Session 6

1. Session 6 Ms. Dana Coonce (VP of Human Resources at Hayneedle) Ms. Tammy Van Donk (Dir. Of Customer Service at Hayneedle) Hand Back OMP #5 and Current Grades Student Surveys for WORK 1410 Outlines or Brain/Idea Maps are due Wednesday Discuss Chapter 8 Fish Philosophy #4 – if time allows Discuss Chapter 9 One Minute Paper #6 Assignment #6

2. Session 6 Ms. Dana Coonce Ms. Tammy Van Donk VP of Human Resources Dir of Customer Service Hayneedle Hayneedle 12720 I St, Ste. 200 12720 I St, Ste. 200 Omaha, NE 68137 Omaha, NE 68137

3. Get Customer Feedback: The Customer Can be our Coach Session 6: Ch 8

4. Session 6: Ch 8 • Many people don’t want to give negative feedback • Embarrassing • Hurtful • Positive feedback is nice, but negative feedback can only make the business even better. • Put aside a “feedback hurts” approach

5. Session 6: Ch 8:Levels of Commitmentto Feedback Metric-Conscious Quantify customer’s feedback Refer to data often Motivate employees & make changes Active “Listeners” – Company will hear customers Easy to respond and reinforce customer’s willingness to share Reluctant/Compliant Effort is half-hearted Eg. Comment cards that aren’t acted upon / don’t suggest customers use the cards Metric- Conscious Active “Listeners” Reluctant, Compliant

6. Session 6: Ch 8:Complaints May Lead to Repeat Business U.S. Office of Consumer Affairs reveals: 1 customer in 4 is dissatisfied with some aspect of a typical transaction A typical dissatisfied customer will complain to 12 other people Only 5% of dissatisfied customers complain to the company The great majority would rather switch than fight. These customers remain silent and go to another business.

7. Session 6: Ch 8:Ripple Effect Revisited Company has 100 customers/day 25 of the customers are unhappy 1-2 complaints 23 quiet, dissatisfied customers give bad word of mouth/mouse who tell 12 others each 276 others heard about the company’s bad business 276 potential customers who won’t come versus the 75 happy customers today.

8. Session 6: Ch 8Good News! Can be a gold mine of repeat business 10% of dissatisfied customers would return if not resolved 80% of dissatisfied customer would return if their problem had been resolved or concerns addressed. - Or see that the business tried to make things right

9. Session 6: Ch 8 Make it easy for customers to communicate complaints, suggestions, questions, and compliments Act on the communication QUICKLY and EFFICIENTLY

10. Session 6: Ch 8Attitude! Avoid acting defensively Recognize that the complaint is real to the customer Listen to the customer’s whole story The “rightness” or “wrongness” of a customer isn’t the issue. What matters is wanting to solve customer problems. Service recovery is best handled when seen as an attitude of opportunity rather than a painful chore. Customer complaints are opportunities to cement relationships.

11. Session 6: Ch 8Ways to Get Feedback Naïve listening Focus groups Explorer groups Customer surveys Mystery shoppers

12. Session 6: Ch 8Naïve listening An attitude portraying that you don’t know what the customer wants Open ended questions to get the customer to tell you what s/he wants

13. Session 6: Ch 8Focus groups • Formally invite 5-12 employees, potential customers, or current customers • Open ended questions • Unstructured observations • Reward the participants

14. Session 6: Ch 8Explorer groups • Observational research • Visit other businesses • Try being a customer in your own business

15. Session 6: Ch 8Customer surveys • Face-to-face interviews • Telephone surveys • Questionnaires mailed • Internet-based surveys • Strive for Wh or H questions rather than Yes/No questions. • Best when designed carefully and to a random sample

16. Session 6: Ch 8Mystery shoppers • Hired evaluators who go to businesses to assess how customers are treated. • Mystery shoppers may be trained and may work for an independent research agency • Problem of reliability – subjectivity – observational techniques • Use hidden digital audio and/or video recordings

17. Periodically look at the complaint log to learn from received feedback. Session 6: Ch 8A Final Thought

18. Student Evaluations need to be completed online by Aug. 9th. Session 6

19. FISH Philosophy #4: Choose Your Attitude Session 6

20. Who You are Being Resentful Helpful Manipulative Supportive Inconsiderate Engaged Fearful Grateful Impatient Effective What You’re Doing Session 6: FISH #4

21. Who You are Being Resentful Helpful Manipulative Supportive Inconsiderate Engaged Fearful Grateful Impatient Effective What You’re Doing Working on a project with a co-worker & grumbling Working on a project with a co-worker & making the work easier Coaching someone to make them do it “your way” Coaching someone to help them meet the deadline Having side conversations during a staff meeting Contributing to staff meeting Receiving feedback and becoming defensive Receiving feedback and accepting it Rushing through customer interactions Being with the customer fully during each interaction Session 6: FISH #4

22. Session 6: Ch 9Recover the Potentially Lost Customer: Here’s an Opportunity for You Those who enter to buy, support me. Those who come to flatter, please me. Those who complain, teach me how I may please others so that more will come. Those only hurt me who are displeased but do not complain. They refuse me permission to correct my errors and thus improve my service. - Retailing Pioneer Marshall Field

23. Session 6: Ch 9 Why is customer recovery important?

24. Session 6: Ch 9“2nd Life Cycle” Differs from “1st Life Cycle” customers in 4 ways: Customer is familiar with products and services Don’t have to re-educate Have more data on this customer Can offer a targeted approach Customer may be pleased that the business wants to retain her/him May end up getting more sales from this customer Customer may be more apt to do business again quicker

25. Session 6: Ch 9Retention Attitude Not about “customer is always right” The “rightness” or “wrongness” of a customer isn’t the issue. What matters is wanting to solve customer problems. It is about cooperation and problem solving! Service recovery is best handled as an attitude of opportunity rather than a painful chore. Complaints are triggers for improvement Customer complaints are opportunities to cement relationships.

26. Session 6: Ch 9Recovery Skills Feel Their Pain - Empathy Do All You Can to Resolve the Problem Ask the customer what s/he would think would be an appropriate way to solve the problem Go Beyond Offer to pick up or deliver the goods to be replaced or repaired Give a gift of merchandise to repay for the inconvenience Reimburse for costs of returning merchandise Acknowledge the customer’s inconvenience Follow up

27. Session 6: Ch 9Recovery Skills con’t • Look Back and Learn from each situation • What was the nature of the customer’s complaint? • How did the customer view the problem? • How did you see the problem? • What did you say to the customer that helped the situation? • What did you say that seemed to aggravate the situation? • What would you do differently? • Do you think the customer will do business again?

28. Session 6: Ch 9Recovery Skills con’t • What happens if the customer is still not satisfied • Professionalism mandates that we prevent taking our frustrations out on customers. • If you try your best to satisfy the customer, you have done all you can do • Don’t take it personally • Don’t rehash the experience with your coworkers • Use every customer contact experience as an opportunity to improve your professionalism

29. Session 6: Ch 93Action Tips for the Occasional Customer From“You Know Where” Be sure this really is a chronic complainer Always looking for someone to blame Never admit any degree of fault Strong ideas about what others should do Speaks in terms of absolutes Know what to do with this guy/gal Determine the underlying issue Establish the facts Resist the temptation to apologize Force the complainer to pose solutions Take a break, cool off, reflect

30. Don’t let a letter/email go unanswered If responding by phone, have the letter/email in front of you for reference Use Human Relations Skills to Convey Appropriate Tone Interested in Themselves Prefer Receiver-Centered Messages I-CenteredReceiver Viewpoint Treated as Individuals Blanket Tone More Personal Tone Want Positive Information Negative WordingPositive Wording Don’t Like Abrasive People Session 6: Ch 9Handle a Nasty Complaint Letter/Email

31. Session 6: Ch 9Assertive Behavior vs Aggressive Behavior Aggressors Communicate from a position of superiority Can be indirect, manipulative, or underhanded Set themselves up for retaliation Use lots of judgmental or emotionally charged terms for emphasis Assertive people Have high self-respect Respects other people Win-win solutions can be found for many problems Consensus is best created by direct and honest expression Honest, open relationships eliminate the desire for retaliation Emotionally charged language is seldom effective

32. Session 6: Ch 9Hostility Curve Rational Level Take Off Slow Down Supportive Behavior Cool Off Problem Solved