What to do when your customers complain

Posted September 26th, 2007 by Dr James Pratt

In my previous blog I identified the fact that every business, no matter how well managed, will have to deal with dissatisfied even angry customers from time to time. Sometimes the customer is justified in his/her complaints other times he/she is not, but the handling of the dissatisfied customer can have far reaching impact on a business.

Now, I want to talk with you about techniques that you should consider when dealing with the dissatisfied customer.

New Zealand Management Association research into consumer behavior indicates that the average satisfied customer tells three people about his experience but the average dissatisfied customer gripes to eleven other people.

Negative word-of-mouth advertising is a problem few businesses can afford.

Here are five expert recommendations for managing the complaining customer.

Step one - acknowledge that the person is upset. Example, I can see that you are mad. I could see that you're upset with us.

Step two - make a positive reassuring statement. Example, I want you to know I will get something done about your problem.

Step three - make a sad/glad statement. Example, I'm sorry you had a problem but I'm glad that you called it to my attention.

Step four - asks the magic question, "What will make you happy?" Example, Mr. Smith what will it take to make you happy or what would make you happy in settling this problem? Incidentally often the dissatisfied customer will ask for something less in settlement than you would freely offer.

Step five - make the settlement. Example, Mr. Smith I'm truly sorry that you encountered this problem and I'm going to do exactly what you have requested. We want to keep you as a valuable customer.

One last idea on customer relations that you can use to great advantage is this interesting marketing principle - people want most what they've had the least of.

Think of it this way - the bachelor, traveling salesman who lives on the road and eats in hotel restaurants 260 days and nights a year will be very excited about the prospect of a home cooked meal. On the other hand the recently divorced, long married man, who's been eating at home 300 nights a year for the last twenty years can't wait to get out on the town.

Think carefully about how you can apply this idea to your business. What have your customers had very little of that you can supply? Most businesses compete aggressively for new customers with expensive advertising and then lose customers out the bottom of the bucket as fast as they poor new ones in the top. You can compete more effectively and less expensively with an old fashioned
weapon...service!

In your next Successful Marketing Strategy blog I want to talk to you about how to use one of the most effective marketing tools that just about every business has in their possession.


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