mahoney Associate Professor Michigan State University. M A H O N E Y ‘S. M A R K E T. Complaints = Opportunities. M A H O N E Y ‘S. M A R K E T. - PowerPoint PPT PresentationTRANSCRIPT
Processing Angry Customer’s:Sour Apples Into Cider
Ed MahoneyEd Mahoney
Associate ProfessorAssociate Professor
Michigan State UniversityMichigan State University
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A PROBLEM IS A CHANCE FORYOU TO DO YOUR BEST" ...DUKE ELINGTON
WHEN A CUSTOMER HAS ACOMPLAINT, YOU HAVE ANOPPORTUNITY TO SOLIDIFYYOUR RELATIONSHIP . . .
IF YOU HANDLE IT PROPERLY.
Complaints = Opportunities
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" Businesses often automaticallylabel customers who complain ascustomers from hell, which is aboutas stupid a business decision asone can imagine.
Chip Bell and Ron Zemke., "There's a critical differencebetween a customer from hell anda customer who's been throughhell. But they often look alike.
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Bell contends that since thenumber of customers that are trulymalicious or evil is extremely rare,it's far better to first assume thatthey've been through hell.
Each time you respondinappropriately to customers whohave gone through hell, you pushthem closer to the door marked"customer from hell">
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1. Told no one - inside or outsidebusiness -- Passives
2. Spoke up and told some one in thebusiness -- Voicers
3. Told people other than businessstaff - - Irates
4. Told third party, seek revenge andpunishment not resolution, + + + -- Activist/ Terrorist
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WHY DON'T MORE DISSATISFIEDCUSTOMERS COMPLAIN?
1. IT IS (PSYCHOLOGICALLY)HARD TO COMPLAIN.
2. HOW TO COMPLAIN ??? -CUSTOMER EDUCATION?
3. MOST BUSINESSES DO NOTPRO-ACTIVELY ENCOURAGECOMPLAINING. MANYACTUALLY (CONSPIRE TO)MAKE IT DIFFICULT TOCOMPLAIN.
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WHY DON'T MORE DISSATISFIEDCUSTOMERS COMPLAIN?
4. MANY CUSTOMERS PERCEIVETHAT COMPLAINING WILL NOTMAKE ANY DIFFERENCE.
5. COMPLAINERSDISSATISFACTION WITH HOWTHEIR COMPLAINTS AREHANDLED... MOYER
Why is Complaint HandlingWhy is Complaint HandlingSo ImportantSo ImportantII
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"Customers talk to theirassociates, friends and neighbors.
Based upon how well you handletheir complaint:
3 … if you do a good job 10 … if you do a great job 25 … if you do a bad job 50 … if you do a real bad job
…..and you will be on the 6:00news if you do a horrible job. "
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Customers who have a badexperience and remain unhappywill tell 11 other people, who inturn will each tell five more.
That adds up to 67 people bad-mouthing your busines and …Farm markets, farm vacations,…
Why is Complaint HandlingWhy is Complaint HandlingSo ImportantSo Important
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Dissatisfied CUSTOMERS can:
1. Say something,
2. They can walk away. If theywalk away, they give us virtuallyno opportunity to fix theirdissatisfaction.
Why is Complaint Why is Complaint HandlingHandlingSo ImportantSo Important
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Complaining customers are stilltalking with us, giving us a chanceto return them to a state ofsatisfaction so they will be morelikely to buy from us again.
A complaint is a gift .. . whensomeone complains to us we willwelcome it as something of value.
Why is Complaint Why is Complaint HandlingHandlingSo ImportantSo Important
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Complaining customers arevaluable. They verbalize:
1. What it will take to keep theirbusiness,
2. They articulate what moresilent but dissatisfied customersare experiencing.
3. They point out the flaws inyour products and service andyour (perceived) culture
Why is Complaint HandlingWhy is Complaint HandlingSo ImportantSo Important
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Research tells us that a customerwho has had a problem elegantlycorrected ends up more loyal thana customer who has never had aproblem.
Why is Complaint HandlingWhy is Complaint HandlingSo ImportantSo Important
What Customers ExpectWhat Customers Expect
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1. To receive an apology.
C ustomer get one in only 48percent of the cases wherethere is a problem.
Most frequently remembered:
"they acknowledged, and dealtwith my upset" (79 percent),
"They apologized for myinconvenience" (69 percent).
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2. To be offered a "fair fix" for theproblem.
Most do not expect a pound offlesh.
Most have a sense of fair play.
Businesses that offer a rationalexplanation, and demonstratessensitivity and concern, thecustomer will respond in kind.
What Customers ExpectWhat Customers Expect
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3. To be treated in a way thatsuggests the YOU CARE about theTHEM, about fixing the problem,and about THEIR inconvenience.
Service recovery involves anoutcome and a process.
The outcome is the solution thecustomer finds satisfactory.
What Customers ExpectWhat Customers Expect
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4. If the customer has been"INJURED, DAMAGED,VICTIMIZED or DEMEANEDthen atonement becomes critical.
A gesture that says, "We want tomake it up to you.
The act of atonement is essentiallysymbolic. Little things, sincerelydone, mean a lot to thecustomer.
What Customers ExpectWhat Customers Expect
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5. Keep your promises
What Customers ExpectWhat Customers Expect
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When dealing with customerproblems REMEMBER:
"The customer knows exactly howthey want it, or exactly whatthey want, but may be a lousycommunicator and not tell youcompletely, or tell you in a waythat is difficult to understand.
Remember you're the customerelsewhere - and think of howyou expect service when you're thecustomer.
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When dealing with customerproblems REMEMBER:
Every customer thinks they're theonly one you've got . . . treat themthat way. Make the customer feelimportant.
The customer expects service atthe flip of a switch.
The customer's perception isreality.
How big a deal is it to try to givethem what they want?
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Handling customer complaintsas gifts:
1. Handle customer concerns withurgency.
Respond immediately.
When something is wrong, peoplewant (and expect) it to be fixedimmediately.
2. Say "Thank you."
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Handling customer complaintsas gifts:
3. Explain why you appreciate thecomplaint.
4. Use their name. Using acustomer's name repeatedlyreinforces familiarity andpartnership.
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Handling customer complaintsas gifts:
5. Apologize for their problem.
6. Listen to their story.
Allowing the customer to ventwithout resistance will removemuch of the anger.
Ask non-threatening, non-defensive questions
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Handling customer complaintsas gifts:
7. Never let the customer loseface.
8. Tell them you understand howthey feel. Empathize with them.
Cite a similar situation, tell themthat it makes you mad too, tellthem a similar thing happened toyou.
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Handling customer complaintsas gifts:
9. Agree with them if you can --never argue
10. Offer your help. Become theirpartner in solving the problem.
Be an ambassador for yourbusiness by telling them that youwill personally handle it.
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Handling customer complaintsas gifts:
11. Don't blame others. Admit you(and or the company) were wrongand take responsibility forcorrecting.
12. Don't pass the buck -- "It's notmy job," "I thought he said .
"She's not here right now,"
"Someone else handles that,"
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14. Don't say: "You'll have to..."
A customer's natural response is,"I'm the customer. I don't have todo anything!"
Instead, try: "Would you pleasereturn the defective merchandisefor a refund?"
Handling customer complaintsas gifts:
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Don't say: "I'll try."
This approach makes customersthink you're giving them the brush-off.
Instead, try: "I'll have to find outand call you back.'
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Don't say: "But..."
This word often negates everythingthat was said before. You need asmoothertransition to new alternatives andoptions.
Instead, try: "However...."
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Handling customer complaintsas gifts:
15. Resolve the problem on thespot if possible.
Figure out, communicate and agreeupon a solution
Find out what the customer wants -- a refund, a credit, a discount, etc.
Propose a fair solution and get hisor her support, for example, "If Itake it back and give you full credit,would that be OK with you?"
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Handling customer complaintsas gifts:
16. DO IT- MAKE IT A PRIORITY
17. What have WE learned and/ orwhat can I do to prevent thissituation from happening again?
Prevent future mistakes.
Make the complaint widely knownso the problemcan be preventedin the future.
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Handling customer complaintsas gifts:
18. Resolve the problem on thespot if possible.
Figure out, communicate and agreeupon a solution
Find out what the customer wants -- a refund, a credit, a discount, etc.
Propose a fair solution and get hisor her support, for example, "If Itake it back and give you full credit,would that be OK with you?"
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19 Fix it without blame
20. Check customer satisfaction
Call the customer a week later tomake sure he or she is satisfied.
Handling customer complaintsas gifts:
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TO ENCOURAGE COMPLAINTS
1. ORGANIZATIONAL "CARING ANDEMPATHY"
2. LET THEM KNOW YOU WANT TOHEAR FROM THEM.
MAKE IT CLEAR THAT YOU WANTHONEST FEEDBACK
SHOW THAT YOU CAN DEAL WITHFEEDBACK.
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3.ACCESS IS ALWAYS ANIMPORTANT COMPONENT OFQUALITY SERVICE - THEY MUSTPERCEIVE EASY AND WELCOMEDACCESS
INVITE CUSTOMERS TO ACCESSYOU ANYTIME, IN MANY WAYS,WITH EASE ... CHIP BELL
TO ENCOURAGE COMPLAINTS
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4.PROVIDE AND MARKETALTERNATIVE COMPLAINTCHANNELS
PEOPLE LIKE TO COMPLAINDIFFERENTLY ... SOME DIRECTLYTO EMPLOYEE CLOSEST TOSITUATION , SOME TELEPHONECALLS, SOME LETTERS, SOMEREPORT CARDS.
TO ENCOURAGE COMPLAINTS
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TO ENCOURAGE COMPLAINTS
5.HELP MANAGERS AND STAFFENCOURAGE COMPLAINTS
EDUCATION : OBSERVATION,ACTIVE LISTENING & PROBLEMSOLVING
COACHING ENCOURAGE TO REPORT
DISCUSS REWARD
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6. FRONT-LINE STAFF THAT AREPROBLEM SOLVERS! THEY ARENOT THERE TO PROTECT THEBUSINESS FROM ANGRYCUSTOMERS
7.MAKE IT "WORTH THECUSTOMERS TIME" TO COMPLAIN.
REDUCE COSTS TO MAKE ACOMPLAINT
RESOLUTION AND NOTIFICATIONOF ACTION
TO ENCOURAGE COMPLAINTS