1. Session 6 Ms. Dana Coonce (VP of Human Resources at Hayneedle)
Ms. Tammy Van Donk
(Dir. Of Customer Service at Hayneedle)
Hand Back OMP #5 and Current Grades
Student Surveys for WORK 1410
Outlines or Brain/Idea Maps are due Wednesday
Discuss Chapter 8
Fish Philosophy #4 – if time allows
Discuss Chapter 9
One Minute Paper #6
Assignment #6 1

2. Session 6 Ms. Dana Coonce Ms. Tammy Van Donk
VP of Human Resources Dir of Customer Service
Hayneedle Hayneedle
12720 I St, Ste I St, Ste. 200
Omaha, NE Omaha, NE 68137

3. Get Customer Feedback: The Customer Can be our Coach
Session 6: Ch 8
Get Customer Feedback: The Customer Can be our Coach 3

4. Session 6: Ch 8 Many people don’t want to give negative feedback
Embarrassing
Hurtful
Positive feedback is nice, but negative feedback can only make the business even better.
Put aside a “feedback hurts” approach

5. Session 6: Ch 8: Levels of Commitment to Feedback
Metric-Conscious
Quantify customer’s feedback
Refer to data often
Motivate employees & make changes
Active “Listeners” –
Company will hear customers
Easy to respond and reinforce customer’s willingness to share
Reluctant/Compliant
Effort is half-hearted
Eg. Comment cards that aren’t acted upon / don’t suggest customers use the cards
Metric- Conscious
Active “Listeners”
Reluctant, Compliant 5

6. Session 6: Ch 8: Complaints May Lead to Repeat Business
U.S. Office of Consumer Affairs reveals:
1 customer in 4 is dissatisfied with some aspect of a typical transaction
A typical dissatisfied customer will complain to 12 other people
Only 5% of dissatisfied customers complain to the company
The great majority would rather switch than fight. These customers remain silent and go to another business. 6

7. Session 6: Ch 8: Ripple Effect Revisited
Company has 100 customers/day
25 of the customers are unhappy
1-2 complaints
23 quiet, dissatisfied customers give bad word of mouth/mouse who tell 12 others each
276 others heard about the company’s bad business
276 potential customers who won’t come versus the 75 happy customers today. 7

8. Session 6: Ch 8 Good News! Can be a gold mine of repeat business
10% of dissatisfied customers would return if not resolved
80% of dissatisfied customer would return if their problem had been resolved or concerns addressed.
- Or see that the business tried to make things right 8

9. Session 6: Ch 8
Make it easy for customers to communicate complaints, suggestions, questions, and compliments
Act on the communication QUICKLY and EFFICIENTLY 9

10. Session 6: Ch 8 Attitude! Avoid acting defensively
Recognize that the complaint is real to the customer
Listen to the customer’s whole story
The “rightness” or “wrongness” of a customer isn’t the issue. What matters is wanting to solve customer problems.
Service recovery is best handled when seen as an attitude of opportunity rather than a painful chore.
Customer complaints are opportunities to cement relationships. 10

11. Session 6: Ch 8 Ways to Get Feedback
Naïve listening
Focus groups
Explorer groups
Customer surveys
Mystery shoppers 11

12. Session 6: Ch 8 Naïve listening
An attitude portraying that you don’t know what the customer wants
Open ended questions to get the customer to tell you what s/he wants 12

13. Session 6: Ch 8 Focus groups
Formally invite 5-12 employees, potential customers, or current customers
Open ended questions
Unstructured observations
Reward the participants 13

14. Session 6: Ch 8 Explorer groups
Observational research
Visit other businesses
Try being a customer in your own business 14

15. Session 6: Ch 8 Customer surveys
Face-to-face interviews
Telephone surveys
Questionnaires mailed
Internet-based surveys
Strive for Wh or H questions rather than Yes/No questions.
Best when designed carefully and to a random sample 15

16. Session 6: Ch 8 Mystery shoppers
Hired evaluators who go to businesses to assess how customers are treated.
Mystery shoppers may be trained and may work for an independent research agency
Problem of reliability – subjectivity – observational techniques
Use hidden digital audio and/or video recordings 16

17. Session 6: Ch 8 A Final Thought
Periodically look at the complaint log to learn from received feedback. 17

18. Student Evaluations need to be completed online by Aug. 9th.
Session 6
Student Evaluations need to be completed online by Aug. 9th. 18

19. FISH Philosophy #4: Choose Your Attitude
Session 6
FISH Philosophy #4:
Choose Your Attitude 19

20. Session 6: FISH #4 Who You are Being Resentful Helpful Manipulative
Supportive
Inconsiderate
Engaged
Fearful
Grateful
Impatient
Effective
What You’re Doing 20

21. Session 6: FISH #4 Who You are Being Resentful Helpful Manipulative
Supportive
Inconsiderate
Engaged
Fearful
Grateful
Impatient
Effective
What You’re Doing
Working on a project with a co-worker & grumbling
Working on a project with a co-worker & making the work easier
Coaching someone to make them do it “your way”
Coaching someone to help them meet the deadline
Having side conversations during a staff meeting
Contributing to staff meeting
Receiving feedback and becoming defensive
Receiving feedback and accepting it
Rushing through customer interactions
Being with the customer fully during each interaction 21

22. Session 6: Ch 9 Recover the Potentially Lost Customer: Here’s an Opportunity for You
Those who enter to buy, support me. Those who come to flatter, please me. Those who complain, teach me how I may please others so that more will come. Those only hurt me who are displeased but do not complain. They refuse me permission to correct my errors and thus improve my service.
- Retailing Pioneer Marshall Field 22

23. Session 6: Ch 9
Why is customer recovery important? 23

24. Session 6: Ch 9 “2nd Life Cycle”
Differs from “1st Life Cycle” customers in 4 ways:
Customer is familiar with products and services
Don’t have to re-educate
Have more data on this customer
Can offer a targeted approach
Customer may be pleased that the business wants to retain her/him
May end up getting more sales from this customer
Customer may be more apt to do business again quicker 24

25. Session 6: Ch 9 Retention Attitude
Not about “customer is always right”
The “rightness” or “wrongness” of a customer isn’t the issue. What matters is wanting to solve customer problems.
It is about cooperation and problem solving!
Service recovery is best handled as an attitude of opportunity rather than a painful chore.
Complaints are triggers for improvement
Customer complaints are opportunities to cement relationships. 25

26. Session 6: Ch 9 Recovery Skills
Feel Their Pain - Empathy
Do All You Can to Resolve the Problem
Ask the customer what s/he would think would be an appropriate way to solve the problem
Go Beyond
Offer to pick up or deliver the goods to be replaced or repaired
Give a gift of merchandise to repay for the inconvenience
Reimburse for costs of returning merchandise
Acknowledge the customer’s inconvenience
Follow up 26

27. Session 6: Ch 9 Recovery Skills con’t
Look Back and Learn from each situation
What was the nature of the customer’s complaint?
How did the customer view the problem?
How did you see the problem?
What did you say to the customer that helped the situation?
What did you say that seemed to aggravate the situation?
What would you do differently?
Do you think the customer will do business again? 27

28. Session 6: Ch 9 Recovery Skills con’t
What happens if the customer is still not satisfied
Professionalism mandates that we prevent taking our frustrations out on customers.
If you try your best to satisfy the customer, you have done all you can do
Don’t take it personally
Don’t rehash the experience with your coworkers
Use every customer contact experience as an opportunity to improve your professionalism 28

29. Session 6: Ch 9 3 Action Tips for the Occasional Customer From “You Know Where”
Be sure this really is a chronic complainer
Always looking for someone to blame
Never admit any degree of fault
Strong ideas about what others should do
Speaks in terms of absolutes
Know what to do with this guy/gal
Determine the underlying issue
Establish the facts
Resist the temptation to apologize
Force the complainer to pose solutions
Take a break, cool off, reflect 29

30. Session 6: Ch 9 Handle a Nasty Complaint Letter/Email
Don’t let a letter/ go unanswered
If responding by phone, have the letter/ in front of you for reference
Use Human Relations Skills to Convey Appropriate Tone
Interested in Themselves
Prefer Receiver-Centered Messages
I-Centered Receiver Viewpoint
Treated as Individuals
Blanket Tone More Personal Tone
Want Positive Information
Negative Wording Positive Wording
Don’t Like Abrasive People 30

31. Session 6: Ch 9 Assertive Behavior vs Aggressive Behavior
Aggressors
Communicate from a position of superiority
Can be indirect, manipulative, or underhanded
Set themselves up for retaliation
Use lots of judgmental or emotionally charged terms for emphasis
Assertive people
Have high self-respect
Respects other people
Win-win solutions can be found for many problems
Consensus is best created by direct and honest expression
Honest, open relationships eliminate the desire for retaliation
Emotionally charged language is seldom effective 31

32. Session 6: Ch 9 Hostility Curve
Rational Level
Take Off
Slow Down
Supportive Behavior
Cool Off
Problem Solved 32