Dealing with Difficult Customers will show you:
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About the Author
Since 2005, Noah Fleming has helped his clients discover the goldmine of profits hiding right inside their businesses. He is a sought-after business strategy consultant, high-impact speaker, and the author of Evergreen: Cultivate the Enduring Customer Loyalty that Keeps Your Business Thriving (AMACOM). His firm, Fleming Consulting & Co., is a trusted coaching and consulting source for thousands of business owners, executives, and individuals who want to dramatically grow their businesses. He is routinely quoted and mentioned on mainstream media outlets like the New York Times, Forbes, Reuters, and others. Fleming also writes a blog and publishes his weekly newsletter, The Tuesday Tidbit, for more than 22,000 subscribers. His website is noahfleming.com.
For the past 15 years, Shawn Veltman has worked alongside Noah Fleming to develop unique intellectual property, tools, and applications successfully implemented in hundreds of companies across dozens of industries. Veltman has been involved with companies ranging from Internet start-ups to medical device manufacturers, helping executives extract world-class performances from their sales and marketing teams.
Read an Excerpt
Defining the Difficult Customer
In the summer of 1954, a bus pulled up to a gorgeous 200-acre Boy Scout camp located in Oklahoma's Robbers Cave State Park, and 11 young campers quickly headed for the cabin they would share for the next three weeks.
The boys had all just finished 5th grade, and had been invited to the camp in part because they shared many similarities. They had above-average IQs, they had all received above-average marks in their classes the previous year, and they were all from two-parent, Protestant homes. Whenever I picture the scene in my mind, I can almost hear the Leave It to Beaver theme song as I imagine them running off the bus and toward their cabin on that first day.
During the next week, the boys would bond while taking part in summer camp activities that have remained largely unchanged through the last 100 years or so. They went on hikes through the gorgeous forest area that surrounded the camp, took advantage of the lake to go swimming and canoeing, and got to spend many afternoons playing baseball at a diamond provided by the camp. In the evening, they sat around the bonfire and shared stories with their camp counselors.
As happens at almost every summer camp, these boys who were strangers on the bus quickly became friends and created their own social structure. Leaders asserted themselves, outsiders could very quickly identify the high- and low-status members of the group, and they even began to form their own in-group customs and rules. In a move that is familiar to anybody who has watched one of the dozens of seasons of the popular television show Survivor, they even created their own group name ("The Eagles") and designed a flag to represent their new tribe.
The only difference between this group and thousands of other summer camps is the camp counselors were not there to ensure the group had the best time possible.
These counselors were, in fact, psychology researchers who were studying what would later become known as Realistic Conflict Theory. In short, they wanted to find out two things:
1. How hard would it be to create intense animosity between people who are, in almost every respect, extremely similar?
2. Once that animosity has been created, how hard would it be to make them cooperate and maybe even like each other again?
Near the end of their first week at camp, the boys started to see clues that they weren't the only ones in their specific area. They saw signs that another group had being playing baseball in their diamond, swimming in their lake, and having the sheer audacity to be non-Eagles!
Clearly, this type of behavior could not stand. The boys knew they had to protect their precious diamond, to stake their claim on it, and so they planted their flag in the pitcher's mound of the baseball diamond when they weren't using it as a clear sign to anybody else that they were not welcome.
It's at this point in the experiment where the researchers got to unleash their inner pranksters, as they let the Eagles know that there was indeed another group sharing the camp with them. This other group, who had named themselves the Rattlers, had gone through exactly the same bonding experiences with each other that the Eagles had during the previous week.
Now, the researchers told each group that they were going to pit them against each other in a tournament of different camp activities: tent pitching, tug of war, baseball, touch football, and a scavenger hunt. The winners would receive a trophy, medals, and highly desirable pocket knives — a veritable treasure for the preteen boys in each group. For the researchers, the goal was to see how the groups of boys behaved toward each other. For the boys, it was a much more serious matter.
The name-calling began in the very first game. Not long after that, the Eagles burned their rivals' flag. The Rattlers retaliated by burning the Eagles' flag, which led to a nighttime raid of the Rattlers' cabin, where the Eagles stole the other campers' clothing and comic books, while ransacking the cabin.
Counter raids were executed, and the boys started walking around with large sticks and rocks in socks in case they needed to defend themselves from the rival group. At more than one point, the researchers had to step in to stop fights from breaking out among the groups. It became a real-life version of the classic Lord of the Flies story.
In short, the answer to the researchers' first question about how easy it would be to turn two groups against each other seemed to be, "disturbingly easy."
The final part of the experiment, that of reconciling the two groups, was much less successful and much harder than turning them against each other in the first place. We'll examine how they did it shortly, but first we want to examine why this is such an important study, and what new research shows us about the way that groups turn on each other.
It Is Not Enough That I Succeed — Others Must Fail
The Robbers Cave study is perhaps the most famous piece of research in all social psychology. It is an extremely succinct look at how easy it is for groups to bond together, and especially for groups to label others as outsiders (and therefore, enemies).
Remember, the two groups of boys mentioned moments ago were picked because they were so similar. They were matched randomly, but within a few short days, they believed in the superiority of their group, and the deficiency of the out-group, to the point that they were willing to attack the others for being others.
These findings have been replicated many times in the decades since the study was first published, and almost all these studies have found that it is incredibly easy to create boundaries between two groups based on the flimsiest of starting conditions.
The implications of this for us all are frighteningly clear: in any disagreement between our companies and our customers, our customers will almost certainly be considering us as part of the out-group, an enemy entity they must oppose. As with the boys in the Robbers Cave study, it is much easier to create conflict than it is to create reconciliation after that conflict has begun. Of course, this isn't surprising. We can see the same effect taking place every day if we are brave enough to read the comments on Internet news articles.
In the heady summer days of 2004, a psychology researcher named Drew Westen took advantage of the fact that George W. Bush and John Kerry were in the middle of an incredibly contentious election race. Westen recruited volunteers who identified as either strongly Democrat or strongly Republican, and watched the brain activity of both groups as he unleashed his own inner prankster (one thing about social science researchers is they are capable of being remarkably mischievous in their pursuit of novel research).
Westen's experiment was fairly simple. He had collected various quotes and facts about both candidates, which he used to paint them in a positive or negative light. The process was as follows and he showed volunteers three slides: Slide 1: A quote or anecdote about Bush or Kerry.
Slide 2: A later quote or anecdote that seemed to directly contradict the first, in a way that made the politician look bad (perhaps making it seem they "flip-flopped" or exercised poor judgment).
Slide 3: A plausible resolution to the dilemma created in the second part, which allowed the participant to "root for" the politician again if they were so inclined.
As a concrete example, they showed a quote from George W. Bush in 2000 that heavily praised Ken Lay (of Enron infamy). The second slide (dated after the Enron fraud was known) said that Bush was critical of Enron and avoided any mention of Ken Lay. The third (reconciliation) slide explained that Bush felt personally betrayed by Lay and was genuinely shocked to learn about the corruption within Enron.
Similar patterns were found with John Kerry incidents, and both groups were shown the same sets of slides.
There were two interesting findings from this study. The first is that participants registered activity in the areas of the brain that are associated with feeling pain when their chosen candidate looked the worst (in the second slide). Similarly, there was activity in the areas of the brain associated with feeling pleasure when the third slide allowed them to reconcile the disparity. The flip side of this is that when it was the other candidate, they tended to feel pleasure when the embarrassing fact came up.
In contemporary America, there are few areas that create such instant in-group and out-group identification as politics, and the Westen study is a fantastic look at what's going on in our brains during the seemingly omnipresent political news cycle.
But this isn't just happening in politics. Anytime we see somebody we consider to be a part of our out-group hurt, our brain's first reaction is to celebrate. Similarly, when we see anybody in our in-group hurt, our brain's first reaction is to commiserate with them and feel pain. Think what you want here, but this is how we're all wired.
When a customer starts screaming at us, the odds are they're not thinking of us as part of their in-group. It's almost a certainty that they're viewing our company as the very definition of out-group, as the enemy. Whether they see the very human representative they're talking to as neutral or as just another cog in the corporate out-group will largely determine their level of hostility and how susceptible they are to reason.
When the Facts Don't Matter
It is a curious quirk of human nature that we work so much harder to disprove evidence we don't want to believe than we do to confirm that which we hope is true. The British economist John Kenneth Galbraith once famously said, "Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof," and decades' worth of psychology research has shown that he was exactly right.
Social psychologist Thomas Gilovich sums up the process of how we do this very nicely. As he explains, when people want to believe something, they ask themselves, "Can I believe this?" In contrast, when they don't want to believe something, the question they ask changes to, "Must I believe this?"
When our customers see us as part of the enemy out-group, they need very little in order to believe the worst of us. When we do something that is legitimately wrong, and give them a good reason to be upset with us, they will not ask, "Must I believe that this person and this company are actively trying to harm me?" Instead, they will ask, "Can I believe that this person and this company are actively trying to harm me?" and the mere fact that they're currently angry will often be enough evidence for them that the answer is indeed yes.
We all know what it feels like to be righteously angry at being slighted by a company, which of course means being slighted by somebody within the company. After all, as we often remind our clients, a company has never bought anything or sold anything. In the history of business, nothing has ever been sold by a "company" to another "company." Behind every company, there are one or more people who are making decisions, and this is all the more relevant when we are thinking about dealing with dissatisfied customers. In effect, these customers have two targets for their anger: the individual representative of the company who was present or whose decision caused the customer to feel slighted, and the monolithic depersonalized "Company."
Of course, we would be negligent if we only considered one side of this story. It is not only foolish and shortsighted customers who mistakenly see us as an out-group enemy. Indeed, we are all too familiar with how the process works from the company's side as well. It's easy to get trapped in a paradigm that says dealing with customers is a competitive relationship, a win-lose scenario where we must stick together against the horde of unreasonable customers. Talk to any customer service rep, and they can spend hours regaling you with stories of impossible customers and their ridiculous complaints (such as the ones we started the book with!). When emotions are high in either group, it can be frighteningly easy to see the other not as a human being who is doing their best, but rather as the enemy personified.
Getting past these gut-level reactions is possible. It's certainly not easy, but any company that is committed to creating better experiences for their customers and for their employees can find ways to do it. The rest of this book will describe strategies and tactics you can use to help overcome these in-group and out-group classifications, to help your customers start to ask, "Can I believe that they have my best interest at heart?" rather than, "Can I believe that they're out to screw me?" As a last resort, this book will help you to identify and fire problem clients who are more trouble than they're worth.
This is most emphatically not a book that falls into the category that we sometimes refer to as "snappy answers to stupid questions." It will not be merely a list of situations where a dumb customer is wrong and how you can politely correct them.
Who Is a Difficult Customer?
Legendary direct response copywriter Gary Halbert was not known for his fondness for his clients. He would often teach seminars about the art of copywriting while wearing hats and T-shirts that said, "I hate clients." He was known to list the top 10 reasons that projects fail, where he just repeated the words "the client" 10 times. Years ago, I was listening to a Gary Halbert seminar, where he said (and I'm paraphrasing very loosely here): the worst thing about customers is customers. It's a line that often brings mixed feelings. A business exists to serve a customer and we have a duty to care for customers and give our best effort and our best intent to make them happy. But what do you do when the customer can't be pleased? How do you handle the customer who seems insatiable, or as we'll refer to them in this book, difficult?
Why do some companies seem to be cursed with an endless stream of clients and customers who are never satisfied, for whom all work seems to fall below their standards, whereas others seem to attract the "good" customers?
Why does it seem like some customers are miserable and full of complaints when dealing with us, but quiet as a lamb when dealing with all their other providers? Forget "raving fans" and "company evangelists" — what is a person to do when a customer who leaves a business a 3-star review and calls them "adequate" would be a huge step up in the customer relationship and considered a success for the business in question?
Who's to blame?
Have those businesses simply attracted lousy customers, or are those businesses just lousy at what they do? Perhaps it's a little bit of each. With our combined experience of working with literally thousands of customers in just about every industry you can think of, we've seen it from both ends of the spectrum. Our clients have ranged from small town restaurants doing a million or two a year in annual sales, to commercial property developers, to chiropractors, to janitorial supply companies, to online and offline retailers, to extremely expensive B2B equipment manufacturers of things such as conveyor belts and gas compressors, to small contractors, to the pharmaceutical industry, to some of the biggest global fashion brands with billions of dollars in annual revenue. We've seen where the customer is always right and where the customer is always wrong. Our focus in this book is the difficult customer — the customer who seems insatiable and impossible to please. We're going to talk about all the areas your business could improve and how to do it, but it helps to first define the difficult customer. Let's get to it.
I AM A DIFFICULT CUSTOMER: A STORY FROM A READER
It was 8:30 on a Thursday evening, and I'd just treated some prospects to a delicious dinner after spending the afternoon doing a final presentation to their board of directors about a fairly significant contract (substantial for them, and incredibly important for my business at the time). Everybody had finished up their post-dinner cocktails and desserts, and I handed the waiter my credit card to settle the bill. A few minutes later, the waiter caught my eye and subtly suggested that he needed my attention, so I excused myself from the table only to findout that my card had been declined. I was embarrassed, relieved that he hadn't announced it to the table, and grateful that I had another card I could pay with.
After the last prospect had said their good-nights, I immediately called the bank to see what the problem was. Of course, I was treated to their labyrinth of automated menu options. "Press 1 for us to not care, press 2 to be told to go to our website, press 3 then 4 then 9 to talk to a human, maybe!" I tried the standard trick of hitting 0 to get to a human.
After three tries, I was able to find a menu option that got me to a human (by picking the "My card was stolen" option), by which time my mood had darkened considerably. The agent on the line told me they'd put a stop on the card because the automatic monthly payments I'd set up through my bank (the same bank that issued the card) had stopped 45 days prior, and so they hadn't received a payment.(Continues…)
Excerpted from "Dealing with Difficult Customers"
Copyright © 2018 Noah Fleming and Shawn Veltman.
Excerpted by permission of Red Wheel/Weiser, LLC.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
Table of Contents
Chapter 1 Defining the Difficult Customer 19
Chapter 2 Managing Expectations: What They Want vs. What You Deliver 49
Chapter 3 Buying vs. Selling: Creating Greater Alignment 69
Chapter 4 Understanding Problem Children and Hungry Hippos 95
Chapter 5 The Three Disciplines of Excellent Customer Service Organizations 119
Chapter 6 Internal Benchmarking 151
Chapter 7 Role-Play Exercises: Dealing With the Most Difficult Customers 171
Chapter 8 How to Be Your Own Worst Customer 185
Chapter 9 The Customer Success Toolkit 205
Final Thoughts 219
About the Authors 237