Handling Customer Complaints

HANDLING CUSTOMER COMPLAINTS

At the end of this training session, you will be able to: Identify reasons why a complaint is a gift from

the customer to the service provider Note what to expect from customers when

they make complaints Identify how to handle customer complaints Learn strategies to redeem yourself when you

have failed in providing the customer the level of expected service

OBJECTIVES

What is a Complaint? Identifying A Complaint As A Gift Steps For Handling Customer Complaints Service Recovery Process Handling Difficult Customers

CONTENT

What is a Complaint?SESSION 1

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What is a Complaint?

“An expression of dissatisfaction made to an organization, related to its products or services, or the complaints-handling process itself, where a response or resolution is explicitly or implicitly expected”

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Why do customers complain?

Their expectations have not been met! To release their anger To help improve the service Because of concern for others who also use

the service

What proportion of unhappy customers complain? Generally 9% to 37% of unhappy customers make

complaints to the firms. The rest never bother to complain

Why don’t unhappy customers complain? They think it is not worth the time or effort. They further think that no one would be concerned

about their problem or solve it. They do not know where to go or what to do.

Why do customers complain?

Each happy customer will tell at least six other people

Most common complaints...

Wrong information Poor customer service attitude Overpricing Lack of adequate information Delays Unresponsiveness of service

providers ….

……

The customer is always the customer and this means simply that solving the problem is often more important than who is right.

If you can solve their problem without blaming yourself or others, you will reduce stress, everyone will feel better and you will be on your way to attaining CUSTOMER

SATISFACTION

The customer is not always right but...

Identifying a Complaint as a Gift

SESSION 2

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Is a complaint a gift? Why?

Complaints are gift packages waiting to be opened because they:

Are given freely Are not solicited by the recipient organization Are unexpected…they come as a surprise (usually) Hold the key to happiness for the recipient

organization If they are well handled

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A complaint gives you: Free direct communication from the customer

about service failures, competitors offerings etc. without the added cost of conducting a survey

Readily available market research: they define what customers want

A complaint gives you the opportunity to:

Increase customer trust Build long term relationships-

customers will use your services again if they believe complaints are welcomed and addressed

Rectify service failures Engage customers as advocates


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If a customer is complaining, you are being given a chance to retain that customer

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The customer’s needs when they complain

The customer has 2 separate needs when complaining- needs relating to the complaint needs as individuals and

Example 1 Complaint – the product is not working as expected Underlying message – I don’t understand the new technology, I need help

Example 2 Complaint- I was disappointed with the service during my last visit Underlying message – I am testing the value you place on my loyalty to

your business

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The customer’s needs when they complain

Needs relating to the complaint To have their concern dealt with quickly, fairly and

properly To be given what they have been denied and perhaps an

apology To have action taken to rectify a problem or address a

concern- a resultant process change

Needs as individuals To be heard To be understood To be respected

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When the customer’s need is met…

Who is your advocate??? A person who publicly supports or

recommends you Someone who speaks, or argues in

your favor

You automatically Engage your Customer as your Advocate!

Steps for Handling Customer Complaints

SESSION 3

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How to Handle Customer Complaints

How do you react to customer complaints about the way you do your work?

Especially when you think you are doing your best???

People react to customer complaints in different ways… Some

Ignore complaints Become defensive Become angry or annoyed Are concerned about the loss of trade or the damage to

their professional reputation

For others, it is A hindrance

They just wish the customer would go away! Or

They do not believe some or all of what the customer is complaining about.

These reactions are as a result of blame being attributed to us or our organization.


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In making complaints, some customers portray the following characteristics

Lack of gracious social skills to communicate properly Nervousness Harshness Very Emotional Lack understanding of you or your organization’s limitations Rudeness Unreasonableness

We need to learn to expect such behaviour and remember however that a complaint is evidence that, in

the customer’s view, we have not met their expectations.


Listen Repeat Apologise Acknowledge Explain action Thank Follow up

Remember not to take it personally

Remain calm Focus on the problem

and not person Turn unhappy people

into happy customers

Address customers by name All communication should be in the first person.

Use “I am sorry” not “we” Don’t make excuses or blame others in your

organization Give the customer your full attention and

establish eye contact Paraphrase their complaint in your own words to

determine whether you have correctly understood the situation.


If you don’t know the answer to their problem, don’t lie.

Call back when you say you will, even if for some reason, you haven’t been able to obtain a satisfactory answer by then

Make the customer part of the solution not part of the problem


Don’t be defensive Be composed at all times Don’t take criticisms personally Offer an apology even if the disservice is not your

fault Show empathy by using such phrases as: “I can

understand how you feel”, “I appreciate what you’re saying.”

How to handle customer complaints

Tell them what you can do…not what you can’t do

Find out what it will take to turn their dissatisfaction into satisfaction

If they agree to that solution, act quickly before they change their mind

Follow up And remember: You can never win an

argument with a customer


Steps for handling complaints

Acknowledge receipt of the complaint It is important that you acknowledge the receipt of all complaints, verbal or written. Preferably allocate a complaint reference number and provide the customer with a contact point for further correspondence.

Accurately record complaint information and make it accessible

Make sure that your recorded version of the complaint matches exactly what the customer said. Also make sure that the complaint record is accessible by any branch of the organization that the customer may contact.

Attach timeframes for resolution of complaint

The company should attempt to resolve complaints on first contact, but if this is not possible, then a complaint should be finalized within a specific number of days eg. 30 days.

At the organization’s level, there is the need for a complaint handling system which will involve the following steps as a minimum:

Steps for handling complaints

Customers must be informed about any delays in resolving a complaint

As soon as you realizes that they are unable to resolve a complaint within the given timeframe, contact the customer, and inform advising him/ her of the delay and set a new timeline

Make staff aware of complaint handling procedures

The complaint handling procedures should be known to all employees and be part of regular training

Inform Customers Of Complaint Handling Procedures

Posting your complaint handling procedures on your office premises is a good way to inform customers. Also these procedures may be incorporated in the organisation’s brochure

HOW? THROUGH

Surveys, focus groups, mystery shopping

One complaint statistically represents 24 similar ones

Find out what your customers really think…

Strategies for Service Recovery

SESSION 4

Service recovery is how you remedy a failed service encounter with a customer. In other words, pull a customer from hell to heaven in the shortest

possible time.

It involves: apologizing, solving the problem, compensating the customer with something of value

What is service recovery

95% of customers who have a complaint that was handled efficiently and promptly will not only continue to do business but will become even more loyal (Wharton Business School)

So how do you make amends or appease the customer? Through

product replacements, good will gifts, free of charge services, etc…

Service recovery

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Some important statistics

Only 4% of dissatisfied customers complain. 96% leave without any communication to the business

Of the 96% who leave, 91% will never return A typical dissatisfied customer will tell 8 to 10

people about the issues with your business 1 in 5 dissatisfied customers will tell 20 people

about the issues with your business It takes 12 positive service incidents to make up

for one negative incident

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Some important statistics

7 out of 10 complaining customers will do business with again you if you resolve the complaint in their favour

Of complaining customers, 95% will do business with you again if you resolve the complaint at the first contact

On average, a satisfied complainer will tell 5 people about their problem and how it was solved

It costs 6 times more to attract new customers than it does to retain current ones

Customer loyalty is worth 10 times the price of a single purchase “How to win and Keep Customers” – Michael LeBoeuf

Handling Difficult Customers

SESSION 5

Who is a difficult customer?

How do you handle such people?

Handling Difficult Customers

Types of Difficult Customers

Angry Nasty Demanding Critical Non-stop Talker Indecisive

Sarcastic Argumentative

Why Are They Difficult?

They are often expressing a need but chose an appropriate and impolite way to communicate this need

They are difficult for their own reasons – not because of you

Common Reasons For Being Difficult

tired or frustrated confused or

overwhelmed defending their ego unfamiliar with

situation feel ignored under influence of

drink or drugs

don’t understand in bad mood in a hurry other reasons…..

“this job would be very good if it weren’t for the difficult people I have to deal with everyday”

Approach them professionally and not personally Taking things personally can damage your

professional reputation Listen for the signals that you are taking things

personally

How Do I Deal With Difficult Customers?

Check you customer service attitude Attitude is the key to success

Attitude is your mental position on facts - or more simply, the way you view things



Five points about attitude: your attitude towards

customers influences your behaviour. You cannot always camouflage how you feel

your attitude determines the level of job satisfaction

your attitude affects everyone who comes in contact with you

tone and body language reflect your attitude

your attitude is not fixed. The attitude you choose to display is up to YOU


Remind yourself! This is my job and

I’m going to do it professionally

If it were not for these customers I would not have a job

Every time I solve a problem I will feel better

Reinforce this by saying… “I like the job, not

because it’s easy, not because there are no difficult people, not because there are no frustrations but because people are part of any job and I can make things easier by taking things professionally

Be positive Take things professionally and not personally Aim for customer satisfaction, not just service Solve problems without blaming yourself or

others Remember attitudes are caught, not taught

Summary

Handling Customer Complaints

Services

Transcript of Handling Customer Complaints