This document discusses strategies for effective customer retention and coping with challenging customers. It emphasizes the importance of understanding customer needs, maintaining good communication, taking responsibility for mistakes, and finding mutually agreeable solutions. Specific tips are provided, such as listening actively, showing empathy, following up, and ending interactions on a positive note to successfully resolve issues and retain customers.

1. Customer Retention and Coping with Challenging Customers

2. “ The real issue is value, not price.” - Robert T. Lindgren

3. Customer Retention and Coping with Challenging Customers Customer Care

4. Objectives Describe customer service Discuss the implications of achieving good customer service Discuss the insights obtained from a the triangle of services marketing

5. Learning Criteria Describe the differing and specific needs of a range of business and services customers Provide customer care and service in a business and services environment Explain the benefits of improved customer service to a given business and services operation.

6. Rewards of Providing Excellent Customer Service Customers approach business expecting a positive experience. Work is more personally fulfilling. Customers act as coproducers (when appropriate) in assisting in the provision of their own customer service. A unique competitive edge is achieved. Customer challenges are recognized and productive solutions are developed to successfully retain current customers. Problems are creatively solved in an effective and efficient manner.

7. Rewards of Providing Excellent Customer Service Customer service providers and management feel positive about the roles that they are playing in creating positive exchanges between customers and their organization. Work environments are more pleasant and productive because the value of internal customers is stressed through organization policies, procedures, and culture. Businesses earn a positive reputation and the respect of customers and peers. Profit goals are more successfully accomplished because business philosophies and focus are on satisfying customers.

8. Customer Retention: The continuous attempt to satisfy and keep current customers actively involved in conducting business.

9. Churn (or churn rate): The number of customers who leave a business in a year’s time divided by the number of new customers in the same period.

10. Defection Rate: The percentage of customers who leave a business in one year.

11. Customer Lifetime Value: The net present value of the profits a customer generates over the average customer life.

12. Determining the need for customer retention program Is customer retention your primary management objective? Is customer satisfaction measured and assessed regularly? Is there a constant effort to enhance customer satisfaction? Do you measure quality standards and communicate results with your employees? Do you train and retrain your customer service providers? Do you have employee turnover problems? How much do you spend to keep current customers? What is your current cost for acquiring a customer? What is your average annual customer dollar value. What is your current customer defection rate? How do you get lost customers back? Do you constantly deliver what you promise to your customers?

13. Guidelines for establishing a customer retention program: Examine who your customers are and what specific needs they have. Identify specific objectives to be realized by the program. Create a manageable program of customer retention. Create a culture that stimulates customer interest. Determine a timetable for evaluation.

14. What measurement of satisfaction means to your business: Customer relationships are deepened Customers know that we are interested in them and their wants Improved product and service offerings Customer retention

15. Challenging Customers: Those customer with problems, questions, fears, and personalities that require us to work to achieve true communication.

16. Why are customers challenging? They do not speak your language. They do not have expertise or a understanding of the specific product or situation. They may be openly hostile. They are visibly upset about something (and it may not have anything to do with you or your company) They are very quiet and noncommunicative. They show an attitude of superiority. They are impatient.

17. Why are customers challenging? (Continued) They imply that they are doing you and your company a big favor for doing business with you. They appear to embody the type of person that you have a personal bias against. They are so nice that you hate to give them bad news. They are extremely angry. They have difficulty in making decisions.

18. Five Tips to Keep from Creating Challenging Customers Respect the customer’s time. Do not impose your bad or negative mood on anyone else. Recognize regular customers with a smile and try to learn their names. Avoid destructive remarks. Show initiative.

19. Ten Characteristics of Challenging Customers Language and/or cultural barriers Older customers Impatient customers Angry customers Analytical customers Noncommittal customers Superior customers Immature customers Talkative customers Customers with special needs

20. Respect: To give someone special recognition or regard.

21. Empathy: The ability to understand what someone is experiencing and to take action to assist in resolving the situation.

22. Responsibility check: Assessing a situation and determining who should have responsibility and who really does have the responsibility.

23. What to do when you are wrong Review the situation. Observe the customer’s reaction. Admit the mistake. Apologize for your actions or error. Find a solution and implement it.

24. Six Super Ways to Cope With Challenging Customers Listen Ask questions Show empathy Solve the problem Follow up End on a positive note

25. When apologizing to customers: Acknowledge customers’ feelings. Express to the customer that you share the responsibility for the problem. Convey sincerity. Ask for the opportunity to correct the problem. Request the opportunity to continue doing business in the future.

26. Negotiation: The evaluation of the possible solutions to a challenge and the selection of the solution that is mutually beneficial.

27. Suggestions for Developing Negotiation Skills Know your customer. Ask questions and listen to the spoken and unspoken messages. Know the policies of your organization and in which areas flexibility is allowed. Demonstrate the willingness to be flexible. Learn to handle your anger and your customer’s anger appropriately. Consider what the customer may lose in the negotiation process. Determine mutually beneficial solutions to challenging problems and situations.

28. Payoffs of Coping with Challenging Customers 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!

29. Seminar Role play - One complaint