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.