Poor problem resolution drives off customers; good problem resolution helps you keep them in the fold.
In fact, customers whose problems have been solved to their satisfaction are likelier to stay with you than those who have never had one. And remember, it costs five times as much to attract a customer as to keep one - and a seasoned customer is worth much more than a new one.
Though banks know this, many have no effective process for resolving problems. One reason is that they are organized to achieve another goal, efficiency; another is that most problems involve more than one department.
Here are some thoughts on the primary elements of an effective problem resolution process:
Empathize. Customers look for understanding and empathy when they complain. They don't want to hear the many reasons why their problem occurred. They want to vent first, so train your employees to accept and expect that. The customer is looking for validation.
Actively listen. To make sure they understand the problem, employees should listen carefully, maybe even repeat what the customer said, and ask for confirmation. Never interrupt the customer.
Apologize when you fail to meet expectations - whether they are reasonable or not.
Do not blame the customer, even though they often cause the problems they complain about. They don't want to hear that; they want a solution. Your employees can demonstrate how to avoid a problem, but leave out the "it's your fault."
Do not blame the boss or another department. Everybody who works for the bank represents it; the first person to encounter a problem should assume ownership of it.
Make sure the solution fits the problem. When an airline really blows it, whether because of mechanical problems or even just bad weather, a $10 dinner coupon is an inadequate apology - but don't expect a free ticket to anywhere.
Banks have various rewards to match a problem's magnitude and source. Equip your employees with the appropriate means to delight your customers when they encounter a problem that conflicts with your brand promise.
Consider reasonable alternatives. Satisfying customers sometimes takes something other than what we had in mind. Explore what the customer is looking for using probing questions, and provide it if possible.
Whenever possible, personalize the resolution. That makes a huge difference to the customer, who instantly starts feeling like a valued individual instead of a number. In my case, personalization is easy - just send chocolate! And banks often have the unique advantage of an employee who knows the customer. Problem-resolution time is a good time to demonstrate it.
Probe to learn whether the customer is satisfied. Too often we learn how they really feel when they leave the bank without warning.
Follow up. Even when a problem seems to have been resolved to a customer's full satisfaction, a follow-up phone call within 48 hours demonstrates care and cements the bond.
Clearly articulate your bank's view of customer retention to your employees. Don't assume they know you consider it crucial. Tell them it is, and explain why.
Provide the context for decision-making at all levels. Employees often want to do the right thing but aren't sure what that is and how far they can go. Give them a general idea of how important customers are and how you'd like them to be treated. A guide such as a mission statement or a vision description is helpful; a straitjacket of procedures is not.
