How To Lose A Customer - Method #2

When you are in a service business, not every job goes as planned. That’s why, depending on the kind of work you do, you give your customers an “estimate” instead of a firm price before you begin. If you’re smart, that estimate is in writing, and if you’re even smarter, you ask the customer to sign it before you touch their job. Even then, though, misunderstandings occur and customer relationships can become strained. No one likes to get a bill for more than he expected.

It happens all the time: a manufacturer raises the price of a key component after you’ve figured the old price into the job; you remove a panel only to discover a crack in the supports underneath, one thing leads to another and before the job is done the man-hours you originally estimated turn into man-years. You can’t just absorb these unexpected costs, nor should you. But you can’t just pass them on to the customer either, at least not without his prior approval.

Your future relationship with your customer depends in part on the way you tell him his bill is going to be higher than he thought. Your goal should be to convince the customer that you’re not trying to pull a fast one. Express regret that you have to deliver some bad news, then give them the details—and the more details you include in your explanation, the higher your credibility will be. You don’t have to be defensive or apologetic, but let him know you share his pain. If you’re open, honest, and above all timely, you’ll keep that customer.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

How To Lose A Customer - Method #1

One of the easiest things to accomplish in any business is to lose a customer. Good ones are hard to find, but they’re easy to lose. A certain amount of customer turnover is to  be expected; people move out of town, suffer pocketbook problems, even experience lifestyle-altering events like getting married and having kids that change their buying habits. On top of that natural attrition, though, is the kind we create ourselves. It’s the result of the things we say, do, think, and ignore that drive our customers away.

Losing customers is never intentional, but you wouldn’t know that from the way some business owners and their employees treat the people who pay the bills. They inadvertently insult them, frustrate them, embarrass them, and confuse them in numerous ways that make the customer hesitate before coming back to the shop for more. Some of the problems come from poor attitudes, others from simple misguidance. Often, we think we’re doing the right thing when it’s actually the worst possible thing we can do from a customer relations standpoint.

Here is one of the most common ways we treat our customers that are almost guaranteed to drive them away:

You’re the expert. Let’s say you are in the automotive restyling business. You’ve spent years learning the tricks of your trade, the special skills that let you tweak a convertible top until it’s watertight or lay down a pinstripe with the precision of a NASA engineering draftsman. That’s probably why your customer brought his ride to you in the first place; if he could do it himself, he wouldn’t need you. But that doesn’t mean you have to rub his face in it.

Let’s face it, tricked-out wheels are all about ego. My car is cool and it makes me cool. It’s a reflection of my self-image, my style, my place in the world. If I ask a question, please don’t make me feel stupid when you answer it. You may be able to prove you’re smarter than me, but it won’t improve our relationship. If I have an idea or suggestion on what I want done to my car, please don’t ridicule it. Even if what I want you to do violates all the laws of physics, you don’t need to belittle me when you tell me it can’t be done.

It’s all about respect for the customer, an attitude that’s reflected in the words you choose and even the body language you use when dealing with them. Here are some phrases that you might use to raise the customer’s self-esteem:

• “I can see how you might think that…”
• “Good question!”
• “That’s an interesting idea, but…”

Above all, no matter how hard it is, resist laughing, snorting, or shaking your head in disbelief when the customer asks a question or makes a suggestion.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

Golf's Grand Slam In The Moonlight -- Free!

Bobby Jones did it, Tiger Woods almost did it, but if the moon were full during the Masters, U.S. Open, British Open, and PGA Championship, could a werewolf win the elusive Grand Slam of golf?

Find out for FREE during this special promotion to celebrate the opening of the golf season in our neck of the woods. Right now you can download a FREE copy of Grand Slam for your Kindle or Kindle app from Amazon.com.

The story is my purely tongue-in-cheek look at the most coveted record in the game. My lupine protagonist stalks the fairways at Augusta National, Shinnecock, Carnoustie, and Winged Foot, not to mention TPC Sawgrass, The Olympic Club, and Whistling Straits, leaving behind a trail of bloody victims and sparking the ire of a golf-obsessed newspaper reporter who vows to stop him.

In case you haven't guessed, this is not your usual golf book! Download it today -- this special promotion ends Wednesday.

Among many other books, Dave Donelson is the author of Weird Golf: 18 tales of fantastic, horrific, scientifically impossible, and morally reprehensible golf

Dealing With Difficult Customers

We’ve all had them:  the customer who refuses to be satisfied. Sometimes they whine like nine-year-olds; other times they rant and rave about our merchandise, our service, or even our parentage. One way to deal with them involves a baseball bat but, attractive as that solution may be, it’s not really viable. Your goal when dealing with a difficult customer is to solve today’s problem in a way that lays the ground work for tomorrow’s order. Smacking them in the head interferes with that process. The better way is to apply some of the simpler principles of sales psychology and see if you can’t turn that steaming monster into a happy, satisfied repeat customer.

The root of most customer problems is stress, usually stemming from what they perceive as an obstacle you’ve placed in their way. They may feel you’re not giving them what they thought they were supposed to get from you, or that what you are providing doesn’t satisfy their needs. Regardless, the first step in reducing the stress level is to find out what’s really bothering them.

That’s much easier said than done. All too often, our first reaction to a complaint is to get defensive. The customer makes a less-than-pleasant comment about the design of a product we’ve slaved over for hours and it’s like somebody peeked into the bassinet and told us our first child was an ugly baby. How dare they!? We have to keep our primary goal in mind:  to make more sales. It’s very satisfying to create beautiful designs, but the only award that counts is the one that ends up in your bank account and that prize comes from a very opinionated judge, your customer. So, if the customer likes it, it’s good. If they don’t, change it! And do it cheerfully, because if you’re snarling under your breath, you’re telling that customer that you think they’re wrong. No one likes to be treated with condescension.

Sometimes, we immediately jump to the conclusion that they’re trying to get something for nothing or to bad-mouth us into cutting our price. There are people like that out there, but there are a lot fewer of them than we think. If we start from a defensive posture, we’re bound to make the problem worse instead of better. Orlando-based organizational management consultant Dr. Arnie Witchel advocates what he calls “negotiation jujitsu” when faced with a difficult customer. “In jujitsu,” he says, “you go with the force to disarm your opponent, not against it. If a difficult customer is pushing hard on you, do not push back!

Reframe any attacks on you or your company with questions that seek to clarify the situation and concerns. Don’t resort to hostility!”  He points out that you have to separate the person from the problem and focus on their interests and goals, not on the problem itself. If you do that, if you approach the situation with an eye on removing obstacles that block what the customer wants to achieve, you’re more likely to arrive at a collaborative, mutually-satisfactory conclusion.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

Power Breakfast for Current and Would-be Entrepreneurs

I'll be moderating this event for entrepreneurs and those who aspire to own their own business.

Register today!

Dave Donelson distill the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

Practical Approaches To Difficult Customers

Here are some ways to improve communication with difficult customers:

• Be receptive. Tell the customer you want to hear what they have to say, then give them a chance to say it.
• Put on their shoes and walk around in them for awhile. If you were faced with their frustration, how would you feel? And, just as importantly, what would you expect to be done to correct it?
• Use descriptive, non-judgmental words. Instead of saying “that’s wrong” try “that’s one way to look at it.”
• Set limits on the problem by excluding things that happened in the past or aren’t relevant to the current situation.
• Break the problem up into smaller pieces and try to reach an agreement on each one.
• Emphasize the things you have in common. “We both want the recipient of your gift to be happy,” for example.

Listening is the most important skill a sales person can possess in every situation, from trying to get an appointment with a new prospect to making a presentation to your biggest client. It’s essential when dealing with a difficult customer, so remember the first rule of listening:  you can’t listen if you’re talking! Let the customer talk. Don’t pounce on the things they are saying by trying to give them an answer before they’re finished saying them. In fact, watch out that you don’t just pretend to listen when you’re actually phrasing your answer while they’re talking. A remarkable number of difficult customers just want someone to listen to their problems, so learn to offer that small service automatically.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

A Message To Our Legislators About Library Aid

Democratic Conference Leader Senator Andrea Stewart-Cousins
spreads the message about more state library aid

Here's our message for NY State legislators this year, courtesy of the Westchester Library System.

Governor Cuomo's proposed budget includes $89.9 million for Library Aid. We request restoration of Library Aid to $102 million--a level equal to that of 2007. Additional funding would help us keep up with increasing demand for library services at all levels.  Here's how Westchester's 38 public libraries stack up from 2007 to 2011 (latest available):

2007 Visits - 7,187,139

2011 Visits - 7,594,963  +5.7%

2007 Expenditures - $63,399,054

2011 Expenditures - $68,078,286  +7.4%

NYS Library Aid helps fund broadband access for 730 public use computers throughout Westchester County, allowing 1,259,931 library patrons to access the Internet.

WLS provides workforce development through numerous programs, including WEBS Career Counseling, online learning programs for GED preparation, ESL classes, and business resources.

Westchester's libraries are an important part of the education system. 34 of our libraries offer early literacy programs and the Summer Reading Games drew 14,917 participants who read 166,941 books.

In 2011, 26,119 NO-Admission-Charge library-sponsored programs saved 537,415 attendees over $4.8 million. 16,082 of these programs were specifically for teens and children.

NYS Library Aid is an integral part of the funding stream for our libraries. Please help us continue to provide these and dozens of other services that empower our communities by voting to increase it to levels commensurate with its importance.

Dave Donelson distill the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

Free Sales Training

Learn the secrets of making a sale on the first call....absolutely FREE!

One of the great myths of selling is that you must make a series of calls on a prospect to determine their needs before you can make a proposal. This is generally time-wasting nonsense based on a misunderstanding of consultive selling. Why wait? You’ll speed up the prospect’s decision-making process if you present an actionable proposal on the very first call. Here's how to do it.

For a limited time, this ebook in the Dynamic Manager Handbook series is available at no cost to Kindle owners or anyone with a device that can use the Kindle app. It's my way of saying thanks to all the readers of the Dynamic Manager series and an introduction to aggressive, progressive sales people who haven't tried it yet.

Dave Donelson distill the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.

The Most Powerful Words In Customer Relations

“I’m sorry” may be the two most powerful words in customer relations. They’re certainly applicable if you or your company messed up an order or have something else for which to apologize, but they also show empathy for the customer’s feelings regardless of who is to blame. Those two simple words go a long way toward removing the “me against you” attitude that pours gasoline on a smoldering customer’s fire.

If you really want to “wow” the customer, accept responsibility for the solution, even if you don’t deserve it for the problem. Fear that their problem is going to get short-shrift causes more customer stress than any other single factor. It’s no wonder, when we live in a society where way too many “customer hotlines” are answered by call-center operators on the other side of the world whose standard answer to a complaint is to file it. Anticipation that this is going to happen turns slightly unhappy customers into absolutely furious customers, so one of the most effective ways you can defuse an explosive situation is to immediately promise your personal attention to working something out. When the customer finds a real, live human being who says they will personally take care of the problem, they’ll feel a tremendous sense of relief. And, when you actually do solve the problem, they’ll become customers for life.

Speaking of stress, it helps to relieve yours if you remember that not every single difficult customer can be satisfied. Sometimes their frustration stems from circumstances beyond your control, the solution is something you can’t deliver, and they just can’t or won’t accept those facts. Or maybe he or she really is that one-in-a-thousand customer whose goal in life is to get the better of you in every deal. If that’s the case, just tell them “sorry” and let them go.  You’ll probably lose a customer but you’ll gain a little peace and quiet.

Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for business owners and managers in the Dynamic Manager's Guides and Handbooks, a series of how-to books about marketing and advertising, sales techniques, and management strategy.