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Developing Customer
Negotiation Skills (1)

business articles and tips

posted: November 2010

Helping Your Customer Feel They are Right

There is no easy way to handle customer complaints, requests and problems. The most constructive method used is asking how best the customer would resolve the situation.

While this places responsibility on the customer to derive at a satisfactory solution, it also places a significant responsibility on the business who must decide what the appropriate resolution should be. Thus the art of customer negotiation is necessary.

Negotiation is the evaluation of solutions that are mutually beneficial to both parties. Negotiation must allow the give and take on both sides. To improve your negotiation skills in customer relations, consider these key points:

Key Customer Negotiations Tips

  1. Know Your Customer:
    Your past relationships with your customer can help measure how your customer may respond to a given situation. The more familiar you are, the more likely you will be able to recognize what their real problems or concerns are. Of course, new customers have qualities that yet need to be discovered. But current customers can shed light on how best to resolve the problem.

  2. Ask Questions and Listen to the Spoken and Unspoken Messages:
    By asking questions and actively listening to their responses, you can develop a better understanding of their situation. The more information you can collect, the better position you will be in to negotiate a satisfactory solution.

    Not all customers are willing to share all the details of the situation. Effectively probing the customers will help gather all of the information you need. Make sure to repeat the situation with the customer after all information has been gathered to ensure the interpretation of the situation is understood by both parties.

  3. Know the Policies of Your Organization:
    Understand the flexibility you have - or your employees may have - when resolving customer's situations. You need to empower your employees - within certain boundaries - on how far they can go when negotiating with the customer. It is hard to coordinate a resolution to a problem if you are unfamiliar on what will be allowed.

  4. Demonstrate the Willingness to be Flexible:
    The ability to react to the situations as they occur is important in demonstrating flexibility. Ask the customers how they would resolve the situation. If their suggestions can be partially or fully implemented, your customer may feel that they created a positive solution. Who knows, their solution may be more conservative than what you would be willing to offer.

  5. Learn to Handle Anger:
    To defuse customer's anger, try to anticipate the cause and to confront it carefully by some form of compensation.

    For example, a customer waiting a long time at a fast-food drive-up window may express anger regarding the long wait. The manager may respond that several employees called in sick and that the service is understaffed; but this response may make the customer more angry. But offering a free drink or food to compensate for the customer's inconvenience may diminish the anger.

    Whenever possible, shift responsibility back to the customer. If done carefully, this can have positive results.

    Example, a customer calls about reoccurring weeds. Since the lawn service company can't possibly check weed on all lawns service, the owner invites the customer to call next time in the future and the company will provide an additional application at no cost. By encouraging the customer to share in the responsibility, anger may be diffused and the customer relationship can continue.

References

(1) the following article was referenced from:

Harris, Elaine K. Customer Service: A Practical Approach, Fifth Edition; Prentice Hall
www.pearsonhighered.com

----- end of business broker article -----
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