1.08 Resolve conflicts with/for customers to encourage repeat business

Handle Difficult Customers

3 Main Types of Difficult Customers 1.Disagreeable –Unpleasant and hard to help 2.Domineering/ Superior: –Feel they know more and are better than the average person –Overly confident 3.Dishonest: –Intentionally attempt to avoid paying part or all of the price for a good or service

Categories of Disagreeable Customers Argumentative: –Seem to look for problems and disagree Impatient: –Show verbally and nonverbally that they do not want to wait Leave-me-alone: –Don’t want any assistance or advice

Categories of Disagreeable Customers Irritable/Moody: –Display any attitude that is difficult to deal with Insulting: –Make unpleasant remarks or use foul language Complaining –Think everything is wrong

Categories of Disagreeable Customers Slow/Methodical: –Hesitant to make buying decisions –Require a lot of time to decide

Categories of Domineering/Superior Customers Suspicious: –Want facts and proof before making the final buying decision –Question everything you tell them –Has had previous bad experiences with other businesses

Ways Customers are Dishonest Always trying to take advantage of employees Do not pay for products –Theft, pilferage or shoplifting Purchase goods–use them–and return them Switch or alter prices in store Damage goods in store and then ask for discounts

Situations when Customers become Difficult Problems with merchandise –Broken or damaged items Changed mind Problems with company Rude treatment by an employee

Why Attempt to Handle Difficult Customers? “The Customer is ALWAYS right” Strong Customer Service (aka successful handling of difficult customers) = –Loyal customers who will spend money again –Advantage over the competitors (steal away their customer) –Word of Mouth No Customers No SalesNo Profit Out of Business

General Guidelines for Handling Difficult Customers Be a good listener Think before you respond –Be detached and professional –Do not offer excuses Involve senior management if needed Be aware of the rules –Know your company’s customer-facing processes inside-out Empathize –Show the customer you understand their situation Resolve the issue –Actively initiate a process to tackle the customer’s complaint –Tell the customer the steps you propose to take

“We Do” 1.Review the Specific Guidelines for Handling Different Types of Difficult Customers (HANDOUT) 1.You will be role-playing a situation with a difficult customer. 2.Mrs. Byers will be the difficult customer who will either be: –disagreeable, dishonest, domineering/superior, slow/methodical, or suspicious. 3.To prepare for the encounter, review the techniques that are supposed to be used with each type of difficult customer and the business’s policies. They are: –Products will be accepted for exchange or refund only when accompanied by a sales receipt. –Refunds are given up to 30 days after a purchase. –A credit to a customer’s account will be issued for charge-sale items that are returned. –You cannot make cash refunds. Those must be obtained through the manager or credit office by presenting the sales receipt and product. –Goods which indicate obvious wear and tear cannot be returned. –Salespeople should contact security when they suspect a customer of shoplifting. They should watch the customer closely but not accuse the customer of shoplifting. –Customer satisfaction is our goal! 4.Handle the situation, ending the interaction with a satisfied customer.

Handle Customer Complaints

Complaint A customer’s dissatisfaction expressed orally, silently or in writing –Some customers actually express the true reasons –Others do not tell the real reasons These customers normally conceal the real complaint Example: –Customer returns a pair of shoes due to the “color of the shoe” but the real reason was the high price –Salesperson must skillfully question and inspect the product to discover the real complaint

3 Main Reasons for Customer Complaints Some complaints are justified, while others aren’t 1.Products –Poor quality –Improper buying decisions (lack of assistance from salesperson) 2.Personnel –Pushy and rude salespeople –Gives incorrect information 3.Business –Type of business offered or lacking Example: Refusing to accept a credit card –Don’t follow policy Examples: Don’t take back a return

Costs of Customer Complaints Loss of sales –Present and Future –One dissatisfied customer may tell 10 other potential customers Damaged Brand Image Additional Recordkeeping and Paperwork –Equals TIME Markdowns on Returned Goods –½ of returned goods are resold but at a reduced prices

Benefits of Customer Complaints 1.Goodwill –Properly settling complaints will promote goodwill (positive feeling towards the business) 2.Increased sales –Repeat customers and may tell others 3.Buying information –Use previous complaint information to prevent future complaints

IMPORTANCE OF APPROPRIATELY HANDLING CUSTOMER COMPLAINTS Should: –Be immediate –Be effective –Offer customer satisfaction –Follow company policy –Follow company procedure

Handling Customer Complaints: POLICY Develop Company Policy –General rules followed by personnel –Avoids misunderstandings –Fair & consistent treatment of customers –Flexible for interpretation by management –Based mainly on customer satisfaction

Handling Customer Complaints: PROCEDURES Develop Company Procedures –Step by step processes for performing specific tasks when handling a customer complaint 1.Listen for the reason of the complaint 2.Thank the customer for bringing the problem to your attention 3.Restate the Complaint to make sure you are on the same page 4.Investigate the problem 5.Explain company policy to the customer 6.Take action to solve the complaint

WHEN HANDLING COMPLAINTS A SALESPERSON MUST REMEMBER: Take action based the solutions that are possible within the business's policies Prevent customer complaints by accurately determining each customer's needs –Suggesting appropriate products to meet those needs General Steps to successfully handling a customer complaint 1.Salesperson must fully understand a customer's complaint 2.Decide if the complaint is justified 3.Investigate the problem to determine how the situation can be handled within company policy

“We Do” 1.Get in groups of two 2.Pick who is the employee and who is the customer with the complaint 3.What is the complaint? 4.What are the procedures to appropriately respond to the compliant? 5.Write out the complaint and the procedures to be turned in for a grade 6.Perform role play to the class 7.Grade each other’s role plays