Turning Terrorists Into Apostles How to Deal with Customer Complaints, Problems, Anger and Difficulties Contact Details: Tel: (+27 11) 640 3958 Cell: (+27) 83 379 3466 Web: www.LeadershipLaunchPad.co.za E-mail: [email protected] Twitter: @LeadershipLaunchPad or #CustServ “Sorry, it’s against the rules” The trust deficit We don’t even trust the news anymore… Corporate complexity… and stupidity! Who is the st 21 Century customer? Alienated, alone, frustrated, not valued… “…and surrounded by morons!” Short of money Time Poor Bored For a generation of customers used to doing their buying research by search engine, a company’s brand is not what the company says it is, but what Google says it is. Word of mouth is now a public conversation, carried on in blog comments and customer reviews, exhaustively collated and measured. The ants have megaphones now (Chris Anderson, Editor-in-Chief, Wired, from his book The Long Tail: Why the future of business is selling less of more) Why Businesses Decline Their customers leave them, or they leave their customers Leads to a scarcity of customers and falling revenues And why do customers leave? • Poor quality, high defect rates, deficient service • Lack of understanding of customers’ needs • Broken promises • Inadequate/inappropriate marketing/sales effort • Many more competitors and choices… Complaints are Inevitable …or are they? Here’s an example! A complaint is destructive when it… • Is uncontrolled opposition which dissolves common ties we have • Leads to personal attacks and being backed into a corner • Slows down or stops effective communication • Reduces cooperation and problem- solving But the worst relates to the consequences of not looking after your customers Offensive Marketing: Chasing chickens • Is the barrel full? • What do they do for us? • Why do they “leak” out? 68% 1% 3% 5% 9% 14% Thus, once they are inside we need to defend! The key question should be: “Why should they stay?” These can translate into.. • Loss of customer loyalty: no repeat business, loss of X-sales and up-sales, reduced profitability, cost of replacing lost customers, etc. • Lots of poor publicity and bad-mouthing, (35,) in very public places, rather than referrals and recommendations • Refusal to cooperate: don’t pay accounts, make unrealistic demands, treat staff poorly, abuse property, never forgive nor trust your business • Making life very easy for your rivals The problem is that when customers don’t get satisfaction from their complaints, they overreact (the 3R’s) In addition, for every one who actually complains, there may be many, many more who say nothing 96% more! 4% 25% 100% The package that complaints come in is ugly, grotesque, and unpleasant, but what is inside is of critical importance to you and your business: • It means that they haven’t done something worse, and are giving you a second chance to delight them • It gives you a chance to learn something, and to take action to avoid or prevent what went wrong • You can explore to find out if anyone else experienced the same and be proactive about it But the best news is that the most loyal of loyal customers are those who have potentially experienced something bad, but for whom the experience turned out to be a good one because it was properly handled Why do most customers NOT complain? • Don’t think they will get any satisfaction anyway • Embarrassing and uncomfortable, don’t want to make a scene • Feel intimidated by you, or the reputation of the business • Too much trouble/takes too long • Can just go somewhere else • May just give you another chance, or promise to “do something later” “It’s Not My Department” “The feeling of having no power over people and events is generally unbearable to us – when we feel helpless we feel miserable. No-one wants less power; everyone wants more” (Robert Greene) What makes customers like you and me angry enough to complain? Obviously…. • When Delivery > Expectations, we have delighted and thrilled customers (Anticipating needs) • When Delivery = Expectations, we have satisfied, (but indifferent) customers (Meeting expectations) • When Delivery < Expectations, we have unhappy and disappointed customers (Not even requirements are met) Why Do Customers Specifically Get Upset? • Upset about something else • Don’t feel listened to, feel ignored • Don’t want to lose face • Feel put down or shamed • Feel other customers were treated better • Tired, frustrated, or stressed • Feel powerless, out of control (Victim), or that you are trying to take advantage • “No-one will listen unless I make a scene” And a whole lot more reasons! We can probably break these down into two main categories… • The genuinely and justifiably dissatisfied customers • The totally unfair and unreasonable “It's not my fault, but it is my problem” Customers are not always right…. • But they are always our customers… • And there is rarely a good reason to tell them they are wrong So what can you do to recover? • Predict and identify problem areas before major complaints & relationships break down – kill dumb contacts • Ensure that recovery is legendary (SWAT Team?) • Identify triggers for failure, and initiate proactive responses • Use a consistent system for recording and responding • Do root cause analysis and prevention, as well as internal analysis • Don’t punish the messengers. In fact, make it easy for customers to complain, and empower employees to help them • Go “undercover”: Use your own business as a customer would What positive expectations do customers have? • That you will deal with them with a sense of urgency • That you will be trustworthy, have what they need and be able to solve their problem, reliably and professionally • That you will care, show empathy, and be cheerful • That you acknowledge how this has affected them • That you will let them know that their business is valuable to you • That you will remember them after it’s over • That your prices and compensation will be fair • That you will stand behind your products and services with a guarantee (Build their assurance) Unhappy Customers Will Buy Again No complaint Complaint not resolved Complaint resolved Complaint resolved quickly With thanks to Toyota SA 37% 46% 70% 95% How do you react to complaints? What is your primary complaint handling style? Two examples… Remember, dissatisfaction is an Emotional Issue 1.Before anything else, get the emotions out of the way. No real problem solving can occur without first getting the customer calm and rational 2.Don’t fall into the swamp of emotions. Bring emotional stability into the relationship Meet LESTER L Listen E Empathise Empathy provides emotional validation, and acknowledging another person’s anger or frustration, helps to calm them down Counter-intuitively, rather than inciting the other person's fury and fueling their fire, our message of emotional validation actually douses the flame! Listening with empathy is easy-ish… •Walking in their shoes… • “If it was me…” • “It sounds like…” •Use analogies: “It sounds to me like you just feel like you’re bashing your head against the wall” L Listen E Empathise S Say how sorry you are The Art of the Apology “A phone case that had deteriorated was met with equal disappointment from Apple staff… The brand has made what could have been a cold corporate entity a familiar and welcome part of his life and something the competing brands will find almost impossible to dislodge” More than 210m iPhones sold by Apr 2012! Does “Sorry” Work? The Impact of Apology Laws on Medical Malpractice Apologies made by physicians for adverse medical events have been identified as a mitigating factor in whether patients decide to litigate However, doctors are socialised to avoid apologies because apologies admit guilt and invite lawsuits L Listen E Empathise S Say how sorry you are T Thank them for the feedback E Explain choices R Rectify/respond with a win:win solution And don’t forget to keep in touch afterwards… “Is there something we could have done that would have made this experience better for you?” • To make sure that the problem has been actually been resolved • To let them know that you truly and genuinely care about them and rebuild your relationship • To ensure that there is no repetition (There’s also a “B List”) You have to deal with it PERFECTLY every time P E R F E C T Polite Efficient Respectful Friendly Enthusiastic Cheerful Tactful And Customers from Hell? When someone behaves in this way, what are they saying about themselves? 7 Choices • Laugh it off: water off a duck’s back • Allow the abuse to continue • Put the ball in their court: What do you want? • Confront them equally aggressively, or… • Confront assertively • Cut the anchor: let them loose, make it easy to leave • Sort it out, whatever it takes. But tell them! If it looks like bait and smells like bait, it must be bait! Don’t wrestle with pigs You will get all muddy… And the pigs will love it Resentment is like drinking poison and expecting the other person to get sick "Too often we get distracted by what is outside our control. You can't do anything about yesterday. The door to the past has been shut and the key thrown away. You can do nothing about tomorrow. It is yet to come. However, tomorrow is in large part determined by what you do today. You have control over that." (John Wooden) It doesn’t matter which way the wind blows… The only thing that really counts is how you set your sail Remember: No customer can be worse than no customers We need them more than they need us! “If you can keep your head When all about you are losing theirs, And blaming it on you… Yours is the Earth and everything that’s on it” Rudyard Kipling, “If” David may have fought Goliath… but he didn’t choose to wrestle him! Make the choice! 28 and 29 May 2014 You will leave with ANSWERS… • WHY you must take action • WHO is the 21st Century Customer and WHAT DO THEY WANT? • Hundreds of ways to create UNBELIEVABLE CUSTOMER LOYALTY through “Perfect Experiences” • Personal Power: How to turn DUCKS INTO EAGLES • How to TURN TERRORISTS INTO APOSTLES • A PLAN for ACTION And tons more INSPIRING stories & examples! If you book through this AdvanceNet event…  15% discount off fee  Free copies of all my books  4 hour DVD with motivational videos about service  600 inspiring quotations about service for speeches and posters  Voucher for 20% off your next company event or any purchase Contacts https://www.linkedin.com/company/ advancenet-pty-ltd/ https://twitter.com/AdvanceNetGroup http://www.youtube.com/user/ AdvanceNetGroup www.advancenet.com [email protected] +2711 367 9000