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Thinking Like a Leader

Resolving customer complaints


From:

Thinking Like a Leader

with Dave Crenshaw

Video: Resolving customer complaints

All customer complaints are opportunities, but they aren't all the same. Depending on the type of complaint, and who it's coming from, your response may need to change. I'm going to give you a simple system that you can use for three different types of customer complaints; green, yellow, and red. This is not designed to replace your company's system for handling complaints, but instead, be a helpful resource. Green complaints come from happy customers. They like working with you, but they're giving you an idea or suggestion.

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Thinking Like a Leader
52m 18s Appropriate for all Feb 08, 2012 Updated Jan 03, 2013

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Join author and business coach Dave Crenshaw as he shows you the company, market, and customer focus that strategic leaders employ to make business decisions and anticipate new trends. This course shows you how to make crucial and insightful connections between your company's needs and future and those of the market you operate in and the customers you serve.

Discover how you can identify trends, gather and address customer feedback, and proactively deliver what your company needs for competitive advantage.

This course is one of a series of five Dave Crenshaw courses based on his Invaluable teaching methodology for professional development.

Topics include:
  • Understanding what makes your company money
  • Discovering market trends
  • Understanding your competition
  • Knowing your customers and how to better serve them
Subjects:
Business Business Skills Career Development Freelancing Leadership Management
Author:
Dave Crenshaw

Resolving customer complaints

All customer complaints are opportunities, but they aren't all the same. Depending on the type of complaint, and who it's coming from, your response may need to change. I'm going to give you a simple system that you can use for three different types of customer complaints; green, yellow, and red. This is not designed to replace your company's system for handling complaints, but instead, be a helpful resource. Green complaints come from happy customers. They like working with you, but they're giving you an idea or suggestion.

Yellow complaints are from people who are upset or unhappy about their experience with your company. The majority of the complaints that you receive are going to be in the yellow category. Red complaints are from people who are downright hostile, angry or threatening. Each type of customer complaint should be resolved differently and I'm going to give you some suggestions about ways that you can handle each of them. Let's start with the green complaint. When you get an idea or suggestion from a friendly customer, I recommend your first reaction should be gratitude.

You want to genuinely express appreciation, be sure to note the idea, and forward it on to the proper person. Then communicate to the customer that it's a great idea and you're passing it on to the appropriate person to take action. I also encourage you to look for a way to reward that customer. Hopefully, there's a policy in place to give people a perk, or reward, for sharing these great ideas, if not, you might suggest one. Now, let's talk about the yellow category where the majority of the complaints are going to be.

This is a customer who is unhappy. I suggest that first, you empathize with them. This is more than saying I understand. Listen and imagine yourself in their situation, genuinely try to understand. Thank them for bringing this to your attention and make a note of their suggestion. If appropriate, tell them that you'll pass along their feedback to make a change if possible. Then try to make it right and also give a little bit more.

Suppose there was a mistake on an invoice. You make it right by correcting the billing error. Then you give a little bit more, find a perk or a benefit to give them to thank them for bringing it to your attention, and as a friendly gesture. Your company can discuss appropriate ways to give a little bit more when it comes to yellow complaints. Now the red complaints come from people who are threatening, hostile, and angry. Perhaps they threatened to tell others bad things about your company or to sue.

When you receive a red complaint, be calm and allow them to vent their anger to you. It's possible that what they're saying is true, but it's also possible that they're not being truthful or rational. In either case, be calm and then restate to them what they said. Also, try to speak as little as possible and let the other person talk. Not only will that help defuse the situation, but it will also keep you from possibly saying something incorrect, or legally damaging to the business.

Then thank them for bringing it to your attention and be sure to document the conversation. If you're not authorized to resolve the situation then hand it off to someone who is able to make a decision. If you do have the authority to make a decision then try to respond in terms of if then. Ask, if I take care of it this way, then will you feel like we've dealt with you fairly? Getting their agreement will also help defuse the situation.

The good news is that the majority of the customer complaints that you handle won't be in the red category, but a little bit of preparation will help you feel calm and ready to deal with them when they do arise. Remember, whether the complaints are green, yellow or red, all customer complaints are opportunities. View them as such and you'll find more opportunities every day to increase your customer savvy.

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Q: This course was updated on 01/03/2012. What changed?
A: This course was retitled, streamlined, and refined throughout, resulting in a slightly shorter runtime. We also added new graphics and a new welcome movie. 
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