Michigan State University Extension
Tourism Educational Materials - 33209727
06/06/02
Customer Relations: The Care and Feeding of Customers
Source: Western Rural Development Center - New Mexico
State University
Author: Coppedge, Robert
Format: Chapter 14 from Getting Down to Business Notebook
This can be a two-part workshop designed to increase sales
and profitability. The topics covered in the first part
reduce the loss of customers, and increase the satisfaction
levels of current customers. This results in more customers
buying merchandise and a higher level of sales per
customer. The second segment of the workshop is designed to
help improve customer relations and increase sales through
effective selling techniques.
PROGRAM OBJECTIVES
Better awareness of the importance of customer relations,
and introduction to better techniques for customer
relations.
INTENDED AUDIENCE
This program is designed for owner/managers and employees
of retail and service businesses that rely on direct
contact with customers. Any organization that deals with
people can benefit.
CONTENT TAUGHT AND METHODS USED
Films, overhead transparencies, and handouts are used to
cover the techniques of better customer relations, and
illustrate the importance of treating customers well.
PERSON RESPONSIBLE FOR PROGRAM
Robert O. Coppedge, Economic Development Project Leader,
Cooperative Extension Service, Box 3AE - NMSU, Las Cruces
NM 88003
Revitalizing Rural America - Getting Down to Business
Before: Put up Overhead #1, "What kind of customer." Local
commends, introductions.
My program:
- New Mexico State University Cooperative Extension Service
- Business and Economic Development
- County Extension Office
- Handouts
Structure of the workshop (times of breaks, ending, C.R.II,
films, etc.)
What kinds of businesses do you represent?
Are you owners/managers or employees?
What kinds of customers do you have? Tell me about them.
What kinds of customer relations problems do you have?
Think of yourself as a customer.
Speaking as a customer, now, what are some of your most
memorable experiences?
Think of your customers.
Today we will be discussing the following for 1 « hours:
- The technique for good customer relations (much more than
manipulation)
- Why customers quit
- The film, "Take Care"
- Solving customers problems and meeting their needs
- Turning the irate customer into an asset
Put up overhead #2, "Why customers quit"
Why customers quit:
1% Die
3% Move away
5% Other reasons
9% Competitive reasons
14% Product dissatisfaction
68% Indifferent attitude of sales person*
* I experience the indifferent attitude, and increasingly I
take my business elsewhere.
Examples:
- McDonald's - eye contact
- Wal-Mart - greeter
- Disney Land - "guests"
- TLC vs TDC
The film, "Take Care"
Some things to look for:
- Reveals the secret of good customer relations and
demonstrates how to put good customer relations out front
in all parts of your organization.
- Explains how to use questions to show your customers that
you really understand their problems, needs and wants.
- Explains how to make your first and subsequent
impressions demonstrate that you and your employees really
care.
- Explains how to handle the irate customer who can damage
your good reputation and turn him or her into an asset.
- Provides examples of customer relations problems in such
businesses as a service garage, several retail settings and
a savings and loan association. The principles discussed
cover other types of business, and any situation where you
deal with people.
(Show the film)
Review film
"Take Care" summary handout, give out.
Did you see yourself in this film?
- as a salesperson?
- as a customer?
Your policies may vary: Your business may require
variations on these principles, but remember...good
customer relations is more than technique...it is an
attitude toward the customer as a person: caring about what
concerns them; meeting their need.
Put up Overhead #3.
Customer relations
Customer relations is being concerned about the customer's
needs. How do you determine those needs?
- Ask questions.
- Open-ended questions.
Example: Appliance salesman in the film---What did he do?
He assumed he knew what the customer wanted and needed. He
lost the refrigerator sale. He nearly lost the microwave
sale. What happened?
Ask questions.
To discover:
- Concerns
- Needs
- Wants
Restate what you think customers need.
- Listen for clues
- Do something extra
Put up Overhead #4.
Listen. Ask questions, listen to answers.
Ten guides to effective listening:
- Stop talking! Shut up! Be quiet! Stop thinking of reply!
- Put the talker at ease. They must be free to talk.
- Show you want to listen. Look and act interested.
- Remove distractions. Don't doodle, tap or shuffle paper.
- Empathize with talker. Put yourself in their shoes.
- Be patient. Don't interrupt or walk around.
- Hold your temper. Anger may distort the meaning.
- Go easy on argument and criticism. Even if you win, you
lose.
- Ask questions. Encourages the talker to explain clearly.
- Stop talking! This is so important that it is first and
last.
Put up Overhead #5
General points on customer relations
We all know this, but we forget---common sense.Example on
film of woman at financial institution with messy desk,
etc.
Definitions vary by type of business, but there are
reasonable standards that customers expect.
General points on customer relations:
- Keep work area neat
- Be well groomed
- Recognize customer immediately
- Smile
- Give the customer full attention
- Tell the customer what you can do
Create a positive atmosphere. Loan officer at financial
institution...
Computer broke down, she presented 3 options:
- Look up hard copy
- Call later when computer up
- Write later when computer up
Put up Overhead #6
When using the telephone
Example on film of the other woman who answered the phone.
When using the telephone:
- Answer promptly
- Put a smile in your voice
- Speak clearly
- Identify yourself
- Use customer's name frequently
- Say thank you
Put up Overhead #7
Handling the irate customer
How do you feel when a customer is angry?
Have you ever been an angry customer? How did you feel?
Example from film: (Guy using unfiltered gas.)
He wasn't made to feel guilty.
Anger is not directed at you personally
Help customer deal with the problem in a rational way
Help customer dissipate anger:
- Allow expression
- Listen sympathetically
- Empathize
Find a solution:
- Ask questions about facts, not emotions
- Get agreement on possible solution
Customer vs Company
Customer and Company vs Problem
Put up Overhead #8.
Dynamics of customer relations
Dissatisfied customers tell more people than satisfied
customers.
Word of mouth is effective advertising for good or bad.
- Tucumcari motel operator---Kansas City references
It is easier to create good customer relations than to fix
problems.
Many dissatisfied customers do not tell you when or why
they quit, they're just gone.
A survey of 175,000 communications from consumers revealed:
- Customers who are not satisfied typically tell 9 or 10
friends
* 12% told more than 20 people
* 30% stopped buying the product
* 45% planned fewer purchases
- 85% of the complaints were resolved successfully and
these customers:
* Told 4 or 5 other people
* 10% bought more products
According to the August 1985 BSED newsletter, 96% never
tell you they have a problem, they just leave. If they let
you know, you could turn 85% of them into satisfied
customers.
Take a survey periodically, ask your customers:
- Visit 3 customers Monday morning, in their business
- Call 4 or 5 every Tuesday afternoon
- Mystery shopper
- Hand out a short questionnaire
- Stop 2 or 3 every Thursday afternoon in the store
- "Are we doing anything that bugs you?"
- Publicize results to employees and customers.
Put up Overhead #9
What is a customer?
A customer is the most important person in our business.
He is not dependent on us. We depend on him.
(In person, by mail, or on the phone)
A customer is not an interruption of our work.
He is the purpose of it.
A customer is not a cold statistic. He is flesh and blood.
A customer is not someone to argue with or match wits with,
or try to outsmart.
A customer is a person who brings us he wants. (It's the
responsibility of the business to discover those wants and
meet them.)
Summary and conclusions
Common sense. Hard to remember in the middle of it all.
What are you trying to do? Meet the customer's need, and as
a result, sell. Basic people skills.
Genuinely care about people and let them know. Small towns
can have a corner on this.
Good customer relations is the cheapest and best
advertising you can get. Few things are free. This is.
Customer Relations deals with basics---caring about the
customers. Customer Relations II points out that it takes
more than caring. It takes action; knowledgeable action.
Effective sales techniques are essential to good customer
relations.
Evaluations
Questions
References
American Media Incorporated, Can You Help Me? (A film on
retail selling), Des Moines, Iowa, updated.
American Media Incorporated, Take Care (A customer
relations film), Des Moines, Iowa, updated.
Direct Selling Education Foundation, Customers Mean
Business (pamphlet), 1730 M. Street, NW, Washington, DC,
1982.
Peters, Tom and Nancy Austin, A Passion for Excellence:
The Leadership Difference, Random House, New York, 1985.
Peters, Thomas J. And Robert H. Waterman, Jr., In Search of
Excellence, Warner Books Edition, New York, 1982.
Customers/Overhead #1
WHAT KIND OF CUSTOMERS DO YOU HAVE?
* REPEAT, NEW
* OLD, YOUNG
* RESIDENT, OUT-OF-TOWN
* WEALTHY, MIDDLE INCOME, POOR
* RURAL, TOWN
* ETHNIC GROUP
* BUSINESS TRAVELER, TOURIST
* MALE, FEMALE
* OTHER TOWNS
Customers/Overhead #2
WHY CUSTOMERS QUIT
1% DIE
3% MOVE AWAY
5% OTHER REASONS
9% COMPETITIVE REASONS
14% PRODUCT DISSATISFACTION
68% INDIFFERENT ATTITUDE OF SALES PERSON
Customers/Overhead #3
ASK QUESTIONS
* TO DISCOVER: CONCERNS
NEEDS
WANTS
* RESTATE WHAT YOU THINK CUSTOMERS NEED
LISTEN FOR CLUES
DO SOMETHING EXTRA
Customers/Overhead #4
TEN GUIDES TO EFFECTIVE LISTENING
* STOP TALKING! BE QUIET! STOP THINKING OF REPLY!
* PUT TALKER AT EASE. THEY MUST BE FREE TO TALK.
* SHOW YOU WANT TO LISTEN. LOOK AND ACT INTERESTED.
*REMOVE DISTRACTIONS. DON'T DOODLE, TAP OR SHUFFLE
PAPER.
* EMPATHIZE WITH THE TALKER. PUT YOURSELF IN THEIR
SHOES.
* BE PATIENT. DON'T INTERRUPT OR WALK AROUND.
* HOLD YOUR TEMPER. ANGER MAY DISTORT THE MEANING.
* GO EASY ON ARGUMENT AND CRITICISM. EVEN IF YOU WIN,
YOU LOSE.
* ASK QUESTIONS. ENCOURAGES THE TALKER TO EXPLAIN
CLEARLY.
* STOP TALKING! THIS IS SO IMPORTANT THAT IT IS FIRST
AND LAST.
Customers/Overhead #5
GENERAL POINTS ON CUSTOMER RELATIONS
* KEEP WORK AREA NEAT
* BE WELL GROOMED
* RECOGNIZE CUSTOMER IMMEDIATELY
* SMILE
* GIVE THE CUSTOMER FULL ATTENTION
* TELL THE CUSTOMER WHAT YOU CAN DO
Customers/Overhead #6
WHEN USING THE TELEPHONE
* ANSWER PROMPTLY
* PUT A SMILE IN YOUR VOICE
* SPEAK CLEARLY
* IDENTIFY YOURSELF
* USE CUSTOMER'S NAME FREQUENTLY
* SAY THANK YOU
Customers/Overhead #7
HANDLING AN IRATE CUSTOMER
* ANGER IS NOT DIRECTED AT YOU PERSONALLY
- HELP CUSTOMER DEAL WITH THE PROBLEM IN A RATIONAL WAY
- HELP CUSTOMER DISSIPATE ANGER
ALLOW EXPRESSION
LISTEN SYMPATHETICALLY
EMPATHIZE
- FIND A SOLUTION
ASK QUESTIONS ABOUT FACTS, NOT EMOTIONS
GET AGREEMENT ON POSSIBLE SOLUTION
Customers/Overhead #8
DYNAMICS OF CUSTOMER RELATIONS
* A SURVEY OF 175,000 COMMUNICATIONS FROM CONSUMERS
REVEALED:
- CUSTOMERS WHO ARE NOT SATISFIED TYPICALLY TELL 9 OR 10
FRIENDS
12% TOLD MORE THAN 20 PEOPLE
30% STOPPED BUYING THE PRODUCT
45% PLANNED FEWER PURCHASES
- 85% OF THE COMPLAINTS WERE RESOLVED SUCCESSFULLY AND
THESE CUSTOMERS
TOLD 4 OR 5 OTHER PEOPLE
10% BOUGHT MORE PRODUCTS
Customers/Overhead #9
WHAT IS A CUSTOMER?
* A CUSTOMER IS THE MOST IMPORTANT PERSON IN OUR BUSINESS.
HE IS NOT DEPENDENT ON US. WE DEPEND ON HIM. (IN PERSON, BY
MAIL, OR ON THE PHONE)
* A CUSTOMER IS NOT AN INTERRUPTION OF OUR WORK. HE IS THE
PURPOSE OF IT.
* A CUSTOMER IS NOT A COLD STATISTIC. HE IS FLESH AND
BLOOD.
* A CUSTOMER IS NOT SOMEONE TO ARGUE WITH OR MATCH WITS
WITH, OR TRY TO OUTSMART.
* A CUSTOMER IS A PERSON WHO BRINGS US HIS WANTS. (IT'S
THE RESPONSIBILITY OF THE BUSINESS TO DISCOVER THOSE WANTS
AND MEET THEM.)
This information is for educational purposes only. References
to commercial products or trade names does not imply
endorsement by MSU Extension or bias against those not
mentioned. This information becomes public property upon
publication and may be printed verbatim with credit to MSU
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