| |
|
|
|
|
|
|
|
|
http://www.microsoft.com/smallbusiness/resources/management/small-business-management.aspx#Management,customerrelations |
|
|
|
| |
|
|
|
|
|
|
|
|
Dealing with customers |
|
|
|
|
|
|
|
|
Good customer service plays an essential role in building a
network of loyal customers who will return to your business and
will recommend your business to others. A good business will try
to minimise customer complaints through good customer service.
However, establishing compliant handling procedures can lead to
turning dissatisfied customers into loyal customers and provide
feedback that can be used to improve your business. |
|
|
|
|
|
Customer service guide |
|
|
|
|
|
|
|
|
There’s a lot more to customer service than simply having a sign
on your wall that says: ‘The customer is always right’. For any
business to be truly customer-focused, everyone from front-line
staff to the chief executive should strive to meet and exceed
service standards. |
|
|
|
|
|
Customers are your
business |
|
|
|
|
|
|
|
|
Customer
satisfaction |
|
|
|
|
|
|
|
|
Where's the cents
in that? |
|
|
|
|
|
|
|
|
Poor service...low
profit |
|
|
|
|
|
|
|
|
Role of management |
|
|
|
|
|
|
|
|
Communicating with
customers |
|
|
|
|
|
|
|
|
Fair trading laws |
|
|
|
|
|
|
|
|
How happier
customers lead to healthier business |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Customers are your business |
|
|
|
|
|
|
|
|
You may offer a quality, well-priced product, but if a
customer receives inferior service before, during or
after the sale, future sales may be lost. Providing
superior customer service in today's competitive
marketplace is crucial. Quite simply, customers are your
business and lost sales through poor service means you
will lose money. |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Customer satisfaction |
|
|
|
|
|
|
|
|
Providing quality customer service means ensuring your customers
are satisfied by consistently providing value in a way that is
perceived as valuable by the customer. |
|
|
|
|
|
To provide quality customer service you need to have a
long-term focus. Aim to make quality customer service
part of your business culture. Targets for service
delivery and customer satisfaction should be included in
the business plan and in employee job descriptions.
Encourage employees to understand it's the customers who
ultimately pay their wages. |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Where's the cents in that? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Research and case studies have repeatedly shown many benefits
can be achieved by quality customer service. |
|
|
|
|
|
By keeping customers longer they will spend more with
you over time. The cost of maintaining a customer’s
loyalty over time is also lower than the cost of gaining
a new customer. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Poor service...low profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
If the service you provide is poor then you are actively driving
your customers away. Not only that, it is estimated that a
person with a complaint is likely to tell nine other people
about their bad experience and name the company involved. |
|
|
However, one of the nine is probably NOT you. Rather than lodge
a complaint with the company involved, Australian customers are
more likely to talk with their friends and ‘talk with their
feet’ by taking their business elsewhere. |
|
|
|
|
|
Providing only mediocre customer service also has its costs.
Even when things don’t go badly, it is estimated that around 12%
to 16% of customers will still leave, because they were not
totally satisfied with the service. |
|
|
|
|
|
It is only through completely satisfying customers that true
loyalty is built. |
|
|
|
|
|
The benefits of quality customer service include: |
|
|
|
|
- increased customer retention
|
|
|
|
|
|
|
|
|
|
|
- stronger position in the marketplace
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Role of management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management must ensure the staff, processes, systems and
policies are supportive of each other and focused on meeting
customer needs. To provide quality customer service also
requires examining what stops this supportive network from
working, and a commitment to make necessary changes to end the
blockages and problems. |
|
|
|
|
|
Consider the following tips for good management: |
|
|
|
|
|
|
|
|
|
|
|
|
- provide leadership and aim to make quality customer service part
of your business culture
|
|
|
|
|
- create a customer service focus across your whole business
|
|
|
|
|
- display and follow a Customer Service Charter, which clearly
outlines the quality of service to be expected by your customers
|
|
|
|
|
- ensure your systems and procedures, incentive programs and
feedback mechanisms support the provision of quality customer
service
|
|
|
|
|
- provide quality customer service to the people you rely on to
meet customer needs (internal customers) as well as to paying
customers (external customers)
|
|
|
|
|
- ensure a system exists to capture regular, reliable feedback
from customers about their needs and your service
|
|
|
|
|
- welcome customer feedback and complaints as an opportunity to
build relationships with your customers and improve your product
and/or service
|
|
|
|
|
- actively encourage quality customer service and continuous
improvement in everything your business does.
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
If you think
implementing customer service is too costly or time-consuming,
think again. It doesn't have to be. Walk in to any large
bookshop and you will find a selection of practical 'how-to'
guides on customer service that you can implement easily.
Business Enterprise Centres also have resources and short
courses to help you improve customer service. |
|
|
|
|
|
|
|
|
Implementing customer service in your business can be relatively
simple and cost effective. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communicating with customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To grow your business, you need to let your customers know what
you do. What is your business? What is the product or service
you are offering? |
|
|
|
|
|
The initial information you provide is critical to building a
relationship with the customer and must be clear, concise and
honest. Information can be in a variety of forms including
paper, audio, video or website. However, it must clearly explain
what you offer. Unclear information may result in lost sales.
Here are some handy tips: |
|
|
|
|
|
|
|
|
|
|
|
|
- use plain language and simple diagrams
|
|
|
|
|
- don't use technical language, abbreviations or jargon
|
|
|
|
|
- information should be accurate and concise, clearly displayed
and able to be mailed
|
|
|
|
|
- update information regularly
|
|
|
|
|
- meet all legislative requirements.
|
|
|
|
|
| |
|
|
|
|
|
|
|
Fair trading laws |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Businesses are obliged to observe the law. Fair trading laws,
among other things, require goods supplied to consumers to be
fit for the purpose for which they are supplied. They prohibit
conduct that is misleading, deceptive or unconscionable. |
|
|
|
|
|
Misleading or deceptive conduct |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
An example of misleading or deceptive conduct is if you give a
false or misleading impression about your goods or services and
this is so, even if your conduct was unintentional or merely
careless. |
|
|
|
|
|
Unconscionable conduct |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Unconscionable conduct is when you take unfair advantage of
vulnerable consumers. If you break these laws, an affected
consumer could obtain damages from you. Some types of misleading
or deceptive conduct may also result in you being prosecuted and
fined. |
|
|
|
|
|
Breaking the law could also ruin your business
reputation in the eyes of your customers, lending
institutions and industry organisations. |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
How happier customers lead to healthier business |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
There really is no secret to business success. |
|
|
|
|
|
Customers, and customer service. Both go hand-in-hand, and both
are essential to the success of your business. Unfortunately,
our research has shown us that many small businesses still see
customer service as being too hard, too expensive and a luxury
only the bigger end of town can afford. To help change these
perceptions, we have released The customer
service guide booklet. |
|
|
|
|
|
The Guide helps take some of the hard work out of providing good
customer service by turning best practice customer service
theory into easy-to-follow actions. It provides practical and
affordable solutions for all businesses regardless of how big
they are or what they do. |
|
|
|
|
|
So that’s it, no tricks or magic formulas, just practical advice
and common business wisdom that will keep customers happy and
your business healthy. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Complaints
|
|
|
|
|
|
|
|
|
It may be hard to believe, but customer complaints are one of
the best opportunities you have for keeping your customers
loyal. Your most dissatisfied customers can actually become your
best ambassadors – if their complaints are handled properly. |
|
|
|
|
|
At some time or another, you have probably experienced a problem
with a business. When they dealt with your complaint reasonably,
it felt good. You were taken seriously. A balanced, reasonable
response to customer complaints builds customer loyalty. |
|
|
|
|
|
How do I set up
effective complaint handling policy and procedures? |
|
|
|
|
|
|
|
|
How do I deal with
unhappy customers? |
|
|
|
|
|
|
|
|
Fair Trading
complaint handling service |
|
|
|
|
|
|
|
|
What are the facts
about complaints? |
|
|
|
|
|
|
|
|
Why should my
business welcome complaints? |
|
|
|
|
|
|
|
|
How do I make sure
customers are satisfied? |
|
|
|
|
|
|
|
|
What if there are
no complaints? |
|
|
|
|
|
|
|
|
Case study –
Complaints! What complaints? |
|
|
|
|
|
|
|
|
Case study – Solve my problem now! |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
How do I set up effective complaint handling policy and
procedures? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Consider the following: |
|
|
|
|
| |
|
|
|
|
|
|
|
- involve your staff in developing your policy and procedures
|
|
|
|
|
- think of all the possible things that could happen and work out
potential solutions
|
|
|
|
|
- establish a policy and procedures manual
|
|
|
|
|
- record your policy and procedures, circulate to staff and train
them
|
|
|
|
|
- let your customers know they can provide feedback or make a
complaint
|
|
|
|
|
- clearly publicising your contact detail
|
|
|
|
|
- keep a record of all formal complaints.
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Make sure your internal systems can cope with the policy and
that your staff act promptly to resolve customer complaints.
Monitor your policy and procedures to make sure they are working
effectively. Regularly review your manual and update as
necessary. |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
How do I deal with unhappy customers? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
The following steps will help you and your staff deal with
disgruntled customers: |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Listen. Understand exactly what the problem
is and let the customer know they have your full attention. |
|
|
|
|
|
Acknowledge the problem. Complaining can be
difficult. Being sympathetic and calm will help alleviate the
customer’s stress. |
|
|
|
|
|
Address the customer’s needs. Tell the
customer you want to help improve the situation. Ask how they
would like to proceed. |
|
|
|
|
|
Communicate honestly. Decide what can be
done to fix the problem and tell them. |
|
|
|
|
|
Follow-up. Contact the customer within an
agreed time-frame to ensure the problem was resolved. |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Fair Trading complaint handling service |
|
|
|
|
|
|
|
|
If after trying to settle the matter a customer is still
unhappy, the customer can approach the Office of Fair
Trading for assistance. Fair Trading provides
information and assistance in negotiating a resolution
to disputes and will usually contact your business by
phone and attempt to sort out the problem. |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
What are the facts about complaints? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
The facts are that: |
|
|
|
|
| |
|
|
|
|
|
|
|
- 73% of people will tell you if they are dissatisfied
|
|
|
|
|
- 48% of the most serious problems are sales and delivery related
|
|
|
|
|
- 52% of those who don’t complain believed it wouldn’t help to
contact you.
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
But it doesn’t stop there. The most disturbing facts are: |
|
|
|
|
| |
|
|
|
|
|
|
|
- 66% of those who complain are not satisfied with the way their
complaint was handled
|
|
|
|
|
- 90% of those who are dissatisfied will not purchase from you
again
|
|
|
|
|
- each dissatisfied complainant is likely to tell 9 others of
their bad experience.
|
|
|
|
|
|
The simple fact is you are probably pushing profits out
the door if you don’t have an effective complaint
handling policy, or staff who are not trained to handle
complaints. |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Why should my business welcome complaints? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
For every one dissatisfied customer whose complaint you handle
well: |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
- they will recommend you to five
others.
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Not only will you have retained their custom, you also have five
potential new customers, just because you have resolved a
complaint quickly, efficiently and fairly. Therefore you will
need to spend less time and money attracting new customers. It’s
worth remembering that it costs about five
times more to attract a new customer than to keep an existing
one. Think of the savings in advertising! |
|
|
|
|
|
By being able to identify the problems that are causing
persistent complaints, you also have an opportunity to reduce
the time and effort spent fixing them, as well as gaining a
clearer picture of other ways to improve your business. |
|
|
|
|
|
But don’t just take our word for it, most major business writers
and successful companies will tell you the importance of
complaint handling in establishing customer loyalty. |
|
|
|
|
|
It is worth seeking suggestions and compliments as well
as complaints. You can also gain from discovering the
things you are doing well. |
|
|
|
|
|
|
Top of page |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
How do I make sure customers are satisfied? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Customer satisfaction formula |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Doing the job right the first time + Effective customer contact handling
= increased customer
satisfaction/brand loyalty |
|
|
|
|
|
|
|
|
|
|
|
There are many benefits to be derived from welcoming complaints
and handling them well. They include: |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
- fewer mistakes, less time spent fixing them
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- better understanding of customers’ needs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more customers through word-of-mouth advertising
|
|
|
|
|
|
|
|
- better understanding of your business
|
|
|
|
|
|
|
|
- less time and money spent attracting customers
|
|
|
|
|
|
|
|
- improved business reputation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US marketing guru, Jim Rosenfield said that an ageing
population would make it crucial for marketers to retain
existing customers, ‘‘Everyone knows that it is cheaper
to retain a customer than to get a new one.’’ |
|
|
|
|
|
| |
What if there are no complaints?
|
Some businesses believe that if they don’t receive many
complaints, their customers must be satisfied. However,
a business may be receiving complaints but without
formal system of recording complaints they may not be
properly addressed or communicated to management. |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Case study – Complaints! What complaints? |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
The management of a large retail chain believed it had very few
complaints. Head office had no central system for recording and
handling complaints and relied on information from individual
store managers. |
|
|
|
|
|
Head office management was therefore unhappy to learn from the
Office of Fair Trading that it had received a significant number
of complaints against the business over a period of three
months. Without formal complaint records within the company,
there was no opportunity to fix and prevent complaints from
occurring in the future. Since Fair Trading drew this to the
retailer’s attention, it has set up a centralised complaint
handling system and has begun to train staff. The Office of Fair
Trading is now receiving fewer complaints about the business. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Case study – Solve my problem now! |
|
|
|
|
|
|
|
|
A woman stormed into a plumbing company’s head office demanding
to see the manager about an unfinished plumbing job. She was
looking for a fight because she had repeatedly asked that the
plumbing be fixed for her daughter’s wedding party next week,
and there were only two days to go. |
|
|
|
|
|
The manager invited her into his office and allowed her to let
off steam. He demonstrated a personal interest in her
predicament and agreed that having leaky pipes in the toilet
would be a problem. He then calmly explained the reasons why the
job had been delayed – there had been heavy rains and many
emergency plumbing jobs to be carried out. In fact, a young
couple nearby had their whole house flooded. |
|
|
|
|
|
He then picked up the phone to the plumber handling the job and
told him that he and the customer were anxious to have the job
finished by the weekend. The plumber privately explained to his
manager that he had four jobs that day and they were all
emergencies. The manager then informed him that this was also an
emergency. He asked whether he could come and patch up the pipes
for the weekend and return the following week to finish the job
properly? The plumber thought about this for a minute or so and
said that, yes, he could temporarily stop the leaking for a
couple of days and then fix it properly next week. |
|
|
|
|
|
The manager explained this to the customer who immediately
perked up. No, she didn’t mind the plumber coming back next week
to do the job properly, just as long as he could stop the ugly
streak of dirty water leaking from the back of the bathroom
toilet. The manager assured her that there would be no leaking
pipes during the wedding party. |
|
|
|
|
|
The customer left the office feeling vindicated. The company had
recognised her problem as important and had solved it to her
satisfaction. When the plumber arrived the next day he left her
a fridge magnet with the company’s phone number on it. It was
immediately placed on the fridge and was the subject of much
discussion at the wedding party the following day. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Building customer relationships |
|
|
|
|
|
|
|
|
Your customers are the most important part of your business. By
building good relationships with your customers you are more
likely to encourage them to keep coming back. They will also
recommend your business to their friends. |
|
|
|
|
|
Listening to your customers is vital. When you hear that a
customer is unhappy, you have a chance to fix problem areas
within your business. It is a fact that not all of your
customers will tell you they have a complaint. Those that do,
provide an opportunity to improve your business and keep them as
customers! |
|
|
|
|
| |
|
|
|
|
|
|
|
|
First impressions do last! |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
To leave a good lasting impression make sure: |
|
|
|
|
| |
|
|
|
|
|
|
|
- that service areas, staff and contact numbers are easy for
customers to find and access
|
|
|
|
|
- your staff and service areas are clean and presentable
|
|
|
|
|
- you always have fully trained and competent staff available to
deal with customers in a responsive and professional manner.
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Telephone success |
|
|
|
|
|
|
|
|
Convenience of use and immediate access make telephone contact
attractive for your customers. So, it is important that your
business practices and telephone staff work together to provide
good customer service. Some useful tips are: |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Ensure staff who answer the phone are fully trained, efficient
and have the knowledge to help any customer with any question. |
|
|
|
|
|
Provide the business name and your first name, when answering,
to build customer rapport. |
|
|
|
|
|
Set target time frames for answering telephone calls and
responding to messages left by customers. |
|
|
|
|
|
Ensure calls reaching a wrong area are transferred quickly and
pleasantly to the correct area. |
|
|
|
|
|
Where customers are placed ‘on hold’, make sure you apologise
for the delay and continually acknowledge them through the
waiting period. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Customer orders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
When customers apply for goods and services that are not
immediately available, or are to be used in the future, they are
placing an order with you. Always make the process as easy as
possible for them by: |
|
|
|
|
|
being clear about how and where to order and |
|
|
|
|
- providing a range of options for customers to place an order -
telephone, face-to-face, in writing, electronically, via the
website
|
|
|
|
|
- being clear about what to expect and when
|
|
|
|
|
- keeping customers informed of any progress
|
|
|
|
|
- telling customers when orders are completed.
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Confirming customer orders |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
When confirming the order remember: |
|
|
|
|
|
|
|
|
|
|
If a customer is ordering via the telephone, repeat order
details back to them to ensure they are correct. |
|
|
|
|
|
Provide written confirmation of the order immediately if
face-to-face, or within two days if electronically or by phone
and include: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- reference to any customer/order/job number
|
|
|
|
|
- name of the customer who placed the order description of what
has been ordered (plain language)
|
|
|
|
|
- full details of all costs
|
|
|
|
|
- information about delivery or installation (dates and any
customer requirements)
|
|
|
|
|
- a business contact number for customer queries
|
|
|
|
|
- any legal requirements regarding the order.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
How delivery affects your business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ensuring promised goods are supplied to customers, within a
reasonable time, is essential. Not only is it a prosecutable
offence for a business to accept any payment for goods or
services it doesn’t intend to supply, or supply as promised, it
is also poor business practice. Make sure you: |
|
|
|
|
|
|
|
|
|
|
|
|
- have sufficient stock to meet your orders
|
|
|
|
|
- take into account possible distribution or manufacturing delays
before committing to a delivery date and accepting payment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPORTANT - Advise customers of any delays with the delivery of
goods and services and confirm when the order has been
completed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Billing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billing is yet another opportunity to offer friendly, efficient
service to your customers. Make sure all bills, invoices, and
statements are: |
|
|
|
|
|
|
|
|
|
|
|
|
- clear and easy to understand
|
|
|
|
|
- accurate and honest and include any related costs
|
|
|
|
|
- correctly addressed and arrive at the correct time
|
|
|
|
|
- have a variety of convenient payment methods.
|
|
|
|
|
