Day 8: Win Back a Lost Customer

by Esther Steinfeld on April 11, 2010

You’re seeing positive results, you’re getting great feedback, then BAM. Early one morning you receive a Google Alert for a blog post that seeks to ruin your entire outlook. You didn’t mean to do it, you weren’t actively seeking to upset anyone. Alas, one of your customers is disappointed with your product or service, and he wants everyone to know about it.

Although the power of the Internet can create celebrity, community, and positive buzz, it can also enhance the negative feeback significantly and give unhappy customers a larger platform on which to express themselves. Fear not, there are plenty of things you can do to turn that angry dude into a customer for life.

Identify the problem. Sometimes an unhappy customer is the result of an improper process put in place or a case of “It wasn’t my responsibility” within the organization. Ask yourself, at what point did the customer get lost in the fray? Speak with employees who deal directly with customers. Ask employees to start keeping detailed notes of their interactions with customers so that it can easily be determined later on whether or not a customer was dealt with in a satisfactory manner. Keep in mind that it is not necessarily anyone’s fault. Sometimes the Customer Relationship Management (CRM) process needs refining, and it is your job as the manager or CEO to make sure that happens.

Never blame the customer. An apology can go a long way. Please don’t try to prove to the customer that it was actually his mistake that caused the problem. I can assure you, that conversion will not go well. What good will come of you proving that, no matter how certain you are that it was his fault? I’m not saying the customer is always right, but there’s no sense in arguing, is there? If you’re serious about trying to win back the customer, listen to his concerns and acknowledge them. Then, do whatever you have to do to remedy the problem, even if it means swallowing your pride.

A Hit-And-Run Strategy Won’t Work. Once quick email to the customer does not a problem solve. Get the customer on the phone, solve the problem, then follow up to see you’ve met the customer’s expectations this time around. Building an internal culture of accountability will greatly enhance the chances of your team following through with unhappy customers. It’s not pleasant to sit on the phone and be berated by unhappy clients, but consider it a means to an end. Sometimes turning a bad experience into an incredible one for a customer can create a raving, wall-posting, tweeting fan of your business.

No matter how big or small your business, remember the Power of One. It only takes one tweet, one email, one phone call to a friend (who happens to be the CEO of Google or something) to cause a cascade of bad press. Conversely, one happy customer can lead to lots of other happy patrons, if you do your job well. Don’t let one unhappy customer’s problem go unsolved. You never know what the long-tail effect of that will be.

Recognize employees for the things they’re doing right. If they did make a mistake that cost you a customer, make sure you’ve been praising them all along for the great things they do and not just reprimanding them for the negatives. They will be more open to your criticisms. Shawn Shadfar, CEO of omNovia says, “During a recession, employee morale can be a tricky area to navigate. Make sure that you are helping them celebrate their work successes while remaining as transparent as possible with things that are less than positive like lost clients or a tough quarter.”

What you should do: Gather an internal group consisting of sales reps, customer service reps, and management to discuss what better CRM would mean to the organization and begin recognizing the spots in the process where customers fall through the cracks. Once you’ve identified the problems, lay out a plan and begin training all employees on the importance of CRM and how one person can have a positive or negative effect on your company’s word of mouth. Make sure everyone is aware of your organization’s CRM pot holes so they can avoid future mishaps.