September 18, 2007

What To Do When Your Customers Complain

Every construction business, no matter how well managed, will have to deal with dissatisfied even downright angry customers from time to time. Sometimes the customer is justified in their complaints and other times they are not, but the way you handle this dissatisfied customer can have a far reaching impact on your business.

Now, I want to talk with you about a few proven techniques that you should consider when dealing with the dissatisfied customer.

Negative word-of-mouth advertising is a problem very few construction businesses can afford.

American Management Association did some extensive research into consumer behavior and what they found will amaze you. Are you ready? The Average satisfied customer tells three people about their experience and the average dissatisfied customer gripes to eleven other people. Negative word-of-mouth advertising is a problem very few construction businesses can afford.

Here’s the five steps to winning over your customer:

Step One - acknowledge that the person is upset. Example, I can see that you are mad. I could 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? Incidentally often the dissatisfied customer will ask for something less in settlement that 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 homeowner might live a very hectic life traveling all the time eating out or stuck in meetings all day long and would be very excited about the prospect of a home cooked meal. On the other hand the recently divorced, long married man or woman, 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 construction businesses compete aggressively for new customers with expensive advertising and then lose customers out of 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!

Filed under Customer Care by Brian Deacon