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ManagementAides

Avoiding the Cost of Unresolved Problems

By Letzen Maldonado 
Sunday, June 22, 2003

Many businesses teach their employees how to deliver good Service. Yet, many also fail to teach how to effectively resolve customer problems, and that's where the customer-business relationship many times falls apart. It won't matter how much you charm customers if you cannot effectively resolve a problem when it arises.

Let's look at this frequently quoted fact: A customer who has a bad experience that is not corrected will tell 10 people of that experience. A customer who has a good experience will tell 3 people.

Do the math, and you'll notice that for every uncorrected negative experience, you'll have to have at least 4 positive ones to "counteract" and "surpass" the negative word-of-mouth. Put some dollar figures on those numbers, and you'll see that this is an expensive proposition. The loss of customers, and potential customers, means lost revenues, while acquiring new customers to replace lost ones will prove costly.

Service Excellence seeks to correct negatives immediately, follows up to ensure satisfaction has been achieved, and takes steps to ensure such experience will not be repeated. True, problems cannot always be resolved immediately. In such cases, you should establish a minimum period for resolution, such as 72 hours. The longer a problem goes unresolved, the more you risk alienating the customer.

All attempts should be made to diffuse and resolve conflict situations. Conflict situations should be addressed with a sense of urgency and diplomacy. To achieve this, your employees should follow some simple procedures:

  • Do Not interrupt the customer. Let the customer vent out the anger and finish speaking.
  • Actively listen to the customer. This means stop what you’re doing; show interest in the customer; hear what the customer is saying
  • Listen to the customer's tone of voice to know how he or she is feeling and how you should respond. Does the customer sound tired, irritated, or angry?
  • Read the customer to determine the best way to personalize the interaction. What is the customer's face or body posture telling you?
  • Ask questions to gain more understanding and clarify what you are hearing. Never assume you have understood the message.
  • Put yourself in the customer's shoes. Empathize. Try to understand how the customer is feeling and tailor your message accordingly.
  • Show concern, care and respect through your voice and expressions. Make sure you don't come across as condescending.
  • Make the customer feel wanted and appreciated by thanking him or her for bringing the situation to your attention.
  • Apologize for any inconvenience and help them solve the problem. Maintain a "Can Do" attitude.
  • If the problem is complex, inform the customer you will have to research the situation and will have with an answer within a specified time frame.
  • Promptly follow-up on the situation. If possible, call the customer to ensure you satisfied his or her needs or to inform of the status of the resolution.

Always notify others that might come in contact with this customer of any problem situation - whether through a note on a customer database or on a "Problems" section in a shift checklist.

You will also want to have a set of procedures for responding to problems by letter providing managers with letter-writing guidelines and maybe even some standard sample letters. Apology letters should at least:

  1. Thank the customer for contacting you and bringing the matter to your attention.
  2. Apologize for any inconvenience or for not meeting the customer's expectations (vs. admitting to fault).
  3. State what your business' standards are in that matter and what you are doing about the situation.
  4. Thank the customer again for sharing the matter with you, reassure their value as a customer and offer further assistance.

-- This article is available for free reprint in exchange for credit to Letzen Maldonado and link to managementaides.com.