How To Profit From Customer Complaints: Turning Problems into Opportunities
| Category: Selling Techniques | Date: 2003-12-15 |
Complaining customers are a scary proposition for many professionals, but the complaint situation represents an opportunity, not a problem, in most cases. If you deal with a persons concerns respectfully and helpfully, your effort and consideration will almost always be appreciated, and former complainers will walk away feeling happy and valued.
Businesses encounter real problems far more often because customers dont complain, and the absence of customer complaints is usually a bad sign: It can mean that customers dont feel comfortable voicing their concerns. Or, it can mean that not enough is being done to obtain feedback from clients. Whats important to remember is the following: If people feel they are being listened to, understood, and valued, they will usually give you a second chance.
The Strategic Planning Institute study on customers complaints discovered that the average business does not receive complaints from 96% of its unhappy customers. At least nine out of ten of these non-complainers wont do business with the company again - theyre gone forever. On the other hand, of the four percent of unhappy customers who launch a complaint, seven of ten will do business with the company again so long as their concern is handled properly, and a staggering nineteen out of twenty will do business with the company again if their grievance is dealt with swiftly.
Complaints are good. Ideally you want to receive more of them so you can improve the level of service you offer. In light of this, I recommend following this nine-step approach the next time you deal with a customer complaint:
1. Do not react or try to defend yourself or your company, even when youd like to. Instead, acknowledge what the customer has said, empathize, and apologize for any inconvenience. This should not be considered an admission of guilt. Its about having respect and compassion.
2. Ask the customer "venting questions" so you can comprehend the exact situation and all of the details surrounding the complaint. Youll be surprised to see how this process helps customers release their frustrations while providing you with a better understanding of why they are upset.
3. Listen. Listen to customers as they vent their frustrations, and acknowledge their concerns without comment or defense.
4. Ask even more questions to get them venting and listen some more. You know it is time to stop when they say: "Thats it, thats everything." You might also notice something very interesting when you let clients vent - people will look much more relaxed and their anger should be gone (vented) after such a session. You can now deal with them rationally and avoid costly arguments.
5. Paraphrase your understanding of the situation and the cause of your clients frustration. By repeating what you hear and understand back to a customer, you accomplish two things: First, you confirm that you truly understand why they are complaining and, thereby, ensure you are on the same page. Second, customers will feel truly heard and valued (as they are) because you cared enough to listen and understand. This alone should make them feel much better.
6. Time for the solution. You have 2 options here as well:
a. You can suggest a solution that will most likely make your customer happy and resolve the complaint.
b. You can ask them to recommend a solution themselves. What better way is there to give people what they want than to ask them what they want? Its that simple! It is interesting to note that, in most cases, people actually demand less than you would expect. They usually just want you to take responsibility and apologize for any inconvenience. A "free lunch" isnt usually their goal. People just like to be treated with respect.
7. Remedy any situation NOW and provide solutions that surpass expectations. The key here is to resolve the situation immediately and beyond the customers expectations so they leave more than satisfied.
8. Confirm with the customer that they are happy with the solution, and thank them for bringing the problem to your attention. Appreciate that theyre taking the time and energy to let your company know how to serve them better and keep their business.
9. Follow up later. To ensure satisfaction and loyalty, make a call or write a letter to the person a few weeks later to ensure they are still happy. They will be impressed that you care enough to check up and, who knows, there may be some more dissatisfaction you need to find out about. Consider this follow-up a double check.
The key to remember is this: If you dont ask, you probably wont find out about the problems people may be having with your service or products. As a result, you will lose customers and referrals. Dealing with issues head-on and retaining clients - rather than searching for new ones - should prove to be a lot less stressful. Invest a little time TODAY to save yourself a lot of hassle tomorrow. Your customers will feel good about you, and youll feel good about your bottom line.
About the Author
Kevin Lawrence is a Business-Building Coach, Speaker & Author who works with Professional Financial Advisors (Investment/Insurance Advisors & Accountants) to assist them in building their businesses by increasing referrals and repeat business - the most efficient and profitable growth strategy in existence. He also helps people find balance, accomplish long-term goals, increase personal fulfillment or achieve any other result they desire in life.
You can listen to his educational AudioBook "Generate Endless Referrals & Discover More Repeat Business Than You Thought Possible" and subscribe to his 2 complimentary email newsletters "Successful Life" and "Endless Referrals"Contact at 604 313-2229
info@kevin-lawrence.com.
http://www.kevin-lawrence.com
Businesses encounter real problems far more often because customers dont complain, and the absence of customer complaints is usually a bad sign: It can mean that customers dont feel comfortable voicing their concerns. Or, it can mean that not enough is being done to obtain feedback from clients. Whats important to remember is the following: If people feel they are being listened to, understood, and valued, they will usually give you a second chance.
The Strategic Planning Institute study on customers complaints discovered that the average business does not receive complaints from 96% of its unhappy customers. At least nine out of ten of these non-complainers wont do business with the company again - theyre gone forever. On the other hand, of the four percent of unhappy customers who launch a complaint, seven of ten will do business with the company again so long as their concern is handled properly, and a staggering nineteen out of twenty will do business with the company again if their grievance is dealt with swiftly.
Complaints are good. Ideally you want to receive more of them so you can improve the level of service you offer. In light of this, I recommend following this nine-step approach the next time you deal with a customer complaint:
1. Do not react or try to defend yourself or your company, even when youd like to. Instead, acknowledge what the customer has said, empathize, and apologize for any inconvenience. This should not be considered an admission of guilt. Its about having respect and compassion.
2. Ask the customer "venting questions" so you can comprehend the exact situation and all of the details surrounding the complaint. Youll be surprised to see how this process helps customers release their frustrations while providing you with a better understanding of why they are upset.
3. Listen. Listen to customers as they vent their frustrations, and acknowledge their concerns without comment or defense.
4. Ask even more questions to get them venting and listen some more. You know it is time to stop when they say: "Thats it, thats everything." You might also notice something very interesting when you let clients vent - people will look much more relaxed and their anger should be gone (vented) after such a session. You can now deal with them rationally and avoid costly arguments.
5. Paraphrase your understanding of the situation and the cause of your clients frustration. By repeating what you hear and understand back to a customer, you accomplish two things: First, you confirm that you truly understand why they are complaining and, thereby, ensure you are on the same page. Second, customers will feel truly heard and valued (as they are) because you cared enough to listen and understand. This alone should make them feel much better.
6. Time for the solution. You have 2 options here as well:
a. You can suggest a solution that will most likely make your customer happy and resolve the complaint.
b. You can ask them to recommend a solution themselves. What better way is there to give people what they want than to ask them what they want? Its that simple! It is interesting to note that, in most cases, people actually demand less than you would expect. They usually just want you to take responsibility and apologize for any inconvenience. A "free lunch" isnt usually their goal. People just like to be treated with respect.
7. Remedy any situation NOW and provide solutions that surpass expectations. The key here is to resolve the situation immediately and beyond the customers expectations so they leave more than satisfied.
8. Confirm with the customer that they are happy with the solution, and thank them for bringing the problem to your attention. Appreciate that theyre taking the time and energy to let your company know how to serve them better and keep their business.
9. Follow up later. To ensure satisfaction and loyalty, make a call or write a letter to the person a few weeks later to ensure they are still happy. They will be impressed that you care enough to check up and, who knows, there may be some more dissatisfaction you need to find out about. Consider this follow-up a double check.
The key to remember is this: If you dont ask, you probably wont find out about the problems people may be having with your service or products. As a result, you will lose customers and referrals. Dealing with issues head-on and retaining clients - rather than searching for new ones - should prove to be a lot less stressful. Invest a little time TODAY to save yourself a lot of hassle tomorrow. Your customers will feel good about you, and youll feel good about your bottom line.
About the Author
Kevin Lawrence is a Business-Building Coach, Speaker & Author who works with Professional Financial Advisors (Investment/Insurance Advisors & Accountants) to assist them in building their businesses by increasing referrals and repeat business - the most efficient and profitable growth strategy in existence. He also helps people find balance, accomplish long-term goals, increase personal fulfillment or achieve any other result they desire in life.
You can listen to his educational AudioBook "Generate Endless Referrals & Discover More Repeat Business Than You Thought Possible" and subscribe to his 2 complimentary email newsletters "Successful Life" and "Endless Referrals"Contact at 604 313-2229
info@kevin-lawrence.com.
http://www.kevin-lawrence.com
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