PRESENTATION ON EFFECTIVE COMPLAINT HANDLING & CATEGORIZATION OF - TopicsExpress

PRESENTATION ON EFFECTIVE COMPLAINT HANDLING & CATEGORIZATION OF CUSTOMERS PRESENTER: DENNIS MUGENDI NJERU TARGET AUDIENCE: MOSTON MASTERS DISTRIBUTOR & JATOMY ENTERPRISES LTD AFFILIATED EMPLOYEES INTRODUCTION: We all have heard by now the cliché that the customer is our boss.I would like us to look at customer as a garden that needs to be tended so as to give us good fruit.The purchases from our customers sustain the business that we work for besides forming the basis of out livelihood.It is with this background that I get in to discussing the above topic. MAIN DODY The three important aspects of the complaint process are:- (i)Actively seeking customer complaints (ii)Recognizing the type of customer that is complaining and (iii) Responding Appropriately based on type of complainer (I)ACTIVELY SEEKING CUSTOMER COMPLAINTS It is important to realize that organizations that are totally customer-focused do not just respond effectively to customer complaints, they actively seek them out. What specific activities does your organization utilize to provide customers with easy opportunities to register their dissatisfaction? Are these activities sufficient?Remember,research indicates that for every complaint expressed there are over 25 unregistered complaints. Many dissatisfied customers just quietly take their business elsewhere.Therefore,organizations that are truly committed to delivering Superior Customer Performance work hard at providing their customers opportunities to complaint. What opportunities exist for your organization to more aggressively invite and receive customer complaints? No organization is so perfect in the delivery of Superior Customer Performance that significant levels of dissatisfaction(the source of complaints)do not exist. No news from customers regarding your performance is not necessarily good news. (II)RECOGNIZING THE TYPE OF CUSTOMER THAT IS COMPLAINING & RESPONDING APPROPRIATELY BASED ON TYPE OF COMPLAINER Types of Complainers and How to Respond Effectively At least five types of complainers can be identified. Each type is motivated by different beliefs, attitudes and needs Consider the following definitions of the types of complainers, how one might respond to them, and the danger of not handling complaints effectively. 1.The Meek Customer:This type of customer will not complain Response: You must work hard at soliciting comments and complaints and act appropriately to resolve complaints 2.The Aggressive Customer:This is the opposite of the meek customer.He/She readily complaints,often loudly and at length Response:You have to listen completely.Ask “What else?”Agree that a problem exists and indicate what will be done to resolve it and when Danger:This kind of customer is bound to be aggressive in return.The aggressive customer does not respond well to excuses or reasons why the product or service was unsatisfactorily. 3.The High-Roller Customer:This type of customer expects the absolute best and is willing to pay for it.He/She is likely to complain in a reasonable manner,unless he/she is a hybrid of the aggressive customer Response:He/She is interested in results and what you are going to do to recover from the customer service breakdown.Always listen respectively and actively and question carefully to fully determine the cause.Ask “what else” and correct the situation.Like the aggressive customer,th High-Roller Customer is not interested in excuses. 4.The Rip-Off Customer:The goal is not to get the complaint satisfied but rather to win by getting something the customer is not entitled to receive.A constant “not good enough” response to efforts to satisfy this customer is a sure indicator of a rip-off artist Response:Remain unfailingly objective.Use accurate quantified data to back up your response.Be sure the adjustment is in keeping with what the organization would normally do under the circumstances.Consider asking “What can I do to make things right” after the first “not good enough.” 5.The Chronic Complainer Customer:This type of customer is never satisfied ,there is always something wrong.This customer`s mission is to whine(Whine means a peevish-fretful or irritable- complaint,especially one repeated).Yet,he is your customer,and as frustrating as this customer can be,he cannot be dismissed Response:Extra-ordinary patience is required.One must listen carefully and completely and never let one`s anger get aroused.A sympathetic ear, a sincere apology,and an honest effort to correct the situation are likely to be the most productive. Unlike the Rip-Off Customer,most Chronic Complainer Customers will accept and appreciate your efforts to make things right.This customer wants an apology and appreciates it when you listen.HE/She tends to be a good customer(in spite of his constant complaining)and will tell others about your positive response to his complaints. Handling Customer Complaints All good managers/workers want to hear about every complaint their customers have.Only when a complaint has been expressed can be the appropriate corrective action be taken. Without customer complaints management often assumes that everything is okay. It is estimated that for every customer complaint received, there are at least 26 complaints that are never expressed. What are the implications of this statistic? Furthermore, a customer with a complaint is likely to tell 20-25 other customers and potential customers about his complaint. Therefore, every organization needs a procedure for resolving customer complaints. A Suggested Complaint Procedure Consider the following eight-step customer complaint procedure for handling customer complaints in your organization As you examine these eight steps,determine which ones your organization does most and least effectively.Use you answers to determine where you need to improve your customer complaint procedure. 1.Provide customers with an opportunity to complain 2.Give customers you full undivided attention 3.Listen completely 4.Ask the key question “What else?” 5.Agree that a problem exists,never disagree or argue 6.Apologize 7.Resolve the complaint(Ask again: “What else?”) 8.Thank the customer for bringing the complaint to your attention CUSTOMER CARE TIPS & TECHNIQUES It costs much less to keep existing customers than find new ones. It costs 5 times as much to bring in a new customer than to keep an existing one.When people become your customer,the want to be loyal.So,why do they leave?Most of the time,they leave because of small oversights and lack of attention to plain,old customer service. When customers call on phone,we are provided with a tremendous opportunity to reinforce and grow the relationship.It makes good(economic) sense to take the extra time and effort to make these calls as meaningful and service oriented as possible. Attention to customer service will go a long way in helping you to satisfy your customers and make them feel as if they are truly special. The following are important customer care tips when engaging a customer on phone: 1. Always tell your customer what you CAN do for them.Dont begin your conversation by telling them what you CAN`T do. 2. Allow irate customers to vent.Do not interrupt them or start to speak until they have finished having their say. 3. Diffuse anger by saying I am sorry or I apologize 4. Use your customer`s name at different points in the call 5. Make certain that your “solution” to the customer`s problem is acceptable to them.Get their approval and agreement 6. Always conclude each call with a “Thank you ” or a verbal message of appreciation for their business 7. Make certain that your tone of voice is in sync with your wors.Remember,your tone of voice can completely contradict your message 8. Listen attentively!There is nothing worse than asking an irate or troubled customer to REPEAT what they have just said 9. Go the extra step by following up on your solution.Re-contact the customer to make certain that everything has been handled in a satisfactory manner,and they are pleased with the outcome. 10. Remember to ask if there is anything else that you can do for your customer.Taking the time to ask the question often results in increased business and a more committed customer. TEN IMPORTANT POINTS IN ACHIEVEING GREAT CUSTOMER SERVICE Customer service is an integral part of our job and should not be seen as an extension of it.A company`s most vital asset is its customers.Without them,we would not and and could not exist in business.When you satisfy our customers,they not only help us grow by continuing to do business with you,but recommend you to friends and business. The following points are generally very important in customer service(Mostly Applicable on the Shop Floor): 1.Know Who is Your Boss You are in business to service customers needs,and you can only do that if you know what it is your customers want.When you truly listen to your customers,they let you know what they want and how you can provide good service.Never forget that the customer pays our salary and makes your job possible. 2.Be a Good Listener Take time to identify customer needs by asking questions and concentrating on what the customer is really saying.Listen to their words,tone of voice,body language,and most importantly,how they feel.Beware of making assumptions-thinking you intuitively know what the customer wants.Do you know what three things are most important to your customer?Effective listening and undivided attention are particularly important on the show floor where there is a great danger of pre-occupation-looking around to see to whom else we could be selling to. 3.Identify and anticipate needs Customers don’t buy products and services.They buy good feelings and solutions to problems.Most customer needs are emotional rather than logical.The more you know your customers,the better you become at anticipating their needs.Communicate regularly so that you are aware of problems or upcoming needs 4.Make Customers Feel Important and Appreciated Treat them as individuals.Always use their name and find ways to compliment them,but be sincere.People value sincerity.It creates good feeling and trust.Think about ways to generate good feelings about doing business with you.Customers are very sensitive and know whether or not you really care about them.Thank them every time you get a chance. On the show floor be sure that your body language conveys sincerity.Your words and actions should be congruent. 5.Help Customers Understand your Systems Your organization may have the world`s best systems for getting things done,but if customers don`t understand them,they can get confused,impatient and angry.Take time to explain how your systems work and how they simplify transactions.Be careful that your systems don’t reduce the human element of your organization. 6.Appreciate the power of “Yes” Always look for ways to help your customers.When they have a request(as long as it is reasonable)tell them that you can do it.Figure out how afterwards.Look for ways to make doing business with you easy.Always do what you are saying that you are going to do. 7.Know How to Apologize When something goes wrong,apologize.It`s easy and customers like it.The customer may not always be right,but the customer must always win.Deal with problems immediately and let customers know what you have done.Make it simple for customers to complain.Value their complaints.As much as we dislike it,it gives us an opportunity to improve.Even if customers are having a bad day,go out of your way to make them feel comfortable. 8.Give More Than Expected Since the future of all companies lies in keeping customers happy,think of ways to evaluate yourself above the competition.Consider the following: (i)What can you give customers that they cannot get elsewhere? (ii)What can you do to follow-up and thank people even when they don’t buy? (iii)What can you give customers that is totally unexpected? 9.Get Regular Feedback Encourage and welcome suggestions about how you could improve.There are several ways in which you can find out what customers think and feel about your services (i)Listen carefully to what they say (ii)Check back regularly to see how thing are going (iii)Provide a method that invites constructive criticism,comments and suggestion 10.Treat you fellow employees well Employees are your internal customers and need a regular dose of appreciation.Thank them and find ways to let them know how important they are.Treat your employees with respect and chances are they will respect and chances are they will have a higher regard for customers.Appreciation stems from the top.Treating customers and employees well is equally important. CUSTOMER SEGMENTATION This consists of categorizing customers and learning how to better serve them. Looked at from another perspective,segmentation refers to the division of the customer base into specific types according to purchasing behavior. Understanding the various types of customers that you may encounter while attempting to sell products or services is an important part of the marketing process. A peek into the psychology of how and why purchase decisions are made is a valuable asset for any business CATEGORIZATION OF CUSTOMERS USING THEIR PURCHASING BEHAVIOUR PATTERNS Customers,using their purchasing behavior patterns,brings out the following classes of customers: 1.Ready-to-Buy Customers: Customers under this classification often have a sense of urgency.They have done some preliminary research or at least have an idea of something that they need.Since there is an actual need,the issue for a sales person or service provider becomes finding out what the requirement is and finding it. Once you demonstrate that you have what the customers need,they can become a client.If what they need is ongoing,they could become valuable repeat customer Therefore,handle the situation in the best way possible for the most lucrative outcome,which is to gain a repeat customer. 2.Potential Customer While every person who enters a store or visits a website has the potential of becoming a customer,many of these type of customers are simply gathering information or browsing. This kind of customer is usually in no hurry to make a purchase,given that there is no urgent need to do so.This is when having a sales message strategy in place can be helpful,so that you can present it to them and more easily make a sale or sign someone up for a service 3.Repeat Customer The most loyal customer is a repeat customer or one who regularly uses a company`s services and purchases its products.This type of customer is the lifeblood of the business and should be respected as such.Since they were satisfied the first time,they returned for more services or products.Therefore,as long as you continue to satisfy their needs,you have a repeat customer.It has been estimated that it can take up to five times more work to replace a loyal customer as it would to simply continue to service them well enough to keep them. 4.Sale or Discount Customers They always shop for the best deals available on the items they want to purchase.They are a regular fixture at stores to find store-only sales and avidly read newspaper ads,store circulars and pay attention to local deals.They may also conduct price comparisons online before heading out to visit a store.Most of their purchasing decisions are based upon how high the markdown in a sale is at any given time. 5.Impulse Buying Customers Customers who make purchasing decisions based upon a whim(a sudden,passing,and often fanciful idea;impulsive or irrational thought)or a great sales presentation usually are not in a position of needing anything in particular. They may arrive at a store or website to buy something they do need but then stay to look at other items.Often,this type of customer will make a decision on the spot for something that seems good to them at some particular time for no need-based reason. CONCLUSION The importance of making our customers feel special and want to buy from us again cannot be over emphasized.Lets all us the above write to develop professional customer service