Handling Customer Complaints

Handling Customer Complaints Quality Customer Service Officers Meeting March 26th 03 Presented By: Eddie Reid Training & Development Ltd Handling Customer Complaints WHAT COMPLAINTS ! As Poor Richard once noted, “ An ounce of prevention is worth a pound of cure” Training & Development Limited AKA Achieve Global Ireland Established 1977 Training Center - Malahide, Co. Dublin Irish Owned International Resources/Standards Specialist Staff Dedicated to Long Term Customer Relationships ACHIEVE GLOBAL • International Training and Consulting Organisation • Amalgamation of :- Zenger Miller; Learning International & Kasset Inc. • 400+ Associates Worldwide; 65 in Europe • World Class Skill Building Systems • Facilitator Development • Implementation Planning Agenda • Three customer service questions • Today‟s service reality - a balancing act • Management‟s role in a developing Quality Customer Service • Customer Service - Research findings - Defining best practices - Service competencies Three critical questions 1. Who ultimately determines the quality of your service? 2. What is the basis your customers use to make this determination about the quality of your service? 3. How can you manage your service quality (the quality of your service) if you don‟t manage customer experiences? Today‟s service reality, a balancing act Today‟s service reality Customer‟s need for quality and price Shareholder‟s need for profit and and Customer‟s need for special attention Management‟s need for productivity Organisation‟s commitment to superior customer service Organisation‟s ability or willingness to meet these demands and Organisation‟s need to reduce costly customer contacts Customer‟s new demands and “No one wants customer complaints - so why do we get them?” External Influences-technologyinformation explosion-pace of life Interacting with a more demanding and sophisticated type of customer Historical, cultural & environmental barriers* Doing more with less * Research Findings “Of the „Service Quality Initiatives‟ that failed; 44% failed because of apparent lack of Management support.” What do we hear ? „It matters but not all that much‟ „I‟m not judged by Customer Satisfaction ratings‟ „It gets in the way of the „real work‟ „My Boss just pays „lip service‟ to Customer Satisfaction‟ „Besides it slows things down and costs a lot‟ Net Effect ? “People don‟t do what Managers say; people do what Managers do” Making a case………. Cost of Quality Customer Service Cost of Poor Quality + Cost of Prevention = Cost of Quality (Recoveries,Duplication) (Systems, Training etc.) Bad + Good = Total Managing Extraordinary Service Help management turn strategy into action • Human-Business model Tools; • Customer Report Card • E+E=E Roles & Responsibilities • The role of management • Handling change Human-Business model Human Level (to fulfill current human needs) Business Level (to accomplish external purposes and objectives) Every Customer Interaction The Customer Satisfaction Equation Poor basic Offering Poor basic Offering Good basic Offering Good basic Offering + Poor Human Factors + Good Human Factors + Poor Human Factors + Good Human Factors = Customer Dissatisfaction Customer Dissatisfaction Customer Dissatisfaction CUSTOMER SATISFACTION = = = Customer Report Card Experience Customer Grade Knocks Their Socks Off Delighted Happy Neutral Annoyed or Upset A B C D F Exceeds Expectations As Expected Fails, Customer Not Dependent Fails, Customer Dependent Victimised E xpectation + E xperience = E valuation Score card for:- ‟Evaluation‟ Quality Customer Service. Management‟s Role Five keys to developing a Quality Customer Satisfaction Initiative 1. Everybody knows why 2. Everybody knows where (target) 3. Everybody knows how (to get to target) 4. Everybody is involved 5. We can measure progress Some Guidelines • Characteristics of useful feedback • A Service Strategy • Cycle of Service “If you can’t measure it, you can’t manage it” Feedback Feedback Feedback Four C‟s of gathering feedback Check what you know (information sources) Convince customers you care (easy, rewarding, fun) Choose the appropriate tools (customer survey, focus group, one-on-one interview) Communicate results A service strategy… • Is it clear? (around 25 words) • Is it inspiring? (Will employees be excited about it?) • Will it create a positive memory for customers? Our strategy is: To provide to so that we are perceived by them as Moment of Truth (MOT) Occurs any time a customer has an opportunity to judge the quality of service an organisation provides Cycle of Service (COS) The series of moments of truth a customer goes through with an organisation in order to satisfy a specific need Priority matrix (high) 1 1 Opportunities 2 Strengths 2 Importance 3 4 5 6 7 In competitive organisations, customers may switch. In regulated organisations, customers feel like prisoners. Manage well in order to maintain high scores. Push satisfaction scores to the right as far as possible. 3 Irritants Even though of low importance, may need to address (i.e., no parking, long delays). F D C 4 Potential Waste Doing well, but of low importance. (low) B A (high) Satisfaction Cycle of service End Start = Moment of truth Key moments of truth • Affects the greatest number of customers • Are likely to cause the most irritation Key moment of truth impact analysis a. Key Moment of Truth b. Expectations (human & business) c. Enhancer (to raise grade to A or B) d. Detractor (could result in D or F) e. Solution or Minimiser 1. 2. 3. “Nothing good happens for your customer or your organisation until an employee makes it happen. ” Chip Bell and Ron Zemke, Managing Knock Your Socks Off Service Human side systems • Orientation and learning • Empowerment • Recognition Orientation Areas for continuous learning • Technical skills • Interpersonal skills* • Product / service knowledge • Customer information Facilitator-led modules Reaching for Stellar Service Caring for Customers Guiding Customer Relationships Serving a World of Customers Healing the Customer Relationship Teaming Up for Seamless Service Resolving Issues That Impact Customers Healing the Customer • Seizing the opportunity to build customer loyalty • The HEAL guidelines Relationship • Managing your own reactions/staying unhooked • Defusing techniques • Addressing the problem • Leaving a positive impression The HEAL Checklist •Hear out the Customer Encourage the Customer to talk. Listen non-defensively Anticipate & manage your own reactions •Ease the tension Acknowledge the customer had a bad experience Calm the Customer before moving on to conduct business •Act to improve the situation Take measures to address the Customer‟s concern •Leave a positive impression Follow up to demonstrate commitment & ensure satisfaction The self-generated use of professional judgment and discretion on the customer‟s behalf Empowerment Levels of empowerment Level 1 Total empowerment Level 2 Empowerment: post approval Level 3 Empowerment: specific guidelines Level 4 Pre-approval Level 5 No empowerment A recognition plan: the first two steps 1. Prioritise the behaviors and outcomes you will recognise. (what) 2. Decide on how you will recognise those behaviours and outcomes. (how) Scenario A A co-worker criticises Peter for taking extra time with a customer. The coworker complains that he had to handle more customers. Scenario B The co-worker‟s extra effort goes unnoticed. Scenario C The supervisor overhears and says, “Peter why did you spend so long with that customer? There are people waiting.” …...and so to the Service Providers (those at the coal face) “SERVE” research Service competencies for the new millennium AchieveGlobal‟s critical incident study • 1998-2001 • Nearly 700 people in 89 manufacturing, high-tech, service, government and healthcare organizations interviewed • US, Austria, Japan, Korea, Poland, Switzerland, Greece, Ireland, Singapore, Sweden, UK, Mexico • 3,092 critical incidents recorded S ee the “big picture” and how customer service fits into it stablish an authentic human connection with each customer E R The “SERVE” ender timely, accurate and thorough service alue and respond to unique customer needs xtend a hand to repair and strengthen relationships with customers who are upset or angry V model E Service professional as business owner • Sees “big picture” • Recognises customer “turning points” • Pitches in • Advocates and implements improvements • Builds the business See the “big picture” and how customer service fits into it Positive incidents - 65% “He knew we provided true service.” “The job is to retain the customer.” “The company looks good!” Negative incidents – 35% See the “big picture” and how customer service fits into it “I feel like we are letting our customers down.” “This type of service makes us look bad..” Service professional as sympathetic ally • Connects at an authentic human level • Strives to make each experience delightful • Leaves each customer feeling valued and special Establish an authentic human connection with each customer • Works from emotional readiness Positive incidents – 40% “I really appreciated how nice she was to me.” “I felt valued. And I remember it now, years later.” Negative incidents – 60% Establish an authentic human connection with each customer “I was angry. It left a bad taste in my mouth.” “I‟m writing a letter of complaint now. I won‟t go back.” Positive incidents – “emotional readiness” “You have to leave your life behind you as you face the customer.” “Customers call with the same complaints over and over again. It‟s easy to talk back or think that the customer is lying. You can‟t let that „you‟re lying‟ tone of voice slip in.” Establish an authentic human connection with each customer Negative incident – “emotional readiness” “Early one morning, I got a call from someone who was very rude, who really wanted to have things his own way. He wanted an adjustment to his account, and I couldn‟t make it happen. He wanted to escalate the situation. I told him I wasn‟t in the mood, and hung up on him.” Establish an authentic human connection with each customer Service professional as knowledgeable guide • Fully uncovers customer‟s needs • Delivers fast, efficient, correct service • Provides clear, accurate, relevant information Render timely, accurate and thorough service • Demonstrates a thorough understanding of the organisation‟s products and services Positive incidents – 42% “She went out of her way to inform me about information that I wasn‟t aware of.” Negative incidents – 58% “They didn‟t give me the correct information, so when I showed up to sign the forms, I did not have the proper paperwork with me.” “I asked the librarian where I could find books on agronomy. She had no idea what agronomy was.” Render timely, accurate and thorough service Service professional as tenacious problem solver • Cuts through bureaucracy • Works the system to get customers‟ needs met • Extends him/herself for the customer Value and respond to unique customer needs • When necessary, fills “adjacent” needs • Doesn‟t give up until the problem is solved, or until the customer satisfied Positive incidents – 74% “I arranged to have the price of their bill adjusted, even though we are not normally supposed to do this.” Negative incidents – 23% Value and respond to unique customer needs “They didn‟t give me the correct information, so when I showed up to sign the forms, I did not have the proper paperwork with me.” “I understand they have rules, but they didn‟t show a caring attitude. I have paid my taxes for years.” Service professional as a dedicated champion • Does the “right thing,” including atoning for errors • Seeks to make the relationship stronger than it was before • Replaces a bad experience with a good one Extend a hand to repair and strengthen relationships with customers who are upset or angry • Demonstrates how far an organisation will go to regain a customer‟s good will Positive incidents – 70% “The customer service agent at the car rental office called me to apologise for their mistake. He seemed deeply concerned.” Negative incidents – 30% Extend a hand to repair and strengthen relationships with customers who are upset or angry “The customer service representatives did not help me resolve the errors on my bills. They kept telling me that the errors would be fixed, but they never were. At first, I tried to be nice, but then I became very angry. I never got through to anyone.” S ee the “big picture” and how customer service fits into it stablish an authentic human connection with each customer E R The “SERVE” ender timely, accurate and thorough service alue and respond to unique customer needs xtend a hand to repair and strengthen relationships with customers who are upset or angry V model E In Conclusion (or the „what‟s in it for me?‟ syndrome) Satisfied customers cost less in money & staff time Satisfied customers mean less work Satisfied customers pay our wages Satisfied customers are nicer & easier to deal with Satisfied customers don‟t make complaints Customer Complaints WHAT COMPLAINTS ! “ An ounce of prevention is worth a pound of cure” Poor Richard Quality Customer Satisfaction Guru Thank you for inviting me to you meeting. Good luck in your drive for Quality Customer Service