| How to Convert
Dissatisfied Customers into Loyal Ones
Introduction
Customer loyalty is the biggest asset a company can boast
of in turbulent times. True competitive advantage can be achieved
only through excellent customer service and relentless care
and attention to the customer. A crucial step in this direction
is the effective management of dissatisfied customers.
Even in a perfectly run company, an occasional goof-up is
normal. It could result from an accident, system failure,
slip-up at quality control, or a bungling at the human interface
level. But, the outcome is predictable: the customer is upset,
often angry and ready to vent his spleen. You have on hand
a dissatisfied customer, a virtual ticking bomb!
Do all dissatisfied customers complain?
Surveys point that only about 5-10% of dissatisfied customers
complain. Think about that. If your business receives 5 complaints
per year you have probably had 100 dissatisfied customers
during that period! Most dissatisfied customers silently shift
providers or attempt to get even with the company by making
negative comments. Just imagine the widespread impact of dissatisfied
customers telling hundreds of others.
Paradoxical impact of complaint resolution
Roger Nunley, managing director of Georgia–based Customer
Care Institute, states, "if you have a customer who
is dissatisfied or who has a complaint, and you quickly respond
and satisfy that customer, that customer will be even more
loyal than customers who have not complained about your product
or service." Other experts also agree that 95% of
dissatisfied customers will do business with you again if
you resolve the complaint immediately.
Service Recovery
Regaining customer confidence and satisfaction is the need
of the hour. Organisations should have a service recovery
mechanism in place for this purpose. It’s a set of carefully
designed strategies designed to overcome the impact of negative
service experienced by customers. Consider this:
Cool Water, a pool service company, sent its representative
to clean up a client’s pool. In the process of pumping
up water, the employee ended up damaging a nearby limestone
stairway. That stairway had been built at a cost of USD 1,200.
The client’s reaction can just be imagined. However,
the company did not end up losing the account. The employee
contacted the landscaper who had originally built the structure
and the stairs were repaired within days. This, together with
a sincere apology from the company owner, led to the client
appreciating the company’s service.
Following are some strategies to resolve service failures
quickly and effectively.
1. Recognise the role of empowered employees
Organisations should instil a culture of empowerment that
enables employees to take an independent decision to delight
the customer. Customers enter the complaint process in a foul
mood. If the person they first interface with does not have
power to quickly resolve the issue, the situation gets worsened.
Even where firms fully compensate customers for the inconvenience
caused, they do not gain brownie points for the delay.
A chain of restaurants in Seattle authorises its employees
to provide complimentary wine, desserts, or even meals to
compensate for errors or delays that peeve customers. This
helped in superior service as the issues were immediately
resolved without escalating it to the manager.
2. Identify the impact of satisfied and loyal employees
Research indicates that loyal, satisfied and productive employees
generate customer satisfaction. Customers prefer to do business
with people who know their preferences. It is thus easy to
gain customer loyalty if the staff of a company is steady.
A body of steady staff offers familiarity to their customers.
Creating a culture that nurtures loyalty and commitment is
thus necessary.
3. Let the customers talk
Most problems arise because employees do not listen to customers.
Employees need to understand that interrupting customers can
put them off.
“Nine times out of 10, let the customer vent, tell
their story, let off steam — that automatically calms
them," says Nunley.
If customers are not interrupted and allowed to have their
say, two objectives can be achieved: First, it enables the
employee to understand matters from the customer’s perspective.
Second, it allows the customer to give vent to his anger or
any other emotion, which can then be considerably reduced.
Such situations require tactful handling.
4. Be empathetic
Employees should state that they have walked in customer’s
shoes, and communicate it both through their expression and
conversation. Their tone and body language should reinforce
the feeling. For instance, imagine there is a problem with
food in a restaurant and the manager approaches the customer
with hands on his hips and in a harsh tone asks, “What
is the problem here?” It would certainly put the customer
off, and he is bound to spread a negative word among his friends.
Instead, if the manager says those two little magic words:
I'm sorry; it would diffuse the situation.
5. Understanding
This is the most crucial step in communication. At this stage,
employees need to have an overall picture of the negative
experience. In case there are misunderstandings, they should
be clarified with the customer. An important point to remember
over here is that one should not jump to conclusions. Only
when the situation has been analysed completely from various
angles should a judgement be made.
6. Solution
All efforts must be directed at resolving problems at the
earliest. A customer should not be transferred to more than
two people for resolution of complaints. In case such a transfer
is unavoidable, the first person contacted must determine
the right person to resolve the matter. If any complaint is
not resolved to the customer's satisfaction, explain the future
steps and post the relevant documentation.
After listening to the problem, act upon it to create a win–win
situation. At this stage, the employee needs to assure the
customer that the problem will be rectified at the earliest.
The best bet is to deliver more than promised. For instance,
if a replacement has to be made in five days, deliver it within
three days to the disgruntled customer.
7. Follow-up
After resolving the conflict, employees need to follow up
with the matter. Either through e-mail, post or through a
phone call, employees should make the customer understand
that they care. This will confirm that employees are doing
everything to serve customers better.
8. Developing recovery policy
Handling customer complaints in a systematic manner is crucial.
Some tips for developing successful recovery policy include:
- Involve all levels of employees
- Identify the most frequent types of problems
- Analyse the root cause of the problems
- Create step-by-step procedures for dealing with various
challenges
It is important that the company keeps a log or journal of
customer complaints. Additionally, there needs to be a constant
monitoring of the status of complaints; for instance, the
time taken for rectification. This record would enable the
company to identify loopholes in the process and take corrective
measures.
Endpoint
If customer problems are addressed swiftly and amicably,
companies gain respect. Handling customer complaints and turning
dissatisfied customers into delighted ones is not easy, but
should be the prime objective. The key is to recognise employees
who have the ability to handle customers well and train them.
Winning back customers involves listening and responding quickly
to redress grievances. The trick lies in regularly interacting
with customers, providing solutions by accepting responsibility
for problems and re-committing to enhance customer value.
Trust transforms a dissatisfied customer into a loyal ally!
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