The Wisdom of Unhappy Customers
The business owner sitting across from me was so angry he was shaking as he shared his story. It seems that another customer had sent him an email ending their relationship. I asked what he meant by ‘another’.
His voice rose and the shaking intensified as he went on about the “lousy customer who doesn’t appreciate the quality of my products and all my company does for them.” And yes, there were others. In fact, there were regular customer bailouts which, I wasn’t surprised to hear, took a lot of time, effort, and cost to replace.
But mostly I heard about how stupid and unappreciative his customers were.
While his story was a bit more animated than most, it’s one I hear fairly often.
Most large companies do a variety of analyses to try and figure out what causes some customers to leave and others to stay. And as Bill Gates said, “your most unhappy customers are your greatest source of learning.” But smaller companies don’t always seem to understand this.
It amazes me how many business leaders respond “no” when I ask if they have talked to the customers who left. Or perhaps they did, but settled for a simple, not very helpful response like “poor service” or “lousy quality”. Then there are the companies that send out a forced choice survey asking customers to choose from among a standard list of responses, none of which capture the true reasons behind their dissatisfaction. As a result, they yield poor information that teaches the company nothing…or worse, misleads them about their problems.
The next time you lose a customer, talk to them. Talk to them. Ask them specifically why they are leaving. Don’t argue or disagree, just listen and capture their complaints. Encourage them to go into great detail so you truly understand the reasons for their dissatisfaction.
Does “poor service” mean someone was rude to them or that they waited 20 minutes on hold when trying to ask questions about an order that hadn’t arrived? Does lousy quality mean the finish was a bit irregular or that the product broke after the third use?
Your unhappy customers will tell you what’s wrong with your current products or services. They’ll often also leave you with specific information for product or service improvement or entirely new product or service ideas that you never thought of.
Some angry customers won’t talk to you. Some will just want to berate you. But many will be happy to find someone interested in their problem and willing to listen.
Then there’s the additional benefit that comes from seriously listening to an aggrieved customer on their way out the door. Some of them will give you another chance once you show you really care about whatever set them off. These previously angry customers often become your best boosters.
But be prepared. The real work now begins. Once you have these conversations with the dissatisfied and capture their issues their expectations will be high. Listening is only the first step. Now you have to take the appropriate actions to resolve those issues.
The result of all this effort? Improved products and services. New product and service ideas. Happier customers. Better customer retention. And a better bottom line.
All because you made the effort to reach out and ask aggrieved customers what was bothering them instead of privately (or not so privately) berating them.