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Poor Customer Experience Impacts Your Bottom Line

Last week we shared a few statistics about the impact of dealing with upset or angry customers.  Negative word-of-mouth advertising can be incredibly damaging.   It’s your reputation that’s at risk and this can have a huge impact on both existing and potential customers. 

How do poor customer experiences impact your bottom line?

  • The average customer who has had a problem with an organization will tell nine to ten people about it.

  • Thirteen percent of the people who have had a problem with an organization retell the experience to more than 20 people.

  • A customer who has had a positive experience with an organization or has had a complaint resolved positively will tell three to five people. To make up for just one negative experience, it will take at least three or four positive customer service experiences.

  • Only 4% of unhappy customers bother to complain.  The remaining 96% never say a word!  When possible, they’ll just quietly go away and simply take their business elsewhere.

The L.E.A.R.N. method simplifies the process in dealing with upset customers.  These steps not only help to deal with upset customers but also help to then build loyalty with them.

Listen carefully.  Active listening is a learned skill.  It doesn’t come naturally to most of us and it requires a lot of energy.  If you are distracted then you are not an active listener.  You need to stop everything and give your customer 100% of your attention.

Empathize with the other’s concerns.  You don’t need to agree with their comments, but it’s critical that you let them know that you sincerely care about their problem.  One of the first ways to show that you care is to thank that person for bringing the problem to your attention.

Apologize sincerely!  When said sincerely, an apology can remove as the majority of most people’s anger.  Beware though . . . if said insincerely, you will only fuel their fire.

Resolve the problem.  Let your customer know that you are their ally, that you are on his or her side and will do everything you can to help get the problem fixed.  If the situation is such that you must transfer this customer to another person, make this transition smoother and less frustrating by explaining the problem so that your customer does not have to tell the same story over again.

Now is the time to take care of their problem or concern.  When a problem is addressed quickly, customer satisfaction and loyalty increase. 

So the next time you are asked to handle a situation in which a customer is angry or upset, remember the acronym L.E.A.R.N. and follow each step through to the end.

Listening is one of the most important steps in resolving customer conflict.  Many of us can be poor listeners – heavy workloads, short staffing and multi-tasking are some of the obvious challenges. 

Customer can tell if you are pretending to listen.  Build stronger customer and co-worker relationships by using active listening skills.  Recognize your own listening barriers and strive to overcome these.  Everyone will benefit – most of all, you!

One of the most important aspects of any manager is their communication skill.  Next week we will feature tips on effective listening.

MEASURE-X
6227 North 15th Street, Phoenix, AZ 85014
888-644-5499 www.measure-x.com
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