Yesterday I alluded to the research findings presented by Fleming and Asplund in their book, Human Sigma, that how you handle customer problems is more important to your relationship with them than actually solving the problem. (I should mention, HumanSigma is a program of Gallup so they have a lot of experience in surveying.) They say that “customers who encounter a problem and are extremely happy with how the company handled the problem often have levels of emotional attachment equal to—and in some cases exceeding– those who have no problem at all.”
The Means, Not The End That Matters
They say that customers don’t expect a business will always resolve a problem to their liking, “but they do except the company to handle them in an exemplary way.” There is also the issue that not everyone has the same expectations of a solution to contend with. They use the example of receiving an undercooked meal at a restaurant. Some people may be content with having the meal cooked properly and the offer of complimentary dessert. Others may feel the whole meal should be free. You are likely to be more successful creating good procedures to address problems than you are at creating solutions that will please everyone.
They have found that people who have a high emotional investment are likely to give a company the benefit of the doubt when a problem arises viewing it as an honest mistake or even pondering how they may have contributed to the situation. Those with low engagement are more likely to place heavier blame on the company for the problem making it more difficult to please them.
Steps to Resolution
Fleming and Asplund suggest six steps that should be part of resolution procedures.
First is to acknowledge the problem exists. Second is to apologize. They are quick to add that apologizing is not accepting the blame. Lawyers warn clients not to apologize out of fear it can be used against them in lawsuits. But according to a NY Times story, policies of apologizing have cut malpractice suits and legal costs for the University of Michigan and University of Illinois hospitals. People who feel wronged view the refusal to apologize as a lack of empathy for the situation and so they escalate matters in an effort to gain acknowledgment.
Good resolution processes can actually strengthen a relationship with people who have experienced a problem. According to Fleming and Asplund, people who have encountered a problem and have been extremely satisfied with the way a bank handled it were 51% full invested in the bank versus 26% full investment by people who never experienced a problem. They say that apologizing validates a person’s trust in the company and reinforces their value as a customer.
The third step they suggest is “Take ownership of the problem and follow up, even if the problem is unresolved.” Promising to follow up by a certain time or date is better than a vague “as soon as possible” because the customer may feel they have to continue checking in on your progress. Even if you haven’t solved the problem by the appointed hour, it is better to contact the customer with that information than leave them wondering or in the position of having to track the contact person down again.
Suggestion four is to handle problems on the spot rather than bumping it to a supervisor. This means empowering front line service people to respond with a solution appropriate to their position. If the customer is not satisfied, then someone higher in the chain can be contacted. They use the example of a hotel chain that generally had managers resolve problems with free nights’ stays. Among the steps they took were to empower housekeeping to offer gift baskets, robes and bouquets of flowers and only refer a problem to the manager if a person was dissatisfied. Because they weren’t defaulting to free accommodations to resolve their problems, their costs dropped and satisfaction rose.
Their fifth suggestion is have a process which quickly brings the problem to the attention of a supervisor or manager. The mention a logging system which alerts managers if a problem remains unsolved after a certain period of time. Most arts organizations are small enough that a computerized system is not needed to communicate complaints to other staff. Just the same, there is plenty of opportunity for the complaint to lie dormant on someone’s desk and never be brought to a supervisor’s attention so the importance of communicating a complaint needs to be emphasized. The authors warn to be wary that your system not make people feel their responsibility in addressing complaints ends upon handing them off to someone else.
The last suggestion is to leave people better off than they were before the problem occurred. Even if the solution is not the one they desired, they should still be in a better position than they were before. Presumably this means gaining intangible benefits such as feeling more valued as a customer and perhaps having a specific contact person who can address future difficulties if the current problem hasn’t been completely resolved.
Terrific review, Joe, and very important for people to understand in their quest to retain the customers they’ve already acquired.
Thanks for all you do for the field.
I work as a support manager for a technology company (selling to businesses), and I’d agree with a lot of the advice given above.
The only thing I might add/emphasize is the advantage of a relationship with customer – and the fact that a problem can be an opportunity to create that relationship. For a hotel chain that may not be feasible, but for a smaller arts organization, if the person handling the problem gets to know the customer a little bit, and checks in on them later to make sure everything was resolved, then you can end up with a situation where the customer feels a personal connection to this one staff member. If that staff member is able to remember the customer and greet them by name next time they visit then that’s even better – you’ve turned a problem into a customer who feels (just a little) like an insider.
@Andrew Ward, yep, that is one benefit a small arts organization has. Though some hotels will have a file on guests so that when they return, they know what their preferences are and have the room prepared prior to their arrival.