Chapter 9 Recover the Potentially Lost Customer. Customer Service, 5e Paul R. Timm 2 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River,

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Presentation transcript:

Chapter 9 Recover the Potentially Lost Customer

Customer Service, 5e Paul R. Timm 2 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. The average company Will lose half its customers every five years Misses opportunities to aggressively recover lost customers Fails to do “defection interviews” with lost customers (or employees)

Customer Service, 5e Paul R. Timm 3 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. The second life cycle of recovered customers Customer is already familiar with products and services you offer You have more data about customer’s likes and dislikes Customer may feel flattered by your attention Customer will be re-acclimated to doing business with you more quickly than a new customer

Customer Service, 5e Paul R. Timm 4 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Customer retention requires Positive attitude toward problem solving Seeing complaints as opportunities to create stronger loyalty But not necessarily a “customer is always right” mentality

Customer Service, 5e Paul R. Timm 5 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Key issue in customer disputes NOT who is right or wrong, but rather How all parties can cooperate to solve customer’s concerns

Customer Service, 5e Paul R. Timm 6 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Key skills in recovery Feel the customer’s pain (empathize) Do all possible to resolve problems Offer “symbolic atonement”

Customer Service, 5e Paul R. Timm 7 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Handling the chronic complainer Be sure they are “chronic” (these are actually rare) Know what to do: Listen actively Establish the facts Avoid apologizing Ask complainer to propose solution Take a break; cool off

Customer Service, 5e Paul R. Timm 8 © 2011, 2008, 2005, 2001 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Attitude is critical Abrasiveness is counterproductive Assertiveness is better for problem resolution “assertive” means being pleasantly direct