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Learn from Mistakes

Everyone makes mistakes. Most customers realize that and are willing to forgive, if you are proactive and respond promptly and attentively to their complaints. Ignore customer complaints at your own peril.

 
For every customer that complains, an average of 26 more customers won’t tell you that they are dissatisfied, according to a Research Institute of America (RIA) study for the White House Office of Consumer Affairs.
 
Only 4 percent of unhappy customers will bother to complain—most will just leave quietly and never do business with you again. Why? Some people don’t want to make waves. Others don’t think it will make a difference.
 
Whatever the reason, it’s important to oil the squeaky wheels. And learn from them what you can do to increase your customer satisfaction. Successful shops don’t just do good work, they create happy customers.
 
The RIA study says that 70 percent of complainers will do business with you again if the complaint is resolved—95 percent will stay loyal if they feel you resolved the problem quickly and completely.
 
It’s important to try to avoid treating a complaining customer as an adversary. Think of the complainer as an advocate representing other quietly dissatisfied customers. Listen despite their possible angry tone or harsh words to understand why they’re frustrated. Have a system to quickly resolve problems. And make sure everyone on your staff who deals with customers is trained and empowered to resolve simple problems.
 
One approach is what I call the Triple-A method:
 
Avoid interrupting as the customer explains the problem. (Letting them vent can help diffuse the situation.)
Acknowledge that you understand how your customer feels.
Ask them what they believe would be a fair resolution. (In most situations, the customer will ask for less than you would have offered.)
 
Remember: your customer has choices. Do everything you can to be the one he chooses.

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