It’s one of those unfortunate, inevitable facts of life: every company and every employee will at some point have to deal with an angry customer. Whether their anger is warranted because of a bad situation, or whether the customer is just plain difficult, doesn’t matter. These days, companies must respond to and deal with angry customers. If they don’t, they risk those customers becoming brand detractors, using social media to spread the word, starting boycotts or writing negative reviews.

Every employee should be trained how to deal with angry customers. Employees need to know that even if they are being insulted to their faces, they still need to make a genuine effort to regain that customer’s goodwill. Here are some steps that may help turn an angry customer into a loyal one (or at least, not a detractor):

1. Acknowledge the Anger.

Anger trumps logic. Sometimes, presenting a customer with the facts isn’t enough. Anger is a powerful emotion that stems from the fact the customer felt something very negative. It’s up to you to find out what the root cause of their anger is, and it may have little to do with the alleged incident or accusation. Is the customer really angry because they were overcharged, or did they feel like their complaint was ignored? Or were they shuffled around to three different people—or have to deal with a complicated voice mail system in order to register their complaint? The initial “issue” often isn’t the real issue, it’s how the company responds to the initial issue that can escalate a customer’s emotions into anger. Don’t try to rationalize what happened; instead, just acknowledge that they have a right to be angry.

2) Diffuse the Anger.

The next step in dealing with an angry customer is to diffuse their anger. This is easier said than done. Sometimes, people need time to vent. That’s fine. Be patient while they do so. The key to making this happen is to listen to emotion without getting emotional. Don’t start flinging angry comments back. Be patient, speak softly and in a steady tone, and state back to the customer what you believe their problems and concerns are. 

3) Own the problem.

It doesn’t matter if you created the problem or not. An angry customer doesn’t want to hear it wasn’t your fault or that you’re just the messenger and there’s nothing you can do about it. Employees should be trained that an angry customer is a top priority and should be taken care of. Even if they truly don’t have the power to fix the issue, they should take charge by taking the issue to the managers that do have the power. However, that’s no excuse for handing the customer and their problem over and forgetting about it. Owning the problem means making sure the issue is being taken care of, no matter who else is handling it.

4) Resolve the Issue.

Once the issue is resolved, inform the customer that this specific problem is resolved and is not expected to reoccur. Demonstrate your confidence by reiterating the customer’s original concerns and actions that you took to correct the issue. If more than one customer gets angry about an issue, there may be some long-term changes within your organization that need to take place. If you identify a problem with another employee, or with some policies in the workplace, then take your concerns to your manager with the complaints and some suggestions for necessary changes.

5) Follow Up

After a few days and then again after a few weeks, follow up with the customer to inquire whether the corrective action was effective. A phone call or personalized e-mail demonstrates compassion and attentiveness, and sends a powerful message that your company cares about their individual customers. This type of follow-up may be enough to turn a now-neutral customer into a loyal customer, and may even earn you a few new customers!

Do you have any additional tips for handling angry customers? What steps do you think are the most challenging or difficult for employees to learn? Can you share examples of how you have turned an angry customer into a loyal customer?

It’s one of those unfortunate, inevitable facts of life: every company and every employee will at some point have to deal with an angry customer. Whether their anger is warranted because of a bad situation, or whether the customer is just plain difficult, doesn’t matter. These days, companies must respond to and deal with angry customers. If they don’t, they risk those customers becoming brand detractors, using social media to spread the word, starting boycotts or writing negative reviews.

Every employee should be trained how to deal with angry customers. Employees need to know that even if they are being insulted to their faces, they still need to make a genuine effort to regain that customer’s goodwill. Here are some steps that may help turn an angry customer into a loyal one (or at least, not a detractor):

1. Acknowledge the Anger.

Anger trumps logic. Sometimes, presenting a customer with the facts isn’t enough. Anger is a powerful emotion that stems from the fact the customer felt something very negative. It’s up to you to find out what the root cause of their anger is, and it may have little to do with the alleged incident or accusation. Is the customer really angry because they were overcharged, or did they feel like their complaint was ignored? Or were they shuffled around to three different people—or have to deal with a complicated voice mail system in order to register their complaint? The initial “issue” often isn’t the real issue, it’s how the company responds to the initial issue that can escalate a customer’s emotions into anger. Don’t try to rationalize what happened; instead, just acknowledge that they have a right to be angry.

2) Diffuse the Anger.

The next step in dealing with an angry customer is to diffuse their anger. This is easier said than done. Sometimes, people need time to vent. That’s fine. Be patient while they do so. The key to making this happen is to listen to emotion without getting emotional. Don’t start flinging angry comments back. Be patient, speak softly and in a steady tone, and state back to the customer what you believe their problems and concerns are. 

3) Own the problem.

It doesn’t matter if you created the problem or not. An angry customer doesn’t want to hear it wasn’t your fault or that you’re just the messenger and there’s nothing you can do about it. Employees should be trained that an angry customer is a top priority and should be taken care of. Even if they truly don’t have the power to fix the issue, they should take charge by taking the issue to the managers that do have the power. However, that’s no excuse for handing the customer and their problem over and forgetting about it. Owning the problem means making sure the issue is being taken care of, no matter who else is handling it.

4) Resolve the Issue.

Once the issue is resolved, inform the customer that this specific problem is resolved and is not expected to reoccur. Demonstrate your confidence by reiterating the customer’s original concerns and actions that you took to correct the issue. If more than one customer gets angry about an issue, there may be some long-term changes within your organization that need to take place. If you identify a problem with another employee, or with some policies in the workplace, then take your concerns to your manager with the complaints and some suggestions for necessary changes.

5) Follow Up

After a few days and then again after a few weeks, follow up with the customer to inquire whether the corrective action was effective. A phone call or personalized e-mail demonstrates compassion and attentiveness, and sends a powerful message that your company cares about their individual customers. This type of follow-up may be enough to turn a now-neutral customer into a loyal customer, and may even earn you a few new customers!

Do you have any additional tips for handling angry customers? What steps do you think are the most challenging or difficult for employees to learn? Can you share examples of how you have turned an angry customer into a loyal customer?

Just about every business receives a complaint at some point or another. Whether it’s by phone, e-mail or via social media, when a customer is unhappy or feels they have been taken advantage of, they want to be heard. Most customer service people are trained how to deal with unhappy customers. But does the buck stop there? What happens with the complaints once they are resolved?

While occasional complaints are to be expected, if the same complaint is repeated on a consistent basis, it’s time to look at what’s going on internally. Often, one or several employees are responsible for the same complaints. Or, it could be an internal process that isn’t working or a scheduling problem, i.e. not enough employees to effectively deal with the volume of customers.

Fortunately, identifying the source of customer complaints is not difficult. All it requires is tapping into the customer service agent or whoever else is responsible for addressing customer complaints.

Who is responsible for dealing with customer complaints? Is it a customer service agent or agents, or is it individual department managers? Hold a brief weekly meeting to gather information on complaints. How many and what were the issues? Was the same issue complained about more than once? Was a specific employee named?

If an employee is responsible for the complaints, don’t immediately criticize that person. They may be genuinely unaware how their behavior is affecting customers. Instead, be gentle but informative, and give specific advice on how that person’s behavior should be.

If you are receiving complaints about your product or service, first you have to put aside any defensive feelings you may have on the subject. Just because you feel like your product is the best, or your service is the best you can offer, doesn’t mean that all your customers will agree. If the complaint is repeated, change may be necessary; either in the way you’re providing the service, or in the internal process itself. If the problems are with a product, there’s less you can do. This may just be personal preference on the consumers’ part. But addressing their concerns and checking into them to see if there is really a problem with the product will go a long way towards creating goodwill with that customer.

Resolving customer complaints is a necessary first step towards building customer loyalty; but resolution alone will not ensure that the customer will come back. Using information from complaints to implement genuine change within your organization will both reduce customer complaints and increase the likelihood that your customers will return to purchase, again and again.

What system do you have in place to handle customer complaints? What do you do once they’re resolved? Have you ever changed an internal process because of repeated complaints? If so, how did it turn out? 

Just about every business receives a complaint at some point or another. Whether it’s by phone, e-mail or via social media, when a customer is unhappy or feels they have been taken advantage of, they want to be heard. Most customer service people are trained how to deal with unhappy customers. But does the buck stop there? What happens with the complaints once they are resolved?

While occasional complaints are to be expected, if the same complaint is repeated on a consistent basis, it’s time to look at what’s going on internally. Often, one or several employees are responsible for the same complaints. Or, it could be an internal process that isn’t working or a scheduling problem, i.e. not enough employees to effectively deal with the volume of customers.

Fortunately, identifying the source of customer complaints is not difficult. All it requires is tapping into the customer service agent or whoever else is responsible for addressing customer complaints.

Who is responsible for dealing with customer complaints? Is it a customer service agent or agents, or is it individual department managers? Hold a brief weekly meeting to gather information on complaints. How many and what were the issues? Was the same issue complained about more than once? Was a specific employee named?

If an employee is responsible for the complaints, don’t immediately criticize that person. They may be genuinely unaware how their behavior is affecting customers. Instead, be gentle but informative, and give specific advice on how that person’s behavior should be.

If you are receiving complaints about your product or service, first you have to put aside any defensive feelings you may have on the subject. Just because you feel like your product is the best, or your service is the best you can offer, doesn’t mean that all your customers will agree. If the complaint is repeated, change may be necessary; either in the way you’re providing the service, or in the internal process itself. If the problems are with a product, there’s less you can do. This may just be personal preference on the consumers’ part. But addressing their concerns and checking into them to see if there is really a problem with the product will go a long way towards creating goodwill with that customer.

Resolving customer complaints is a necessary first step towards building customer loyalty; but resolution alone will not ensure that the customer will come back. Using information from complaints to implement genuine change within your organization will both reduce customer complaints and increase the likelihood that your customers will return to purchase, again and again.

What system do you have in place to handle customer complaints? What do you do once they’re resolved? Have you ever changed an internal process because of repeated complaints? If so, how did it turn out? 

Prospects decide where to buy, in part, based on the speed and quality of sales follow-up. Statistics prove that if you can get your prospect back into your dealership quickly you will have a much higher likelihood of closing the sale. Dealers using an incentive program (such as our BeBack card), find that approximately 18% - 20% of prospects return and purchase a vehicle within 10-15 days of receiving the incentive card. Salespeople select the prospects who are leaving the dealership without making a vehicle purchase, and give them a denomination-based incentive card as an enticement to return and buy. These have been proven to work, time and time again!

A good incentive program also provides your dealership with a method to determine why customers did not purchase and maintains contact and top of mind for several more weeks as they consider their vehicle purchase more closely. Wouldn't you like to know why your customer did not make a purchase? E-mail a survey to your prospect as soon as they leave the dealership. The survey should seek to determine the exact reason(s) why the customer did not make a purchase. Based upon the customer reply, create another response tailored to their reason. You will be surprised by the candid customer responses. Our dealership customers who do this typically get a 30-40% response rate to the survey.

What incentives have you used to get customers back into your dealership? How many of them buy? Do you do surveys to find out why customers didn’t buy, and what is the main reason?

Prospects decide where to buy, in part, based on the speed and quality of sales follow-up. Statistics prove that if you can get your prospect back into your dealership quickly you will have a much higher likelihood of closing the sale. Dealers using an incentive program (such as our BeBack card), find that approximately 18% - 20% of prospects return and purchase a vehicle within 10-15 days of receiving the incentive card. Salespeople select the prospects who are leaving the dealership without making a vehicle purchase, and give them a denomination-based incentive card as an enticement to return and buy. These have been proven to work, time and time again!

A good incentive program also provides your dealership with a method to determine why customers did not purchase and maintains contact and top of mind for several more weeks as they consider their vehicle purchase more closely. Wouldn't you like to know why your customer did not make a purchase? E-mail a survey to your prospect as soon as they leave the dealership. The survey should seek to determine the exact reason(s) why the customer did not make a purchase. Based upon the customer reply, create another response tailored to their reason. You will be surprised by the candid customer responses. Our dealership customers who do this typically get a 30-40% response rate to the survey.

What incentives have you used to get customers back into your dealership? How many of them buy? Do you do surveys to find out why customers didn’t buy, and what is the main reason?

A new survey reveals that mobile and social media have a growing influence on retail purchase decisions. Here is a summary of the Consumer Insight Panel survey results conducted by Empathica, Inc. and published in a recent blog on Loyalty 360 (Loyalty Marketer’s Association):

- Half of consumers with smartphones have looked for online reviews about a retailer during a visit

- 55% of smartphone users have used their devices to check prices while shopping, and price comparison is the most common use for mobile technology in retail locations

Ÿ- The next most popular uses for smartphones while shopping include scanning a QR code (34%) and writing a review (9%).

Ÿ-  37% of consumers have used their mobile phones to visit a brand’s website

Ÿ- Nearly 75% of consumers use Facebook to make retail or restaurant decisions

Ÿ- Half of all consumers have tried a new brand due to social media recommendations

Ÿ- 26% of consumers said they would definitely avoid shopping at a store if they read a negative online review; however, negative reviews don’t necessarily dissuade consumers from trying a brand if the overall online presence is positive

Ÿ- Eighty-two percent of consumers are willing to engage retail and restaurant brands in online conversations if they believe it will improve future experiences, but only 62 percent believe that brands monitor online conversations and just 30 percent think that brands act on customer feedback.

The conclusion of the survey is that brands who are ignoring the use of mobile technology and social media are missing out on key opportunities to connect with customers. Also, monitoring, responding to and acting on customer feedback via social media is becoming more critical to building a loyal customer base.

As a retail owner, if you don’t understand how to implement an effective social media program or how to create a mobile presence, it’s time to find someone who does. It’s clear that retail brands that are effectively integrating these marketing tools are gaining an edge.

What mobile apps are your store using and do you track the traffic? What kind of results are you getting? How does your store effectively monitor, respond to and most important, act upon social media feedback?

A new survey reveals that mobile and social media have a growing influence on retail purchase decisions. Here is a summary of the Consumer Insight Panel survey results conducted by Empathica, Inc. and published in a recent blog on Loyalty 360 (Loyalty Marketer’s Association):

- Half of consumers with smartphones have looked for online reviews about a retailer during a visit

- 55% of smartphone users have used their devices to check prices while shopping, and price comparison is the most common use for mobile technology in retail locations

Ÿ- The next most popular uses for smartphones while shopping include scanning a QR code (34%) and writing a review (9%).

Ÿ-  37% of consumers have used their mobile phones to visit a brand’s website

Ÿ- Nearly 75% of consumers use Facebook to make retail or restaurant decisions

Ÿ- Half of all consumers have tried a new brand due to social media recommendations

Ÿ- 26% of consumers said they would definitely avoid shopping at a store if they read a negative online review; however, negative reviews don’t necessarily dissuade consumers from trying a brand if the overall online presence is positive

Ÿ- Eighty-two percent of consumers are willing to engage retail and restaurant brands in online conversations if they believe it will improve future experiences, but only 62 percent believe that brands monitor online conversations and just 30 percent think that brands act on customer feedback.

The conclusion of the survey is that brands who are ignoring the use of mobile technology and social media are missing out on key opportunities to connect with customers. Also, monitoring, responding to and acting on customer feedback via social media is becoming more critical to building a loyal customer base.

As a retail owner, if you don’t understand how to implement an effective social media program or how to create a mobile presence, it’s time to find someone who does. It’s clear that retail brands that are effectively integrating these marketing tools are gaining an edge.

What mobile apps are your store using and do you track the traffic? What kind of results are you getting? How does your store effectively monitor, respond to and most important, act upon social media feedback?

 Last month General Motors announced a new compensation structure based on customer retention. The pay plan affects 29,000 salaried employees in the U.S., who will be paid bonuses based on how well they promote customer loyalty through return purchases and services. Third-party sales data and internal numbers will determine if a dealership hits its loyalty target.

It’s nice to know that the major manufacturers are realizing the importance of customer loyalty. For General Motors’—and other—dealerships who are ramping up their customer loyalty programs, here is a very short primer on how to set up a successful program:

1) Strategy: Offer multiple membership levels, including a free “starter” base level offer, ascending to an advocate level for the best customers who frequently buy and refer friends. The goal is to create customers who talk positively about their experience and refer family and friends.

2) Process: Identify dealership market segments; design appropriate promotions and communications; establish a schedule for customer communications; design the rewards redemption process and program results measurement tools; train employees to properly promote & explain the program.

3) Management: Establish best practices and determine how much of your program you want to automate. Assign management duties for each part of the program.

4) Reporting & Measuring: Determine which metrics should be used to provide an accurate analysis of how the program is benefiting the dealership. Examples include increasing customer retention rates, decreasing service acquisition costs, selling more maintenance, i.e. increasing RO hours and revenue.

Excerpted from MediaTrac’s white paper:  “The Auto Retailer’s Ultimate ‘How-to’ Guide to Customer Loyalty & Retention Program Set Up, Management & Measurement.” To download your free copy, click here: http://www.drivingretention.com/?p=661

 Last month General Motors announced a new compensation structure based on customer retention. The pay plan affects 29,000 salaried employees in the U.S., who will be paid bonuses based on how well they promote customer loyalty through return purchases and services. Third-party sales data and internal numbers will determine if a dealership hits its loyalty target.

It’s nice to know that the major manufacturers are realizing the importance of customer loyalty. For General Motors’—and other—dealerships who are ramping up their customer loyalty programs, here is a very short primer on how to set up a successful program:

1) Strategy: Offer multiple membership levels, including a free “starter” base level offer, ascending to an advocate level for the best customers who frequently buy and refer friends. The goal is to create customers who talk positively about their experience and refer family and friends.

2) Process: Identify dealership market segments; design appropriate promotions and communications; establish a schedule for customer communications; design the rewards redemption process and program results measurement tools; train employees to properly promote & explain the program.

3) Management: Establish best practices and determine how much of your program you want to automate. Assign management duties for each part of the program.

4) Reporting & Measuring: Determine which metrics should be used to provide an accurate analysis of how the program is benefiting the dealership. Examples include increasing customer retention rates, decreasing service acquisition costs, selling more maintenance, i.e. increasing RO hours and revenue.

Excerpted from MediaTrac’s white paper:  “The Auto Retailer’s Ultimate ‘How-to’ Guide to Customer Loyalty & Retention Program Set Up, Management & Measurement.” To download your free copy, click here: http://www.drivingretention.com/?p=661