Chris Lyman is the Founder and Chairman of the Board at Fonality. Fonality creates innovative and affordable phone systems for small and medium businesses. Our products include PBXtra, trixbox Pro, and trixbox CE.
The rantings of a serial entrepreneur as he wins, loses, and doesn't pull any punches in describing both...
... or “How to be a fire marshall and not a fire fighter”
I am a scientist. My craft is business and my tool is process. This means that when a crisis erupts (call it an angry customer), I don’t run from it. Nor, do I rush to appease. Nor do I hurdle toward a singular solution. Rather, I immediately begin a holistic examination of the underlying process (or lack thereof) which attributed to the breakage. I then fix (or create anew) the process, and as a byproduct avoid the problem from ever reoccurring.
Duh, right?
Well, this is actually a lot harder that it sounds.
Sure, this practice requires strong critical thinking and clean conflict resolution skills. But, much more difficult: it also requires the suppression of ego. I have to head into every situation assuming that I (or my company) screwed up. I have to open my eyes wide and look for answers wherever they hide, be they with an individual, a stupid process, my business model, or even inside myself.
I have found that unless I start with this guilty-until-proven-innocent approach, I never seem to get to the answer – and my managers are even less successful as they typically start out in damage-control/CYA mode. I tell them: “the goal is to become fire marshals instead of “fire fighters”.
There are a few things I have learned from ten years with this approach:
1. The complaining customer is almost always right.
This sounds like a cliché, but I have found that it usually takes *a lot* for a customer to get mad enough to blow a fit. If you stop focusing on their anger and start focusing on the source of their anger, there is usually a lot to learn. Again, suppression of ego is critical here.2. Nothing ever happens just once, even if you only heard about it once.
Anything that blows up once, will continue to blow up if you don’t find the problem at its source and develop process to solve it permanently. Close your eyes and imagine every crisis you have had this month reoccurring 10x each over the next year. Now, you understand why global resolution is the only resolution.3. There are always several problems, so don’t stop looking after one.
Just as a car accident usually involves a couple of simultaneous errors and some bad luck, so do business crises. So, the lesson I have learned is: “keep looking *after* you find that first problem.” You usually will find a few other lurking process issues.
My approach does not mean that I kowtow to every angry customer and engage in random acts of apology/acquiescence. Quite the opposite. I have no problem telling a customer that their complaints are unfounded. But, I never do this until I conduct very intense forensics. And, about 85% of the time, they customer *is* right.
My managers used to try to tell me (after a fiasco), we did nothing wrong. The customer was (fill in the blank here) a) confused b) unlucky c) lazy d) lying. None of these answers every fly with me anymore, so they stopped trying. Now they all know to look at the flawed processes, which always reside at the core of the debacle and ‘git to work fixin’ em!
How do you handle customer crisis in your company?
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Chris Lyman
Fonality CEO & Janitor
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I concur.
Sometimes customers have a
Sometimes customers have a good point being upset about services not being delivered (correctly). The root cause of the issue is hardly ever the customer being confused or lazy.
In fact even if that is the case; people in the company should never be disrespectful about the customer, even behind their backs. It's about mentality. This is not the kind of mentality you want in a company, as it is counter-productive; instead of taking problem ownership, it deflects it, even worse: to the customer.
The cause of most issues in my experience is lack of expectation management, the customers expectation of the product/service is different from what the company delivers. Good expectation management often takes away the whole issue.
I agree each complaint must be approached with looking for the cause within the own company, and ego's definitely are an obstacle for that. The procedure that handles such a complaint should have several outcomes:
1. A satisfied customer
2. A root cause of the issue
3. Ideas for improving the process that caused the issue
4. Ideas for better expectation management for avoid the issue
The nice thing about point 4 is that it avoids angry customers. However, the moment you are stating to use expectation management to covers your ass this should trigger warning bells: that's when a process is wrong and should be fixed.
Having said that; some customers will use complaints as a trick to get out of paying bills. I firmly believe these are the type of customers to stay away from. I know (especially sales) people in the business frown upon such statements, but I really believe some customers are not worth the hassle. (they are rare though). This is where it becomes difficult. When do you opt for problem ownership, and when do you tell the customer to look elsewhere?
Typically this is -not- a fine line; usually the choice is obvious, but should be an executive decision. Many factors such as potential revenue, costs of problem resolution, history etc. are to be considered.
Frost hits it on the head
In my years of experience, most PO'ed customers truly do have a valid reason for being that way, usually because - in the heat of the sales battle - the limitations of the product were minimized and the benefits exaggerated. Normal sales stuff. :-) Or, something like "you must keep your support contract paid to keep getting great service" gets left out of the discussion.
As with all things, it's not what happens to you but how you handle it that really determines your underlying character, so Chris' point about being ready to put ego aside and accept that someone on your team goofed or whatever process broke down or whatever is key.
Two other points: there are the very, very rare customers (like employees) that deserve to be fired. As the guy said in "Cool Hand Luke", "some people you just can't reach!" and they will never be happy no matter what you do. The other point is that that ability to truly put ego aside is one of the most rare attributes existing in today's world.
Expectations Management
Both Frost and Gerry hit on a expectations management. The best way to prevent this is to have processes/systems for everything (and be willing to revise/improve them over time). It's nearly impossible to manage expectations if the rest of the business isn't being system-ized. This is because you can't manage expectations for something that isn't consistent. :-) See E-Myth Revisited by Michael Gerber and/or http://www.e-myth.com
-jr
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