At some point, every retail establishment will encounter an unhappy customer who may or may not have a valid complaint about a product, service, or salesperson. Rather than avoid the problem, acting quickly to assess the situation and address the customer’s concerns is critical. When handled correctly, what is initially a problem can become an opportunity for the retailer to elevate the person’s perception of the business and ultimately build an even better relationship. This phenomenon is called the service recovery paradox. Resolving the problem to the customer’s satisfaction has the same effect as if there had never been a problem or complaint. However, to get to the source of the complaint, business owners need to establish a process that everyone in the organization has been trained to follow. It starts by asking customers the right questions.

• What is the problem?
• Do you have an example I can refer to?
• Can you provide additional details?

During the conversation, you may need additional information. Before making assumptions, ask the customer to clarify any points that may be confusing. Often, retailers discover that finding a solution to the problem can result in helpful feedback from the person initiating the complaint. Dealing with disgruntled customers can be unpleasant, but being prepared makes finding common ground easier.

Research shows that excellent service improves the bottom line because loyal customers spend more, and keeping them is less expensive than getting a new customer. Just as important, small businesses rely on repeat sales and positive feedback. Smaller businesses are significantly affected when customers are dissatisfied and choose not to return.

However, few stores are aware of or willing to admit that their service is anything less than perfect. In fact, 80 percent of companies believe they offer a “superior customer experience.” Unfortunately, only 8 percent of customers agree. So why is there such a big disconnect, and what do customers really want?

• Deliver a Hassle-free experience. Customers don’t like unpleasant surprises. Being out of stock on popular products can be irritating, but rude behavior is rarely tolerated. Customers may sulk in silence and never buy from you again.
• Go above and Beyond. Extending small courtesies like giving away hot dogs and popcorn every Saturday engages the community and has a big impact. Also, consider holding paint and decorating workshops or creating projects using ideas found on Pinterest. Assembly and delivery services are also good options.
• Listen before reacting. Hear what your customers have to say and ask the right questions before recommending a product or deciding on a solution. This empathy builds trust and shows the customer addressing their needs is more important than making a quick sale.
• Know your business inside and out. Customers assume you know more about your products and services than they do. When they are in your business, they expect you to have answers and solutions.
• Handle Complaints Quickly. Mistakes happen. Accept responsibility and handle them quickly. Being proactive not only solves the issue, it makes customers more loyal. If problems are fixed quickly, 90% of customers are likely to return or rebuy.
• Ask for Feedback. Make it easy for customers to share their comments and ideas on how you can improve your service or product assortment. Place comment boxes near the checkout to determine what your store can do better. This small gesture makes customers feel like part of your “community.”

Different Types of Customers

Confrontational Customers: These customers want to let you know they are upset by being confrontational, loud, or verbally abusive. Rather than mimicking their behavior, be firm yet polite.

VIP Customers: Price is no object for these customers; they are willing to pay premium prices and expect exceptional service. When dealing with these customers, focus on solutions rather than excuses.

Pesky Customers: Although these customers contact you so often, they become irritable, make an extra effort to be patient with them and their frequent demands. When you finally make them happy, they will become your business’s biggest champions.

Silent Complainers: You may never hear from these customers since they are quiet. They take their business elsewhere rather than contacting the company to inform them of a problem.

Realizing that customers are complex, with a wide range of motivations and behaviors, these broad descriptions can assist retailers in assessing customers by type and offering an appropriate response.

Give Customers a Speedy Response
Customers get frustrated when their concerns aren’t being addressed. What begins as a relatively calm situation can escalate if someone who is already unhappy feels ignored. Most retailers can recognize if a customer is willing to wait a day for the store owner to investigate the matter or if the complaint needs a speedier resolution because the customer is having a meltdown. If the person has left a phone message, contacting them should be a priority.

Offer a solution and mutually agree that the problem is solved
After finding a solution to the problem, the retailer should contact the customer to determine if the solution is acceptable and resolves the problem. It’s best not to assume that the customer agrees. Contact the person to confirm the solution is working and ensure you are available if they need additional assistance.

Leverage Customer Feedback
Since resolving customer complaints is a process, tracking every occurrence is a good idea to ensure it is an isolated incident unrelated to ongoing problems. Over time, you can determine if a recurring problem needs to be addressed. If the complaint is related to a specific product, the information should be shared with the manufacturer since other customers may have voiced similar complaints.

Keep a Positive Attitude
Every store owner must deal with complaints regularly. Even the calmest people sometimes find it upsetting to deal with demanding customers. Understanding different personalities can make interacting with some shoppers easier. It helps to remember the positive relationships you have with most of your customers and how much they appreciate your help.