12/26/2002 Customer Service Tips for Client Retention By Sharon M. Sobon, Sobon & Associates, LLC This month’s article is on a subject that all of us including our staff encounter from time to time. I feel this particular subject is critical to client retention because if not handled correctly it may result in, not only a discontented client, but also empty office space. The subject is Conflict Resolution and the following is courtesy of Wendy Spreenberg of Site REsolutions Real Estate Consulting. Wendy, an Associate Member of OBCAI, is an Industry Consultant. As professionals in this business, we would like to believe that we have anticipated all potential problems and have planned to avoid them. Then... the unexpected happens. You have a relatively new client with new service needs that are just a tad off from normal procedure (we make exceptions all the time in the high-service hospitality industry we call Office Business Centers)... And... we goofed! We rushed the process and now we have got... let’s say it together... A CONFLICT! Now what do you do? When working with a client to resolve a conflict: Invite the client into a closed office or conference room – One On One. You need to remove the client(s) from the public space. If they are speaking loudly – it will affect another client or perhaps a prospect. Acknowledge that the conflict exists and invite the client to explain the full circumstances. The client will be more emotional in the beginning of this process and you must retain the ability to rationally discuss the problem together. Your willingness to take a proactive step at solving the problem goes a long way in demonstrating your credibility to the client. While the client explains the problem, take notes, ask clarifying questions only, listen, listen, listen while the entire scenario is disclosed. The client needs to know that you are truly, fully listening to the problem. This will diffuse the emotion and they will move into a “listing” of the steps to the conflict. Do not interrupt. Wait for a gap in the explanation to ask clarifying questions. Do not attempt to respond to any of the issues. This is your chance to hear the entire situation through to the end. When the full explanation is given, take time to quickly paraphrase the circumstances back to the client. This step proves to the client that you have heard their position and that you care about what is important to them. Actually explain to the client that you would like to ensure your understanding by listing the key points of the conflict to the client. Avoid using any emotional words that the client may have used in their explanation of the circumstances. Example: Client’s words – “Your people’s lack of attention to the problem makes my company look completely unprofessional to my clients and associates! I know I’m losing money due to your company’s incompetence.” Your paraphrase – “You’ve explained that this problem has caused your business to lose both money and credibility to your clients and associates.” AT THIS POINT, IT IS CRITICAL that you make NO judgments about the information; rather, you are simply repeating their position. Tough as it is, you must remove your own emotion about any accusations put forth by the client about you, your staff and your company. Reminding yourself that much of this is born from the client’s frustration will help remove any personalization you may feel about what has been expressed. Ask for verification of the facts from the client. Make certain as you paraphrase that the client is in agreement with your reiteration of the facts. They will be able to clarify points and may even back down from a strongly emotional position. Ask definitively if you have all of the facts stated correctly. Apologize that the conflict arose. Do not deny that there is a conflict. If you do, you will have created a feeling of defensiveness by the client to justify their position. You have, unwittingly, justified their current negative feelings about you and your organization. Own up to it, simply and directly, without dramatics. Describe what you will do to resolve the conflict and thank them for meeting with you. Avoid explaining the reason behind the service blunder. The client does not care. They just want to be certain that the problem is resolved and that it never happens again. If you have resolution to the conflict, state so directly what you will do about it. Thank them for taking time out of their busy day to meet with you and discuss the problem. It demonstrates again that you are not fearful of handling the big issues and that you are here to help their business. After all, you really ARE thankful they are your client. If you do not have an immediate answer to how you will resolve the matter, make a commitment to look into the problem further. Most importantly, keep the client informed. Give the client a specific time frame, ideally within three business days, you will find a way to resolve the issue in a favorable manner for all parties concerned. Stay in touch – if you are waiting for another party to provide information and answers, say so. If this information is delayed, tell the client. Inform the client when you can expect to hear from the other party and keep the communication open. Commit to a follow-up meeting with the client within three business days to give results of policy/procedural changes, any service credits, if applicable, and what performance the client can expect in the future. How will you ensure that this does not happen again? Do you need to modify a process or procedure? Does it require additional staff training? Is this a modification to a Training Manual? What suggestions does your staff have for streamlining a process? If the staff has made a contribution to the resolution, tell the client. This solidifies the client’s relationship with your staff and helps instill greater confidence that the center is actually performing as a team. This problem is simply an exception to the “well-oiled machine” we run. Thank them for working through the conflict with you and sincerely express how important they are to you as your client. Again, “Please” and “Thank You” are never over-valued in our day. This time, you are creating closure to the conflict and are thanking them for the opportunity to re-earn or win back their trust. It also gave you a chance to learn something new! Follow up in two weeks just to see how things are going for them. Can you also provide another relationship-building reason to talk with them? Have they, a colleague, or their client been showcased in any business or philanthropic news? Do you have a business referral for them? Can you mention another idea brought forth by the center staff creating a new service? Make the conversation about the client and the client’s success. Wendy continues, “I can tell you from personal experience that it was always much better to acknowledge the conflict and be very proactive in resolving the issue. In one case, nearly 10 years ago, it turned the small satellite office of a short-term client into a longer-term client and, ultimately, into a fan for life. Anyone heard of Oracle?” I sincerely want to thank Wendy for submitting this feature for the series and if you feel this is a topic of critical importance on a grand scale, Wendy has taken the topic of Client Retention as a whole and created a live presentation from it. She states, “The information I send for the article is just a tip of the iceberg.”