Leadership and Programming Skills in Customer Service DSS

Leadership and Programming Skills in Customer Service DSS 20328 Handling complaints and difficult customers www. yipsir. com. hk 1

Activity 1 - Video Show “賓至如歸” 2

Group Sharing on Experience of Complaints & Discussion 1. What are the intentions or needs of the complaints? 2. How are the complaints being handled? 3. Are the complainants feeling satisfied or dissatisfied? Why? 3

Mini Lecture “Difficult Customers and its Handling” 4

What is a complaint? 1. “… one is dissatisfied, unhappy, etc. ” 2. the customer’s expectations have not been met in the service encounters 3. For example, defective shoes, poor meals and accommodation quality, unreasonable waiting time. . . 5

Complaint cases 1. Traffic delay 2. Air-conditioning problem in a hotel 3. Poor meal quality and service 4. Unsatisfactory hygiene environment 5. Impolite salesman Context: Hotel, restaurant, coach, shop 6

Impact of Dissatisfied Customers 1. Losing a customer → gaining a customer by your competitors 2. Winning back a dissatisfied customer = N times costly than winning a new customer. “覆水難收” 7

Why is it necessary to understand your customers and their needs? 1. 68% of customers will leave because of a bad service experience 2. It costs five times more to acquire a new customer than to keep an existing one 3. To bring in more or keep customers 4. Know which area to improve and how Examples: Sundays, Wing On Travel. . 8

客戶會說話 客戶會和他們的親友、同事和鄰居交談。他們會告 訴多少人，全看你對他們的抱怨是否處理得當。 1. 如果你 表現不錯 ，他們會告訴 3個人 。 2. 如果你表現 十分良好 ，他們告訴 10個人 。 3. 如果你表現 不佳 ，他們會告訴 25個人 。 4. 如果你和客戶 發生爭執 ，他們會告訴 50個人 。 5. 如果爭執演變成 吵架鬧事 ，你可能會面對 法律 訴訟 ，又或者你會在明天早上 見報 啊 ! 9

Understanding complaining customer’s needs A balance of the Emotional Needs and Solution Needs 10

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5 Principles of Complaint Handling: T. R. U. S. T. 1. T: Trustworthy – 2. R: Respect – 3. to be able to see things from the customer’s point of views and awareness of the customer’s feelings S: Sensitivity – 5. to make the customers feel that they are important, being valued to the organization U: Understanding – 4. taking responsibility and ownership in rendering reliable services at a high professional and ethical standard. awareness of the customer’s needs as well as verbal and non-verbal clues in order to maintain an assertive communication T: Timeliness – to act promptly without delay and follow through the complaint to customer’s satisfaction Complaint is actually a good thing! 12

Mini Lecture How to handle customer complaints 13

Complaint handling techniques 1. Listening to gain an objective overview 2. Empathizing with the customer 3. Apologizing and ‘owning’ the problem 4. Taking action to resolve the complain 5. Tell them what you can do. . . not what you can’t do 6. Follow up the complain to ensure satisfaction 14

Building customer loyalty 1. Asking customers if they are satisfied 2. Providing telephone customer comment numbers 3. Regular questionnaires designed to gauge量計 customer satisfaction 4. Random telephone survey on customers’ satisfaction 5. Regularly reviewing approaches to dealing with customer problem 15

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Complaint Handling Steps: Emotion Skills First Explanation Acceptance Apology Empathy 17

Complaint Handling Steps: Emotion Skills First Explanation Acceptance - Use a positive tone to show your competence and commitment to offer assistance Do NOT take complaint personally (不上身); think positive (“complaint is actually a good thing”) Use customer’s name throughout the complaint handling process Apology Empathy 18

Complaint Handling Steps: Emotion Skills Explanation Acceptance - Apology First - Use a positive tone to show your competence and commitment to offer assistance Do NOT take complaint personally (不上身); think positive (“complaint is actually a good thing”) Use customer’s name throughout the complaint handling process The act of apology is to show respect rather than (≠) to admit that we are wrong Sincere apology for the “inconvenience” caused to the customer Empathy 19

Complaint Handling Steps: Emotion Skills Explanation Acceptance - Apology - Empathy First - Use a positive tone to show your competence and commitment to offer assistance Do NOT take complaint personally (不上身); think positive (“complaint is actually a good thing”) Use customer’s name throughout the complaint handling process The act of apology is to show respect rather than (≠) to admit that we are wrong Sincere apology for the “inconvenience” caused to the customer Empathize with the customer’s feeling Show understanding and willingness to offer 20 assistance

Complaint Handling Steps: Problem solving second Skills Explanation Analysis Alternative solution Agreement 21

Complaint Handling Steps: Problem solving second Skills Explanation Analysis - Always handle one complain issue at a time - Avoid bias and unnecessary assumptions - Listen without interruption - Ask questions to gather information and to clarify understanding Alternative solution Agreement 22

Complaint Handling Steps: Problem solving second Skills Explanation Analysis - Always handle one complain issue at a time - Avoid bias and unnecessary assumptions - Listen without interruption - Ask questions to gather information and to clarify understanding - Suggest feasible solutions – not false hope – within your authority - Think of another alternative if it is not acceptable to the customer Alternative solution Agreement 23

Complaint Handling Steps: Problem solving second Skills Explanation Analysis - Always handle one complain issue at a time - Avoid bias and unnecessary assumptions - Listen without interruption - Ask questions to gather information and to clarify understanding - Suggest feasible solutions – not false hope – within your authority - Think of another alternative if it is not acceptable to the customer - Confirm the solution is acceptable Alternative solution Agreement 24

Complaint Handling Steps: Positive ending Skills Explanation Assurance - Show our genuine concern and sincerity - Express willingness to help in future - Thanks for the customer’s complaints / business 25

10 Reminders in handling difficult customers 1. Think positively: “Handling difficult customer is part of your job” and do your best to turn him into a loyal customer – meeting the challenges 2. Handle the difficult customers with extra patience 3. Communicating assertively with the customer 4. Emphasize / focus on the negotiable issues rather than the irrelevant issues or even personal attacks 5. Repeat on what you CAN DO, not what you CAN’T DO 6. Don’t argue with customer 7. Know your bottom-line; but be flexible 8. Escalate the case to superior if there is a deadlock in satisfying the customer 9. Keep your superior and relevant parties informed of the complaint from the difficult customers 10. Express appreciation when the customer agreed to the recommended solution 26

Beyond right or wrong 1. 記住每一次客戶有投訴、抱怨的時候，都 是一個你「大顯身手」/ 「出位」的好機會。 2. 客戶並非永遠是對的，但是就業務而言， 對與錯並不重要，重要的是 讓客戶高興、 留住客戶、讓客戶離去時高高興興 ， 下次 一定要找你向他提供服務 。 27

Role Play Handling Difficult Customers I Tourism Industry 28

Scenario One – Passport expired One day, a customer wanted to check-in at the airline service counter at the airport. A counter crew discovered that his passport had expired. Therefore, she refused to check him in, and advised him to renew his passport at the Hong Kong Immigration Department first. The customer was very angry, and called up the customer service department of the travel agency where he bought his air-ticket. On the phone, he complained to the manager that the travel agency should have informed him about the visa issue when he enrolled for the tour. He claimed that the problem was caused by the negligence of the travel agency and demanded for full compensation. He threatened that if he could not get a satisfied answer, he would bring the case to local newspapers and Consumer Council. Assume that you are the customer service representative of the travel agency and 29 responsible for handling this case. What would you do?

Possible solutions – Passport expired 1. 2. Apologize for not having reminded the customer to check the due date of his own passport and the inconvenience thus caused (though the agency has totally no legal or commercial responsibility). Show your willingness to offer help as far as you can: - Render information on the time, place, charge, documents and procedures required for applying a new visa Look for the possibility of altering the flight date and time if arrangement permits A refund of part of the flight ticket price according to terms and conditions as stipulated by the Airline Agency 3. Analysis the pros and cons of taking whatever course of action. 4. Thank for his acceptance of a new proposal, if any and his support of your Agency. Tell him the limitation of yourself and your Agency and stay assertively if you have not committed significant misdeeds as 30 in this case. 5.

Scenario Two – flight delay A group of customers joined a 4 -day tour to Hokkaido in Japan. The tour was organized by your company. However, due to the bad weather in Hong Kong, the flight for Japan was delayed for one day. Due to the subtle change of the arrival date to Japan, some of the itinerary activities had to be cancelled. The customers requested your company to extend their stay in Japan for one more day or, otherwise, refund ¼ of the tour fare. The travel agency did not consider the extension because there was no return flight to Hong Kong on the following three days of the original returning schedule. The travel agency also did not consider the refund, and claimed that it was not the responsibility of the travel agency to compensate customers when the problem is out of their control. The customers were upset and decided to seek redress for their loss through the Hong Kong Consumer Council. If you are the Customer Service Manager of the travel agency, how are you 31 going to handle them?

Possible solutions – Flight delay 1. 2. 3. 4. 5. 6. 7. Refund part of the meals and lodge cost Upgrade meals and lodge Assure that all scenic spots will be covered Earlier set off time in the morning and longer day time activities Increase one or a few complementary programmes or point of attractions. Demand the airline agency to present some gifts for your customers such as a fruit basket or a bottle of champagne Get a written proof from the airline agency for the customers for insurance claims where applicable 32

Scenario One There is a private club located in Deep Water Bay. The club has various entertainment facilities, restaurants, tennis courts, and a swimming pool. One day, it was a sunny day. The swimming pool of the private club was full of people. They were the club members and their invited guests. All people in the swimming pool were excited and highly motivated in such a good weather day. Suddenly, there was an announcement from the microphone in the swimming pool that a thunderstorm warning had been hoisted. All swimmers were requested to leave the swimming pool immediately for the sake of safety. Most of the swimmers followed the request and left the swimming pool. However, fifteen minutes after the announcement, a group of 6 people still remained in the swimming pool. Then, two life guards approached the people and asked them to leave immediately. Unfortunately, not only the people refused to leave, but also complained that the club had no right to evacuate people from the swimming pool when the sun was still up in the sky. These people were very angry over the life guards. Assume that you were the club manager, and the life guards called you for help. When you rushed to the scene, you saw the furious people 33 protest against you. Discuss how you would handle the difficult club members.

Swimming pool: possible solutions 1. Explain to customers the sake of safety 2. By law, it is the duty of the staff to ensure safety use of clubhouse facilities by her members. 3. Accordingly, necessary to take possible precaution measures to prevent an accident 4. No issuance for unsafe use of facilities 5. Return pool ticket wherever apply 6. Gimmick approach 34

Scenario Two A customer was hurt in an accident while she was playing the 4 -wheel min-cart racing (小型賽車) in a theme park. Her leg was broken. The doctor warned that the customer might become paralyzed. The customer wanted theme park to take up the whole responsibility of the accident, and demand the park to compensate her for HK$500, 000. Being a customer service manager of theme park, you started investigating the accident case. The evidence showed that it was the customer’s fault that led to her leg broken. The customer did not buckle the seat belt while she was playing the drive. This requirement was in fact made known to all players in an announcement from the microphone; a notice board was also put up on the spot describing such safety rule for all customers. When you told the customer that theme park would not compensate her any money but would be happy to pay for the medical fees for her, she was furious, and said that she would claim the money back through the court. She also warned that she would bad-mouth your company through the media. You understood that confronting with her would cause damage to your company’s reputation. However, it would be unjustified and impossible for your company to pay the compensation. Discuss what you can do to handle the 35 difficult customers.

Min-cart racing: possible solutions 1. Keep record when communicating with customer 2. Collect all evidences through interviewing witness on the spot 3. Keep the evidence including photos, working instructions, safety procedures, job duties, layout of the part, etc. 4. Seek legal advise when the customer starts the legal actions 36

Retail Outlet - Scenario one A customer bought a diamond ring from your jewelry shop for HK$14, 800. Four days after the purchase, the customer went to your shop. She was very upset and shouted at you. She said, “I want to return the diamond ring to you and want my money back”. She continued to say, “I find an identical diamond ring of only HK$8, 000 in another jewelry shop. You are not honest in doing the business. How can you mark up the price so high and cheat me”. In fact, you are not cheating the customer. It is because of the differences in color and design that leads to different prices. You understood that the customer had no knowledge about diamond, and knew that you had to handle the customer cautiously. Otherwise, she would go to the Consumer Council to claim the money back. As the shop manager, how would you handle the difficult customer? 37

Expensive diamond: possible solutions 1. 2. 3. 4. 5. 6. In the interest of the jewelry shop, no refund in general. (貨物出門，恕不退換) Bad customers may cheat the shop by returning counterfeit goods for money back Explain to the customers the criteria of evaluating the value of a diamond such as place or origin, color, design. . Use samples for demo. Get an “expert” with academic qualification in relevant if possible to offer a professional opinion. Other selling points such as: only 50 in the world, a symbol of status, which celebrity also buy one. Serve him/ her a VIP membership if feasible. 38

Retail Outlet - Scenario Two A customer has recently bought a car through a salesman. He was very satisfied with the purchase in terms of service, quality of machine, delivery time, and price. However, three days after the purchase, the customer found out that the car company reduced the price of his car by 20%. He was very upset because he thought that the salesman should realize about the promotion scheme, and should release the scheme to him before the purchase. He returned to the car company and requested a payback of the difference of 20% of the car price. As a customer service manager of the car company, how will you handle the customer? 39

Expensive diamond: possible solutions 1. It is always the policy of a company to launch promotion scheme until the last minute. 2. Staff very often does not know anything about the whatever promotion strategy in advance. 3. Tell the customer the truth (the salesman really did not know the scheme on the date of his purchase. 4. Regret for confusion happened but insists softly that the company cannot refund the money. 5. Likewise, the company will not demand the difference if there is an increase of 20% after the purchase. 6. Provide some incentives such as souvenirs or coupons if possible to maintain a good relationship with him. 40

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