One of things I teach is customers are more apt accept your answer or your policy if you explain why. But what happens if the customer decides not to accept your reason?
Shirley (not her real name) called me one day to tell me she had done exactly what I had told her, avoiding saying “policy” and instead explaining the reason. This particular customer refused to accept the reason and was very angry after Shirley said there was nothing more she could do.
The watch company Shirley works for accepts repairs in two ways: through the jewelry stores that sell the watch or directly from the customer. Both repairs end up in the company’s repair center, but the company doesn’t accept credit cards for repairs while the stores do. However, the stores also charge more than the company does for the same repair.
For this customer, Shirley explained that the number of direct repairs they get doesn’t justify the money the credit card company charges them. In other words, she was telling the customer he wasn’t worth the extra cost. Not only didn’t he buy her reason, he promised never to buy one of their watches again.
I understood her reasoning but asked her, “How do most people pay for things these days, especially when it involves sending something or ordering something through the mail?”
She agreed that most people pay with credit cards. She also agreed that they had a right to expect the watch company to accept the cards for repairs. But then she reiterated the reason.
The company didn’t encourage owners to send the watches directly because it wanted the jewelry stores to get the repair business – the direct repair was just a courtesy. So, the company made a conscious decision to accept repairs, but not to accept credit cards for the repairs, despite most people charging such things on their cards.
“I believe your reason is a good one,” I said. “But that doesn’t change the fact that most people expect to pay for repairs with their credit cards. The customer’s expectations are everything. People will decide whether they want to continue to do business with you based on whether you met, exceeded or didn’t meet their expectations.
In the end, every decision a company makes regarding policies and procedures has a consequence. You may be perfectly right in your reason but the customer didn’t think so. In the customer’s view, you weren’t being very customer-centric. Your reason said you cared more about the company’s bottom line than making it convenient for the customer.”
When faced with these types of situations, you’ve got to make a decision: Will I lose more money by disappointing a certain amount of customers than I will by doing what the customer wants? This company apparently decided they would lose more money if they did the latter. That’s perfectly okay, but the customer will still be unhappy.
Every organization has to strike a balance between making the customer happy and not giving away the store. Sometimes, the reason for the policy is valid and will hurt the company if you don’t enforce it. Other times, it’s worth giving up something to make the customer happy. You can’t make every customer happy all the time. But you do have to measure the consequences of not doing so.