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Complaints – Who Needs Them?
By David Saxby

How does a utility that sells such non-traditional services as Internet access and cable TV know if a customer is about to leave for the competition?  It may not and it’s the silent escapees that are so damaging to business.

Most businesses don’t know when a customer is about to leave, so consider yourself lucky if you do.  For those who are in the dark, there are ways to raise your awareness level and a lot of it has to do with handling customers who actually complain before they make the decision to hit the road.

Welcome complaints.  All companies dread complaints and utilities are no exception.  Complaints mean a company has customers that are unhappy, upset or emotionally distressed due to something they perceived the company should have done for them.  The problem is many customers never complain.  They just go somewhere else.  The reason they don’t complain is because they think the business doesn’t care and won’t do anything to satisfy them as a customer.  Complaints are a great opportunity to look at the level of service your utility’s customers receive and to measure the customer service process.  If you have one customer complaining, you have more that aren’t willing to tell you about their unpleasant experience.  Welcome complaints as an opportunity to get feedback from your customers on how to improve their experience with you.  Each and every one of your employees needs to understand how important it is to welcome customer feedback even if it’s not always favorable.

Handling complaints is a learned skill.  When customers are upset, they are not rational or logical in their communication.  What the employee says and how they say it can make all the difference between customers feeling satisfied and continuing to use your services or choosing the competition.  Many people lack the skills or experience to deal with someone who is yelling at them over the phone or who is standing face to face, telling them in an aggressive manner about their situation.  Invest in training that will give your employees the skills they need to remain calm and deal effectively with emotional customers.

Empower employees.  When customers complain, they want the person they are talking with to create an immediate solution.  They don’t want to be transferred to the manager or to voice mail or wait for someone to call them back.  They want satisfaction right away.  Empower your employees with the ability and the financial authority to create a solution on the spot.  The following questions show just how important this is.  How much is that customer worth over the next 12 months?  How much is that customer worth over the next three, five and 10 years?  How much revenue do you lose because your employees have to get management approval to make a financial decision to retain a customer?  Naturally, you shouldn’t give your employees carte blanche.  Set financial limits on what they have authority to give to the customer.

Track complaints.  All complaints, no matter how serious or seemingly insignificant, should be tracked from the first call to the resolution and the end result should be that the customer emerges from the process happier than when he or she entered it.  Keeping a log of complaints allows you to watch for patterns or reoccurring problems.  If you are receiving numerous complaints about the same product or service, there is a good chance you’re going to lose customers.  A complaint log may unearth product defects, misinformation during the sales process, poor communication, etc.  Most problems can be fixed quite easily to prevent customer dissatisfaction.

Follow up.  As a customer, have you ever had a business promise you almost anything to get you off the phone when you were complaining?  You hang up the phone feeling like the company listened to you and was serious about creating a solution.  Later, you realize they never followed through on what they promised would happen.  Don’t let your utility get away with something like that.  If you don’t follow through on promises and fail to call your customers back, you have given away that business to a competitor. One of the toughest things to do is call back an unhappy customer to confirm their issue was resolved and that they are satisfied with the outcome.  A follow-up call sends a clear message to the customer that you really do care about them and that you value their business.

Exit interviews.  Let’s say you know you’re losing customers because the utility’s software tells you customers are canceling their service.  The question is what percentage are leaving because they are dissatisfied?  One way to find out is to call those customers who have left so you can understand their situation.  Hire an outside company that can be neutral in listening to customers giving feedback.  Identify what is causing the customer loss and create a solution.

The more you stay in touch with your customers, the more you will be aware of their feelings about your utility’s products and services.  Each time you speak with a customer, you have a chance to strengthen the relationship or win back their loyalty.

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David Saxby is president of Measure-X, a Phoenix, Ariz.-based measurement, training and recognition company that specializes in customer service and sales skill training for utility companies.  He can be reached at 888-644-5499 or via e-mail at david@measure-x.com.  Visit the Measure-X Web site at www.measure-x.com.

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