Question:
It seems every business has its fair share of unhappy customers. What is the best way to deal with people who aren’t satisfied with the service they receive?

Answer:
One common mistake in the management of business is the lack of focus on the current customer or client. It’s more common for the focus to be on attracting new business accounts by investing in advertising and other marketing techniques. However, the total cost of attracting new business is five times more than the cost of keeping existing ones. While it is important to focus on the new accounts, it is more cost effective to sustain the existing ones. Effectively dealing with unhappy customers is one of the ways in which you can build a solid reputation for your business.

When a dissatisfied customer tells an average of 10-20 people about their negative experience, word spreads quickly and your reputation can instantly change. This becomes more detrimental in an area in which there is greater competition for your product or service, since up to 93 percent of unhappy customers will refuse to buy from a business again if they have a choice to bring their business elsewhere, with most customers not bothering to tell you their reasons for leaving. Customer feedback is essential in assessing satisfaction because fortunately, up to 95 percent of unhappy customers will give that business another chance if their complaints are handled effectively and quickly.

It’s important to properly train your staff in handling customer complaints appropriately to maintain your reputation and build upon your client base. The following points are imperative in properly servicing customer complaints:

• Allow the customer to vent and to be heard. Train your employees to acknowledge the customers’ feelings and frustration without getting emotionally involved. The employee needs to remain calm and objective in order to support the customer.
• Ask the customer how the company can make the situation better. This gives an employee a better idea of what the customer’s expectations are in resolving the matter. Don’t offer restitution until you hear what the customer wants. While it could be something outrageous that the client is seeking, it’s most often something that is easily resolvable. If the company offers something first, without listening to the client, the company may be providing more than what is actually needed to resolve the matter.
• After listening to the customer’s interests, try to offer at least two options that the client can choose from for restitution. This empowers the client and gives her a sense of control in the situation.
• If the particular employee cannot make the final decision in restitution, make sure he finds the person that can. The worst thing an employee can do is say that she can’t help the customer, leaving him stranded. The employee should take the responsibility and find the person, perhaps a manager, who will be able to resolve the complaint.
• Train your staff to view customer complaints as opportunities to showcase your quality service with your customers. By handling customer dissatisfaction effectively, you are increasing trust and credibility among your current clients and building upon a reputation that will set you apart from your competitors.

Question:

How can businesses effectively deal with major transitions such as a buyout or location change?

Answer:

Southwest Florida is growing so fast, many people are having difficulty adjusting to all the changes. While change can be good, it can be detrimental to a business if it isn’t handled with care.

A business experiencing a major transition faces several issues, the most important of which involve employees and customers. When a big change occurs, your employees are a key component in handling the transition effectively. If they trust the company and feel confident their jobs are not threatened, they will have a more positive outlook regarding the changes and will most likely pass this along to the customers.

Everyone fears change. It forces us to step outside our comfort zones into unfamiliar territory where risk is apparent. The more up-front and honest you are with your staff about the expectations and goals of the company and how it will affect their positions, the easier the transition will be.

Some businesses make the mistake of withholding information from their employees to prevent panic. But when small pieces of information leak out, rumors ignite and spread quickly.

This, in turn, breeds panic—and the negative energy finds its way to the customers. Customers may also panic when they discover a major change is happening at their regular place of business.They worry about how it will affect their lives.Will they have to drive farther to the new location? Will they
lose benefits as a loyal customer? Will they experience deficiencies in their current level of customer service? If the company changes ownership and loses its quality employees, clients may feel abandoned.

Follow the steps below to assist both employees and customers in effectively dealing with the transition.

• Provide as much information as possible about the transition. This helps limit the opportunities for rumors to propagate.
• Be honest and direct with your clientele and staff regarding the change. Customers and employees appreciate the truth, even if it is disappointing. It enhances trust and integrity.
• Retain quality employees. By keeping key staff, you build on a solid foundation. Loyal customers appreciate familiar faces.
• Train employees to handle customer concerns about the change. Clients need to know they will be taken care of. Employees may need to do some handholding to assist customers with the change.
• Evoke a positive environment surrounding the change. Throw a party, grand opening or ribbon-cutting to celebrate.

Modeling a positive outlook helps everyone feel more comfortable and excited about the transition.

It is especially important that the leaders of the organization express themselves in a positive manner. If management is negative, employees follow suit—and customers are likely to be next in line.