Is a customer telling you they were ripped off?

Is a customer telling you they were ripped off?

U.S. consumers can be confrontational. I make the most money! I’m going to sue you! We have the best deal! You got ripped off! The phrase “ripped off” – meaning essentially that you were scammed – is overused and applied inaccurately. Consumers can benefit from assessing their true experience with businesses to determine what their level of satisfaction should be. If one of your customers comes to you and says you scammed them, a.) make sure you did not and then b.) make that clear to them.

Let’s take an example. You go to a local auto mechanic and have your car serviced. They do an excellent job and they have your car back to you in two days, running smoothly and looking great. You talk to a friend and find out they had their car serviced at a local chain for $50 less. Your first instinct is that you were cheated. But were you really? On further discussion with your friend, you find out they had his car for three days and though they performed the promised service, they didn’t vacuum or wash the car. Moreover, he said they were unfriendly and hard to deal with. So was it really worth it for him to save that $50? And did he even save the money because of his lost time, his frustration, and the lack of attention the shop paid him?

As an entrepreneur who provides goods or services to customers, you need to lose the fear of being more expensive than a competitor. Yes, for a pack of M&Ms, you probably just want to go lowest cost. But for most things, there are more factors than just dollar outlay that make for a good deal. Rather, your goal should be to provide the best possible experience for your customers. That is going to keep them coming back and that is going to get them to tell their friends to use your services.

Here’s another great example – dentists. People will pay a lot more to have a good experience with a dentist. Having, say, a root canal, is a pretty traumatic experience, so a dentist’s office that has gentle, caring staff, is comfortable and attractive, and pays attention to the patients needs and fears is going to be profitable, even if they charge more than the average dentist. It does depend on what you’re selling. The difference in service for something like dentistry matters more than for the local gas station, but it never doesn’t matter. If you have the choice of paying two cents more for gas but getting a friendly hello and chat from one gas station, you’re probably going to go to that one because it brightens your morning. This type of intangible is what you need to pursue as a business owner.

One thing you need to focus on when you are seeking to provide value to your customers is to have the right people in all the right positions. If you clean office buildings, then keep the people who clean, your sales reps, and your customer service people separate. Each one is good at what they do and you will serve your customers best by having the most expert person do what they are good at.

If a customer accuses you of ripping them off, it’s not usually wise to follow the adage that the “customer is always right.” Small businesses can’t afford that philosophy. You do want a happy customer, but customers can be wrong as often as businesses.  Do listen to your customers. Many times, a problem can be solved simply by all parties acknowledging that there is an issue. People want to be heard. There are few things more maddening than being dismissed when you think you have a valid complaint. Ideally, you will have a system in place in your business for dealing with each conceivable issue and you will have knowledgeable people available to discuss complaints. The scared 15-year-old cashier at the sporting goods store is not likely to make the customer happy or resolve an issue so don’t ask the wrong employee to deal with the wrong things.

Business owners can get overly wrapped up in keeping every customer they have.  Sometimes, it just is not worth the effort. Never be afraid to lose a customer. Some people simply can’t be satisfied. Let’s say you have a client who complains every month, never pays their bills on time, and makes your staff miserable. Unless they’re providing a huge proportion of your business, cut them loose. If the majority of your clients are happy and a few are always unhappy, you are probably not doing anything wrong. Now, of course, when the balance shifts, be prepared to make changes.

You can’t remain static and expect your business to remain a good value to clients. You need to hire and retain and train and retrain employees. You need to make sure things work smoothly for your customers from the first encounter with your business to the last. You need to keep good records and bill regularly and consistently. If you start to hear complaints or lose customers, maybe you are not providing good value anymore. Be prepared to change.

The customer who receives a service that pleases them is never ripped off. There is no absolute price for any item or service. To succeed, ensure that the majority of people who deal with you or your business believe they got a good deal.  If they think this, they will come again and will tell their friends to do the same.