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Americas Mart University                                                                                                                                             6/18/2009




                                                                                                             Learning Objectives

                      Dealing with
                 Dissatisfied Customers
                                                                              Understand what causes customer dissatisfaction.

                                                                              Identify what’s behind a customer’s attitude.
                                                                                     y

                                                                              Learn techniques for handling different types of
                                                                              challenging customers.

                                                                              Practice dealing with difficult situations.
            Presented by
            Lynne Peer
       Peer Resource Group
                                                                    © 2003 Treeline Training/Published by HRDQ




                            Customer Situations                                    Customer Service Hall of SHAME

                                When was the last time you were
                                delighted as a customer?
                                        What happened?
                                        How did you feel?
                                        What
                                        Wh action did you take?
                                                 i           k ?

                                When was the last time you were
                                disappointed as a customer?
                                        What happened?
                                        How did you feel?                                                                     MSN Money survey 7,724 people
                                        What action did you take?




               Customer Service Hall of FAME                        What Aspect of Customer Service is Most Important?
                                                                                                                 MSN Survey of 7,724 People

                        BEST
                      Companies
                           Marriott      What do the best
                      Nordstrom          companies do?                                    Feature                         Rating         Rate Your Store          1- 5
                                                                                                                                                                (5 highest)
                           Amazon                                                Knowledgeable staff                       35%
                                         Why do people rate                     Readily available staff                    34%        Knowledgeable staff
                    Hilton/Hampton
                              p
                                         them the highest?                                                                            Readily
                                                                                                                                      R dil available staff
                                                                                                                                               il bl t ff
                           Google                                              Flexible policies for                       13%
                                                                        return/exchange of merchandise                                Flexible on returns and
                       Auto Zone         How do they make                                                                             exchanges
                     Whole Foods         customers feel?                               Friendly staff                      12%        Friendly staff
                           Staples                                     None -- product is all that matters                  2%        Product line
                           Kroger                                                         Not sure                          1%
                           Costco                                                           Other                           3%
                       Sheraton




www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com
5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181                                                                                                              1
Americas Mart University                                                                                                                                                6/18/2009




                       Major Customer Dissatisfaction                                             Major Customer Dissatisfaction
                          Causes in all Industries                                                   Causes in all Industries

                                                                                                                                Lack of communication
                 Promises not delivered                                                                                         between the parties when
                 Treated like they are unimportant                                                                              there is a claim/dispute
                 Service that was rude and inefficient                                                                          Defective or inferior
                 Conflicting messages from employees                                                                            products
                 Feeling that the business is taking                                                                            Feeling of being dismissed
                                                                                                                                or discounted by a
                 advantage of them in some way
                                                                                                                                company’s employees
                 Misinformation from an employee                                                                                Business integrity or
                 Delays and long waits                                                                                          honesty that was
                                                                                                                                questionable.




                           Causes of Dissatisfaction                                                  The Psychology Customer Behavior
                               in Your Store?                                                                       Maslow’s Hierarchy of Needs



                       Cause of Dissatisfaction          How to Handle?                                                    Self-actualization
                                                                                                                      personal growth and fulfilment
          1. Product didn’t perform as expected.
          2. Can’t find product needed.                                                                                  Esteem Needs
                                                                                                           achievement, status, responsibility
                                                                                                           achievement status responsibility, reputation
          3. Customer did not get the service
             expected.                                                                                            Belongingness and Love Needs
                                                                                                           family, affection, relationships, work group, etc.
          4.
          5.                                                                                                                Safety Needs
                                                                                                         protection, security, order, law, limits, stability, etc.
          6.
          7.                                                                                                 Biological and Physiological Needs
                                                                                               basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.
          8.
          9.
                                                                           ©1954 Abraham Maslow; 2001 Alan Chapman – diagram




                                   What Motivates Customer Behavior                                          What Motivates Customer Behavior
                                        Physiological Needs                                                           Safety Needs

                  Self-actualization                                                         Self-actualization

                   Esteem Needs    :




                                                  Are the goods durable?                      Esteem Needs    :




                                                                                                                                          Is the business safe?
           Belongingness and Love needs                                              Belongingness and Love needs

                    Safety Needs
                                                  Are the prices fair?                         Safety Needs
                                                                                                                                          Are the business hours
          Biological and Physiological Needs      Does the company offer           Biological and Physiological Needs                     convenient for me?
                                                  warranties and                                                                          What happens if I need
                                                  guarantees on products                                                                  to speak to someone
                                                  and services?                                                                           after hours?
                                                  Will the product be
                                                  harmful to me or to my
                                                  environment?




www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com
5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181                                                                                                               2
Americas Mart University                                                                                                                          6/18/2009




                                   What Motivates Customer Behavior                                     What Motivates Customer Behavior
                                             Social Needs                                                        Esteem Needs

                  Self-actualization            Are the employees                      Self-actualization

                   Esteem Needs    :
                                                friendly?                               Esteem Needs    :

                                                                                                                        Do the employees treat
           Belongingness and Love needs
                                                Do I feel comfortable as a
                                                                                Belongingness and Love needs
                                                                                                                        me as an individual?
                    Safety Needs                                                         Safety Needs

          Biological and Physiological Needs
                                                customer?                      Biological and Physiological Needs
                                                                                                                        Do the employees
                                                Do th
                                                D other people I k
                                                               l know                                                   appreciate my business?
                                                use these products and                                                  Will I gain status using
                                                services?                                                               their product or service?
                                                Will having this product be                                             Will others recognize that I
                                                positive to my family and                                               made a good decision
                                                friends?                                                                purchasing this product?




                                   What Motivates Customer Behavior
                                      Self-Actualization Needs
                                                                                      Types of Dissatisfied Customers

                  Self-actualization

                   Esteem Needs    :
                                               How will this product add
           Belongingness and Love needs
                                               value to my experience?
                    Safety Needs               Is the company willing to                                            Rude or Aggressive Customer
          Biological and Physiological Needs   customize this product to
                                                               p                                                    Argumentative Customer
                                               suit my particular situation?                                        Angry Customer
                                               How will using this product                                          Unhappy Customer
                                               help me gain status?
                                               Will using this product help
                                               me make a difference in
                                               the world?




                              Dealing with a Rude
                                                                                                   Dealing with Rudeness
                            or Aggressive Customer

                                                                                      The customer says “Seems like my special orders
          Remain calm. Remind yourself that the                                       never come in on time. Can’t you do a better job
          person is angry at the situation usually,                                   scheduling?”
          and not you personally.
          Lower your voice, even if he gets louder.                                   You answer:
          Talk at a normal pace.                                                      “Mrs. Johnson, we pride ourselves on paying
          If he uses abusive language or makes                                        attention to detail and want to please you.
          negative statements about you or your                                       Unfortunately, we did not receive this product from
          company, say, “I understand that you                                        our supplier, but I have called to find out when we
          are upset, but using that language will                                     can expect to receive it.
          not help us get this resolved.” .




www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com
5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181                                                                                         3
Americas Mart University                                                                                                             6/18/2009




                   Dealing with Rudeness                                           The Argumentative Customer


            The customer says, “ I can’t believe how ignorant             Even though your first instinct may be to
            you people are. I asked a question and got a shrug.
                                                                          argue back, it’s better to try these techniques:
            Does anybody know anything here?”
                                                                            Speak softly.
                                                                            S    k ftl
            Your answer:_____________________________                       Ask the person’s opinion. Probe to make
            _______________________________________                         sure you fully understand their concerns.
            _______________________________________
                                                                            Concentrate on points of agreement.
            _______________________________________
            _______________________________________                         Excuse yourself if you become angry and
                                                                            ask for someone to take over if it would be
                                                                            beneficial to the situation.




                              The Angry Customer                                           Dealing with Anger

                                                                                                       Address the anger first.
                                                                                                       Nothing will progress until the
                                                                                                       negative emotion is reduced.
                                                                                                       Keep your emotions in check.
                               They’re delivering two
                                                                                                        1.
                                                                                                        1 Let the customer vent
                                                                                                                              vent.
                               messages:
                                                                                                        2. Acknowledge the customer’s
                               ~ The facts                                                                 dissatisfaction.
                                                                                                        3. Apologize, if appropriate.
                               ~ The feelings
                                                                                                        4. Ask questions to fully
             What can you do with this type customer?                                                      understand the issues.
                                                                                                        5. Make a statement about
                                                                                                           finding a resolution.




             Dealing with an Argumentative
                                                                                 Dealing with an Angry Customer
                   or Angry Customer

                         1.   Watch your tone of voice.
                         2.   Be sympathetic
                                                                          “When I called you said you had these products in
                         3.   Don’t make promises you can’t keep.         stock. Now, I come down here and can’t find
                         4.
                         4    Analyze the problem. Make sure you fully
                                           problem                        anything I wanted What’s your problem?”
                                                                                     wanted. What s      problem?
                              understand the complete situation. Ask if
                              there are other issues.                     Your Response:___________________________
                         5.   Stress what you CAN do, not what you        ________________________________________
                              can’t do.
                                                                          ________________________________________
                         6.   Negotiate a solution.
                                                                          ________________________________________
                         7.   Follow through.




www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com
5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181                                                                            4
Americas Mart University                                                                                                          6/18/2009




                      The Unhappy Customer                                Dealing with an Unhappy Customer

                                                                              Create a relaxing environment by
                                                                              being calm and understanding.
                Isn’t pleased with the
                                                                              Be patient and be a good listener.
                service he’s received.
                Isn t
                Isn’t happy about the                                         Let the customer fully explain the
                                                                              situation without interrupting
                product.
                                                                              him/her to offer an excuse.
                Feels he/she was misled
                about product.                                                Answer all their questions in a kind
                                                                              manner.
                                                                              Offer suggestions for resolving the
                                                                              situation.




            Dealing with an Unhappy Customer                           Phrasing and the Difference it Makes


             “I washed this sweater according to directions           Instead of this                   Say This
             and look what happened.”                                It’s our policy.   We’ve found that the best way to handle
                                                                                        this situation is to …
                                                                     Did you…..?        When will you be able to …?
             You answer:___________________________
                                                                     We can’t do that. Boy, that’s a tough one. Let’s see what we
             _____________________________________                                     can do to find an alternate solution.
             _____________________________________                   I don’t know….     That’s a good question. Let me check and
                                                                                        find out.
             _____________________________________                   You didn’t do…     We need for you to…...because……




           Phrasing and the Difference it Makes                              Practice Dealing with Situations



             Instead of this                  Say This
          You’ll have to….       Would it be convenient to…?
          You
          Y need t d to….        If you would…..
                                           ld
          Hold please. I’ll be   It may take me some time to get
          right back.            that information. Are you able to
                                 hold or shall I call you back?
          “No” used at the start We aren’t able to…, but we can….
          of any sentence.       I’m sorry, we are unable to….




www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com
5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181                                                                         5
Americas Mart University                                                                                                               6/18/2009




            Turning Difficult Customers Around                                              In Closing

                                                                          Understand what causes customer dissatisfaction.

                                                                          Identify what’s behind a customer’s attitude.

                                                                          Learn techniques for handling different types of
         What has worked for you?
                                                                          challenging customers
                                                                                      customers.

                                                                          Practice dealing with difficult situations.

                                                                         Selling is all about relationships and proper handling of
                                                                         dissatisfied customers can actually build customer loyalty.
                                                                               Our goal should be to create customers for life.




             Thank You for Your Participation




                Marketing, Communications and Technical Writing
                                          ▪
             Corporate Universities, Instructional Design and Training
                                          ▪
                   Human Resources and Change Management
                                          ▪
                         Business Development and Sales




www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com
5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181                                                                              6

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  • 1. Americas Mart University 6/18/2009 Learning Objectives Dealing with Dissatisfied Customers Understand what causes customer dissatisfaction. Identify what’s behind a customer’s attitude. y Learn techniques for handling different types of challenging customers. Practice dealing with difficult situations. Presented by Lynne Peer Peer Resource Group © 2003 Treeline Training/Published by HRDQ Customer Situations Customer Service Hall of SHAME When was the last time you were delighted as a customer? What happened? How did you feel? What Wh action did you take? i k ? When was the last time you were disappointed as a customer? What happened? How did you feel? MSN Money survey 7,724 people What action did you take? Customer Service Hall of FAME What Aspect of Customer Service is Most Important? MSN Survey of 7,724 People BEST Companies Marriott What do the best Nordstrom companies do? Feature Rating Rate Your Store 1- 5 (5 highest) Amazon Knowledgeable staff 35% Why do people rate Readily available staff 34% Knowledgeable staff Hilton/Hampton p them the highest? Readily R dil available staff il bl t ff Google Flexible policies for 13% return/exchange of merchandise Flexible on returns and Auto Zone How do they make exchanges Whole Foods customers feel? Friendly staff 12% Friendly staff Staples None -- product is all that matters 2% Product line Kroger Not sure 1% Costco Other 3% Sheraton www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com 5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181 1
  • 2. Americas Mart University 6/18/2009 Major Customer Dissatisfaction Major Customer Dissatisfaction Causes in all Industries Causes in all Industries Lack of communication Promises not delivered between the parties when Treated like they are unimportant there is a claim/dispute Service that was rude and inefficient Defective or inferior Conflicting messages from employees products Feeling that the business is taking Feeling of being dismissed or discounted by a advantage of them in some way company’s employees Misinformation from an employee Business integrity or Delays and long waits honesty that was questionable. Causes of Dissatisfaction The Psychology Customer Behavior in Your Store? Maslow’s Hierarchy of Needs Cause of Dissatisfaction How to Handle? Self-actualization personal growth and fulfilment 1. Product didn’t perform as expected. 2. Can’t find product needed. Esteem Needs achievement, status, responsibility achievement status responsibility, reputation 3. Customer did not get the service expected. Belongingness and Love Needs family, affection, relationships, work group, etc. 4. 5. Safety Needs protection, security, order, law, limits, stability, etc. 6. 7. Biological and Physiological Needs basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc. 8. 9. ©1954 Abraham Maslow; 2001 Alan Chapman – diagram What Motivates Customer Behavior What Motivates Customer Behavior Physiological Needs Safety Needs Self-actualization Self-actualization Esteem Needs : Are the goods durable? Esteem Needs : Is the business safe? Belongingness and Love needs Belongingness and Love needs Safety Needs Are the prices fair? Safety Needs Are the business hours Biological and Physiological Needs Does the company offer Biological and Physiological Needs convenient for me? warranties and What happens if I need guarantees on products to speak to someone and services? after hours? Will the product be harmful to me or to my environment? www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com 5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181 2
  • 3. Americas Mart University 6/18/2009 What Motivates Customer Behavior What Motivates Customer Behavior Social Needs Esteem Needs Self-actualization Are the employees Self-actualization Esteem Needs : friendly? Esteem Needs : Do the employees treat Belongingness and Love needs Do I feel comfortable as a Belongingness and Love needs me as an individual? Safety Needs Safety Needs Biological and Physiological Needs customer? Biological and Physiological Needs Do the employees Do th D other people I k l know appreciate my business? use these products and Will I gain status using services? their product or service? Will having this product be Will others recognize that I positive to my family and made a good decision friends? purchasing this product? What Motivates Customer Behavior Self-Actualization Needs Types of Dissatisfied Customers Self-actualization Esteem Needs : How will this product add Belongingness and Love needs value to my experience? Safety Needs Is the company willing to Rude or Aggressive Customer Biological and Physiological Needs customize this product to p Argumentative Customer suit my particular situation? Angry Customer How will using this product Unhappy Customer help me gain status? Will using this product help me make a difference in the world? Dealing with a Rude Dealing with Rudeness or Aggressive Customer The customer says “Seems like my special orders Remain calm. Remind yourself that the never come in on time. Can’t you do a better job person is angry at the situation usually, scheduling?” and not you personally. Lower your voice, even if he gets louder. You answer: Talk at a normal pace. “Mrs. Johnson, we pride ourselves on paying If he uses abusive language or makes attention to detail and want to please you. negative statements about you or your Unfortunately, we did not receive this product from company, say, “I understand that you our supplier, but I have called to find out when we are upset, but using that language will can expect to receive it. not help us get this resolved.” . www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com 5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181 3
  • 4. Americas Mart University 6/18/2009 Dealing with Rudeness The Argumentative Customer The customer says, “ I can’t believe how ignorant Even though your first instinct may be to you people are. I asked a question and got a shrug. argue back, it’s better to try these techniques: Does anybody know anything here?” Speak softly. S k ftl Your answer:_____________________________ Ask the person’s opinion. Probe to make _______________________________________ sure you fully understand their concerns. _______________________________________ Concentrate on points of agreement. _______________________________________ _______________________________________ Excuse yourself if you become angry and ask for someone to take over if it would be beneficial to the situation. The Angry Customer Dealing with Anger Address the anger first. Nothing will progress until the negative emotion is reduced. Keep your emotions in check. They’re delivering two 1. 1 Let the customer vent vent. messages: 2. Acknowledge the customer’s ~ The facts dissatisfaction. 3. Apologize, if appropriate. ~ The feelings 4. Ask questions to fully What can you do with this type customer? understand the issues. 5. Make a statement about finding a resolution. Dealing with an Argumentative Dealing with an Angry Customer or Angry Customer 1. Watch your tone of voice. 2. Be sympathetic “When I called you said you had these products in 3. Don’t make promises you can’t keep. stock. Now, I come down here and can’t find 4. 4 Analyze the problem. Make sure you fully problem anything I wanted What’s your problem?” wanted. What s problem? understand the complete situation. Ask if there are other issues. Your Response:___________________________ 5. Stress what you CAN do, not what you ________________________________________ can’t do. ________________________________________ 6. Negotiate a solution. ________________________________________ 7. Follow through. www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com 5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181 4
  • 5. Americas Mart University 6/18/2009 The Unhappy Customer Dealing with an Unhappy Customer Create a relaxing environment by being calm and understanding. Isn’t pleased with the Be patient and be a good listener. service he’s received. Isn t Isn’t happy about the Let the customer fully explain the situation without interrupting product. him/her to offer an excuse. Feels he/she was misled about product. Answer all their questions in a kind manner. Offer suggestions for resolving the situation. Dealing with an Unhappy Customer Phrasing and the Difference it Makes “I washed this sweater according to directions Instead of this Say This and look what happened.” It’s our policy. We’ve found that the best way to handle this situation is to … Did you…..? When will you be able to …? You answer:___________________________ We can’t do that. Boy, that’s a tough one. Let’s see what we _____________________________________ can do to find an alternate solution. _____________________________________ I don’t know…. That’s a good question. Let me check and find out. _____________________________________ You didn’t do… We need for you to…...because…… Phrasing and the Difference it Makes Practice Dealing with Situations Instead of this Say This You’ll have to…. Would it be convenient to…? You Y need t d to…. If you would….. ld Hold please. I’ll be It may take me some time to get right back. that information. Are you able to hold or shall I call you back? “No” used at the start We aren’t able to…, but we can…. of any sentence. I’m sorry, we are unable to…. www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com 5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181 5
  • 6. Americas Mart University 6/18/2009 Turning Difficult Customers Around In Closing Understand what causes customer dissatisfaction. Identify what’s behind a customer’s attitude. Learn techniques for handling different types of What has worked for you? challenging customers customers. Practice dealing with difficult situations. Selling is all about relationships and proper handling of dissatisfied customers can actually build customer loyalty. Our goal should be to create customers for life. Thank You for Your Participation Marketing, Communications and Technical Writing ▪ Corporate Universities, Instructional Design and Training ▪ Human Resources and Change Management ▪ Business Development and Sales www.peerresourcegroup.com | Lynne.Peer@peerresourcegroup.com 5 Ridge Rd. | Beaufort, SC 29907 | 843.597.2233 c | 843.525.9181 6