Introduction
Customer retention was challenging in the dark ages of automobile manufacturing (think the 70s and 80s). Partly because the manufacturing process included a rework area, this is where cars that did not pass the end-of-line inspection are driven so highly skilled people could repair each defect. In other words, failure was built into the assembly process! These days companies expect perfection and treat each end-of-line defect as something to be quickly fixed, the root cause established, and efforts taken to ensure that the problem is random and not likely to occur again.
Today, we plan on failure when deciding what training to give our customer-facing employees. We train on technical subjects, like product capabilities, and soft skills, like time management and dealing with angry customers. Unfortunately, no one is asking the critical question – why do our customers get angry, mad, and pissed off with us? Since you are thinking about this question, I will now answer it:
That’s right; customers get angry when we do not meet or exceed their expectations. And if we fail to recover from something that should have been easy to fix, they get mad! The way we deal with customer anger is to provide more “how to deal with angry customers” training.
Does this make any sense to you?
We minimize the number of times we make customers angry with us by understanding the sources of their expectations. Then, if we know where the expectations come from, we can manage the customer’s experiences to meet or exceed their expectations. This gets more difficult when we do not see the source of their expectations or cannot meet them.
Where Do Expectations Come From?
(This section is extracted from a more in-depth article here)
Organizational promises
- Source -Explicit promises made by the business (collectively) and not by individuals in the organization.
- Example – Your quotes and order acknowledgments include statements like “delivery and installation will be completed within 45 days ARO (after receipt of order).”
Competitor’s promises and performance
- Source – If a competitor promises or does something beyond your company’s experiences, your customers and prospects will expect your company to match or exceed the performance. Even if you do not believe there is an “apples to apples” comparison, your customers may not understand or care.
- Example – Your competitors all ship standard items with next-day delivery at no additional cost; you ship in three business days and charge extra for next-day delivery.
Personnel promises
- Source – Your employee makes promises (prospect demand, vague or unknown procedures, end-of-the-quarter pressure to close business, lack of employee engagement, etc.). Probably to foster customer retention.
- Example – Under pressure to close an order she says, “Our software is so easy to use you will be up and running in a week, or I’ll come in and provide free training until you’re satisfied.” This promise will most likely backfire. Either the software isn’t that easy to use, the promise won’t be honored, or going onsite will consume a large portion of the profit from the sale.
B2C experiences
- Source – We all are consumers in the Age of the Customer. We are socially connected and well-informed. We carry our consumer experiences with us into the workplace.
- Example – If you order consumer goods and get free 7-day delivery with a small up-charge for 3-day delivery, you may expect to have the same options when you order business-related goods or services.
Previous experiences with your business
- Source – Customers anticipate experiences based on past purchases. This occurs if they purchase the same product or service from your firm or a completely different one. Regardless of what they’re buying, the purchase is with the same company, so consistency is anticipated.
- Example – If you usually fill a medical prescription at a local pharmacy chain, you expect the same easy transaction if you use their mail-order service. Same medicine same company, but frequently a different experience. Or, you shop in a brick-and-mortar store and receive very knowledgeable personnel assistance, then decide to order online because of a lower cost. You then call the contact center with questions about setting the product up and are disappointed when the agent is neither as helpful nor knowledgeable as the salesperson in the store. Again, same product, same company. And the predictable outcome is a lack of customer retention.
Comments from friends and associates
- Source – Social media, offline conversations, and the like.
- Examples – If your business associates tell you they all had terrible experiences with a company and stopped buying from them, you’re not likely to buy. Suppose angry tweets abound in a company; well, thanks but no thanks!
Key Takeaway – Maintain Customer Retention and Employee Satisfaction
The customers hate getting angry, and the employees hate being the target of an angry customer. Dealing with an angry customer is like torture to your customer-facing employees. The “ounce of prevention” is to manage customer expectations. The people in your organization can address some, and some are beyond their control. However, for those expectations beyond employee control, you can actively reset customer expectations while deciding with are important enough to your customers that the business will work to meet them eventually.
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About Middlesex Consulting
Middlesex Consulting is an experienced team of professionals with the primary goal of helping capital equipment companies create more value for their clients and stakeholders. Middlesex Consulting continues to provide superior solutions to meet the needs of its clients by focusing on our strengths in Services, Manufacturing, Customer Experience, and Engineering. If you want to learn more about how we can help your organization create customer retention, please contact us or check out some of our free articles and white papers here.