Customer Complaints Handling Notes PDF

- Understand the importance of correctly dealing with and resolving customer complaints and queries - Understand that customer complaints are an opportunity **The real cost of losing customers** The stats don't lie ------------------- - **68%** of customers leave to shop elsewhere (you...

- Understand the importance of correctly dealing with and resolving customer complaints and queries - Understand that customer complaints are an opportunity **The real cost of losing customers** The stats don't lie ------------------- - **68%** of customers leave to shop elsewhere (your competitors) because they **feel** poorly treated. The overall impression is that the store simply does not care about them especially when they have been a customer for a long time. The feeling of "care" increases the longer that they have shopped at your store. - **95%** of people who have a bad experience do not complain. Refer to issues of caring -- "It wont make a difference -- this store doesn't care about me and the money I spend here." This may be a perception, but for the customer it is the reality. When confronted with this, many managers become defensive and blame the customers, "what did I do wrong?" Instead of asking, "What should we be doing in order to show customers that we really care?" - **13%** tell up to **20** other people, while a satisfied customer tells only **5** other people. - It can cost **5 times more** to gain new customers than retain existing ones. - **1%** cut in customer service problems could generate an extra R200 million in profits for a medium-sized company over five years. - A lost customer means lost feedback and no opportunity to improve. ------------------------------------------------------------------ - A lost customer means lost sales and revenue. --------------------------------------------- - When a customer feels strongly enough that his or her **expectations have not been met,** - A complaint 'becomes a complaint' when a customer brings the problem, such as a defective product, bad or no service, incorrect prices etc. to the attention of the organisation's management and expects some form of redress. - A lost customer may become an opportunity for the competition. -------------------------------------------------------------- - A lost customer can be the beginning of a bad reputation. --------------------------------------------------------- - A lost customer can have a damaging impact on sales projections, cash flow, receivables, and payables. ------------------------------------------------------------------------------------------------------ - Customer retention ------------------ Key point ========= Empathy and customer service ---------------------------- What is empathy? ---------------- 1. **The ability to place oneself in the other person's situation** and being able to understand how they feel. 2. **To use appropriate behaviours** by responding verbally and non-verbally to express your empathy to the person and the situation. - Anger - Disappointment - Frustration - Impatience - Depression/sadness - Make sure that adequately trained staff are available at all times to handle product complaints. - Delegate this task and ensure that the staff understand their responsibilities and what this entails. - Store management remains accountable for the behaviours and actions of the staff to which complaint handling had been delegated. - Establish limits in terms of the company's policies with regard to guarantees and other warranties. - Establish and maintain levels of authority that delegated staff have to adhere to. This includes monetary limits on values of refunds and exchanges that may require a higher level of managerial authority to approve. - Managers must make time to observe complaint handling and coach or praise staff accordingly. - Management must be prepared to become involved in the event of customers who are disappointed with the decisions made. - Management has to refer unresolved complaints to a higher level for assistance, especially when dealing with guarantee issues or if there are no replacements available. 1. Receive the complaint/query 2. Express your feeling about it 3. Clarify the issues surrounding it to make sure it is understood 4. Offer the solution based on company policies 5. Gain customer commitment 6. Summarise solution 7. Express how you feel