Teresa Allen

By Teresa Allen

Posted: Aug 18, 2011 4:59 PM

I had a customer service encounter today that had so many lessons I hardly know where to begin. Since the service provider ultimately 'made it right', I won't embarrass the company by mentioning their name but will tell you that they deliver something to my house every month.

My bill from this company ranges from about $9.00 to $20.00 each month. Several months ago, I was traveling and paid a $9.00 bill a few days late. Imagine my surprise when the next bill included a $25 late charge, nearly three times the amount of my bill. I wrote a note requesting that this charge be removed and paid the $9. The next month there was a second $25 charge probably because I had not paid the first late fee.

It was now time for this already irate customer to pick up the phone and call. The lady I reached told me that she could remove one fee as a courtesy not two. I explained that they had never called me re my note on the first late fee and that I really had only been late once. "Maaaaaam, I am sorry but I can only remove one fee." "But I have been your customer for 10 years. I just want to be sure, are you willing to lose my business over $25?" I replied. "Maaaaaaaaam, as I said, I can only remove one late fee." "Don't you think you should pass this on to a supervisor?" I asked. A long sigh followed and hold music ensued. At that point a very nice gentleman got on the phone, called me by name and very happily removed my late fee. A customer saved and happy!

So what are the lessons from this close encounter?

1. Empower your front line staff to make it right. Ritz Carlton empowers their staff up to $2000. What is your number? Does your staff know the number?!

2. Especially when a customer is upset, call them by name and reintroduce yourself. You then have two people talking to each other instead of a customer and a business which is more likely to escalate.

3. If you can't do #1, then certainly train the front line customer service staff to pass such a call to a supervisor!

Realize that most customers won't be like me and suggest that a supervisor get on the line. They will simply close their account and you will never hear from them again.

A final lesson.... be careful of financial penalties that may put your relationship in jeopardy. If your average bill to a customer is $250 a month it may be an acceptable in the customer's eyes. If you have an average monthly billing of $9-$10 a month, a $25 late fee is probably excessive from their point of view.

Common sense service .... sometimes a scarce commodity!

Customer service speaker and author Teresa Allen presents customer service keynotes and customer service training across the US and abroad. Subscribe to this customer service blog for more timely information on customer service study data and customer service innovations. Add you comments by clicking on the comment link below. Teresa can be reached at 800-797-1580 or through her website: www.AllenSpeaks.com Email her at tallen@AllenSpeaks.com