Chapter 9. Recover the potentially lost customer BUILDING TRUST AND LASTING RELATIONSHIPS

LEARNING OBJECTIVE 1: UNDERSTAND THE CASE FOR SERVICE RECOVERY On average, companies lose half their customers every five years Attempts to recover lost customer have strong positive impact on profitability Unrecovered customers do a great deal of damage Recovered customers are even MORE likely to stay loyal than customers who have not had a problem

“Second life cycle” customers Are already familiar with your products and services Have preferences (likes/dislikes) that you already know May feel flattered at your attempt to win them back Become comfortable doing business with you (again) more quickly than new customers

LEARNING OBJECTIVE 2: DEVELOP YOUR RECOVERY SKILLS Feel their “pain” Clarify the specific problem and do all you can to resolve it Go beyond with “symbolic atonement” Look back and learn from each situation Understand your own reactions

LEARNING OBJECTIVE 3: HANDLE THE OCCASIONAL chronic complainer Such “customers from hell” are rare. Don’t be too quick to classify. If dealing with a true chronic complainer. Use these tips: Tip1. Be certain this really is a chronic complainer

HANDLING CHRONIC COMPLAINER (Con’t) Tip 2. Know what to do Actively listen; rephrase complain in your own words Establish the facts Resist temptation to apologize Get the complainer to propose a solution Tip 3. take a break. Cool off, reflect

LEARNING OBJECTIVE 4: APPLY HUMAN RELATIONS TIPS FOR APPROPRIATE TONE Tip 4: Remember that people are self-interested (what’s in it for me?) Tip 5: Use receiver-centered messages Tip 6: Talk with people as individuals, not groups Tip 7: Give positive information Tip 8: Avoid abrasive tone Tip 9: Be assertive, not aggressive

A FINAL THOUGHT Customer complaints are opportunities for building customer loyalty. While complainers can be annoying, they can also be helpful. Recovering a lost customer is almost always worth the effort.