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Resolving Customer Issues

The Mission:

Customer Retention and Loyalty

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• Only 4% of dissatisfied customers complain. 96% leave without Only 4% of dissatisfied customers complain. 96% leave without any communication to the Companyany communication to the Company

• Of the 96% who leave, 91% will never returnOf the 96% who leave, 91% will never return• A typical dissatisfied customer will tell 8 to 10 people about the A typical dissatisfied customer will tell 8 to 10 people about the

issues with our Companyissues with our Company• 1 in 5 dissatisfied customers will tell 20 people about the issues 1 in 5 dissatisfied customers will tell 20 people about the issues

with our Companywith our Company• It takes 12 positive incidents to make up for one negative It takes 12 positive incidents to make up for one negative

incidentincident

The Cost of Customer Issues

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The Rewards of Resolved Issues

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What is a Complaint?

“ “An expression of dissatisfaction made to an An expression of dissatisfaction made to an organization, related to its products (services), or organization, related to its products (services), or the complaints-handling process itself, where a the complaints-handling process itself, where a response or resolution is explicitly or implicitly response or resolution is explicitly or implicitly expected”expected”

ISO 10002

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HerExpectationsWERE

metNot

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Only 8% of the 60 Only 8% of the 60 Companies studied Companies studied effectively deploy effectively deploy this strategy to this strategy to resolve customer resolve customer issues.issues.

Customer• Lack social skills• Nervous• Harsh, one sided• Emotional• Lack understanding • Rude• Unreasonable

• To be heard• To be understood• To be respected• To have their concern dealt

with quickly, fairly, properly• To be given what they have

been denied; an apology

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1-4% of customers systematically cheat businesses

Manager• Ignore complaints • Defensiveness• Anger• Concern loss of sale

commissions• Annoyance, time

consuming, costly• Wish they would just go

away!

• Direct communication about failures, competitors

• Define what customers want

• Opportunity to increase customer trust

• Customers as advocates• Build long term relationship

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Customer Service• Apology only, nothing

resolved• Blame the Customer• Promise but don’t deliver• No response at all• Rudeness• Pass on to another• Customer Interrogation

• Policy a “complaint welcoming” culture

• Complaint handling training, including empathy and conflict handling

• Clearly defined Escalation path (difficult complaints)

• Continuous improvement focus

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Underlying Principles to “Complaint Welcoming” CultureUnderlying Principles to “Complaint Welcoming” Culture

There are 2 Levels of messages embodied in complaintsThere are 2 Levels of messages embodied in complaints

The customer has 2 separate needs when complaining-The customer has 2 separate needs when complaining-needs as individuals and needs relating to the complaintneeds as individuals and needs relating to the complaint

The benefits of Customer recovery far outweigh the cost The benefits of Customer recovery far outweigh the cost of losing a customer or attracting another customerof losing a customer or attracting another customer

The majority of customers are honest The majority of customers are honest

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Example AExample ASurface message – Surface message – “product is not working”“product is not working” (as expected) (as expected)Underlying message – Underlying message – “I don’t understand the technology, “I don’t understand the technology, I need your help figuring it out”I need your help figuring it out”Example BExample BSurface message- Surface message- “I am disappointed with…”“I am disappointed with…” my service/ my service/ product during my last visit/purchasing experience product during my last visit/purchasing experience Underlying message – Underlying message – “I am testing the value of my “I am testing the value of my loyalty to your business”loyalty to your business”

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• Needs as individualsNeeds as individuals• To be heardTo be heard• To be understoodTo be understood• To be respectedTo be respected

• Needs relating to the complaintNeeds relating to the complaint• To have their concern dealt with quickly, fairly and To have their concern dealt with quickly, fairly and

properlyproperly• To be given what they have been denied and To be given what they have been denied and

perhaps an apologyperhaps an apology• To have action taken to fix a problem or address a To have action taken to fix a problem or address a

concern- a resultant process changeconcern- a resultant process change

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If a customer is complaining, you are being If a customer is complaining, you are being given a chance to retain that customer… given a chance to retain that customer… Don’t Blow ItDon’t Blow It

Don’t allow the opportunity to fade awayDon’t allow the opportunity to fade away

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• Thank customer for contacting youThank customer for contacting you• Explain why feedback is appreciatedExplain why feedback is appreciated• Apologize for service/product failureApologize for service/product failure• Take responsibility and make commitment to Take responsibility and make commitment to

customercustomer to resolve the issue as quickly as possibleto resolve the issue as quickly as possible• Collect all information from customerCollect all information from customer• Correct or facilitate correction as promptly as possibleCorrect or facilitate correction as promptly as possible• Check to assure customer satisfactionCheck to assure customer satisfaction• Commit to prevent future failures of this typeCommit to prevent future failures of this type

Resolving Customer Issues

The Customers faith can be restored using this method… The Customers faith can be restored using this method… ONCE!ONCE!

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Best Practice to Resolving Issues1.1. Apologize for the failure of the product or serviceApologize for the failure of the product or service

2.2. Explain what steps you are taking to correct the situationExplain what steps you are taking to correct the situation

3.3. Explain what steps you are taking so that the failure will not Explain what steps you are taking so that the failure will not happen to anyone else in the futurehappen to anyone else in the future

Don’t hesitate to ask the Customer what they feel is a Don’t hesitate to ask the Customer what they feel is a fair resolution to the problemfair resolution to the problem

You You mustmust follow up to make sure your promise is met! follow up to make sure your promise is met!

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NEVEREVER

BLAME

OR OR ANYANY ASSOCIATE!ASSOCIATE!Never Ever!