1. 15-1 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 15 Winning and Keeping Your Customers

3. 15-3 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. What Do Customers Really Want? McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  Customers only want two things:  Good feelings  Solutions continued

4. 15-4 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. What Do Customers Really Want? continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  Examples of what customers want:  You don’t sell clothes. You sell a sharp appearance, style, attractiveness, comfort, and warmth.  You don’t sell a house. You sell comfort, contentment, a good investment, pride of ownership, privacy, and space. continued

5. 15-5 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. What Do Customers Really Want? continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  According to the American Management Association, 65 percent of a typical company’s business comes from existing customers.

6. 15-6 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Customer Service: A Definition McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  What is good customer service?  John Tschohl, customer service guru, says “You have good service only when customers think you do.”

7. 15-7 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Two Simplest Principles of Customer Service McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. When you are dealing with any type of customer, the two simplest principles help greatly: 1. Find out what the customer needs. 2. Do whatever is necessary to satisfy those needs.

8. 15-8 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Customer’s Needs— Basic Human Needs McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. beingaccepted by others feeling comfortable feelingappreciated being treated with respect being welcomed and acknowledged being treated as an individual beingrecognized being treated with fairness being listened to

9. 15-9 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Issues in Customer Service: Your Customers and Your Attitude McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  What kind of attitude do you show toward your customers?  If you are having a bad day, do they know it?  Do you come off as smug, arrogant, or too humble?  Do you treat them with the same respect as when you won them?

10. 15-10 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Issues in Customer Service: Delivering Bad News McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  One of the touchiest human relations issues is the tough task of giving customers unwelcome news— especially when they expect nothing but good news.  Developing sound bad news skills is essential, and it will make the task less unpleasant.

11. 15-11 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Four Rules for Giving Customers Bad News McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1. Use a polite tone of voice. 2. Don’t spend too much time and energy on apologies. 3. Deal with why the problem exists. 4. Talk about what can be done to solve the problem.

12. 15-12 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Issues in Customer Service: Encouraging Complaints McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  Don’t rely on being told what the problem is.  Most customers are the “nice” customers. They never complain, but they respond to bad service by going somewhere else.  Understand complaints; they are an opportunity to improve.  Develop a new attitude to complaints, and develop a new attitude to customers.

13. 15-13 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Ten Commandments of Good Business McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1. A customer is the most important person in any business. 2. A customer is not dependent on us—we are dependent on the customer. 3. A customer is not an interruption of our work—the customer is the purpose of it. 4. A customer does us a favor when he calls—we are not doing the customer a favor by serving him or not. continued

14. 15-14 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Ten Commandments of Good Business continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 5. A customer is part of our business—not an outsider. 6. A customer is not a cold statistic—the customer is a flesh-and-blood human being with feelings and emotions like our own. 7. A customer is not someone to argue or match wits with. continued

15. 15-15 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Ten Commandments of Good Business continued McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 8. A customer is a person who brings us his or her wants—it is our job to fill those wants. 9. A customer is deserving of the most courteous and attentive treatment we can give. 10. A customer is the life-blood of this and every other business.

16. 15-16 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Handling the Difficult Customer McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. When dealing with an angry customer, remember two things:  Stay focused.  Avoid the self-esteem trap. Remember: “This is just business; it’s not personal.”

17. 15-17 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Going the Extra Mile McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  When a company gives customers small “extras” as a way of showing appreciation (going the extra mile), it always pays for itself.

18. 15-18 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Using Strong Ethics McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  When deciding on the ethical approach to a situation, ask yourself, “Would I want all of my procedures to be made public knowledge?”  Also, think of the Golden Rule. Are you treating your customers in a way you would want to be treated in a similar situation?

19. 15-19 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Who is Running the Business? McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.  You must set limits as to the extent to which you will allow a customer to run your business.  The customer must never be allowed to undermine company decisions. continued

20. 15-20 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Strategy for Success 15.1: Establish a Bond with the Customer 1. Understand the customer’s real needs. 2. If your customer is another business, learn about that business. 3. Provide exceptional customer service. 4. Avoid taking your special relationship for granted.

21. 15-21 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Strategy for Success 15.2: Support the Customer’s Self-Esteem 1. Put the customer at ease. 2. Put yourself in the customer’s place. 3. Make the customer feel understood. 4. Make the customer feel important. 5. Praise the customer appropriately.

22. 15-22 McGraw-Hill/Irwin Human Relations, 3/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Strategy for Success 15.3: Handling the Difficult Customer Professionally 1. Let the customer vent. 2. Get the facts. 3. Be sure you understand the customer’s feelings. 4. Suggest a solution. 5. End positively. 6. Don’t expect to win them all.

23. Chapter 15 End of Chapter 15