It’s 7 a.m. on Tuesday. Monday was a typical hectic start to the week, and you’re barely halfway through your first cup of coffee when Steven calls. He picked up his SUV last evening, and at the moment, he’s not the calm, levelheaded customer you worked with throughout the four-week repair process.
In fact, his voice is so loud, you have to hold the receiver away from your ear. And he’s ranting and raving in such circles that a full three minutes pass before you figure out he’s upset because he feels the fender doesn’t match the door and because there’s a scratch on the rear bumper that “could not possibly have been there before.”
After about five minutes, he finally pauses to indicate that it’s your turn. How do you respond? You have two choices: You can do your best to get Steven off the phone as quickly as possible, or you can work some customer relations magic, salvage this customer relationship and prevent him from discouraging his friends, family and co-workers from calling on you in the event of an accident.
Understanding the Value of Your Customers
Before you decide how to handle Steven, ask yourself this: Do you know the lifetime value of each customer? This isn’t just how much your average customer spends with you in the course of their lifetime but also the potential of their referrals and influence on others.
Taco Bell estimates that the lifetime value of each of its customers is about $12,000, says Maribeth Kuzmeski, president of Red Zone Marketing of Libertyville, Ill. For the carmakers, the figure increases exponentially to $340,000 per customer. Neither of those figures is anything to take lightly, especially in today’s economy.
And understanding the value of each customer will undoubtedly push you to work harder to retain them. For example, if you determine that the average lifetime value of each of your customers is $25,000 or maybe even $50,000, how motivated are you going to be to resolve the situation when one of them becomes a bit upset? Probably a lot more motivated than you would be if you just considered the repair order at hand.
Keys to a Peaceful Resolution
As is true in every situation you encounter as a business owner, there’s a right way and a wrong way to continue your conversation with Steven. And here are the vital ingredients to a successful resolution.
Remember the underlying rules of human behavior. If you know what most of your customers are searching for subconsciously, you’ll be at least one step ahead of the game. Here are two critical guidelines to remember: Everyone wants to feel important and wants to know they matter and, in a confrontational situation, every party’s goal is to save face. This desire is so strong in some that they will deny the obvious just to avoid admitting they’re wrong. This is because doing so is a blow to his or her ego.
Let them vent. A customer who has a problem will often approach you emotionally charged and anticipating resistance. They’ll expect such a struggle from you that they’ll often rehearse what they are going to say—a process that just fuels their already-smoldering fire. But if you give them the unexpected opportunity to fully speak their mind, the vast majority of your customers will calm themselves down in the process. When they’re calm, they’re more logical, less emotional and in a much better state of mind to seek a reasonable solution. Have you ever tried to reason with someone who’s fired up? At that stage, they just want to express they’re anger. They’re not yet ready to find a solution. Give your customers a chance to move out of that stage into a more logical one—a stage where you can actually help them.
Avoid becoming defensive. This is as important as letting a customer vent. If you become defensive, you lose your composure, your focus and your ability to think clearly. Even worse, you further aggravate an already upset customer. And when both parties are defensive, neither side is listening and neither side can suggest an amicable resolution. Because you are the one with the most at stake—your business—you must be the “bigger” party. Resist any urge to lash out at the customer, no matter how tempting it may be. If you don’t, you will always lose in the big picture.
Be sincere in your efforts to resolve the situation. Showing genuine concern for the customer and a genuine desire to resolve the situation works wonders with a dissatisfied client. Most customers understand that mistakes happen, and they are willing to give you a second chance. The best way to handle that opportunity is to seize it, full force, and to work earnestly to take care of them. If you’re not interested in helping them or if you make it seem like a burden, they’ll make sure they get what they came for and they’ll defect to one of your competitors the next time they need a collision repair shop. Rest assured, though, that they’ll be sure to tell any number of their friends, family and co-workers about their two negative experiences with you.
Ask the customer what you can do to satisfy him or her. One very effective way to further show your sincerity and to move one step closer to a resolution is to give the customer a chance to tell you what would make them happy. A majority of the time, they’re going to know exactly what would appease them, but they’ll rarely volunteer that valuable information. If and when they tell you what they want and it’s reasonable, give it to them—without hassle, hesitation or any disclaimers. The longer you waver or make a big deal out of the “favor” you’re doing for them, the less effective your peacemaking effort. In fact, it reaches a point where you might as well not bother doing anything at all.
Actively search for a solution, and be flexible. In some situations, the customer won’t tell you what they want or they may not know. Perhaps the problem is complex and requires a complex solution. In these cases, clearly demonstrate to the customer that you want to work with him or her until you find a resolution that satisfies both parties. Your genuine willingness to help will win huge rewards with the customer, and they’ll work with you—rather than against you—in return. At all costs, avoid being the stone-faced employee or owner who repeatedly says, “I’m sorry, but that’s all I can do for you,” or “I’m sorry, but our policy only permits me to do XYZ.” There’s little that’s more aggravating to the consumer. You also want to ensure the peace offering is appropriate for the size and scope of the problem. If anything, err on the side of generosity. Don’t offer a free car wash to a customer who’s irate about the paint not matching. Instead, offer to pick up the car for the customer, provide the customer with a rental car at your expense, correct the paint problem, deliver the finished vehicle to the customer and return the rental car for him or her. The customer will be so thrilled that he or she will forget there was ever an issue and will tell friends and family alike about how wonderful your shop is to do business with.
Respond quickly. You want to do this for two reasons. First, you want to stop the customer from sharing his or her tale of woe with everyone they know, and you want to do so as soon as possible. Second, an immediate response sends a bold, convincing statement that you truly care about customer service, and this is a message that’s much more likely to put you back into favor with the customer. A slow response makes it seem like you’re reacting because you’re obligated—not because you care.
Focus on the ultimate goal. This is another way of saying: “Don’t win the battle but lose the war.” Some individuals make it easy to get sucked into the heat of the moment. But remember that your end goal is to salvage this business relationship for the betterment of your business. Doing so will help stop you from agonizing over a $25 refund or insisting that the “brand new” crack in the taillight has, in fact, been there for quite some time.
Apologize and accept responsibility for your actions. Even if you’re not clearly at fault, accepting responsibility carries its weight in gold with your customers. They are accustomed to service providers—in all businesses—denying or displacing blame, and quite frankly, they don’t want to hear any excuses. They don’t care why. They just want the situation resolved. And the effectiveness of your solution suffers substantially if you take care of the problem but deny any responsibility. It all goes back to sincerity and your motivation to truly take care of your customers.
Remember that the customer is not always right. As the business owner, this is important for you to understand. Yes, your customers are right most of the time or they are at least right enough that you can amend the situation even if you’re not truly at fault. But occasionally, a customer will walk into your life who will never be happy. This is the customer who always picks fault with the workmanship—perhaps bringing the vehicle back three or four times without merit—or who is so demanding or unpleasant that it’s a losing business venture where time, money and employees are concerned.
The best way to handle this customer is to send him or her on to greener pastures. But there’s a right way and a wrong way to do this. As tempting as it may be to vent your frustration, it’s smarter business to take the polite, professional approach. Shake the customer’s hand, walk with them as they leave your business, and say something like, “I’m very sorry that we were unable to satisfy you. I know there’s a shop out there who can better serve you, and I wish you the best of luck in finding and establishing a relationship with that shop.”
Parting Advice
One final piece of wisdom for pacifying an irate customer is short and sweet but critical: Perception is reality. It doesn’t matter if the sky is blue if your customer insists it’s green. You can spend hours trying to persuade the individual that the sky is blue, but they’re not going to listen to a word of your argument if they have no reason to believe that the sky isn’t green. More simply: If the customer is convinced he or she is right, you can’t change that view. Instead, you have to set aside what you believe to be true and you must work with the customer to find a solution that addresses his or her perception of the situation.
