Managing Customer Criticisms and Complaints
Archives: Daily Issues
- WEALTHY: When companies fail, what happens to your shares? (Charles Delvalle)
- HEALTHY: Smell good, lose 4 pounds…? (Suzanne Richardson)
- WISE: Mason Cooley on complainers
ALSO IN THIS ISSUE:
- Simple steps to dealing with customer complaints (Michael Masterson)
- How to make your sales copy more believable (Bob Bly)
- It’s Good to Know… about the hard work behind Labor Day
- Add “gravitas” to your vocabulary
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The Effect of Corporate Bankruptcy on Stocks and Bonds
As a stock or bond holder, you are part owner of the corporation whose stock or bond you hold. So what happens if that company goes into Chapter 7 bankruptcy?
If you are a stockholder, you’ll see a huge drop in the value of your shares. And the worst part is that when it comes to paying back debtors, stockholders are at the very end of the list. Which means that if the company goes bankrupt, you take on the most risk. In fact, you shouldn’t expect to be compensated at all.
If you are a bondholder, your risk is much lower but it isn’t eliminated. When a corporation claims bankruptcy, it first has to pay any back wages, mortgages, credit lines, and other corporations it owes money to. Cash left over is used to compensate bondholders. Oftentimes, you can’t expect to get back your entire investment.
The best way to avoid what a corporate bankruptcy could do to your portfolio is to buy companies that have ample cash, little debt, and steady profit and revenue growth for the past three years.
How do you find that information? Go to finance.yahoo.com and enter the ticker symbol of the company you are interested in. Once there, look at the bar on the right-hand side and choose “Key Statistics.” All of the company’s important financial numbers will be right there.
[Ed. Note: As investment analyst Charles Delvalle points out, you need to understand what you're doing when you put your money into a company. We've put together a surprisingly simple system that can help you make the best choices. Learn more here.]
“Complainers change their complaints, but they never reduce the amount of time spent in complaining.”
Mason Cooley
Managing Customer Criticisms and Complaints
When customers complain about the product or service they are getting from you, what do you do?
Of course, you know what you should do. You should:
• Say something that shows you sympathize with them.
• Rephrase their complaint, so they know you fully understand the problem.
• Tell them you want to resolve the problem to their satisfaction.
• Make every effort to make them happy, even if it means giving them more than they deserve.
If you find that you are failing to follow that protocol, you must ask yourself why. Why are you pitting yourself against them?
Based on my own experience, it’s probably because you’re taking their comments personally. You’re upset. You want to defend yourself.
But over many years of dealing with customer complaints and criticisms (not too many, but enough) I’ve come to understand that personalizing them is a mistake. Some complaints are legitimate. Some are not. But when a customer is angry enough to pick up the phone or write a letter or e-mail about a product or service I’m providing, I have to disconnect myself. I think, “Here is a person with a problem. If I can solve that problem, it may convert him into a better buyer. And even if I can’t completely satisfy him (some people can never be satisfied), trying to make him happy will improve my business.”
If you have ever owned or worked in a restaurant, you’ve run into customers who complained about the food and/or service… even if there was nothing wrong with it.
Customer: “Waiter, I told you I want no oil on my spaghetti. Why is there oil on it?”
Waiter: “There is no oil on it, sir.”
Customer: “Look! Can’t you see it? The pasta is glistening with oil!”
Waiter: “That’s not oil, sir. That is water vapor. It has just come out of the boiler.”
Customer: “Don’t argue with me, boy. Bring me another plate of spaghetti!”
Successful restaurants are those that train their staff to treat the customer as if he is always right, even when he is clearly not.
You might think it’s a bad idea for a restaurant to give in to irrational complaints. That it will encourage more irrational complaints. But from what I’ve seen, it has the opposite effect. By happily agreeing to replace a dish the customer complains about (and sometimes not charging for it), they turn snarls into smiles. And the restaurant develops a reputation as a high-class joint.
Since most of my clients are publishers, the irrational complaints they receive tend to be extremely odd and subjective.
- “I don’t like that editor’s last name. It sounds foreign.”
- “I hate your criticism of that stock. My father works for that company.”
- “You are wrong about eating more protein. Protein is the devil’s food.”
How do you handle complaints like these? Something like this: “Yes, sir. I can see that you are upset about the statement Dr. Smith made about protein. Is it fair to say that you wish we would never recommend protein again? Well, I can certainly understand how you feel. Unfortunately, I don’t think I’ll be able to change Dr. Smith’s view on this. After all, he has an MD, a PhD, and has won the Nobel Prize. Still, I will pass your comment on to him. We do have a special report on vegetarian cooking. It’s a $10 value, but I’ll be happy to send it to you for free. Will that be okay?”
Getting the customer service protocol right is essential if you want to build an increasingly profitable business. And the person at the top has to set the standards. You must teach your employees how to depersonalize criticism and satisfy your customers… even when they don’t deserve it.
Many businesspeople don’t agree with me. They want to be good to their reasonable customers and stern with their unreasonable ones. But this adds a costly burden to the organization. Customer service reps must then play two roles: They must judge the worthiness of the complaint, and then respond in a way that is appropriate – in their view – to their judgment. Asking your customer service people to do that is unrealistic.
The simpler and better answer: The customer should be treated as if he is right, even when he is wrong.
I’m not saying you should cave in to absurd requests – e.g., a demand for a refund long after your money-back guarantee deadline has passed. But you can still appease the customer by treating him well. By calmly and patiently explaining why you can’t do what he asks… and then offering something else – perhaps a discount on a future purchase. If you are clever, you can even turn a complaint into a sale.
Not only can you turn complaints into sales, you can use them to enhance your credibility and strengthen your relationship with your customers. How? By answering them publicly on your website or in your newsletter.
Porter Stansberry, publisher of Stansberry & Associates investment advisories, handles the harshest criticisms he receives in the e-letter he sends to his customers. And he does it in a way that completely defangs them.
Publishing his most acrimonious critics is a shrewd strategy, one that most businesspeople would shy away from. But by doing so, he includes each and every customer who might have similar complaints – even those who might be more upset than the people who write in.
Porter answers the criticism patiently, sympathetically, and rationally. If he made a mistake, he admits it. He presents his point of view, but without being antagonistic. And then he includes comments from other customers that back up what he just said. This has the effect of making the complainer look like exactly what he is – unreasonable. And not because Porter said so, but because other customers did.
While I was writing this article, I received an e-mail from an editor who had just gotten off the phone with an angry subscriber who strongly disagreed with something he had written. He handled it well. The subscriber was mollified. But it bothered him that the criticism was made in the first place. He wondered whether he should change his editorial policy so that such a criticism wouldn’t be launched again.
“Don’t kowtow to the malcontents,” I told him. “You have to give your subscribers the best editorial product you can. If they don’t like it, they can cancel their subscription. Remember, you’re in the business of publishing contrarian advice. And any time you take a contrarian position, some people are going to get upset with you. Don’t back away from your principles.”
You can’t avoid criticisms and complaints – especially if you are running a cutting-edge business. But you can – and should – pay attention to them… and have a procedure in place for managing them.
That means:
- Being polite, patient, and sympathetic.
- Making it clear that you fully understand the problem and intend to resolve it to the customer’s satisfaction.
- Making every effort to make them happy, even if it means giving them more than they deserve.
[Ed. Note: As Michael Masterson points out, dealing with customer criticisms and complaints is an unavoidable part of being in business. So what? You can do it! Don't let that prevent you from building a powerhouse Internet business.
Join Michael and the ETR team this November at ETR's 2008 Information Marketing Bootcamp. We've got 12 expert money-makers lined up. And each of them has promised to show you exactly how to make between $100,000 and $1.2 million your first year. Reserve your spot here.]
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My Beef With Subway
By Bob Bly
When you are imprecise with language in copywriting, it conveys an impression of sloppy thinking… and can also undermine your credibility. A case in point: the new commercial from Subway that proclaims “Everybody wants to try Subway’s hot beef sandwich.”
The problem is that word “everybody” – which is so transparently an exaggeration that it defies believability.
Do people on low-carb diets who are avoiding bread want this sandwich – which comes, of course, on bread? What about vegetarians? Do they really want to try this new beef sub? How about people who don’t like subs… people who don’t eat fast food… people who prefer ham or chicken to beef?
A better approach: “Beef lovers nationwide can’t wait to sink their teeth into Subway’s new Hot Beef Special Sandwich.”
This identifies the audience (meat eaters) and conveys the image of desirability and popularity while avoiding the obvious lie of “everybody.”
[Ed. Note: Copywriting expert Bob Bly knows the secrets behind writing copy that sells - and including specifics is one of the easiest ways to make your copy stronger. You can get a free copy of Bob's new report on marketing to the ever-growing market of "grumpy old men" here.
And be sure to catch Bob at ETR's Internet Ultimatum Bootcamp. He's agreed to come out of retirement to speak at this event. If you've never heard one of his advice-packed, humor-filled presentations, this could be your last chance. Learn more here.]
The Link Between Your Look and Your Scent
An unpleasant aspect of being overweight is that people KNOW you’re overweight. But a new study by Dr. Alan Hirsch of the Smell and Taste Treatment and Research Foundation could make you feel better about those extra pounds.
Dr. Hirsch applied three different scents to a woman weighing 245 pounds. After each application, he asked men to guess her weight. Two of the scents – citrus floral and sweet pea & lily of the valley – made no difference in the men’s perception of how much she weighed.
But the third scent – floral & spice – did.
On average, they guessed her weight to be 4.1 pounds lighter than she was. A bigger surprise? The men who really liked the floral & spice scent perceived the woman to be 12 pounds lighter than she actually weighed.
Sure, being perceived as lighter than you are might boost your self-esteem. But wouldn’t it be better to lose the weight? ETR is full of recommendations for how to drop pounds – and keep them off – just by making a few simple changes to your diet and exercise regimen. And once you’re truly thinner, your self-esteem will improve… and so will your health.
(Source: Smellandtaste.org)
[Ed. Note: Browse through the ETR Health archives for articles that can help you get slimmer and feel better. And for targeted advice that can help you achieve optimal health - in the privacy of your own home - become a charter member of Dr. James LaValle's Healing Prescription. Learn how to make a dramatic and almost immediate change in your health right here.]
It’s Good to Know: The Hard Work Behind Labor Day
It’s historically uncertain whether it was Peter McGuire of the American Federation of Labor or Matthew Maguire of the Central Labor Union who founded Labor Day (which Congress made a federal holiday in 1894). Probably makes no difference to you. However, in recognition of the day, here are a few facts to help you appreciate the labor you do – and how far we’ve come.
- 12-hour workdays, 7 days a week, were standard in America in the 1800s – and even children worked.
- The National Labor Union began fighting for an 8-hour workday in 1866.
- In 1938, the Fair Labor Standards Act set a minimum hourly wage of 25 cents.
(Source: History.com) ]
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Word to the Wise: Gravitas
“Gravitas” (GRAV-uh-tahs) – from the Latin for “heavy” – is high seriousness.
Example (as used by Benjamin Schwarz in The Atlantic): “And we want to tell our readers about sharp, clever books, utterly lacking in gravitas, that we know will delight them on the beach or the bus.”
Copyright ETR, LLC, 2008
Yes, with the internet business we can give the full description regarding the product features and usage the of the product. Customer also feel free to choose the product while they are purchasing.
In regards to your Managing Customer Criticisms and Complaints article, I couldn’t agree more. One of my companies, NorthStar Global, Inc. is a technology solution providing company. Needless to say, people get aggravated about that which they do not understand. I have to train my employees not to take criticism personally and explain that 3/4 of the time, the client is upset at their situation that they got themselves into and the remaining 1/4 is divided into problems with our company and ignorance of fault. Regardless, it is rarely their (our employees) fault as long a s they followed protocol.
im a sales person in fashion shop. and one of our special client was talking about me to an another sales lady that she is not really satisfied with my servis, as i was approaching her with some clothes to show her, so it was obvious for her that i`ve heard of what she were saying. but i decided to act like i was stupid,and haven`t heard anything. in fact ,i made her buy a lot of clothes. im not planning to spend more than a year in this job, but i made a plan to learn how to manage naughty clients, and to get an experience in sales. actually im interested in people , in their action and reactions, methafisic. my hope for the next 2-3 yrs to become good sales person, and what i will do with that skill life will show. that`s all. clara.26.uzbekistan
Great advice, too many people react to customer complaints personally and defensively. You did a great job of explaining an easy process for dealing with customers graciously and professionally. Thanks for reminding us how to do it right!
JoAnna Brandi
CustomerCareCoach.com