Every small business, no matter how well managed, will have to deal with dissatisfied even angry customers from time to time. Sometimes the customer is justified in his complaints other times he is not, but the handling of the dissatisfied customer can have far reaching impact on a business.
Now, I want to talk with you about techniques that you should consider when dealing with the dissatisfied customer.
American Management Association research into consumer behavior indicates that the average satisfied customer tells three people about his experience but the average dissatisfied customer gripes to eleven other people. Negative word-of-mouth advertising is a problem few businesses can afford.
My speaking colleague, Jerry Wilson, provides these five expert recommendations for managing the complaining customer.
Step one – acknowledge that the person is upset. Example: I can see that you are mad. I can see that you’re upset with us.
Step two – make a positive reassuring statement. Example: – I want you to know I will get something done about your problem.
Step three – make a sad/glad statement. Example: I’m sorry you had a problem but I’m glad that you called it to my attention.
Step four – ask the magic question, “What will make you happy?” Example: Mr. Smith what will it take to make you happy or what would make you happy in settling this problem? Often the dissatisfied customer will asks for something less in settlement than you would freely offer.
Step five – make the settlement. Example: Mr. Smith I’m truly sorry that you encountered this problem and I’m going to do exactly what you have requested. We want to keep you as a valuable customer.
One last idea on customer relations that you can use to great advantage is this interesting marketing principle – people want most what they’ve had the least of.
Think of it this way – the bachelor, traveling salesman who lives on the road and eats in hotel restaurants 260 days and nights a year will be very excited about the prospect of a home cooked meal. On the other hand the recently divorced, long married man, who’s been eating at home 300 nights a year for the last twenty years can’t wait to get out on the town.
Think carefully about how you can apply this idea to your business. What have your customers had very little of that you can supply?
While most businesses compete aggressively for new customers with expensive advertising and then lose customers out the bottom of the bucket as fast as they pour new ones in the top. You can compete more effectively and less expensively with an old fashioned weapon…service!
Author Info: Dan Kennedy is internationally recognized as the 'Millionaire Maker,' helping people in just about every category of business turn their ideas into fortunes. Dan's "No B.S." approach is refreshing amidst a world of small business marketing hype and enriches those who act on his advice. 
{ 9 comments… read them below or add one }
Great advice as always…
If you’ve exhausted all efforts to please a complaining customer…maybe it’s time to cut them loose…fire em’!
“Birds of feather flock together” – those complainers usually associate with other complainers and frankly do I really want to chase after and lose sleep over a list full of complainers. Nope!
Sure, if your product or service is truly amiss – then you need to do some soul searching and make it better. But, if you seem to cater to and gravitate towards constant whiners… then it’s time to target a new list.
Interesting subject this, and one that is often overlooked in my experience. I think that sometimes small businesses can overlook some of the more critical aspects, simply because they do not deem them as important.
For example, my father has his own business and I mystery shopped him recently – I was totally surprised to find that if their business line was engaged (ie: he is on another call) that a customer had no means of leaving a message!
Customer service is no different, and no matter how small your business is it is just as important as if you are Walmart.
Good news travels fast – bad news travels faster!
Simon
WOW. what a great post!
Especially the “sad/glad” rule.
When clients are unhappy, it is very important to be careful about appearing too obsequious… I ONCE (not going to make that mistake again!) had a client that I tried to tackle a dissatisfaction issue with by offering them a huge extra to make sure I over-delivered, but it backfired.
And, as Dan always mentions, picking your clients well from the beginning is the key to not getting into this mess- as much as you can help it!
Good advice as always,
Never bury your head in the sand problem customers will always be around just listen to what they have to say, sometimes what they begin with is not the real objection, dig deep and empathise don’t forget, if you say it they doubt it, if they say it, it’s true. You can turn that complaining customer around and they will sing your praises to other future customers.
people want most what they’ve had the least of.
keypoint to market targeting.
thank you Dan
Great strategy for dealing with complaints.
But the hidden gem in this post was to encourage all business owners to constantly be thinking about what are customers REALLY want that we can supply.
Thanks, Dan!
what do they REALLY want. can be digged when searching on their whys I think.
good observation Steve
This was a great article. My feeling is that most people just want to know someone cares about them. To be treated with respect. And, if you show your customer that you are truly sincere, that you respect how they feel, and are committed to helping them solve their problem, you have created a bond that will be hard to break.
I find when you use GKIC marketing and referral marketing you eliminate all the complainers from even becoming your clients. With newsletters that continually educate your clients and answer their objections before they even occur you will get less complaints as well. “not sucking” at what you do also helps