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According to Confucius, if you are true to your word and careful in your actions, you will get along with anyone. In reality, Confucius wasn't a businessperson. What "Confucius says" is fine when it comes to your personal life, but your business relationships will be a bit more complicated. Like it or not, at some point, you will have to deal with a difficult customer or situation, even if the problem isn't your fault. Most business professionals know that issues with customers come with the territory. Money is tight, customers (both business customers and consumers) are under pressure, and transactions can very stressful—especially when they involve a lot of money. It is inevitable that a customer will get upset and even unreasonable on occasion. What is important is that you know how to resolve matters quickly and competently, and in ways that maintain your customer's business and actually strengthen your relationship. Difficult customers come in all shapes There are customers who make impossible demands, stretch the truth, lie, change their minds, or make an issue a personal battle. There are even mild-mannered customers who get upset over seemingly small matters that somehow get blown out of proportion. Each of these situations can spell disaster if not handled properly. You and every customer contact person in your company must know how to deal with customers in these scenarios. Everyone must be able to alleviate the tension and satisfy even the most difficult customer. Professionalism pays off Whether you are dealing with an angry customer face-to-face or on the phone, you are in a very challenging situation. If you can't handle the situation professionally, resolve the actual or perceived problem, and bring the controversy to a successful conclusion, your unhappy customer will walk. They will go back to doing business with your competitor, which can be a major indictment of your service and a waste of the effort you put into landing the customer in the first place. Bad news travels fast. The result will be an assault on your reputation—something no business can afford. When dealing with difficult situations and irate customers, displaying the utmost professionalism is crucial. It requires shifting into the right mindset, communicating with the customer in a confident, competent, and non-combative manner, and resolving the issue in a way that allows you to keep that customer. This chapter will provide you with communication skills and a ten-step process to apply when facing these situations: A ten-step process for successfully retaining your upset customer Step one: Take a deep breath and stay cool The moment you pick up the phone and hear "I have a complaint," or see a customer walk into your place of business with a stern look, stiff jaw, or scowl, be aware of the red flag. Begin to prepare yourself for what is likely to come next—angry words, unreasonable demands, and major incriminations. When confronted by an unhappy customer, it is easy to lose your cool. You may become defensive or place blame on your company, the manufacturer, a coworker, or someone else for the customer's displeasure. If the mounting tension leads to any of these behaviors, it will only make your customer angrier. The minute you realize your customer is upset, adopt the "Be Cool" mindset. This is the first and most important thing to do. How do you do this? By taking a deep breath and reminding yourself that your customer is the lifeblood of your company. Even if you are not the customer service manager, take charge of this situation. You are the professional, and you can solve the problem. Step two: Apply "verbal cushions" Diffuse the situation immediately by applying "verbal cushions," a communication technique taught by customer service trainers. These words and phrases "cushion" a customer's complaint and will help you to handle the issue more effectively. These examples of verbal cushions communicate a sense of concern, promote cooperation, and display empathy:
These comforting phrases should be the first words you say. Think of others that are appropriate to your business. Memorize them so that you can apply them in challenging situations. Step three: Respond appropriately After applying a verbal cushion and allowing the customer to vent, use one of the following statements to move the situation forward to the next level:
Step four: Probe carefully and ask questions Ask questions to make sure you fully understand the problem. Usually, open-ended questions work best.
Step five: Paraphrase for complete understanding Repeat and restate what the customer said so he or she will be confident that you heard correctly and listened carefully.
Step six: Tell customers what you will do, and resolve the problem Your unhappy customer wants to know exactly what you are going to do to correct their problem. Tell them what action you will take and when they can expect resolution. The faster the matter is cleared up, the better for all concerned.
Step seven: Thank the customer Once the problem is resolved, thank the customer for their business and patience. Express appreciation for their understanding. This helps to further diffuse the situation. Your customer leaves feeling as though he or she is the winner, you and your company will win in the long run. Step eight: Document the complaint To ensure that the same issue does not arise again, make certain you document the complaint and summarize how you resolved it. Keeping a "paper trail" is vitally important to ensure that your company provides top-notch service. Weekly meetings should be held with key individuals from various departments to identify any service flaws and discuss ways the complaint could have been prevented. Step nine: Determine whether management should follow up Determine whether management should be informed of a complaint. Many companies have a policy where management steps in to conduct a follow-up call to make sure the customer is satisfied. This demonstrates caring on the part of management and is often the right thing to do. Step ten: Prevent future complaints The best way to deal with difficult customers is be proactive in avoiding mistakes. Make sure your organization has the appropriate systems and procedures in place to avoid problems that can cause customers to become difficult. There's more on this in the following chapters. Read on. Follow the "Rules of Managing Difficult Customers" There are certain basic rules to follow to ensure you will retain customers. Use the customer's name Addressing someone by name shows respect and enhances the importance of the relationship. These are your customers; they are not numbers or machines. Call them by name. Don't get defensive Refrain from getting defensive. If you do, no one wins. Here's a real-world story that demonstrates how getting defensive doesn't solve anything. Working in the rough and tumble world of construction requires skill and patience. Cost overruns and completion dates can put everyone on edge. Imagine this scenario.
In this instance, Terri Lang was Dave's customer. Nothing positive was accomplished. Here's how this situation could have been handled differently:
Read on for more rules. Admit when you are wrong If you or your company has made a mistake, dropped the ball, made an error in billing, shipped the wrong part, failed to deliver when and as promised, or anything else that would cause a customer to be unhappy, admit you are wrong. Doing so diffuses the situation very quickly and puts your customer at ease. "I apologize. This should not have happened. I'll talk with my team and make sure it doesn't happen again. Most customers simply want to know that you're sorry for their trouble and that you have a plan for getting back on track. They will have more respect for you when you offer a sincere apology. Admitting mistakes will take you far when it comes to maintaining customers. Often, people just want to hear that they are right, and that you are going to make things right for them. Overcompensate for an error When mistakes occur, it's often necessary to overcompensate. Give an unhappy customer a gift for their inconvenience. Depending on your business, you can send the customer a brand new product, give them something for free, or offer a big discount on their next purchase. Do what you have to do to keep the competitor's customer you've worked so hard to capture. While this may be hard to do because of financial concerns, it is often important to provide additional compensation to prove that the company is really sorry for the inconvenience. Hopefully, this action will ensure that you will keep the customer's business in the future. Never correct a customer If a customer is angry with you, refrain from making any judgmental comments. Now is not the time to say anything like:
Make every effort to say "yes" Whenever possible, think of how you can say "yes" before you say "no." People like to hear good news before the bad is emphasized. You should also say what you will be doing to make things right, even if there is a caveat. For example, if a customer returns an item because of a defect and it will take a long time to reorder, tell them upfront that everything will be resolved, even if it takes a little time to make it right. Generally, customers do not expect miracles, but they do want resolution. Those are just a few rules. Here is more information on dealing with difficult customers and situations. What to do when a customer is out of control When dealing with customers who use foul language, intimidation, or just won't back down, steel yourself against the onslaught. This won't be easy. Your first reaction will be to yell back at them, become defensive, and continue to support your own position—right or wrong. Based on my experience, words and phrases such as the ones below are the most effective to apply in these situations:
When you can't help a customer What do you do when you can't give a customer what they request (or demand)? Let them down gently using words and phrases that demonstrate empathy. The following are examples may help you face these difficult situations:
What if the customer is wrong? "The Customer is Always Right." If a customer calls with a major complaint, again, do not correct them. Instead, inform them. Let's say you are a claims agent in an insurance company. The customer screams at you that a medical procedure was not paid for, but their policy says it is covered. A letter was sent six months prior to the customer's procedure stating it would no longer be covered. Your customer never read it. Here's how you would respond in such an instance, and in similar situations. "Mr. Smith, I'm sorry for the misunderstanding, but my records show that a letter was sent on March 1 with the announcement that the procedure is no longer covered. I see our records accurately reflect your current address. I'm sorry if the letter was overlooked. Is there anything else I can help you with today." Additional examples: "Ms. Smith, the evening gown you're bringing in appears to have been worn, and I do notice a few stains on it. I'd like to be able to refund your money, I'm afraid I cannot." "Mr. Jones, the service manager did tell me that you agreed to having our technicians work overtime to get your repairs done that very same day. I'm sorry the invoice is higher than you expected, but I'm sure you appreciate our team's extra effort." "Mr. Smith, we have your acknowledgement of having received and accepted the warranty terms and conditions. I'm sorry we can't put in a new transmission free of charge." "Mr. Jones, a letter was sent immediately after purchase stating what the warranty does and does not cover." How far to go? How far you are willing to go to make a customer happy and preserve their business is up to you and your company. Sometimes, you have to "fire" a customer—for the sake of business Even with the difficulty of finding new customers, sometimes it is best to fire a bad one. If you have a customer who constantly complains, makes unreasonable demands, requires too much handholding, withholds or delays payment, or is untruthful, it is time to consider parting ways. It is a tough decision, but keep this in mind: you are in business to make money, and unreasonable customers make that difficult. Unless there is a strong potential for future business or referrals to other customers, it may be best to cut your losses. If a customer is so demanding that he or she is more of a liability rather than an asset, you may have no choice but to suggest the customer find another supplier. One rotten apple can spoil the barrel. If your complaining customer communicates with other customers, pretty soon you will have a major problem on your hands. As a business owner, you do not need the aggravation. Assessing your customers' real worth By way of example, an investment advisor had a client who called constantly to ask questions about things she heard on the news or read about regarding investing. She showed up at appointments with bags stuffed with every slip of paper connected with her investments—proxy statements, annual reports, dividend notices, and even receipts for expensive purchases—expecting the advisor to go over each one. She asked questions about what she could deduct from her taxes, where she could get a good deal on a new car, and much more. The advisor thought about reminding the client that, while she was a financial advisor, her client might want to speak with her accountant on some of these matters. Nevertheless, the advisor's policy was to "baby" her clients, no matter how much time they took away from other clients. Besides, she didn't want the client to rollover her million dollar-plus investment account to a competitor. At the time, the advisor was enrolled in the Harvard Business School's Owner/President Management Program. She took a class in which the professor stressed the importance of evaluating the profitability of each client. She spent two months conducting those evaluations. When evaluating the return on this high-maintenance client, she came to the realization that her client wasn't one she should have worked so hard to keep—even if that client did have a million dollar-plus balance in her investment fund. The advisor thought about all of the time she and her staff spent on the troublesome client, taking into consideration that her business was not a start-up investment firm. She no longer needed to capture and keep every client she could to keep her business up and running. She also realized that since the client's holdings didn't change much, she paid virtually no fees. She thought about all the costs of the special events this client came to, and realized that she never received any referrals, even when politely asked. The advisor discovered she was losing money on the arrangement. The advisor decided to gently tell the client that she would have to start paying for some of the time her account required. The client was infuriated. The advisor then made a tough call. She politely suggested that the client consider taking her business elsewhere. The client decided to move on and, without the client's burdensome demands, the advisor was able to take on more profitable clients. In another case, the owner of a software consulting business was constantly trying to please clients by building software that they thought they wanted even though he knew from his experience that what the clients described wouldn't produce the desired results. Sometimes when he advised his clients that their instructions were misguided, they were reasonable and accepted his opinion. Other times, certain clients would insist on the original concept. After all, they paid the bills. This practice turned out to be disastrous for his company. Inevitably, he and his partners would build what clients wanted, and halfway through the process, the client would realize that what they had asked for originally wasn't really what they needed. In his own words: "Some clients would even yell at us for building something useless. In the meantime, our employees would get demoralized, the customer would want a discount on the remaining work, and the final product would be some half-baked hybrid of what we started building. Today, any client who does not trust our judgment is gently discharged." Discharge with dignity Discharging customers is not easy. It has to be done with all the grace you can achieve. If you handle the situation the wrong way, you will have negative repercussions. Customers talk; word-of-mouth about bad experiences travels fast and far. Always handle a discharge in person. It is not professional to dismiss customers over voicemail, email, or by simply not showing up for a job. Meet the person face-to-face and politely explain why you think you may not be the source for them. Even if there are numerous reasons, talk about only one. Keep any value judgments to yourself and avoid a hostile tone. The process of firing mismatched customers is not pleasant for either side. If it has to happen, use tact, courtesy, and professionalism. Offer alternatives and strive to keep your business name untarnished. A final word on difficult customers When it comes to dealing with difficult customers, you can say and do everything right—even stand on your head to make them happy and still not be able to diffuse the situation and ultimately keep them. A customer may slam the phone down on you or walk out swearing up a storm. If you are a business owner or executive, this can be very challenging, but it happens. If you are a sales or service representative, don't take it personally, and don't carry your disappointment over to your next customer or take your frustrations out on your coworkers. Accept that difficult customers come with the territory. What is most important is that you have systems and procedures in place to prevent problems from occurring. Equally important, you and your team must have the skills to help you manage these difficult and trying situations—the right way. Solve the problem, handle it quickly, and send them out the door a happy customer. In fact, studies show that deftly handling tough situations and solving problems with professionalism actually yields the opportunity to build stronger business relationships. In Review___________________________________ Retaining your most difficult customers is a challenge you can meet. Getting in the right mindset
Ten-step process for dealing with difficult customers
Following the "Rules of Managing Difficult Customers"
Firing a customer
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