In today’s economic environment, it’s commonplace that hundreds of businesses downsize, restructure, and even fail. According to Richard Whitley (2001), the first of these companies to go are those that are not as committed to providing excellent customer service. The Profit Impact of Market Strategy project of the Strategic Planning Institute further proved Whitley’s claims during a study involving 3,000 business units in 450 companies. The analysis revealed that the top 20% of the business units with high positive customer perception averaged a 32% return on investment (ROI). The bottom 40% averaged 14% ROI (Smith, 2015). These statistics imply that professional and efficient handling of complaints in both the private and public sector
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Organizations that are adept to identifying the interests from which each conflict situation originates are in a better position to resolve matters. However they must also realize that in many cases there is more than one underlying interest at stake (Lewicki, et al., 2011), therefore successful most customer conflict collaboration plans have the following key elements:
1) Establish rapport with the other party by looking for areas on which both parties agree. Agreement helps establish a foundation of trust and respect (Paternoster) and can start by simply acknowledging the anger of the customer (Smith, 2015).
2) Show empathy with the customer. Paternoster asserts that empathy will instantly give you an advantage and hopefully come to a quicker solution. Empathizing with the customer is not an admission of wrong-doing, it’s a way to demonstrate respect. 3) Be open-minded to the issues being addressed by the customer. Recognize these issues may trigger ideas for an acceptable …show more content…
Allow the customer to provide all the relevant information so there is a better understanding of the situation. 5) Correct the mistake or offer a better alternative to the negotiated agreement (BATNA) (Paternoster). In situations in which the issue must be escalated, do so in a manner of being viewed as an advocate of the customer (Smith, 2015) 6) Always respond. Whether the complaint is received over the phone, by letter, or email, each conflict should be handled appropriately and as quickly as possible.
These same key elements of collaboration apply when resolving internal employee complaints as well. Employees in direct contact with customers represent the organization so as illustrated in Toni Peters ' book, "Thriving on Chaos," it is impossible to get employees’ best efforts in what the organization believes important if they aren 't treated with respect, honesty and trust (Smith,
Organizations that are adept to identifying the interests from which each conflict situation originates are in a better position to resolve matters. However they must also realize that in many cases there is more than one underlying interest at stake (Lewicki, et al., 2011), therefore successful most customer conflict collaboration plans have the following key elements:
1) Establish rapport with the other party by looking for areas on which both parties agree. Agreement helps establish a foundation of trust and respect (Paternoster) and can start by simply acknowledging the anger of the customer (Smith, 2015).
2) Show empathy with the customer. Paternoster asserts that empathy will instantly give you an advantage and hopefully come to a quicker solution. Empathizing with the customer is not an admission of wrong-doing, it’s a way to demonstrate respect. 3) Be open-minded to the issues being addressed by the customer. Recognize these issues may trigger ideas for an acceptable …show more content…
Allow the customer to provide all the relevant information so there is a better understanding of the situation. 5) Correct the mistake or offer a better alternative to the negotiated agreement (BATNA) (Paternoster). In situations in which the issue must be escalated, do so in a manner of being viewed as an advocate of the customer (Smith, 2015) 6) Always respond. Whether the complaint is received over the phone, by letter, or email, each conflict should be handled appropriately and as quickly as possible.
These same key elements of collaboration apply when resolving internal employee complaints as well. Employees in direct contact with customers represent the organization so as illustrated in Toni Peters ' book, "Thriving on Chaos," it is impossible to get employees’ best efforts in what the organization believes important if they aren 't treated with respect, honesty and trust (Smith,