Guest comment: So bad it’s good- using negative customer experiences to boost loyalty
- Added:
- Apr 21, 2010
With the market pressures of the last two years, almost all retailers have had to shift their focus from new customers, to maximising sales with their core customer base. With this increased focus and attention however, there comes the issue of what to do when things go wrong. Steve Davis, evp & president, GSI Commerce International suggests that customer appeasement can be more of an opportunity than a hindrance.
No matter how many personalised offers you send, too many retailers forget that just one negative experience can mean losing a customer forever. Responding to negative experiences shouldn’t be a chore though. As with most aspects of customer service, it is simply a case of attention to detail. Creating and implementing a framework in which your customer complaints are dealt with quickly and efficiently can ensure that you don’t lose their business and can also bolster the loyalty they feel towards your brand.
At the most basic level, you should document detailed policies and procedures that cover how your company manages customer complaints. It’s no good just writing these documents though, make sure that everyone in your team has access to these, has a thorough understanding of them and has the opportunity to input into them based on their own experience. Set up training workshops and, don’t forget, if your company is comprised of different departments, they will require different customer complaint policies. The methods that work for one set of customers may not necessarily work for another.
The key is being on the same page as the customer and to determining what the underlying issue is. While the customer may have called to rant on a myriad of different topics, these isolated complaints may not be the root cause of their unhappiness. Be certain as to what the underlying core issue is and if necessary, reiterate it to them to make sure you genuinely understand their frustration. You can then assess the call to determine if the customer is at ease with a simple apology or if another appeasement method is required.
Don’t overlook fundamental communication skills such as being prepared, engaged, and focused on the customer. Listening and understanding what the issue is and letting the customers feel listened to and understood is key to de-escalating most negative customer complaints.
Choosing the appropriate approach
There is no standard appeasement method that works best for everyone, but you will probably have an arsenal of different ways that have proven to be effective. The one you select in each case should be determined by the specific situation, the number of customers affected and the vertical. For instance, providing free samples in a cosmetic vertical makes more sense than it would in a jewellery vertical. As with anything customer related and as I’m sure we’ve all heard a million times, personalisation counts. Regardless of what it is, tailor each approach to the situation.
A general rule of thumb is to appease to the point where you are sure you have retained the customer. If they remain on the fence, offer a low level appeasement to ensure they will return to your site. If you can, try to push the appeasement to a future order to motivate the customer to come back and make another purchase.
You should also determine a certain price bracket threshold that requires a call to be escalated. If, for example they are complaining about damaged goods which have a value of over £50, the customer should be offered an exchange or a refund as well as an extra ‘gift’ as a way of formally apologising on behalf of the company. This gift can be an amount credited to their account or free shipping on their next order, to encourage the customer to return to your site. Look up the customer’s history to determine how many claims they’ve had and the value of the products in question. Why not also advise the supervisor to call back at a later time to allow them time to understand the situation and time to have a solution ready in hand?
Depending on the severity of the issue and how valuable the customer is, call the person to confirm receipt of the gift, i.e. has your account been credited or have you received free shipping on your next order?
Many retailers overlook the fact that most consumers that complain are typically a brand’s core customer base and in the past, have had mostly positive experiences with you. Think about it this way, they wouldn’t take the time to complain if they didn’t care. If they take the time to make a complaint and find that you care enough to deal with their complaint swiftly and efficiently, the experience will bolster the loyalty they feel towards your brand.
The number of highly irate customers who get on the phone to complain is actually quite low. Fundamentally, when most customers are upset, feeling listened to and understood—together with an apology—is all they usually want. Making angry customers wait on the phone or putting them on hold will unnecessarily escalate the situation. Enabling your customers to speak to someone on the phone quickly should be the first step to every customer care issue, followed by a tailored step-by-step process for each customer complaint.
Great multichannel marketing translates to creating a cohesive message about your brand across all channels. Make sure this extends to your customer care centre so that each point of contact your customer has with your brand really counts.
By Steve Davis
evp & president
GSI Commerce International
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