Most businesses managers spend large sums of money recruiting new customers. Many of these businesses don’t put the same effort and funds in retaining existing customers. One of the areas that represents a large opportunity is the way unhappy customers are treated.
There has been extensive research into consumer behavior and it repeatedly shows that the average satisfied customer is likely to tell three other people about good experience. On the other hand the average unhappy customer will tend to complain to eleven other people. This means that your business creates a “bad will” ambassador every time you have a dissatisfied customer. They will go and spread the bad word as part of their mission in life.
We also know how bad news travels quicker than good news. What we don’t know is how many of those eleven recipients of the bad news are likely to tell other people and warn them about your business. Because we don’t know the exact number and we can only make estimates, the cost of a dissatisfied customer is hard to assess. However, one thing is clear. The cost of converting that dissatisfied customer into a satisfied customer is much less than the damage that they will do to your business.
Very few business managers can afford negative word-of-mouth advertising.
Converting that dissatisfied customer to satisfied customer can normally be achieved using the following five step strategy.
First step: Acknowledge that the person is upset. “I can see that you are upset. I can see that we have failed you is in some way.”
Second step: Make a positive reassuring statement. “I want you to know I will get something done to fix your problem.”
Third step: Make a sad/glad statement. ”I’m sorry you have a problem but I’m glad that you called it to my attention so it can be fixed.”
Fourth step: This is the magic question. “What will make you happy?” ”Mr. Jones what will it take to make you happy or what would make you happy in settling this problem?” (Often the dissatisfied customer will asks for something less than you would freely offer.)
Final step: Do it. “Mr. Jones I’m very sorry that you have this difficulty. Now I’m going to do exactly what you want. We would like to keep you as a valuable customer.”
When you look at the dialogue that is proposed here, you will see that there is an emphasis on the words “you” and “your.” The reason why those two words are used more than ten times in the suggested dialogue is relatively simple. When we hear questions and statements which are focused on ourselves a lot of our aggression and anger is diffused. Furthermore, we are more inclined to listen when the conversation is focused on ourselves.
Your business will benefit if you apply the approach to dissatisfied customers that is suggested. You have a choice. You can compete aggressively for new customers with expensive “hit or miss” advertising and then lose customers as fast as you add new ones. Alternatively, you can compete more effectively and less expensively with a better approach to any unhappy customers you may create.
Tags: customer service training, dissatisfied customer, negative word, step strategy, unhappy customer