Policies Are For the Few That Push the Envelope

Do you have written policies and procedures for the customer experience? Here is a story from Leah Oviedo, that shows the reason some policies have to be created:

The first year of my retail business I had a customer who wanted to return a scarf. I told her that was fine, I would happily give her a refund and reimburse her for shipping.

She complained that this was unfair, she wanted me to send her a cash refund and then she would return the scarf. I explained that this was not my refund policy and I didn't know any business that would send a customer cash anyway. She continued to call and complain every few weeks. After a few months, she eventually stopped calling and I never heard from her again.

It was dismaying and wasted a lot of my time. I learned to write out a return policy at my booth, so this wouldn't happen again. She ended up teaching me a lesson which is a good thing.

What policies have you created because a customer OR an employee pushed the envelope beyond the bounds of reason?

The Hassle Factor Fee - Wait Until You Hear This

We've all had customers that were just a pain; they never seem to be satisfied, they take more time than is worth the amount they've spent. Jennifer Cox, Administrator of NNEP, shares the story of how one business handled those "pain in the neck" customers:

Back when we had our retail business, we occasionally worked with some very unpleasant customers. Every year in December, we had a staff meeting where EVERY employee was able to name their 3 least favorite customers/jobs/situations from that year.

As management, we then sent each of the top 5 vote getters a "dear John" letter, indicating that in the following year, their prices would be $X (at least a 15% price increase). We hoped to work with them again, or we were happy to provide the information they would need elsewhere. Most of the customers stayed, their behavior improved immensely, and we felt we were being compensated much more in line with the demands placed upon us by that particular customer.

We dubbed it the "HFF," Hassle Factor Fee. Any customers that created a hassle with constant changes, complaints, lack of timely response, poorly provided information, rudeness, slow payment, etc. were flagged for HFF pricing if they ever returned for another order. Most of them did return, and paid a higher fee, although they never knew the specific reason. In fact, one customer become one of our largest and most preferred clients, once they settled into a pleasant relationship with our company, and earned back better pricing.

The best part of the story is the fact that these pains actually straighten up and become valued customers! So if it costs more, is it worth being nicer?

We Must Respect the Value We Bring to the Table

Here are two more stories about customers that were unpleasant and pushed the envelope. Sarah Sawaya of Sassafras Designs is a graphic designer. I have worked with Sarah both in a collaborative manner with customers and as a customer myself. She is talented, professional and you just don't find them any nicer.

I'm blessed with 99% wonderful clients so it's easy to zero in on the few problem ones. Early on one prodded and provoked me until I raised my voice and told him firmly that I was standing my ground - and then I worried like crazy I'd offended him. (I'm not confrontational by nature, and it can be painful to be so.) He wanted to be my best friend after that, much like Karen's experience. It's laughable now, but good grief - why did we have to go through all that?!

It was a different experience with another client who was genuinely thrilled with my work, comparing it to Toulouse-Lautrec (wow!), but constantly argued about price. I gave him two price breaks, but when the third request came (to go to less than half my rate), I was finally offended enough that I sent him all his files and didn't make a referral to someone else. An angry voicemail came (great fortune to miss that call!) but he paid his bill. I sympathetically helped the next graphic designer he hired when she needed his files - for some odd reason he was unwilling to give her the CD I'd sent him; she was concerned about how much he yelled at her and they hadn't even completed one job yet. I know the graphic designer who preceded me and am sure he wore out his welcome with her, too. Hopefully he'll find peace someday, but think of the wake following him...

Both examples only serve to make me even more appreciative of all the others. Here's to working in the spirit of collaboration!

Bravo, Sarah, for defending your pricing! Alan Weiss has a great book called Value Based Fees - we have to remember that what we offer has value to the customer. I expand on that thought in a blog post that asks the question Who Determines Our Value; Us or the Customer?

Have you hit a stumbling block with a customer over price? How did you handle it?

It's a State of Mind

Phil Kessel shares his thoughts on the request to come up with an "I hate my customer" story:

"Hate my customer story,".......candidly we rarely had one to fit this story. Why? As the Pearle Vision Territory Vice President - East, and later Vice President of Pearle Corporate Stores, we had a culture that emulated from me to our teams in the stores and supervised by the regionals that every customer counted. If the customer had an issue, legit or not,....our position was to ensure she or he left with their concern happily resolved. Net-net, our posture was how can we make it right,....I value you as a customer,... and by taking the high road, we were rarely "kicked in the teeth" by a customr. So, if a customer matter did get past the field and reached my desk, I listened, and made sure we gave her or he what they wanted (always with empathy, always with fairness) and issues were resolved. You make "raving fans" when you as a business do not let yourself get on the defensive.

I questioned Phil and asked "what happened in your early career that gave you the perspective to be so customer focused?"

From earlier career days at US Shoe Corporation in their softlines retail businesses, we learned early on to actually place our internal customer (our associates / our teams) first. Hence, when you prioritize your staff as being first, you then get high care and passion for the hapiness of your external customer (the one who is actually paying for the product and services). It is all rather simple with a net - net end game approach to create "raving fans" from the external customer.

Phil is so right. There are many definitions to the word "customer." The first of those being our employees. Happy employees make for happy customers.

So - is there a time when you've "hated" an employee? Oooohh, this could get ugly.

Giving Options Didn't Stop the Wrath

Christina Rowe of Akzo Nobel Decorative Coatings shares her customer story:

About 15 years ago, I was working as an area sales manager for a prominent department store in a small southern town. One of my sales associates (far more mature then my 24 years) called me to her department to speak with an angry customer. This gentleman wanted to return a very expensive designer womans suit (without a receipt) because it was missing an interior button (the suit was double breasted, and he'd lost the extra buttons that came with the suit). My sales associate offered up an ENTIRE basket of spare buttons for him to choose from, but he wanted his money back - in cash, of course. I backed up my employee, offered an exchange or replacement buttons. He proceeded to scream at me for 20 minutes, and eventually left with the suit in his hands. The store manager supported my decision; the company was very strict in its return policies. The kicker to this story? The customer was the minister of a very large Baptist congregation, whose wife was, and continued to be, one of our best customers.

Stories like that - a situation where the customer is given a solution or several options and yet still chooses to stand their ground, makes you wonder what the "back story" is. Had the coat been too expensive and he actually needed the cash? Was it a power play? Had he been cut off by another driver when pulling into the parking lot and just walked in angry? hmmm.

Yet the wife is still a great customer. So clearly, although you know he went home and ranted and raved, she chose not to listen and continues her loyalty based on her own experience.

What do you think? Did the customer have cause to continue his anger? When faced with a request for refund, do you comply or try and offer options?

Sometimes bullies just need a little straight talk

Great story from Karen Gilkison from Alliance Insurance:

After decades in the property and casualty insurance agency business, I had a client I had to fire after years of her abusive behavior. I finally told her in the middle of one of her rants that I was certain that XYZ Agency downtown would be happy to have her business and I KNEW FOR SURE I'd be happy if she had her business there. The most surprising thing happened.......not only did she stop complaining but she became one of the most pleasant clients I had from that day on.

What a wonderful turn around story. Sometimes our customers just need to know we are listening and that we are capable of standing up for ourselves. Karen stood up and didn't allow the abuse to continue. The result: probably one of the most loyal customers ever!

Thanks for sharing, Karen!

I hate my customers - now what?

Every where you look there is a conversation about:

The Customer is Always Right
Customer Service
The Customer Experience
Putting the Customer First
Earning Customer Loyalty
Making a Difference in the Life of Your Customer

Well, what if you can't stand your customer? What if you hear their voice over the phone and your skin crawls? What if you see them walk into your store and you have to work hard to resist the urge to run out the back door?

It has happened to us all at one time or another. I was just having lunch with a colleague who told of one of her sales employees and how she hates her customer. The customer's financial value to the company is well over $350,000 in annual revenue. No slouch. The sales associate's commission on that sale is 10%.

$35,000 in annual income from one customer!

But she absolutely HATES the customer. Doesn't take their calls. Postpones in person meetings. My friend was in a state! "How do I make sure the customer never knows how the sales associate feels?"

Well - that is what we are going to explore in this blog. This blog won't work unless you share your stories.

We can all learn from each other.

So put your thinking cap on. Think about a customer you have or one you used to have that you really didn't like. How did you handle the situation?

Did you let the customer know?
Did you avoid their calls?
Did you walk away from the business?
Did you FAKE IT?

Share your stories here. And we'll do the same.