This is the fifth in a series of six articles that looks at different aspects of excellent customer service and how it leads to increased overall profitability. The full series will be available for download as a white paper once it is completed.

In the last article, we covered a few of the reasons why customer service should be better than expected — but what happens when we fail to deliver an exceptional experience.

A negative experience often means the customer goes elsewhere with their business — and often they tell their friends. So each lost customer means more than just their lost business, but it results in lost business from their friends as well.

However, research also tells us that if we are able to recover from a poor experience — then customer loyalty actually increases. So if you can turn a negative experience into a positive one — that can lead to loyal customers and increased profits for the company.

In this article, we will cover 5 methods for turning a negative into a positive customer service outcome and helping to keep customers in the process. Customer retention is vital. It’s far easier and cheaper to retain customers than to find new ones.

Remain Calm
If an employee is confronted with an angry or upset customer, they should let the customer vent to express their frustration. No one is rational when they have pent up anger and emotion. Remind employees that the customer is angry at the company and not them as an individual — they’re simply the person in the position of handling the complaint. If an employee took every complaint personally, they wouldn’t survive long in the job.

Once the irate customer has expressed their frustration and calmed down, the employee can ask questions and determine the actual problem. Listen to the real concerns because part of complaint handling is giving the customer the chance to express themselves. Then training can kick in and the problem solving techniques will be put to good use to ensure that whatever the concern, the customer leaves the store satisfied because proper action has been taken to rectify the problem.

Empathize
The employee can diffuse the situation by showing the customer they’re “on their side” and want to help. Sincerity is the key. The customer should feel the employee is there to help instead of arguing or disagreeing with what has been said.

Avoid typical phrases such as “it’s company policy” or “I can’t do that” because they’re negative and will only inflame the situation. Calming phrases such as “Can you tell me exactly what happened?” or “I appreciate your frustration and I am here to help” will go a long way towards winning the customer’s trust.

Lastly, don’t be afraid to say you are sorry for the way they are feeling or their experience. “I’m sorry to hear about your bad experience — what can we do to make it right” is totally different than apologizing because the employee themselves made a mistake.

Evaluate
Review the situation objectively. Ask the customer what would satisfy them and determine the best course of action. Talk through different options if there is more than one to choose from and let the customer provide input on what they want to happen.

In these situations, it’s critical that the employee can think “outside the box” as not all complaints fall within company policy. However, there are often solutions that can be solved by using guidelines that satisfy the customer’s needs and still allow the employee to follow correct procedures to avoid possible future problems.

Take action
Once the optimal solution has been determined, the employee should advise the customer what steps need to be taken to implement that solution. It may be easy to do or it could mean a few different steps need to be taken to ensure the problem is rectified completely.

It’s essential that your team look for every opportunity to exceed a customer’s expectations. It’s one thing to merely satisfy their current problem but if you can take things a step further, the customer will not only be satisfied but may convert to being a loyal customer because their problem was addressed professionally and promptly.

Check back/verify
It’s not enough to just put steps in motion to satisfy a customer. It’s vital that those steps be followed up and your team should ensure that everything has been done the way they promised. Actions may need to happen in other departments or places beyond their control and so follow up may be necessary.

Contact the customer once everything has been taken care of and verify that they’re satisfied with the final outcome. Express appreciation for bringing their complaint back to your company so you had the opportunity to fix the problem.

You should always be looking to go the extra mile for the customer to keep them happy. It may not always work but the effort will often be appreciated. It will help turn the negative experience into a positive one with a hopefully happy ending.

Finally, remember to always thank them for their business and for allowing you to help. After all, they are the customer.

In our final article we’re going to talk about 4 Ways to Turn a Satisfied Customer into a Loyal Customer because that’s where the bulk of the company’s profits are made.

There are many different aspects of work as a customer service representative, regardless of whether it’s face-to-face or on the telephone. Understanding some of the key tips that improve customer service will enable staff to do their job better.

Make people feel welcome
People should always feel welcome when they enter your store or office, regardless of the reason. If they call, they should also be greeted with a friendly voice. This helps people feel more comfortable and the likelihood of them using your services is far greater.

Listen first
You can’t hope to provide great service unless you know what your customers want. Ask questions and listen to what they say. Give them your undivided attention and then help them to the best of your ability. Remember that all customers are different. This means their requirements may also be different, even if only slightly. If it’s within your power, you should help give them exactly what they need.

Say yes as often as possible
Some customers ask for things that may not be considered “normal” but could still be possible. Never say no unless something is impossible — and even then provide an alternative if possible. If you don’t know if something can be done, check with your supervisor before giving a final answer. Then the customer will know that you have at least tried.

Don’t be afraid to apologize
Things can sometimes go wrong, whether it’s your fault or not. However, you’re a representative of the company and if something has gone wrong, offer a sincere apology immediately on behalf of the organization. Customers appreciate acknowledgement of errors and once the apology has been made, you can then help remedy the situation so the customer ends up being a happy one.

Follow-up
If a customer is unhappy, try and help them. That’s a given. However, what often happens is that follow-up promises aren’t kept. If you promise to do something, it’s imperative that you do it. If you promise to return a call on a specific date and time, do it even if it’s to report that you don’t yet have the answer the customer needs. They’ll usually be prepared to wait longer if you’re honest and keep the lines of communication open.

Phone tips
In addition to the previous tips, there are some that specifically apply to people dealing with customers on the phone. Your phone manner is extremely important. You should always be courteous, polite, calm and positive. You’re there to help the customer, no matter what issue they have. Avoid using jargon when dealing with a customer as they probably won’t know what you’re talking about and that will only make them more frustrated and angry.

It’s a common thing to have to place someone on hold. Ask them if it is okay to do so and make sure you keep coming back to them if they have to wait a while. There’s nothing worse than being on hold and listening to the same droning company messages over and over again, or even worse, getting cut off.

If you have to transfer someone, make sure it’s a warm transfer. Introduce them to your colleague and explain the situation before letting them take over the call. Transferring someone into another queue where they end up having to explain the same problem all over again is the quickest way to make your customer angry.

If you get an angry or upset customer, let them vent. Someone else may have placed them in the queue and so they’re already upset when you answer the phone. Although it’s not your fault, apologize in a calm voice and tell them that you’ll endeavour to solve their problem if they can just explain it to you clearly.

Customer service doesn’t have to be complicated. Quite often it’s employees that make it that way through bad behaviour — or simply not caring enough to look after customer needs. If expectations are set early and staff are given the proper training, angry or upset customers will be kept to a minimum.

Recently my wife and I made a real estate investment and in the course of that transaction we were exposed to 2 banks we had no previous relationship with that caused us to re-evaluate our existing banking relationships.

We currently have accounts at 2 different banks and for simplicity were considering consolidating it with one of those banks — Bank of Montreal.

The 2 banks — TD and RBC — which we had no previous relationship, are offering a very attractive interest rate.

However, when we asked the Bank of Montreal, which we have a long standing relationship with, if they would match the offer — their answer was that we needed to submit an application and they would consider it.

My Perspective: The Bank of Montreal made us feel like I had to qualify to be their customer and that they would only treat me as a preferred customer if they felt it was worth their while. We had been their customer for over 30 years — and yet they were treating us like they knew nothing about us.

On the other hand, the TD & RBC banks both let me know they were interested in our business. Of course I knew that a preferred rate was subject to application — but without even seeing my full financial picture they were willing to let me know their best rates.

When I posed the question to the Bank of Montreal branch representative, they were embarrassed by the “head office” position, but their hands were tied.They also acknowledged that they were aware that TD & RBC were very aggressive in seeking new customers so the information was not news.

Do you have processes in place that treat your existing and potential customers like they have to apply to be your customer. Or do you welcome them with open arms.

I fully appreciate that all customers are not alike — or as profitable — but don’t insult them by making them jump through hoops before you have enough information to make a decision.

Wouldn’t it have been far better if the Bank of Montreal had indicated they did offer to match the preferred rate subject to qualification. I am sure the local bank representative could have easily determined whether we were likely to qualify based on 30 years history with that branch.

Instead, we have decided not to consolidate our banking with Bank of Montreal and are now less loyal than we were and potentially open to a relationship with a new bank that demonstrates they are interested in our business.

If you are not building loyalty with your customers everyday — beware that your competition isn’t sneaking in the backdoor with better customer service.

This is the fourth in a series of six articles that looks at different aspects of excellent customer service and how it leads to increased overall profitability. The full series will be available for download as a white paper once it is completed.

In our last article, we discussed 4 Steps to GIVE Exceptional Customer Service. Now we want to go over some of the key reasons why it is so important that customer service should be exceptional — to exceed expectations.

If customers are receiving exceptional customer service, they would naturally have a tendency to return to the same store again to fulfill future needs. Although the customer may only spend a small amount in any given transaction, their loyalty is potentially worth thousands of dollars in profits to the company — which helps secure future employment for the team.

Therefore, exceeding customer’s expectations is in the best interest of all employees at all times. Here are 3 key reasons why investing in exceptional customer service is an investment in your long term success.

Differentiates you from your competition

Customer service should exceed expectations because it may be the only factor that separates you from your competitors. Your products and prices may be the same. Your hours of operation and location may be the same. The quality of your products may also be the same. So it’s the things you do differently that will make you stand out from other businesses in the eyes of your customers.

Be different in as many positive ways as possible. Be memorable for the right reasons. Your team should be cheerful when dealing with all customers, no matter what sort of day they have had. Handle customer complaints in a positive manner. Make the effort to go the extra mile at every opportunity so people are more than satisfied with your service. They are so delighted with your service experience that they wouldn’t dream of going elsewhere.

Creates loyal customers

Your end goal should be to gain as many loyal customers as possible because they’re priceless. Exceeding their expectations on a regular basis is the best way to satisfy them and retain their loyalty. Customers don’t want the stress of looking for new places to shop. If you provide excellent customer service at every opportunity, they’re more likely to keep coming back because you’re making life easier for them.

Loyal customers are much easier to service because they’re more forgiving if there are the occasional problems because generally they’re satisfied with your service. It’s five times harder to win a new customer than it is to service your existing customer base so it’s essential that your team builds long-lasting relationships with your customers so they do remain loyal.

It’s easy to become complacent when dealing with loyal customers if they’re simply coming in and spending their money. It’s vital that your team remain ever-vigilant to customer needs.

Word of mouth is powerful

If your customer service experience exceeds expectations, that’s a powerful reason for customers to tell family and friends about your company’s service. People trust personal recommendations and are more likely to try a new business rather than go through the stress of shopping around for better prices.

If the new customers are equally impressed with your service, they’re also more likely to refer you to their friends and so it continues like a domino effect, thereby increasing your profitability even more without excessive additional expenses.

Even if you have a situation when a problem arises, this can be turned into an exceptional experience. This gives your team the opportunity to really demonstrate your service experience by the careful handling of the situation (more on this in our next article) and a positive result for the customer. Even then, any word of mouth advertising is bound to be positive.

Word of mouth is the cheapest, yet most powerful form of advertising available. The faster it spreads, the better it is for your business.

People will talk about your service experience — so it is important that the conversation is positive.

In our next article we’re going to cover 5 Steps to Turn a Negative into a Positive Customer Experience and thus retain even more customers in the process.

Stopped by our local East Side Mario’s for dinner the other night. It was a nice night and since it was mid-week the restaurant wasn’t too busy, so we decided to sit on the patio. However, when we asked the hostess to be seated outside we were told that it would be 15 – 20 minutes before we could be seated. However, we could be seated immediately if we wanted to sit inside.

When I asked why we couldn’t be seated outside immediately — since approximately 50% of the tables were open — we were told that there wasn’t enough staff scheduled on the patio to serve more tables.

My Perspective: If there were enough staff in the restaurant to serve the total number of customers — then why couldn’t they simply reallocate some of the inside staff to serve outside on the patio?

It was such a nice night outside that people wanted to enjoy the evening. In fact people were waiting for tables — while servers inside stood around since their tables weren’t full.

My guess is that staff had been scheduled to stations in advance and that no one either had the authority or the initiative to adjust the staffing arrangement to address the customer desire as a result of the weather. Seemed kind of a no-brainer to the customer — but if the management hasn’t built in this type of flexibility then they will often be faced with disgruntled customers who can’t understand why there are silly rules preventing them from achieving their desired outcomes.

Is there any rules in  your business that seem silly to the customer — even though they make sense to you?

Have a look at your processes through the eyes of the customer and see if you see any areas for adjustment that can increase your opportunity to delight your customers. If you can’t see any holes — ask someone who doesn’t work in the business to have a look. They might see something you miss because they see things through fresh eyes.