7 Rules for Handling Customer Grievances

The focus of all modern management thinking and strategic business practice has to be the customer. Keep your customers happy and your sales will continue to soar neglect them or take them for granted and your bottom line will suffer accordingly. To respond to a customer who has several legitimate complaints you must keep these seven rules firmly in mind. Rule !ne" #isten with understanding $ sympathy. This diffuses anger and demonstrates your concern. Tell the customer something such as %& am sorry you have been inconvenienced. Tell me what happened so that & can help you'. &t is vital to show a sincere interest and willingness to help. The customer(s first impression of you is all important in gaining co operation. Rule Two" )o matter what or who caused the problem* never* ever blame or make e+cuses. &nstead* take full responsibility and the initiative to do whatever you can to solve the problem as ,uickly as possible. Rule Three" -araphrase and record what the customer tells you. .henever you hear an important point say %let me make sure & understand/ you were promised delivery on the 01th and you did not receive the product until the 0st of the following month. &s that correct2' Rule 3our" 3ind out what the customer wants. 4o they want a refund* credit* discount or replacement2 The customer is complaining because he5she has a problem and wants it solved as ,uickly as possible. 3ind out what their problem is so you can work towards it and not towards a solution they do not want. Rule 3ive" -ropose a solution and gain the customer6s support. .hen the customer tells you what he or she wants the solution is usually obvious. 7tate your solution in a positive manner. %& will be happy to give you a full credit for it or other merchandise. &s that acceptable for you2' &f it is acceptable* act promptly. Rule 7i+"

&f the customer does not like your solution* ask what they would consider a fair alternative. )ever let a customer lose face. &f you cannot meet their re,uest* say so* but never say they are wrong* and never get into an argument with a customer. &t is vital to be considerate of the customer6s feelings and to be courteous. 7ometimes the customer knows full well that there is nothing you can do. 8ll the customer really wants is someone to hear and respect his or her point of view* and you can always give them that. Rule 7even" 3ollow up within a few days to ensure that the customer is completely satisfied. This last tip should ensure that the relationship is strengthened and you may well gain additional business. 4o remember that* a customer6s loyalty is only as strong as the success of their last contact with you.

7 Tips for Handling Complaints over 9mail

9very email that goes out from your customer service team has your company(s brand in the signature line* it puts your corporate reputation on the line* and at the fingertips of a disgruntled customer* your emails can be plastered all over the &nternet by way of a powerful blog. )early half of all routine customer service ,uestions* emailed are not answered ade,uately. Companies are addressing only a portion of customers6 ,uestions or the answers they give leave customers thinking a robot must have read the email. 8nother big problem with consumer email response is many emails are :ust plain sloppy. They are filled with mistakes that make companies look unprofessional. ;ost people don(t review or edit their emails they :ust hit %send% and when they do* they are putting an entire brand6s credibility on the line. 9mail customer service <or 9 7ervice= is supposed to give customers ,uicker answers and solutions while allowing companies to slash operations costs. .hen email threads go back and forth unnecessarily because ,uestions aren6t answered* operations costs e+ceed the cost of telephone interactions. 8nd sloppy emails rob companies of credibility. 7o you need to carefully craft and proof your emails. How do you do it2 Here are 7 basic steps for you.

0.

Read the customer6s email in its entirety 3orty si+ percent of consumers opening emails from companies are frustrated to discover that their ,uestion<s= was not

answered. This often happens because employees stop at the first problem described in the email and they* at best* skim the rest of the email. Read the entire email before typing anything. 8n e+cellent way to ensure you respond to every ,uestion in the customer6s email is to copy the customer6s email and paste it into your reply back. 8fter pasting the customer6s content into your reply* go paragraph by paragraph through the customer6s email and type your response after each of the customer6s paragraphs. >ou are* in essence* taking the customer6s email and breaking it into little workable chunks and easily addressing every single issue. <8fter addressing the customer6s ,uestions completely* you* of course* delete the pasted paragraphs.= !pen your email with @Thank you.' 8 lot of companies begin complaint response emails with" @.e have received your email datedA' 4on6t do this. The fact that you6re responding to the email is irrefutable proof that you have received the customer6s email. &nstead of wasting words* immediately go into a response designed to restore the customer6s confidence and regain their goodwill. ;y favorite approach to beginning a complaint letter is to begin by e+pressing appreciation for the feedback. Here are some ways to e+press appreciation for customer feedback" @Thank you for taking the time to write to us.' @Thank you for your email. .e appreciate customers who let us know when things aren6t right.' @Thank you so much for taking the time to write to us. .e appreciate the opportunity to clarify what we think has happened.' <This is ideal for a response email to a customer who is actually responsible for the error or when you cannot honor the customer6s re,uest for a refund or e+change.=

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B.

8pologiCe ;ost company replies to emails that describe problems do not include an apology. To not apologiCe to a customer who has e+perienced a problem is to miss an opportunity. ;aking an apology to customers after things go wrong is positively related to satisfaction with the company6s @recovery.' .hen your employees apologiCe to customers* they convey politeness* courtesy* concern* effort* and empathy. #et me let you in on a little secret" an apology doesn6t have to be an admission of fault. 8nd it6s not even about placing blame. The whole point is to convey that you genuinely care about how the

customer was treated and to regain goodwill. & believe in apologiCing to the customer whether the problem they e+perienced was a result of an act of nature* a third party* or even the customer. &t goes without saying that & believe that we must apologiCe when the problem is the fault of the company.

D.

9+plain why or how the problem happened 8 vital* but often overlooked element of customer recovery is to provide an e+planation for how or why the problem happened. Taking the time to e+plain to a customer what might have caused the problem helps organiCations re establish trust. &n an article titled* ;anage Complaints to 9nhance #oyalty* Eohn Goodman says* @&n many case* a clear* believable e+planation as to why the policy or performance is reasonable will at least mollify the customer and* in some case* satisfy him or her.' -roviding an e+planation can be as simple as saying* @Thanks for taking the time to let us know about FFFFF. .e appreciate customers who let us know when things aren6t right.' Customers will always appreciate you taking the time to e+plain why the problem occurred and again* this gesture on your part helps to reestablish trust.

G.

!ffer compensation if applicable when the problem is clearly the fault of the company* recompense <in the form of discounts* free merchandise* refunds* gift cards* coupons* and product samples= will help you restore customer confidence and regain goodwill. !ur research has found that GHI of complaining consumers who received something in the mail following their contact with the company were delighted* versus only D1I of those who did not receive anything. 4on6t hold back when it comes to compensating customers after a service failure. >our reward will be increased customer satisfaction* loyalty* and powerfully persuasive positive word of mouth advertising.

J.

-roof your emailK Grammar gaffes make your company look bad. >ou and & both know spell check <and even grammar check= won6t catch everything. >ou are going to have to invest a little time to read and re read every line of your emails to make sure they look and read professional. Here are some hard and fast emails proofing

tips" L-oint with your finger and read one word at a time. >es* this will take some time* but you6ll be amaCed at how many mistakes you capture this way. LRead your email aloud and silently. L-roof for only one type of mistake at a time. 4o one read through :ust for punctuation* another for word usage* and another for accuracy of your message. L-rint your email out and read it. L7tart at the final paragraph of your email and read it backwards.

7.

Respond as ,uickly as reasonably possible The average company takes ? days <DJ hours= to respond to a customer6s email. This is not okay with customers. >ou need to shoot for responding to emails within ? D hours. &s this easy2 )o* but you need to align your processes and manpower to make it happen. 8nd here6s why" 8 speedy response will improve your corporate credibility with consumers and it boosts customer satisfaction. Research shows the longer it takes for companies to respond to email complaints* the greater the customer6s perception that they have been treated unfairly. 9very email that goes out from your customer service team has your company(s brand in the signature line* it puts your reputation on the line* and it forms a binding document between you and the customer. ;ake sure your message is professional* actively works to regain customer goodwill* and is free of embarrassing gaffes. 3ollow these simple seven steps and your emails will bless you* rather than curse you.

7 .ays to 8void 7elf 7abotage

.ith the conclusion of the year* holiday stress* and economic pendulum swings* it is very easy to self sabotage. 7tatistics prove that internal stress is the key factor in self sabotage. ;ore important* we sabotage because we focus on negative aspects/ we focus on failure. Research shows that individuals have a fear of failure* but too often the real problem is fear of success. 3ailure is a manifestation of looking at the past. !ur success lies in the future. 7elf sabotage is really a form of denial. &t also brings up the ,uestion of what is versus what can be. To avoid sabotage you must respect >!M and you must view the future. >ou must learn to love yourself.

8re you going to allow the negative self talk or are you going to build a better future* brick by brick2 There are seven vital techni,ues to avert sabotage.

1. 7elf Talk
Terminate the negative self talk. )egative behavior and talk stimulates depression and an+iety. >ou must look in the mirror/ understand the positive aspects you provide. Create positive speak* avoid negative terminology* and change your body mechanics. 7mile at others and smile at yourself.

2. 3ailure
7imply avoid it. 4o the things you hate to do first. 7abotage stems from individuals believing they will fail if they attempt something uncomfortable. )ot true. 3ailure is learning* creativity* and innovation. 7ome of our famous ancestors failed and created great things. King* #incoln* Nell* and others believed they failed* only to have their dreams come true. 7top worrying about failure/ it is the best education. However* in order to fail you must confront it head on and remove yourself from the comfort Cone. 7top procrastinating todayK -ositive -eople 4epression and an+iety manifest when we gather with other negative people. 8vert disaster by moving away from those that depress you. Think and Grow Rich by )apoleon Hill discusses the power of the ;astermind* small groups that share similar desires educating each other. ;ove away from those that anger you and befriend those that awaken your dreams* incite your desires* and e+pose your creativity. -assion Conviction and love is movement. -assion ignites the mind and the soul. 7elf sabotage arrives when you work at a :ob. #ife is too short for employment with organiCations that treat you as a liability. ;oreover* working for something that you abhor makes you remorseful. 3ind opportunities that ignite your spirit and provide a sense of purpose. 7elf 9steem5Confidence 7elf sabotage re,uires the elimination of limiting beliefs. .hat is a limiting belief2 #imiting beliefs are those things you believe that place limitations on your abilities. 7uch beliefs are true and others false* but we use them as a brake to deter us from making what appears impossible* possible. 3or e+ample* many individuals state* @& do not have proper e+perienceO& will not get the :ob & want.' 8lternatively* others state @& do not have any luckO& will never meet the decision maker.' The level of e+perience might be true. >our level of e+perience and skill might hinder certain :obs but if you do not apply* you do not get the :obK &f you desire luck* try sitting in a gambling hall. #uck does

3.

4.

5.

6.

not create opportunities/ e+perience* aggression* and focus get the decision maker. !ur mind creates limitations from things we e+perience and habits we form. >ou must reset your internal G-7 to determination* then you set you mind to accomplish anything you desire. 4on6t believe it2 4etermination ended a bloody Civil .ar* brought a man to the moon and gave us our first 8frican 8merican presidentK Confidence begins with a belief in >!MK -leasure

7.

The easiest method for ending self sabotage is doing pleasurable things. ;isery creates company* but pleasure manifests power. Take the time to do things you love to do" listen to music* read a book* take a walk. 7cientists have proved that our mind re,uires rest. Thinking of negative issues and limiting beliefs creates energy and polariCes our thinking. Conducting pleasurable activities produces endorphins in the brain that rela+ the mind and decrease our breathing and heart rate. H. 8ction The difference between @fortunate' and insignificant individuals" they take action. 7elf sabotage is embodied from habits. 4etaching habits takes time" ?0 days e+actly. &f you truly desire change then you must take actionable steps to eliminate your self sabotage. 7et timeframes that are reasonable.

7 Nusiness Nooks to &nspire >ou and >our Nusiness 0.

Nold P 7haun 7mith @How to be brave in business and win.' This is the perfect antidote for all the dull corporations out there who think their :ob is to follow the pack. 8 doCen detailed case studies of businesses that have broken away from the norm and taken a @bold' approach to business* including brands such as !?* Qirgin* Rappos and Nurberry. Nest for P &deas and inspiring stories from businesses around the world.

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!nward P Howard 7chultC The story of the most recent years in the 7tarbucks corporate history* as it struggled to re connect with its customers and get back to its core

values. 8 great e+ample of a business which had seen huge success lost its way and the courage of the management team to fight back to the top. Nest for P Nigger businesses that have stalled and need to enter a new phase. B. How to be Nrilliant P ;ichael Heppel This is one of a series of books by ;ichael Heppel that include topics such as Customer 7ervice* Time ;anagement and #ife Nalance. This one is a blueprint to change your self in S1 days. Heppel believes that most people settle for being !K or good at things* but we all have the capacity to be brilliant. 3ull of inspirational anecdotes and practical tools* this is a great book to dip into or follow as a S1 day plan. Nest for P Those days when you want things not to be ,uite as ordinary. D. &t6s not how good you are* it6s how good you want to be P -aul 8rden .ith an advertising background himself* 8rden uses an unusually creative approach to get across bite siCed ideas about having the vision and ideas to move forward. &t6s a small read <you6ll get through it in an hour= and perfect as a giveaway to business colleagues* clients or course delegates who need that bit of inspiration. Nest for P Creative types or as a business gift. G. 9verything you know about business is wrong P 8lastair 4ryburgh Nased on the author6s column (4on(t >ou Nelieve &t( in ;anagement Today* this takes modern business myths and blows them apart. 3or e+ample* that cost cutting is a bad way to boost profits* that you shouldn(t always give 001I and that incentives don(t encourage people to do useful things. .hether you agree with all the views or not it will definitely get you thinking in a different way. Nest for P Challenging the @givens' in your business* especially if it tends to look to the short term answers. J. ustomer genius P -eter 3isk 7ee the world from the customers perspective for a change. This book is a great guide in how to really understand your customers and drive your business based on their needs and views. 7imple building blocks* practical

tools and real business stories P this should be re,uired reading for all those people who talk about valuing customers but don6t actually do it. Nest for Reminding you why you are in business at all.

7. The Nig 3ive for #ife P Eohn 7trelecky .ritten as a business parable* like the !ne ;inute ;anager series* but this is much more thought provoking. The book is very moving and poses fundamental ,uestions about how you want to live your life and what that means for business. Nest for P reflecting on your purpose in life and business.

7 7kills of Nuilding a 7uccessful Team

In order for your career to grow, you must demonstrate effective leadership skills. Organizations are finally beginning to realize that soft skills are just as important as technical skills and therefore, are placing more emphasis on developing and rewarding effective leaders. One important skill for leaders to master is the ability to recruit high-potential talent into the organization. The responsibility of recruiting these candidates doesn t fall solely on the shoulders of your recruiter. There are many ways that you can enhance their efforts to attract the most sought after candidates. !ecruiting shouldn t be reactive " performed only when you have an opening on your team. It should be an ongoing activity so that your pipeline of candidates is full and you can start interviewing shortly after a need has been established. #ollow these tips to make the most of your efforts$ % In order for your career to grow, you must demonstrate effective leadership skills. Organizations are finally beginning to realize that soft skills are just as important as technical skills and therefore, are placing more emphasis on developing and rewarding effective leaders. One important skill for leaders to master is the ability to recruit high-potential talent into the organization. The responsibility of recruiting these candidates doesn t fall solely on the shoulders of your recruiter. There are many ways that you can enhance their efforts to attract the most sought after candidates. !ecruiting shouldn t be reactive " performed only when you have an opening on your team. It should be an ongoing activity so that your pipeline of candidates is full and you can start interviewing shortly after a need has been established. #ollow these tips to make the most of your efforts$

& If you are an active member of your professional community, start building a rapport with prospective candidates. !ecruiting is a lot like marketing " the more positive contact you have with prospects, the more receptive they will be to talking to you about making a move to your organization. 'eep in contact with those you would like to have on your team one day. ( )uild a reputation as a strong leader. This is one of those times when you want your reputation to precede you. If you are known for being a great leader, candidates will want to work for you. *ear after year, +lack of opportunity, is cited as one of the main reasons for employee turnover. -udicious candidates know that their manager can make or break that opportunity and they make their decisions accordingly. . /on t be intimidated by dynamic, high-potential candidates. I ve seen many hiring managers pass over candidates because they were intimidated by their ambition. Instead of worrying about someone taking over your job 0if this is an issue, you ve got bigger problems to worry about1, think about who could potentially replace you when you move on to a bigger role. 2 3void the temptation of hiring someone just like you. It s great when you have a connection with a candidate, but try to remember that you aren t hiring someone to be your friend. Instead, look for someone who will complement your team s strengths and weaknesses. 4 5elect candidates who are passionate about their work. 6assion is difficult to ascertain during an interview. 7owever, there are signs you can look for and 8uestions you can ask to better determine if this is someone who is passionate about their work. 9 /oes their education and work history consist of positions that build on each other, demonstrating knowledge in their field and a desire for growth: Or, have they bounced around with little direction: 9 3re they actively involved in their professional community: /o they take advantage of opportunities to develop new skills: 9 #ind out why they chose to get into this particular line of work. 9 ;ake a note of their specific professional goals. +To be working in a position that utilizes my skills or to be a manager, doesn t cut it. Is it just about the money or are they looking for growth or meaning in their work: 9 #ind out what aspect of their job they enjoy most. <

5top settling for mediocrity. /on t be afraid to hold off on making a selection decision until you have the right candidate. =et creative in the way you manage your employee shortage. >onsider redistributing the duties on your team and hiring a temporary administrative employee to take up the slack. This is a great time for your employees gain additional e?perience.

Top 7 .ays to Completely Restore Customer Confidence after Things Go .rong

@very day things go wrong in the service world and we are faced with the challenge of turning service failures into service recoveries. )ut what does it really take to restore customer confidence and regain goodwill: I began to e?plore that 8uestion more than %A years ago and since that time I have studied service failure and service recovery from every possible angle and I have benchmarked best-in-service companies throughout the world. ;y research has led to me uncovering a series of < simple, but remarkably effective strategies that will une8uivocally position any organization to keep customers coming back after even the worst has happened. @ach of the < strategies is scientifically proven and surprisingly easy to e?ecute. I present to you How to Completely Restore Customer Confidence After Things Go Wrong$ The < Things *ou ;ust /o... %. Courtesy. >ertainly, anyone in the position of interacting with customers must be friendly, helpful, polite, courteous, and fle?ible. These attitudes and behaviors are not just nice, but they are indeed e?pected. )ut when it comes to complaint handling specifically, we know that employee politeness while addressing the issue helps diffuse the problem in the customer s mind 0Biao, &AA<1. !esearch by 7ui Biao found that when customers feel like they are being treated with respect, dignity, and sensitivity by employees, they feel a sense of justice and fairness from the company 0Biao, &AA<1. 3s simple as it may sound, politeness is a tangible asset that can positively impact customer satisfaction with service recovery. If you solve the customer s issue, but are rude or indifferent in the process, you can still negatively impact the relationship. 5imply put, when your employees are polite and courteous, customers will e?perience more satisfaction and reward you with stronger loyalty. &. 8pology. ;aking an apology to customers after things go wrong is positively related to satisfaction with the recovery 0Biao, &AA<1. Chen a service employee apologizes to a customer, she conveys politeness, courtesy, concern, effort,

and empathy and this goes a long way 05mith, )olton, D Cagner, %EEE1. >onsider the following research$ F=allup research has shown that a genuine apology can actually strengthen a customer s emotional bond to a company, leaving him or her more emotionally connected than customers who never e?perienced a problem 0#leming D 3splund, &AA<1. F!esearch by T3!6 has shown that when an apology is perceived as genuine, customer satisfaction increases %A " %2G. F3 revolutionary program appropriately called 5orry CorksH encourages doctors and hospitals to apologize 8uickly when mishaps occur and to offer a fair settlement upfront to families and their attorneys. One of the first hospitals to implement 5orry Corks was The Iniversity of ;ichigan 7ospital. The results have been astonishing. The Iniversity of ;ichigan 7ospital has cut lawsuits in half, reduced litigation e?penses by two-thirds 0or J& million annually1, and reduced their insurance reserves from J<& million in &AA% to less than J&A million in &AA<.0Cojcieszak, &AAK1. Offer your customers a heartfelt apology after a service failure and you will not only restore customer confidence and regain goodwill, but you should also realize the benefits of reduced litigation e?penses and claims costs. Eustification. 3 vital, but often overlooked element of customer recovery is to provide an e?planation for how or why the problem happened. Taking the time to e?plain to a customer what might have caused the problem helps organizations reestablish trust. In an article titled, ;anage >omplaints to @nhance Boyalty, -ohn =oodman says, +In many case, a clear, believable e?planation as to why the policy or performance is reasonable will at least mollify the customer and, in some case, satisfy him or her., 0=oodman, &AA41. 7ui Biao had this to say about the importance of providing an e?planation, +@?plaining to customers what might have caused the service failure may 0also1 enhance customer satisfaction. 5imilarly, in the service recovery conte?t, open communication may alleviate customers bad feelings about the service failure., 6roviding an e?planation can be as simple as saying, +Thanks for taking the time to let us know about LLLLL. Ce appreciate customers who let us know when things aren t right. 7ere s what we think may have happened..., .. Resolution. One of the gifts of a voiced complaint is that if offers the company an opportunity to re-perform the service. Chen given this second chance, companies must bend over backwards to fi? the problem and restore customer confidence. Chen a company fails to resolve the issue, the customer is left hanging, she begins to lose trust in the organization, and feels like voicing the complaint was a waste of time. T3!6, Inc. studies have discovered that a customer who goes to the effort to

(.

complain, but remains dissatisfied is usually 2AG less loyal than someone who did not bother to complain 0=oodman, &AA41. 3s a result, a poor problem resolution process will produce a +double deviation, effect and will result in perceived injustice, hence intensifying customer dissatisfaction 0)itner, et al %EEA1. !esolving the customer s problem will have a positive impact on customer satisfaction and customer loyalty. #ailing to fi? a problem after a customer has gone through the trouble of voicing a complaint is treacherous because customers have been let down twice and they may not be as willing to forgive you. 2. &mmediateness. Mot only is resolving the customer s problem obviously important 0point N .1, but a speedy recovery response will enhance customers evaluations of your company 05mith, )olton, D Cagner, %EEE1. *our goal with problem resolution needs to be +One and done,. Chat I mean is, your employees need to be e8uipped with the trust 0from you1, empowerment, and training to be able to resolve complaints on the first phone call or first visit. Mot only does a speedy recovery improve the customer s perception of the company, but it actually has a greater impact on loyalty than the resolution itself. T3!6, Inc. found that ninety-five percent of complaining customers would remain loyal if their complaint was resolved on the first contact. That number dropped to seventy percent when the complaint was not immediately resolved. The longer it takes for the service provider to provide a full recovery, the greater the customer s perception is that they have been treated unfairly 05mith, )olton, D Cagner, %EEE1. Improve your organization s ability to handle problems 8uickly and well and you ll undoubtedly realize increases in customer satisfaction and loyalty. 4. Compensation. !eparation 0in the form of discounts, free merchandise, refunds, gift cards, coupons, and product samples1 after a service failure has been found to restore e8uity and improve customer satisfaction 05mith, )olton, D Cagner, %EEE1. 3 5ociety of >onsumer 3ffairs 6rofessionals customer loyalty study found that 2KG of complaining consumers who received something in the mail following their contact with consumer affairs departments were delighted, versus only .AG of those who did not receive anything. /on t hesitate when it comes to compensating customers after a service failure. *our reward will be increased customer satisfaction, loyalty, and powerfully persuasive positive word-of-mouth advertising. <. 7urprise $ 4elight. This bonus element is all about going beyond problem resolution and inspiring a feeling of astonishment through une?pectedness. One of my clients in the beauty industry is ma?imizing surprise D delight by

creatively using gift cards in a way that is generating profits. They used to compensate customers dollar-for-dollarO a J( overcharge was resolved with a J( check. ;akes sense doesn t it: Cell, now they give a J%A gift card for a J( overcharge. The customer is COC d. )ut not only is the customer COC d and telling her girlfriends about the une?pected gift card, but the company is enjoying a redemption rate of 4<G with customers spending &? the gift card amount in the store. Try a little surprise D delight and you ll get your customers talking and, if you design it right, you ll also enjoy growth as a direct result of the COC factor. Closing .ords. !emember, one of the gifts of a voiced complaint is that if offers the company an opportunity to re-perform the service. /on t mess up your second chance with customers who give you the gift of complaints. Take these < crucial elements and make them your gold standard. Chen you do, I promise, customers will reward you with repeat purchases and positive word-of-mouth. =ood luckH