Avoid Impulse Apologies To Angry Customers

17 August 2007

Avoid Impulse Apologies When Confronted By Angry Customers

Apologies are not helpful when it comes to managing a customer’s expectations

Everyone makes mistakes. However, the most important first step for anybody confronted by an angry customer is not to attribute blame or even to be too quick to apologise – it is first to focus on what will satisfy the customer.

Managing Director of KiwiHost New Zealand, Simon Nikoloff, advises employees and business owners to be sparing with saying ‘sorry’ straight off the cuff – however, apologising for the inconvenience the customer is experiencing is always going to be a good move.

“If you, or your company, are to blame, then you must apologise, but later. If you are not to blame, you should still focus on making the customer happy, but do not apologise for the problem because that is accepting blame for something you did not do.”

Mr Nikoloff says a hasty apology is not helpful when it comes to managing customer expectations, which can sometimes be unrealistic and damaging. Be prepared to manage the customer’s expectations with a sound explanation and to offer alternatives, if possible and practical.

“Recently a small part in our fridge broke down. My expectation was that it was a small component and therefore would be cheap to replace. As it turned out, this component was part of a larger ‘module’ which had to be replaced in its entirety – that’s just the way the fridge is built. This is not the service provider’s fault, but he did have to manage my expectations.”

Mr Nikoloff says KiwiHost’s advice – besides training your staff in how to deal with conflict – is to give them a written set of process and procedures to follow in this situation, even scripting some of the things they should say, and empowering frontline staff to take ownership and exercise initiative when solving a customer’s problem.

He says that while there are many statistics being bandied about, the experience of KiwiHost – which has been involved in customer service in New Zealand for more than 17 years – is that two thirds or more of customers would rather stay with a company than move, provided that they’re treated with respect and, most importantly, appreciation.

KiwiHost has a ‘Four F Formula’ that can be applied when things go wrong. Often a customer just wants to be heard, so let them speak. Often it’s not to do with your product or service, so just letting off steam resolves the problem. But when this isn’t enough, tactfully apply this handy formula:

1. Feelings – Let the customer speak, listen for feelings, don’t interrupt or be tempted to answer point by point. Apologise for the inconvenience – not the problem until you understand underlying causes – and reassure them that you are here to help.
2. Facts – Gently but firmly agree on the facts of the problem because its only when you have the facts that you can offer a solution. It may turn out that the problem is the customers’ expectations, not the products or service.
3. Fix it – Offer a solution that addresses the problem. Use ‘can do’ language. Often it is better to offer two solutions. Get agreement on the fix required.
4. Follow up – It may be hard to do, but after an appropriate time follow up with the customer; make that call, talk to them next time they are in; find out how things are. They will appreciate your concern and you will have more chance of keeping the customer if you do!

“Common business wisdom today says that customers who complain are your friends, and I will agree fully with that. Again many studies have been done, but the rule of thumb appears to be that customers who complain are ten times more likely to stay with you than those who say nothing,” says Mr Nikoloff.

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