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Customer Behavior     
 
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Internet Threat
Posted By: Capitol on 7/17/2006 11:08 PM (CST) 125 Points
One of our member (we are a 1,500-member large Recreation club) seems to be unhappy with the way we treat him and asks us to refund his money or he would use internet/blogs to publish his (unfair) comments about our Club. We don ot feel that we are treating this member unfairly and thus not really prone to give him his money back. What would you suggest?

Posted by: darcy.moen Accepted Answer
7/17/2006 11:46 PM (CST)
Every business has an unhappy customer from time to time. Do a google search for Walmart Sucks and see how many protest web sites come up. Doesn't seem to hurt their sales too much. But then again, you are a small business, it can hurt.

I would caution the upset customer to stick only to the facts, and not embellish them. If he stretches the truth too far, he's open to slander and liable.

Personally, I don't respond to threats of blackmail, and such gets my back up. Sometimes one has no choice but to fire the customer.

As for refunding money, that's up to you. I'd refund the customer the unused portion of his membership, not because he's threatening you, but because you are simply refunding him his unused portion of the membership he won't be using.

I recall one customer I had. I did a little research with some of my competitors and found that this customer had been going from business to business pulling the same stunt. I held my ground and withstood the wrath, lies, and innuendo. It ended up in small claims court, and I won. I didn't win much in the court of public opinion and I sure didn't win the ex-customer back, but I did earn the respect of my competitors and established a line that from which I would not budge.

Do what you gotta do, but don't lose much sleep over it...as my preacher cousin said when he walked in on one irate customer giving me a dressing down over a missed spot and a double crease...."it keeps you humble". Aye, that it does.

Darcy Moen
Customer Loyalty Network
 
Posted by: Marketing Accepted Answer
7/18/2006 12:15 AM (CST)
Wow that's a tricky situation.
Darcy is also right that every business has few unhappy customers.

Let me recall one of my experience. I run a small hosting company www.aohost.net and one of my customer was in the same feeling as your customer that we are not treating him well and creating problems in his email though the problem was there in his net connection.

He threatened me either for refund or will do the negative marketing through discussion forum etc.

I know this was not going to create a prob for me if he do negative marketing but i don't want to loose one of my client though he was just paying few dollar/annum but a client means a lot to me.

For me my clients are like very special guest for me and in INDIA there is a say "ATHITI DEVO BHAV" means "Guest is like god" and we have to greet him the best way.

And then I played a marketing stunt on my client:-

I write an email to my customer full of emotional touch and agreed to refund the money at the same time I told him "It happens sometime in business that things goes wrong though our intentions were always to serve you in a better way. Still if you want to move out we are ready to refund your money but would like to request you to give us a final chance.

As a penalty on our mistake we would like to offer you 3 months free service and today he is one of our happiest client.

hope this will work for you too!

cheers and best of luck
Gaurav
 
Posted by: walterny Member Response
7/18/2006 12:20 AM (CST)
Why make it about you? He said he is unhappy. It doesn't matter if you think you treat him fair. Give him his money back and move on. You can't please everyone so please those that deserve pleasing.
 
Posted by: MANSING Accepted Answer
7/18/2006 2:47 AM (CST)
Capitol,

Every individual has his own idea of life. As you mention you are in 1500 Members for Recreation club so you can imagine how many different people are in the club. If one of your club member is not happy then you need to be very carefully to dealing with this situation. There could be another person next time!! Hope Not!!!

In any business risk management plays big role- "Dealing with the situation before it will be too late". Every organisation, it doesn’t matter small or big has there own rules and regulation to deal with the situation. You should have meeting with your member of staff and decide what will be the best option. Draw a rules and regulation with final plan if another or same situation comes in future.

If the amount is small then there won’t be any problem but the investment or the shares are big then you need to use one standard for every one. You can’t afford to offer extra favour to someone and in future you won’t consider other people. It will demoralise there interest and trust toward your club.

Let me tell you another thing: Now a day, because of media every individual knows there rights and what can they do? can't do?Some cases it is good but like this case it looks like blackmailing your club. One person can mess very thing up what your club is earned till date. Don’t put all your eggs in same basket.

I hope this will help!

Regards,

M Bhor
 
Posted by: Steve.Vicory Member Response
7/18/2006 8:29 AM (CST)
Some battles need not be fought, let him win this one. Even if you have to swallow principles. Is it worth all the negative energy expended by both sides. Just make sure to get a legal release from this person. They're liable to keep on trying to harm you afterwards even if you give them the refund. Move on to accomplish you clubs stated mission & let this one dissatisfied person move on too.

Steve Vicory
JMHO
 
Posted by: ShannonD* Accepted Answer
7/18/2006 8:52 AM (CST)
I know everyone is saying avoid confrontation, but I have the other opinion. Lose this one, and be prepared for others to follow. He is paying for your what your club has to offer, has he not used your club fascilities? He's no more entitled to his money than the man who had a bad game of golf.

His personaltiy may clash with what you offer, therefore giving him a bad taste of your club. You may not kiss his butt enough, or he didn't like a meal you served. Facts are judge the battle vs. the war. Has he been a member for just a month? Has been a member a year? Has he been a long time member? Then ask how you charge your dues? If he has only been there a month and wants his money back, then I would consider giving it back only as a great customer service pratice. If he's been there a year and doesn't have time for your club services anymore, he doesn't deserve a refund for getting bored.

I would also be aware of his circle, if he has the power then deal with him, but if he's just wanting to start problems, see what ammo his has to use and prove him wrong. What he doesn't know is if he starts bashing individuals at your store by name, he is going to get into a world of trouble. But if he is going to complain about your services, then you need to get your white pages up and running. For everything he complains about, get 4 member comments on how much they love it.

Now you have to ask yourself this question, who has opened a business to have everyone happy about it? Nobody every has! How do you fix the problems? Let your company prove itself. If someone complains alot, then people will be curious. It may actually draw more business for you if he makes a lot of statements. Just make sure everything he comments on, you have a counter for. A dirty spot, clean it. Bad service, improve it. Every comment, double check it. Even if you think you are doing great, you need to investigate EVERTHING! Never trust your own staff, get a couple secret "members or shoppers" to give you free lance opinions. Sometimes the truth hides, and you need the truth to fight any battle against you, or you could lose.

A rule of thumb with any business. Your not perfect, the customer is not perfect, so something is bound to go wrong. It's all about how you fix it. That's true customer service.

Shannon D
 
Posted by: kpalmer Member Response
7/18/2006 10:13 AM (CST)
My answer - do these things:

a) refund the un-used portion immediately on his signature on your form: "I understand that my membership has been revoked due to conflicts caused during that membership."

b) post a notice that the membership of this member has been revoked due to unsatisfaction of a particular aspect that you offer in your services

c) request that any member having the same concerns please come forward at this time so that those concerns can be met.

d) thank the member implicitly that has caused the rucus and reward him with an offer to rejoin next year after you have had a chance to fix the problems he has outlined. At this time, offer him 1/2 off next year's dues.


He wins - he got his discount. Your members win - you are paying attention to concerns. And you win - you're the champion of customer satisfaction.


Implications in the long term? He speaks highly of you, your members speak highly of your management, your attention to detail and conflict management skills are made aware to all concerned.

Thats' it, that's all. Move on to making money.
 
Posted by: marilia.zanim Accepted Answer
7/18/2006 11:05 AM (CST)
Hi Capitol,

This is what I would do (and I already did with some unhappy costumer):

- I would 'fire' the client. If he is not happy with your club, so your club is not happy with him. I would let it go, even if I know that he is being unfair.

- I would give him his money back with a thank you letter. I would do everything possible to show him what a big mistake he is making. With respect, and being polite.

- I would apologize for any inconvenient and say BYE!!!

Sometimes, we really need to fire some clients that are doing more bad than good to our company. Just take a deep breath and let the 'who is right' out of this.

Give him what he wants so you can have what you want: other 1499 happy clients that need your attention. These clients are important to you, not the one who is leaving. So use your time to make shure the other clients are happy with the club and try to do a good evaluation of the situation: how can you avoid this circumstance in the future?
 
Posted by: jlevin Accepted Answer
7/18/2006 12:01 PM (CST)
Capitol -

You may also want to take the opportunity to post something about this on your blog yourself! This could serve two purposes. First, you would be able to put out your version of the story first. Second, and probably more importantly, I think one of the most underutilized aspects of blogs is that they are an opportunity to showcase how organizations can solve customer problems effectively and professionally. By addressing the customer's issues and showing hor the organization handled them, you can illustrate an instance of good customer service to your other clients.

Good luck!

Joy
 
Posted by: Dramagenics* Member Response
7/18/2006 12:57 PM (CST)
My wife and I ate at an Olive Garden restaurant one night. The waitress got the order wrong. She noticed before we did. She told us of the mistake and said she would be right back. The manager came out and said that dinner was free. We left a $20.00 tip.

We have told this story to nearly everyone we know.

Appeasing a customer like the one you have may be a great advertising tool; however, if the customer is like the one that Darcy Moen mentioned, there may be nothing you can do except move on.
 
Posted by: darcy.moen Accepted Answer
7/18/2006 1:50 PM (CST)
I used to own a dry cleaning business. Talk about an industry that is mired with its share of negative press and poor customer service. Even though my business missed spots and stains or mis-pressed garments at a rate of one for every 10,000 garments processed (yes, I documented this and kept track)...it was one too much if it was your pair of pants.

I just have to expand on my answer.....when it comes to a battle with your customer...even when you win...you lose. The customer is always right, even when they are wrong.

Yes, I've had situtations where I had to make a judgment call. Yes, I've made mistakes. Let me share.

I had a customer jump over the counter, and take swings at my staff. My employee warned the customer that he had military training and was being warned that he would defend himself...the customer swung and landed a blow. My employee again warned the customer, and the customer swung again, and landed a blow. Once again, my employee warned, and the customer swung...this time, my employee broke the customers jaw, nose and arm. I paid $10,000 in legal fees defending my company from the customer's lawsuit...and won because I had it all on security video tape. I lost that customer, and a lot of money on a frivolus lawsuit...but that's okay, we don't need customers like that in our life.

I had another customer come in ask to speak to me. He said, as long as I had that (insert derogatory term for African-Canadian here) serving customers on my front counter, they would never do business with me again. I responded that he and his bigoted kind could have their robes cleaned elsewhere, and please don't let the door hit him in the @ss on the way out. Lost that customer, but again....I'd rather not do business with folks of that attitude....my Canada includes everyone regardless of race, creed, or sexual persuasion!

I had another customer threaten me with blackmail, negative press, and very bad word of mouth over a slate of broken buttons. Its a little broken button, not a big thing. When I advised the customer that there are still millions starving in Africa, thousands are homeless and sleeping in the streets, there is still war in the Middle East....and oh my God! Mrs Smith is getting a few broken buttons!!!!! Well, she didn't understand my point. She got mad, real mad! I guess she had every right to get mad, but darn, in the grand scheme of things...its a borken button...let me replace them, and let's move onto bigger issues. Eventually, I replaced all her buttons with special unbreakable buttons. I ordered buttons made from a high temperature ceramic that could take a hammer blow...cost be a buck each...but...the buttons never broke. I bough a special hammer, called the customer in to come and see me, and dared her to test the buttons by beating them with a 5lb hammer. She was now happy....and I asked her if she'd help me in the quest for world Peace. Now she gets the joke, and she admitted...it does seem rather silly to get worked up over buttons while people are needlessly dying. Really, Ya Think?!

Look, the customer always has the final say and gets the last word. The best you can do is say you're sorry, even if you're not at fault, and minimize the damage. Control forces you can control, but remember....its only a customer. Fix what you can fix, and refund what you can, if you can, and when you have to...even if it means taking a small loss.

SOMETIMES taking a loss is a good thing. Yes, I paid for clothes I didn't ruin. Depending on the customer, and the situation, I'd over rule my own company policy. Sometimes I could write it off as advertising, customer service, or just smart business sense. I bought a shirt that had a dye that ran. This dye ran because the manufacturer chose the wrong dye when they made the garment. I bought the shirt from the customer, and took it to the store where she had purchased it. I explained the entire problem, and how to fix it. The store accompanied me to the Government office of Trade, and bore witness with me that these shirts were a big problem. I picked up the retailer as a customer and source of referrals, and the Government hired me as a local garment testing labratory and resident expert. That one shirt I wasn't at fault for, ended up bringing me thousands and thousands of dollars worth of business, and tons of credibility.

Sometimes the best way to win, is to lose. The trick is, knowing when to lose, to win. That my friend comes from how you react in this situation, and in each of the ones that follow (and yes, there will be more situations like this). It takes practice, and I hope you never have to get too much of it.

Best of luck to you, I hope you make the right choices.

Darcy Moen
Customer Loyalty Network
 
Posted by: Capitol Author Response
7/18/2006 11:43 PM (CST)
Thank you all for your input. At this stage i need to tell you more. He's been with us for 3 months only and his membership is valid for a year. A month ago, he and his daughter used our outdoor jacuzzi as a pool. It is a large jacuzzi, believe me. On this particular Saturday morning the little girl stepped on something sharp. Was it the edge of a tile, a small stone, a piece of glass? Through the water we could not see. We emptied the jacuzzi, checked for un-even tiles, resurfaced it, removed the small stones around it, changed the light bulbs....Talking about customer service....Still the guy is unhappy because we didn't apologize to him and his 4-year old daughter. We obviously do not focus on him but i wanted to share with you this story and threats that people can make.
 
Posted by: Papadoc (Steve)* Accepted Answer
7/19/2006 6:23 PM (CST)
Cap -

So you did what you could with the exception of an apology. You did quite well I would say and an apology is NOT in order. You can feel bad that an injury happened, but "apologies" are for those who have done something wrong. Refund the guy's unused money, cancel his membership, and write a very careful "letter of condolence".

I say careful because you don't need to take responsibility for the injury. From what you've said, you don't KNOW that your facility had anything to do with it and it certainly wasn't purposeful or even neglectful. Everything he has said including his threats has been verbal and subject to denial. A letter expressing concern over the injury and expressing condolences over it (but not expressing fault) is a kind gesture. A letter of apology is accepting guilt and something else and legal fodder for an insurance or legal claim. You saying later that you only wrote it because he was making threats won't hold up if he denies it.

Then just drop it and go on. You have far better things to do that to mess with some whiney never-satisfied customer. Let him go bother someone else.

You cannot worry about those that make threats. Just don't aggrivate the situation further. Often the sooner you just deal with it and walk away, the less it will blow up. Don't make him posture, don't make threats or make him back up his threats... just walk away.

And of course, don't treat it like the big deal that it isn't. If people like this think you are scared, they push to see what they can get. If he continues to make threats, just tell him that you've already referred this to your attorney for possible defamation issues and if he feels the need to continue to threaten, please run those through the attorney so his threats can be properly received and documented. That will shut up about 98% of them.
 
Posted by: Deremiah *CPE Member Response
7/21/2006 7:01 PM (CST)
Hi Capitol,

I hope you're having a great day!

I normally give a great deal of back up to support the knowledge I share. Today I'm going to be quite simple and to the point. Refund the money...it's not worth it to keep a customers money when they're geniunely not satisfied with the product or service. If you'd like me to share more proof please let me know. Remember our only real problem in life is our failure to be "MORE Creative" than we’ve ever been. If you “Invent” your opportunity YOU WILL most definitely create your future. Just know that I'm here for you if you need my help. Is there anything else I can do for you?

Your Servant, Deremiah, *CPE (Customer Passion Evangelist)
 


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