How Far is too Far? Finding the Balance Between Generous Customer Policies and Sound Business Practices

What is the monetary value of a positive customer service experience? It’s a question that has often been considered but just as often ends up unanswered for sellers. How do you implement a generous customer service policy without being naive or reckless? Here, we consider this balancing act and why we advise leaning towards generosity for the best long-term results.

The Customer is Always ________.

The old motto that “the customer is always right” has taken on a new complexity with online shopping. A customer can claim just about anything from the comfort of their home. Numerous studies [1] show that people are less honest in their online personas. What considerations must be made for vetting claims when no in-person interaction is possible?

For instance, is the customer’s claim legitimate? What is your product’s price point? Was the issue rooted in fulfillment, production, or quality control? We will provide specific measures later on that you can immediately implement to answer the majority of these questions.

In considering these questions, we have found that it’s far less important whether the customer happens to be right or wrong and far more that they feel valued. Even the most troublesome customers want to feel valued and respected, and a single undervalued buyer can hurt your company’s reputation.

Trust is at the core of a customer relationship. Honesty and sincerity are foundational to building trust with your customers. Key building blocks include the thoroughness and tone of your initial contact, your ability to identify needs, meet and exceed expectations, resolve problems fully, and follow through.

Don’t Forget to Smile 

“Smile” is part of our name, and even with the physical distance between seller and buyer we’ve found that imagining as if you are in the same room as the customer helps to place us in the correct mindset to serve them in the right way. A smile is contagious. In person, you would be sure to smile at a customer and greet them. You should convey this same spirit in the tone of your initial contact with them, then maintain a consistent tone throughout the interaction.

Consider customer service a philosophy rather than a department or a burden. If every decision is made with the customer in mind, from the business owner down to the intern, it is impossible for there not to be an impact. Even though the customer isn’t always in the right, it’s better to see yourself less as an armored guard defending your territory and more as a diplomat searching for an amicable solution. The best diplomats have the uncanny ability to make the other side feel as though they gained ground even when the diplomat never actually compromises on their intent.

You won’t believe how quick the customer reaction will be! By and large, buyers enter a customer service interaction with reluctance, skeptical at best and downright cynical at worst. To them, it may feel like spending an afternoon at the DMV! Consider taking a long-term view in regards to your customer retention and brand reputation.

We’ve found time and time again that customers who are taken aback (i.e. genuinely surprised) by great customer service will show their appreciation. When a company meets expectations, a buyer is unlikely to offer much praise. Positive feedback is most often rooted in the element of surprise [2].

Here are two actual customer responses from the past week alone:

“Thanks for the great customer service and patience dealing with me. You get a 5 star rating!!”

“Thank you. I appreciate your excellent customer service. You have gained a client.”

We believe putting people first is the key. Note that we did not specify customers alone. How employees are treated will translate not only to their motivation and productivity but also the way they view and communicate with customers. These two areas are intrinsically linked.

But How Does This Look?

How many times have you heard the phrase, “I’m sorry, that’s against our policy. I can’t help you.” Clear policies are essential for general cases and liability purposes, but there must be some degree of latitude in stretching policies for special circumstances.

For this to happen, anyone handling your customer support interactions should be given the latitude to make some decisions on their own best judgment. Gallup research [3][4] shows that “autonomy” is one of the 3 factors most crucial to an employee’s satisfaction and ultimate productivity.

On a practical level, we typically ask for photos of defective items and verify all claims. It is important to ask nicely and in a non-skeptical tone. Even if you’re skeptical, no one wants to be treated like a liar. If your buyer feels disrespected, they are far more likely to leave negative feedback and share about the poor experience with their social circle. All of this impacts your bottom line directly.

Some claims of defects, like wrinkles in fabric after shipment, are actually normal occurrences that may not require a refund or exchange. These have to be handled with even more of a gentle tone, explaining the root of the wrinkling or other concern in a non-defensive manner. While the explanations will be somewhat matter-of-fact, it is important to also show that you understand why they would be concerned and want to reassure them. Clear next steps are essential here to combat customer doubt.

Consider the following response to a customer:

“Hello, Stacy,

Thank you for getting in touch. I’m so sorry to hear about the issue you are experiencing with your jacket.

Our products are guaranteed for life to the original owner with materials and workmanship. We are proud of the quality of our products and stand behind them. If a product covered by this warranty fails due to a manufacturing defect we will replace the product or offer a full refund.

Please note that this warranty does not cover damage caused by improper care, negligence, alteration, misuse, or deterioration from normal wear and tear. For damage not covered under warranty, we will do our best to inform the customer of the most economic means of repairing the product and provide helpful resources to consider.

Please reply with: 1) a description of what led to the issue and 2) a picture of the manufacturer defect.

We look forward to hearing back from you. Thanks for the opportunity to make this right, and sorry again for the poor experience. We want to make it better!

Best Regards,
Will
Customer Success Team”

A “lifetime guarantee” can sound gimmicky. Combat this perception by really following through on older requests. Show that you stand by your products even months or years later. These scenarios hold the potential to elicit the most genuine surprise out of customers, leading to some of your most passionate positive reviews. We have even seen customers adjust their original reviews to reflect their delight:

“Just wanted to say thank you for standing by your product. Your customer service was great. I left a 5 star review today telling my story and why you guys deserve the rating. Thanks!!”

It should go without saying, but if you have a customer service team, each team member should be an expert on every product, including how products actually look when packaged and shipped. The best way to keep the entire team on the same page is to have comprehensive documentation.

Your customer service documentation should cover product FAQ pages, product upkeep and common issues, and flowcharts displaying the escalation process. It should also include the normal wear and tear of each product, ideally with estimated timelines and pictures of products in various conditions for comparison. Videos are another great way to document processes like customer return steps on your website or marketplace. Remove the barriers to understanding and work towards a unified knowledge base. Doing so will ensure a steady and consistent customer service strategy.

Great, Now What?

Don’t be afraid to delight your customers. What feels like a sacrifice now is really an investment in your company’s future. Consider taking a leap of faith with your customer service strategy towards generosity. You are bound to see results in your seller feedback and product reviews.

We help sellers by taking over your Amazon customer service and consulting on your current customer service policies. Our goal is to protect your brand by going above and beyond to provide an excellent buying experience. We help implement simple updates that increase positive product reviews and seller feedback along with improving your online reputation.

Get in touch with SellerSmile so we can help you create the perfect balance in your customer service strategy. Head over to SellerSmile.com/Schedule and choose a time that works for you!

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