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Cost reduction and profit improvement for businesses

When all else fails: Building
customer loyalty from adversity

A wrench in the works!  What do you do now?

It just hit the fan. An important customer is really mad. You blew it and they're ready to walk.

How you respond will either lose them or win them over for life. There's nothing like coming through adversity together in a positive way to create customer loyalty. Here's what you can do.

  1. First listen and listen well. Acknowledge the problem and understand what the issues are, how they feel about them, and what they need. You need to validate your customer’s feelings and their view of the problem. Understanding does not mean you have to admit guilt or waive your legal rights. 

  2. Get solutions underway now. If their plant is shut down, get them what they need whatever it takes. If there's a quality question, assume they are right for the moment and replace the materials or dispatch a service team. Let them know you will sort out the questions of responsibility later and that your first interest is to minimize their loss.

  3. Make management contact. Get the appropriate levels of management involved on both sides. Go one or two levels up in your organization so the customer sees that they have high-level attention. Phone calls may be okay but in severe cases, get a team into their facility as soon as possible. The team should include management and problem solvers.

  4. Solve the problem and find the root causes. Work with the customer cooperatively as much as possible to get through the problem and find out what happened. Make them part of the solution whenever possible. At this time you can both understand what went wrong and sort out who will pay for what. Since you've already been cooperating and have relationships built, this should be an easier and less costly process than going to court.  Root cause analysis.

Summary:

This proactive approach allows you to create, deepen, and strengthen new relationships in both organizations. It allows you to engage in creating solutions rather than fighting over whom to blame. The customer will be more loyal to you when they know that you can help them through problems and are committed to their welfare.

 

Read about a real example of how we made a difference through staff training.

 

 

Cost Reduction & Profit Improvement
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