By the End of the Handout You Will Be Able To

Customer Service Level 2

Resolve Customer Problems

By the end of the handout you will be able to:

1. Understand how to monitor customer problems using a range of techniques

2. Understand the effect of reaching satisfactory resolutions.

Why solve problems or complaints?

In your groups, discuss when you last had a complaint or problem with a service or a product you bought.

1. Did you complain?

2. If not, why not?

3. What happened if/when you did?

4. How did it make you feel?

Why monitor customer problems?

• To reduce or eliminate further problems

• To resolve issues with system failures

• To rectify repeat problems

• To rectify repeat complaints

• To keep informed about services and/or products

• To continuously improve

What techniques do organisations use to monitor problems?

• Feedback/evaluations

• Customer record systems

• Monitoring sales

• Monitoring returns

• Monitoring complaints and problem

Techniques used to monitor customer problems

Different sectors/industries have a variety of ways to monitor problems such as:

1. Customer records systems

2. Returned products

3. Evaluations/feedback

4. Sales monitoring

Updating customer records systems/management (CRS or CRM) when customers make complaints or have problems helps to keep a permanent record. Even positive feedback given by individual customers should be recorded. This information can be collated and analysed.

Monitoring returned items for common faults or complaints will help establish supplier issues or product manufacture problems.

Gathering customer feedback/evaluation is a well-established way of generating meaningful information about service and product breakdown. It will also help to identify potential problems.

Monitoring sales of products and services will help establish trends and highlight slow-moving items.

Are problems always complaints?

NO

Problems are not always complaints, but if not rectified or dealt with effectively then they can quickly turn into complaints.

Resolutions and their benefits

When a customer has a problem or complaint resolved they feel one or more of the following:

• relief

• satisfaction

• justification

• pride

• loyalty.

Benefits of finding resolutions

Problems and complaints are a good opportunity for an organisation to critically view and review their service, offer or product range. Finding suitable resolutions with customers (internal and external) will create trust, respect and customer loyalty. Using effective monitoring techniques will ensure that repeat problems or complaints are reduced or eliminated. The result of improving products or services will inevitably improve customer relationships and profits.

Business performance, customer loyalty and negotiation

• understand key performance indicators (KPIs)

• understand customer loyalty

• understand negotiation techniques.

Enhanced business performance

Many organisations will create key performance indicators (KPIs). They are designed to measure strategic goals and objectives. Customer service KPIs are a good tool to measure performance.

For example:

• targets set for how long before a call should be answered

• how long calls should take

• how many calls in a day/week/month

• how many acceptable complaints per month.

The targets are then measured, for example:

• how many were answered within 30 seconds

• how many took 5 mins to conclude

• how many were answered by each person in a day

• how many complaints per month.

Measuring complaints and problems on a regular basis will give an organisation a fuller picture of the nature and amount of complaints. This will allow the business to enhance its performance when dealing with complaints. It will help meet targets, reduce complaints and ultimately improve sales. It also helps to maintain customer loyalty. Using complaint or problem data helps an organisation target individuals and/or groups of customers to reach effective resolutions

Customer loyalty ladder

Customers enter their journey via various touchpoints, such as websites, phone, face-to-face or even social media. When a customer returns to buy further products/services they begin to show loyalty to the organisation or brand. This is one of the early stages of the ‘customer loyalty ladder’.

HIGH LEVEL ADVOCATE/PARTNER

SUPPORTER

CLIENT

LOW LEVEL CUSTOMER

PROSPECT

ACTIVITY

• Using the internet, research the loyalty ladder in a search engine.

• Download some information as supplementary information.

• Describe each category of customer in each stage of the ladder.

Even if a customer has a complaint, this can be turned around so they become a client or even a supporter of an organisation or brand.

Why is this?

-Could it be that the customer’s expectation has been exceeded!

-Exceeding expectations can be targeted and measured too!

Negotiating techniques to retain customers

Retaining customers and turning them into partners or advocates doesn’t just happen: it has to be worked at.

If customers are not respected when they have a problem or complaint, they will escalate the issue higher up the organisation or go to elsewhere, such as Trading Standards, the press, social media or consumer rights TV programmes.

Customers often have an idea of what resolution they want to a problem or complaint. This is even before they take the first step in contacting an organisation or internal department.

Customer service professionals need to be able to manage this expectation.

What is the first skill a customer service professional should demonstrate when a customer complains or has a problem?

• Listening

This first skill to use when customers approach or make contact with a problem or complaint. If all the details are listened to and recorded correctly, then the interaction with the customer will be based on the customers’ perception of the problem/complaint.

Once the problem or complaint has been heard the following skills and techniques should be used.

• Ask relevant questions to confirm understanding.

• Ask the customer what they expect or would like to happen.

• Know if the expectation is achievable.

• Offer alternatives if the expectation is not achievable.

• Prepare for discussion.

• Be ready to compromise.

• Confirm, act and close.

Once a resolution has been reached the following must be implemented:

• share information with interested parties

• record the outcome on the CRS or relevant documents

• monitor and provide feedback about repeated problems or complaints

• analyse information to make recommendations to improve the service or products

• monitor improvements to see if there is an impact on sales/services.

Negotiating

Recommended support tips:

• YouTube negotiation videos and search engines

• always know your own organisation’s negotiating procedures/limits

• practise listening and observe others resolving customer problems.

Confirming and identifying customer problems

Know how to confirm with customers the nature and cause of problems

• When a customer has a problem or complaint, they will be concerned and identifying the nature of the problem or complaint will depend on their next step.
• Customers may ‘let it go’, especially if they are busy or the issue is not costing them money.
• Other customers will not ‘let it go’ as the issue is too important to them. This is not always due to money but sometime due to feelings of ‘fairness’ or ‘justice’.
• Any interaction with a customer will involve polite and informative conversation. It will consist of effective questioning techniques, especially if a customer has a problem or concern.
• Asking customers the right questions is a skill that should be practised along with non-verbal skills, such as facial expressions and posture.
• Questioning is a powerful tool when dealing with customer problems and complaints. Using the correct types of questions will ensure misunderstandings are minimal.

Questions types commonly used with customers:

• open

• closed

• leading

• confirming.

Problem or complaint?

Think about this scenario:

A customer cannot exit the car park due to a delivery lorry blocking the way. The customer approaches reception to report it.

• Is this a problem or a complaint?

At this point it is a problem as the customer is only seeking help and it is not about products or services offered by the organisation.

The customer is told by the receptionist it has nothing to do with the company and he will have to wait.

What is the most likely thing to happen now?

Remember:

• Problems and complaints must be dealt with efficiently and effectively so that all parties are happy.

• Establishing if a customer has a problem or a complaint is key to ensure things do not escalate into a worse situation.

• Using effective questioning, confirming techniques and involving the customer in the resolution will ensure satisfaction.

Authority, legalities and ethics

Authority and legality

Finding resolutions to customer service problems can be easy or difficult. It will depend on the nature of the problem and the extent of the resolution. In many cases the resolution can be carried out by the individual dealing with the problem; however in some cases the resolution needs to be authorised. This may cause drawbacks to the business, such as loss of productivity/time but in the long run can be the most cost-effective!

In a previous session we covered the customer loyalty ladder and how customers can move from being customers to partners. This is every organisation’s ideal type of customer. This can be achieved if the level of response to problems and complaints is correct; however, the customer service professional should be fully aware of their level of authority to agree resolutions to problems and complaints. The cost of a resolution both in ‘customer loyalty’ and ‘cost to the business’ terms needs to be carefully managed.

Legislation

Customer service professionals should know and understand the following legislative acts:

• Sale of Goods Act (Sale of goods and services to consumer regulations)

• Sale of Goods and Services Act 1982

• Trade Descriptions Act

• Data Protection Act

• Children and Young Persons Act

• Consumer Credit Act.

Sale of Goods Act (Sale of goods and services to consumer regulations) and Sale of Goods and Services Act 1982

These two acts relate to the pricing and quality of products and/or service supplied to a consumer. Goods and services should be fit for purpose, of good quality and as described.

Services must be provided to an acceptable standard and at a reasonable price (if the price was not agreed in advance).

Trade Descriptions Act

States it is a criminal offence to sell or offer for sale goods that have a false description.

Other relevant consumer legislation:

• The Consumer Credit Act which covers cancellation periods, annual percentage rate (APR) and ownership of goods when one third has been paid

• Children and Young person’s Act covers sales of age-restricted products and services.

Data Protection Act

This act relates to the confidentiality of information and who has access to it. It has 8 principles, that data should:

• be obtained lawfully and fairly

• be kept no longer than necessary

• be obtained with the consent of the individual

• be available only to authorised personnel

• be adequate, relevant and not excessive

• be treated confidentially

• be accurate and up-to-date

• not be transferred to any place without adequate protection.

Legal consequences and drawbacks

If legislation is breached or ignored there will be consequences – both to individuals and to the business.

Legal consequences:

• fines of thousands of pounds

• the loss of licence to trade or sell certain products or services

• the business being closed down by the courts

• imprisonment.

The drawbacks of reaching resolutions with customers may include

• productivity/time being lost

• loss of revenue

• temporary loss of reputation.

However the consequences of not following legal guidelines far outweigh the drawbacks.

Ethics

Apart from legislative regulation, organisations often have an ethics policy.

This can be sometimes be included in a code of practice or even in the company mission/vision statements.

Key principles of an ethics policy include:

• fairness

• trust

• transparency

• ‘open door’ management systems.

Further research and useful websites

• – this website will give you more information and fact sheets on consumer law.

• – basic information about the acts requires membership or contact details for further information.

• – in-depth copies of the statutory acts and their appendices.

Authority, legalities and ethics

Remember

• Levels of authority must be established in a customer service team. This will avoid possible conflict with colleagues and customers.

• Legislation must be understood by the customer service professional so that information and sales of goods or services are within the law.

• Individuals and organisations face prosecution, fines or even prison if found guilty of breaking these laws.

• Organisations who have an ethics policy will expect the customer service professional to understand it and work with its principles.

Evaluation techniques and tools

We are going to look at how these can be used by organisations.

In order for a service to improve organisations have to look within. They have to evaluate the things they do well and the things they don’t do so well.

SWOT analysis

• This an effective way to consider each strength/positive of a resolution reached with a customer, as well as considering the weakness or negatives of the resolution. Then any opportunities for improvement and threats can be addressed.
• Another technique is using survey/feedback questioning with customers, compiled and instigated by organisations or market research agencies. This type of data is often called qualitative data. Interviews (if cost effective) can be useful too.
• Other techniques involve analysis of data such as retention and sales figures as well as CRM system data. This can give an organisation some quantitative data to work on if a complaint/problem is persistent.

Tools used to evaluate effectiveness of resolutions:

• technology is widely used to gather feedback, especially with multi-channel organisations

• telephone surveys are also widely used to conduct evaluation of customers’ experiences after they have had a complaint resolved

• data analysis and SWOT records are tools which can be used by the customer service professional to monitor their own effectiveness after reaching resolutions with customers.

Evaluation Techniques

Remember

• Evaluation of customer resolutions will enable an organisation to improve.

• SWOT is a valuable tool to evaluate the successful and less successful aspects of resolutions.

• Qualitative and quantitative data will help to measure outcomes and customer responses.