Leadership First: Learn from messes left by toxic customers

Dear Anonymous: I am an unabashed champion of the customer and promote giving them remarkable service. But I do not believe or support the notion that the customer is always right. In fact, customers can be totally wrong – and they can even be toxic to your business.

Here are three common types of challenging customers and my advice for dealing with each. No. 1: Spoilers. These customers are the worst, because they are out to take advantage of you and your company. They continually make false or exaggerated claims about your product/service and relentlessly demand refunds or adjustments to their bills. They threaten that they’ll tell their friends and neighbors about your poor product or service. Your best bet is to talk with them first and be upfront about your position. You probably won’t get it worked out because they aren’t looking for fairness, so refer them to a competitor (pick one you can’t stand!) and turn your attentions to more profitable accounts. No. 2: Gripers. Chances are you currently have or have had a constant complainer. Before you dismiss them, be certain that they don’t have a justifiable point. If this isn’t the case and you’ve established a repeated pattern of unjustifiable whining, ask them nicely to go elsewhere. In the end, your company will hold on to good performers longer and your service to valued customers will be enhanced. No. 3: Demand artists. These customers don’t want to play by your company’s rules. They want you to make exceptions, change the deadlines, speed up the deliverables or alter the policy to fit what they constantly want different. Demand artists cost untold extra time and expense to handle their accounts, not to mention the toll it exacts on your people who try to look out for your company’s interests. The best solution is to have open dialogue with demand artists early on, before the problem festers. Help your customer understand the reasons behind your rules and policies. If they still don’t comply, then consider whether you want them to take their business elsewhere, or hire extra people to handle “special” accounts. Bottom line: Establish clear guidelines and rules, then make sure they are adhered to so that it is fair to all customers.

Dear Mark: How do you get associates to not be defensive when a customer has a problem or complains, but rather take ownership for the issue and resolve it? —D.P.

Dear D.P.: There are three possible reasons why the associate is not taking ownership. 1. The employee is unwilling. Usually this is rooted in avoidance because the employee does not possess behaviors or values that match well with a customer service role. 2. The employee is not confident in how to handle the situation. 3. The employee is unsure of how you exactly want them to resolve the issue. Simply having standards does not mean that they are crystal clear to your employee. Here are four possible action steps you might consider after you identify the root causes: No. 1. Hire the right people for the customer roles in your company. Going on your gut instinct in an interview or making sure they have acceptable experience only works well about 10 percent of the time. You’re looking for patience, listening, tactfulness, courteousness and a sense of urgency. No. 2. Re-examine your training program for gaps or weaknesses in content design, especially clarity of standards and processes linked with customer problem-solving. No. 3. Be certain that you are providing adequate recognition and/or rewards for associates when they do take ownership and resolve customer issues effectively. No. 4. Regularly reinforce your expectation and standards for problem-solving by taking a few minutes in a staff meeting to discuss any recent issues with your associates.

Consultant Mark Holmes speaks nationally on increasing employee and customer retention and improving employee performance. He is the author of “Wooing Customers Back” and “The People Keeper.” He can be reached at mholmes@thepeoplekeeper.com.

Workplace Solutions

Join in on workplace conversations with Mark Holmes during monthly Leadership First Friday lunch discussions covering workplace topics and business books. The next Leadership First Friday is 11:30 a.m.–1 p.m. Aug. 1 at Great Southern Bank’s Operations Center, 218 S. Glenstone Ave.

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