7
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©denphumi/ThinkStock
Instructor PowerPoint
1
Learning Objective
1
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 2
Understand the goals of
business communicators in
conveying negative news.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © MelisendeVector.com/Fotolia
Ch. 7 / Slide 3
Goals in Communicating Negative News
Explain clearly and completely
Project a professional
image
Convey empathy and
sensitivity
Be fair and impartial
Maintain friendly relations
Learning Objective
2
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 4
Compare the strategies and
ethics of the direct and indirect
plans in communicating
negative news.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 5
Analyzing Negative News Strategies
Direct
Strategy
Indirect
Strategy
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 6
When to Use the Direct Strategy
• When the bad news is not damaging
• When receiver may overlook the bad news
• When the organization or receiver prefers directness
• When firmness is necessary
Direct
Strategy
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 7
When to Use the Indirect Strategy
• When the bad news is personally upsetting
• When the bad news will provoke a hostile reaction
• When the bad news threatens the customer relationship
• When the bad news is unexpected
Indirect
Strategy
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 8
Comparing Strategies for Delivering Negative News
Bad News
Pleasant Close
Reasons
Pleasant Close
Bad News
Reasons
Direct
Strateg
y Buffer
Indirect
Strateg
y
Closing
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 9
Four-Part Indirect Strategy for Bad News
Reveal the bad news without emphasizing it. Provide an alternative or compromise, if possible.
Open with a neutral but meaningful statement that does not mention the bad news.
Explain the causes of the bad news before disclosing it.
End with a personalized, forward-looking, pleasant statement. Avoid referring to the bad news.
Bad
News
Reason
s
Buffer
Learning Objective
3
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 10
Explain the components of
effective negative messages,
including opening with a buffer,
apologizing, showing empathy,
presenting the reasons,
cushioning the bad news, and
closing pleasantly.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.© SM Web / fotolia
Ch. 7 / Slide 11
What Is a Buffer?
• a device to reduce shock or pain
• a neutral, but meaningful statement that makes the reader continue reading
• a concise, relevant opening that provides a natural transition to the explanation that follows
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.© SM Web / fotolia
Ch. 7 / Slide 12
Various Buffer Types
Best news
Compliment
Appreciation
Agreement
Facts
Understanding
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 13
Presenting the Reasons for the Negative News
Explain the reasons leading up to the denial.
Cite reader benefit or benefits to others, if relevant.
Explain the rationale behind your company’s policy.
Choose positive words to keep the reader in a receptive mood.
Show fairness and serious intent.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 14
Other Techniques for Cushioning the Bad News
Position the bad news strategically.
Use the passive voice.
Highlight the positive, if relevant.
Imply the refusal.
Suggest a compromise or an alternative.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © denis_pc/Fotolia
Ch. 7 / Slide 15
Closing Pleasantly
Resale or Sales
Promotion
Invite the reader to consider your other products or services.
FreebiesSend a coupon, sample, or gift to restore confidence.
Good WishesExpress sincere good wishes and thank the reader, if applicable.
AlternativeGive follow-through advice or offer an alternative, if available.
Forward LookAnticipate future relations or business.
Learning Objective
4
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 16
Apply effective techniques
in refusing typical requests
or claims, as well as
handling customer bad
news in print and online.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 17
Saying No to Typical Requests and Claims
Requests for favors, money,
information, and service
Credit refusals
Serious problems with
orders
Claims from disappointed
customers
Invitations
Rate increases and
price hikes
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 18
Writing Plan for Refusing Typical Requests and Claims
Buffer
• Start with a neutral statement, such as a compliment, appreciation, quick review of the facts, or an apology.
• Include a key idea that acts as a transition to the reasons.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 19
Writing Plan for Refusing Typical Requests and Claims
Reasons
• Present valid reasons for the refusal.
• Avoid words that create a negative tone.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 20
Writing Plan for Refusing Typical Requests and Claims
Bad News
• De-emphasize the bad news by using the passive voice, accentuating the positive, or implying a refusal.
• Suggest a compromise, alternative, or substitute, when appropriate.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © helen cingisiz/Fotolia
Ch. 7 / Slide 21
Writing Plan for Refusing Typical Requests and Claims
Closing
• Strive to renew good feelings with a positive statement.
• Avoid referring to the bad news.
• Consider including resale or sales promotion.
• Look forward to continued business.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 22
“Before” –Ineffective Refusal Message
Dear Mr. Diaz:
We regret to inform you that we cannot allow you to convert the lease payments you have been making on your Canon X1000 color copier toward its purchase, much as we would love to do. We understand that you have been making regular payments for the past 16 months.
Our established company policy prohibits such conversion of leasing monies. Perhaps you have noticed that we offer extremely low leasing and purchase prices. Obviously, these low prices would never be possible if we agreed to many proposals such as yours.
Because we’re striving to stay in business, we cannot agree to your request asking us to convert all 16 months of rental payments toward the purchase of our popular new equipment.
It is our understanding, Mr. Diaz, that you have had the Canon X1000 color copier for 16 months, and you claim that it has been reliable and versatile. We would like to tell you about another Canon model–one that is perhaps closer to your limited budget.
Sincerely,
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 23
“After” –Improved Refusal Message
Dear Mr. Diaz:
We’re happy to learn that you have enjoying the use of the Canon X1000 color copier you’ve been leasing for the past 16 months.
Like our many other customers, Mr. Diaz, you have discovered that Canon copiers supply remarkable versatility and reliability. One of the reasons we’re able to offer these outstanding copiers at such low leasing rates and equally low purchase prices is that we maintain a slim profit margin. If our program included a provision for applying lease payments toward purchase prices, our overall prices would have to be higher.
Although lease payments cannot be credited toward purchase price, we can offer you other Canon models that are within your price range. The Canon 600 delivers the same reliability with nearly as many feature as the to-of-the-line Canon X1000. Please let us demonstrate the Canon 600 to your staff in your office, Mr. Diaz. Our representative, Marcia Murphy, will call you during the week of April 15 to arrange an appointment.
Sincerely,
Describe the problem and apologize.
Call or e-mail the individual
immediately.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © to be decided/Fotolia
Ch. 7 / Slide 24
Dealing With Disappointed Customers in Print
Why the problem occurred
What you are doing to
resolve it
How you will prevent it
from happening
again
Ch. 7 / Slide 25
Dealing With Disappointed Customers in Print
Explain the following:
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © to be decided/Fotolia
Promote goodwill by
following up with a message
that documents the
phone call or
e-mail message.
Ch. 7 / Slide 26
Dealing With Disappointed Customers in Print
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © to be decided/Fotolia
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 27
Responding by E-mail and in Hard Copy
Written messages are important
in these situations:
When you cannot reach the customer personally.
When you wish to confirm follow-up procedures.
When you need to establish a record of the incident.
When you want to promote good relations.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © Yury Shchipakin/Fotolia, © nattstudio/Fotolia
Ch. 7 / Slide 28
Why Consumers Complain Online
Consumers may air their complaints
on social networking sites (Facebook, Twitter, Angie’s List, Yelp, and more) rather
than calling customer service departments.
Internet sites such as
Complaints.com or Ripoff Report enable customers to quickly share peeves about
stores, products, and services.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © Yury Shchipakin/Fotolia, © nattstudio/Fotolia
Ch. 7 / Slide 29
Why Consumers Complain Online
Customers may receive faster
responses to tweets than to customer
service calls.
Griping in public may help other consumers avoid the same
problems.
Public complaints can
improve the complainer’s leverage
in solving a problem.
Sending a 140-character tweet is much
easier than writing a complaint
e-mail.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © Marina Zlochin/Fotolia
Ch. 7 / Slide 30
Responding to Negative Posts and Reviews Online
What smart businesses do:
Verify the situation.
Respond quickly and constructively.
Consider freebies.
Learn how to improve.
Accept the inevitable.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 31
Denying Claims
Don’t blame customers, even if they are at fault.
Adopt the proper tone.
Avoid youstatements that sound preachy.
You would have known that cash refunds are impossible if you had read your contract.
Use neutral, objective language to explain why
the claim must be refused.
Consider resale information to rebuild the customer’s
confidence in your products or organization.
Learning Objective
5
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ch. 7 / Slide 32
Describe and apply effective
techniques for delivering
unfavorable news within
organizations.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © denis_pc /Fotolia
Ch. 7 / Slide 33
Managing Bad News Within Organizations
Telling the boss that something went wrong.
Confronting an employee about poor performance.
Announcing declining profits, lost contracts, harmful lawsuits, public relations controversies, and changes in policy.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © denis_pc /Fotolia
Ch. 7 / Slide 34
Delivering Bad News in Person
Decide whether the negative information is worth mentioning:
Use the indirect strategy if you know the news will upset the receiver.
Leave trivial, noncriminal mistakes and one-time bad behaviors alone. BUT: Report fraudulent travel claims, consistent hostile behavior, or failing projects.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © denis_pc /Fotolia
Ch. 7 / Slide 35
Announcing Bad News to Individuals or Groups
Prepare and rehearse.
Explain past, present, and
future.
Consider taking a
colleague.
Think about timing.
Be patient with the reaction.
Gather all the information.
Ch. 7 / Slide 36
Announcing Bad News to Employees and the Public
Managers explain the organization’s side of the
story honestly and promptly.
Low morale results when employees learn bad news through the
grapevine or from media.
Organizations deliver bad news through multiple channels, print and digital.
When bad news must be delivered to individuals,
management may want to deliver bad news personally.
Smart organizations involved in a crisis
usually communicate the news openly.
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © denis_pc /Fotolia
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©denphumi/ThinkStock
Ch. 7 / Slide 37