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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

The Recruiter: Episode 4- People Use Google to Find Jobs

The Recruiter: Episode 4- People Use Google to Find Jobs

How to title your help wanted ad so it gets found on the internet. Please use Google in their job search. Use what people call themselves on their resu…

* The Recruiter* Episode 3 Law of Diminishing Return

* The Recruiter* Episode 3 Law of Diminishing Return

When do you hire and how many? what are you basing your decision on? Don't decide by how many desks you have or that's what you normally run with. …

Lenders must lend or drivers won't drive

Lenders must lend or drivers won't drive

In my opinion, sub prime customers are being considered more risky by the lenders that once targeted them. Even traditional co-signers are proving not to b…

4 Reasons to Improve CRM Utilization in 2017

4 Reasons to Improve CRM Utilization in 2017

Yes, dealers are creating a tremendous amount of data. The problem is, most of it is junk. Data is like this 1958 Tops Baseball Card complete set. You have…

Your Car Repair Shop Should Appeal To Parents Whether It is At a Dealership or Privately Owned

Your Car Repair Shop Should Appeal To Parents Whether It is At a Dealership or Privately Owned

Running an auto repair means that you have to take care of all kinds of details including scheduling, discipline, and customer service. Giving a customer t…

Why You Must Have a System for Resolving Customer Complaints

 

A recent study by the Tempkin Group found that it takes an average of five clients giving positive referrals for your business in order to get one new client. Yet it takes only two disgruntled customers speaking negatively about your business for you to lose one customer.

You do the math...that means it’s twice as important to ensure that you don’t have unhappy customers than it is to maintain good relations with your happy customers. This doesn’t mean you shouldn’t focus on the latter—of course you should. But it also means that if you don’t have a system that empowers or motivates your employees to solve customer problems, you may be feeling the negative impact on your business.

Most people don’t set out to dislike or become a detractor for a business. The reason this happens is when a satisfied or neutral customer encounters a problem or an issue that isn’t resolved. At that point there is an immediate decline in loyalty. However, if the problem is handled well, the customer’s loyalty increases above his or her original loyalty level.

The biggest determining factor as to whether a customer becomes or remains loyal after a problem is whether that problem has been resolved. Unfortunately, many times employees believe that they are resolving a problem, when in fact they aren’t.

This happens more often than you might think. Employees jump to a solution for the customer; quote company policy back to the customer; or go for the easiest solution, which is often a discount. The end result is an unsolved problem and a frustrated customer.

To ensure that your customers feel like their problems are resolved in a satisfactory manner, be sure that every employee follows an established process for customer complaint resolution. These steps should include acknowledging the problem, taking down facts, taking ownership of the problem, ensuring the customer receives a resolution to the problem and following up to make sure they are happy with the resolution. If one or more employees don’t follow this process, make sure there are consequences so that next time they will be motivated to follow the process.

It only takes two detractors to undo all the hard work and effort you put into building a positive image that results in one new business referral. You may want to consider spending as much time training employees in customer complaint resolution as you do in coaching them how to get referrals.

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