Tuesday January 17, 2012

Business News

Securing A Positive 'Buzz'

Retaining customers and managing complaints part of doing business

Submitted by Jack Bass, Chilliwack

 

Strategic Planning Institute Study  discovered 96 % of unhappy customers do not complain AND 90 % of those customers will not do business with the company again.

 

You cannot afford to keep "replacing customers" because replacement cost is so much higher than retention .

 

Basic Questions To Help you Establish A System:

 

1) Do you track / how many clients you lose each year

2) Do you have a protocol to deal with customer complaints

3) When a customer has a problem how do you find out about it

4) Are you proactively asking how the customer views your service/products

5) Are you solving or avoiding

6) What is your customer survey method(s) AND do you know how to prepare a survey

7) How did you use past results

 

The positive aspect of a proper survey and follow-up creates the reverse side of negative publicity. It creates positive " buzz" about your company. A customer who has their problem solved is more satisfied and likely to recommend you then a customer who says nothing.

 

Therefore in Part 2 we will focus on handling the complaints or problems as they occur. The most interesting fact – for owners is that problem solving – and establishing new standards to avoid repeating the same issue results in setting a higher standard of operation which will attract and retain more customers. It is easier to pretend the problem does not exist or problem staff will correct themselves – pretending and ignoring will destroy your business.

 

The Golden Rule: Never Argue That The customer Is Wrong

 

Dale Carnegie in the now classic " How To Win friends And Influence People" said it all in a few words:

 

You never win over a person by the force of your argument - both sides simply become more entrenched and certain of their position.

 

As a business operator you don't want a customer to hear your brilliant defense and then walk away. They won't talk to you but they will tell ten potential customers to avoid you - and tearfully repeat how you argued with them.

 

There Is A Routine In Handing Complaints

 

This pattern is one I teach restaurant staffs but the lessons apply to every sector:

 

1) Apologize

Simply saying " I'm sorry you are upset " –  disarms the anger. the customer is gearing up for a fight and you ( or your staff ) take the offense and announce with the apology , there isn't going to be a fight.

 

2) Clarify the Issue(s)

     I'm sorry you are upset about :

     .. the time it took to bring your order

     .. the wrong ... being delivered etc etc.

 

3) Say :  "Here's what I can do  to make amends "

     AND THEN offer two alternatives :

     You Do Not Offer All Services Free - that attracts freeloaders to  cheat you.

     You offer reasonable services that a reasonable person will accept.

     Example :

     I can offer you a free desert today - our wonderful cheesecake supreme

      OR

     I can reduce your bill by 20% to makeup for the poor service.

 

4) AND THEN ASK  " Which do you prefer ?" This places control in the hands of the customer.

 

5) Conclude here.  If they refuse - you can simply repeat  " This is what I can do to make amends ." Repeat the offer/choice.

 

Reasonable people will accept. Unreasonable customers will never be happy. Let them go annoy your competition.

 

 


 

www.jackbassteam.com

Twitter @jack25bc