Coping with customers

By MARK STORY

The madam who bought that party dress from you on Christmas Eve is now standing at your front counter with one of your store bags in hand. Despite the dress looking decidedly soiled, she's about to ask for her money back. As there was nothing wrong with the dress any refund is down to your discretion.

So what should you do: refund the cost to avoid store disruption, or stand on company policy knowing you might lose additional sales by doing so?

Even though incidents like this are rare, retail training expert Steve Punter says too many sales staff struggle when it comes to dealing with today's increasingly assertive customers. Many front-line retail staff lack the communications skills needed to nip in the bud any potential for conflict with angry, complaining or dishonest customers.

Punter cites as one solution the 100 per cent bulletproof system developed by women's fashion retailer Katies. Well before the woman carrying the store bag gets near the counter they're trained to ask: Would you like a refund or exchange garment?

Sadly, Punter believes this is the exception and that most sales staff are overly awkward when it comes to conflict resolution. "What's missing is training, management guidance and a sufficient debriefing after an incident occurs," says Punter, principal trainer with STA Training.

Russell Sinclair, Auckland regional manager for the New Zealand Retailers Association, says most customer conflict occurs when people become too righteous over their consumer entitlements.

It's true that the Consumer Guarantees Act requires retailers to repair, refund or replace faulty or "unsuitable" products, but they're under no obligation to offer an exchange or refund just because a customer changes his or her mind.

"We encourage retailers to stand by the law," Sinclair says. "Nevertheless, providing refunds or an exchange is often seen as the line of least resistance."

Based on the calls received by the association's member advisory line, most conflict occurs in fashion retail, where people repeatedly flaunt their right to return garments. Customers have found that if they take the moral high ground they'll usually get what they want.

"Most retailers such as The Warehouse or Briscoes want to please customers and go well beyond what the law requires of them," Sinclair says. "In 70 per cent of complaints the key issue isn't so much the right to exchange but the regularity with which 1 per cent of customers are trying it on."

But Punter suspects more customers are likely to "game it" if they sense the salesperson is inexperienced or insufficiently briefed on store policy. He says retailers can remove the opportunity for conflict if they create for customers an expectation that there will never be a problem returning goods.

Fraser Collins, general manager with Briscoes, says conflict resolution becomes simple if retailers strive for win-win outcomes with customers. "Our goal is to satisfy customers. As long as there's proof of purchase they can either exchange or receive a refund," Collins says.

While Punter agrees with this, he says front-line salespeople still need to master the essential skill of open-and-closed questioning to avoid being ripped off. When someone fronts up at the counter it's important to let them talk. That means taking an empathetic stance while uncovering the facts by asking questions such as: "When did you buy it and why are you returning it?" and whether they used the product or tried it on.

Victoria Chapman, formerly a department manager with the Farmers and now sales manager with retail recruiter Retailworld, says staff also need to know what it's going to take to make the customer happy.

"Never contest the facts that a customer is presenting to you. For example, instead of accusing someone of having soiled a garment. Depersonalise the question by asking if it's been worn."

It's also important to know your bottom-line position. "Front-line sales people should concentrate on keeping customers happy, after all what the retailer really wants is repeat business."

When handling unreasonable or aggressive customers, sales staff need to know when to simply walk away. "The key is to avoid getting into an argument in the first place."

If someone becomes abusive, don't lower yourself to their level, Chapman says. Tell them that if their behaviour continues you'll call the manager or security staff.

How to deal with those complaints

* Listen carefully and try not to interrupt.

* Repeat back the key points made.

* Remember that opinions are intangible and everyone is different - so don't debate them.

* Maintain respect for the customer and show empathy for them without taking sides. An understanding and friendly attitude can often diffuse a bad situation.

* Identify the problem quickly and ask what the customer would like done to resolve it.

* Avoid attributing blame - even if it is obvious the customer has caused damage. Offer to have it sent away for an expert to test it.

* Review your company's guidelines for handling returns.