Know-How Exchange : Customer Behavior

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

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

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

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

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