9 Coping With Challenging Customers

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9 Coping With Challenging Customers

  1. 1. Customer Retention and Coping with Challenging Customers
  2. 2. “ The real issue is value, not price.” - Robert T. Lindgren
  3. 3. Customer Retention and Coping with Challenging Customers Customer Care
  4. 4. Objectives <ul><li>Describe customer service </li></ul><ul><li>Discuss the implications of achieving good customer service </li></ul><ul><li>Discuss the insights obtained from a the triangle of services marketing </li></ul>
  5. 5. Learning Criteria <ul><li>Describe the differing and specific needs of a range of business and services customers </li></ul><ul><li>Provide customer care and service in a business and services environment </li></ul><ul><li>Explain the benefits of improved customer service to a given business and services operation. </li></ul>
  6. 6. Rewards of Providing Excellent Customer Service <ul><li>Customers approach business expecting a positive experience. </li></ul><ul><li>Work is more personally fulfilling. </li></ul><ul><li>Customers act as coproducers (when appropriate) in assisting in the provision of their own customer service. </li></ul><ul><li>A unique competitive edge is achieved. </li></ul><ul><li>Customer challenges are recognized and productive solutions are developed to successfully retain current customers. </li></ul><ul><li>Problems are creatively solved in an effective and efficient manner. </li></ul>
  7. 7. Rewards of Providing Excellent Customer Service <ul><li>Customer service providers and management feel positive about the roles that they are playing in creating positive exchanges between customers and their organization. </li></ul><ul><li>Work environments are more pleasant and productive because the value of internal customers is stressed through organization policies, procedures, and culture. </li></ul><ul><li>Businesses earn a positive reputation and the respect of customers and peers. </li></ul><ul><li>Profit goals are more successfully accomplished because business philosophies and focus are on satisfying customers. </li></ul>
  8. 8. Customer Retention: <ul><li>The continuous attempt to satisfy and keep current customers actively involved in conducting business. </li></ul>
  9. 9. Churn (or churn rate): <ul><li>The number of customers who leave a business in a year’s time divided by the number of new customers in the same period. </li></ul>
  10. 10. Defection Rate: <ul><li>The percentage of customers who leave a business in one year. </li></ul>
  11. 11. Customer Lifetime Value: <ul><li>The net present value of the profits a customer generates over the average customer life. </li></ul>
  12. 12. Determining the need for customer retention program <ul><li>Is customer retention your primary management objective? </li></ul><ul><li>Is customer satisfaction measured and assessed regularly? </li></ul><ul><li>Is there a constant effort to enhance customer satisfaction? </li></ul><ul><li>Do you measure quality standards and communicate results with your employees? </li></ul><ul><li>Do you train and retrain your customer service providers? </li></ul><ul><li>Do you have employee turnover problems? </li></ul><ul><li>How much do you spend to keep current customers? </li></ul><ul><li>What is your current cost for acquiring a customer? </li></ul><ul><li>What is your average annual customer dollar value. </li></ul><ul><li>What is your current customer defection rate? </li></ul><ul><li>How do you get lost customers back? </li></ul><ul><li>Do you constantly deliver what you promise to your customers? </li></ul>
  13. 13. Guidelines for establishing a customer retention program: <ul><li>Examine who your customers are and what specific needs they have. </li></ul><ul><li>Identify specific objectives to be realized by the program. </li></ul><ul><li>Create a manageable program of customer retention. </li></ul><ul><li>Create a culture that stimulates customer interest. </li></ul><ul><li>Determine a timetable for evaluation. </li></ul>
  14. 14. What measurement of satisfaction means to your business: <ul><li>Customer relationships are deepened </li></ul><ul><li>Customers know that we are interested in them and their wants </li></ul><ul><li>Improved product and service offerings </li></ul><ul><li>Customer retention </li></ul>
  15. 15. Challenging Customers: <ul><li>Those customer with problems, questions, fears, and personalities that require us to work to achieve true communication. </li></ul>
  16. 16. Why are customers challenging? <ul><li>They do not speak your language. </li></ul><ul><li>They do not have expertise or a understanding of the specific product or situation. </li></ul><ul><li>They may be openly hostile. </li></ul><ul><li>They are visibly upset about something (and it may not have anything to do with you or your company) </li></ul><ul><li>They are very quiet and noncommunicative. </li></ul><ul><li>They show an attitude of superiority. </li></ul><ul><li>They are impatient. </li></ul>
  17. 17. Why are customers challenging? (Continued) <ul><li>They imply that they are doing you and your company a big favor for doing business with you. </li></ul><ul><li>They appear to embody the type of person that you have a personal bias against. </li></ul><ul><li>They are so nice that you hate to give them bad news. </li></ul><ul><li>They are extremely angry. </li></ul><ul><li>They have difficulty in making decisions. </li></ul>
  18. 18. Five Tips to Keep from Creating Challenging Customers <ul><li>Respect the customer’s time. </li></ul><ul><li>Do not impose your bad or negative mood on anyone else. </li></ul><ul><li>Recognize regular customers with a smile and try to learn their names. </li></ul><ul><li>Avoid destructive remarks. </li></ul><ul><li>Show initiative. </li></ul>
  19. 19. Ten Characteristics of Challenging Customers <ul><li>Language and/or cultural barriers </li></ul><ul><li>Older customers </li></ul><ul><li>Impatient customers </li></ul><ul><li>Angry customers </li></ul><ul><li>Analytical customers </li></ul><ul><li>Noncommittal customers </li></ul><ul><li>Superior customers </li></ul><ul><li>Immature customers </li></ul><ul><li>Talkative customers </li></ul><ul><li>Customers with special needs </li></ul>
  20. 20. Respect: <ul><li>To give someone special recognition or regard. </li></ul>
  21. 21. Empathy: <ul><li>The ability to understand what someone is experiencing and to take action to assist in resolving the situation. </li></ul>
  22. 22. Responsibility check: <ul><li>Assessing a situation and determining who should have responsibility and who really does have the responsibility. </li></ul>
  23. 23. What to do when you are wrong <ul><li>Review the situation. </li></ul><ul><li>Observe the customer’s reaction. </li></ul><ul><li>Admit the mistake. </li></ul><ul><li>Apologize for your actions or error. </li></ul><ul><li>Find a solution and implement it. </li></ul>
  24. 24. Six Super Ways to Cope With Challenging Customers <ul><li>Listen </li></ul><ul><li>Ask questions </li></ul><ul><li>Show empathy </li></ul><ul><li>Solve the problem </li></ul><ul><li>Follow up </li></ul><ul><li>End on a positive note </li></ul>
  25. 25. When apologizing to customers: <ul><li>Acknowledge customers’ feelings. </li></ul><ul><li>Express to the customer that you share the responsibility for the problem. </li></ul><ul><li>Convey sincerity. </li></ul><ul><li>Ask for the opportunity to correct the problem. </li></ul><ul><li>Request the opportunity to continue doing business in the future. </li></ul>
  26. 26. Negotiation: <ul><li>The evaluation of the possible solutions to a challenge and the selection of the solution that is mutually beneficial. </li></ul>
  27. 27. Suggestions for Developing Negotiation Skills <ul><li>Know your customer. </li></ul><ul><li>Ask questions and listen to the spoken and unspoken messages. </li></ul><ul><li>Know the policies of your organization and in which areas flexibility is allowed. </li></ul><ul><li>Demonstrate the willingness to be flexible. </li></ul><ul><li>Learn to handle your anger and your customer’s anger appropriately. </li></ul><ul><li>Consider what the customer may lose in the negotiation process. </li></ul><ul><li>Determine mutually beneficial solutions to challenging problems and situations. </li></ul>
  28. 28. Payoffs of Coping with Challenging Customers <ul><li>By learning to cope with challenging customers, we become more effective and efficient assets to our company and the job that we were hired to perform! </li></ul>
  29. 29. Seminar <ul><li>Role play - One complaint </li></ul>

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