Two Costly Mistakes to Avoid

Creating policies that make no sense to customers and then not listening when customers complain about them are two common mistake business leaders make. The result is often lost sales and lost customers.

The other day I was shopping with a friend in Taupo when he asked if we could go to the WINZ office so he could ask about applying for his superannuation. When we got there my friend asked the receptionist if he could leave his completed application form with her. She told him he could not because he lived in Auckland. He asked if they had a nationwide computer system and was told they did but the Taupo office would not process his application form because he lived in Auckland. Then she added, "And you'll have to make an appointment with the Auckland office to go through your application."

My friend said he did not need to meet with anyone because he had already completed the application form. "Can't I just drop it off?" he asked.

He was told he could not because WINZ policy required him to meet with someone to go through the application.  " If you don't want to have a meeting," the receptionist added, "you can apply online."

My friend replied he did not want to apply online because he had already filled out the application form. "Why would I want to fill the form out again? he asked.

"Well, it's your choice," said the receptionist. "We prefer people apply online because we want to reduce the number of people we have to meet with."

"Let me see if I understand this," said my friend. "You are telling me I have to meet with someone to go through my application but I don't want to do that because I have already filled it out. You are also telling me that if I don't want to meet with anyone, I will have to go online and fill the form out again. If I do that, I will be filling out the form by myself without assistance from WINZ staff, which is what I have already done. Finally, you would prefer I apply on line because you want to reduce the number of meetings you have with applicants. In short, you are requiring me to have a meeting you would rather not have and that I don't want or need to have. Do I have that right?"

The receptionist said that was correct and my friend told her that made no sense to him whatsoever. The receptionist said she thought their policy did make sense and added that if he wanted to complain my friend should talk to the manager and nodded towards a man who had been shuffling through some papers beside her throughout the entire conversation. Not once had the manager participated in the conversation or shown any interest in it. Once he was identified as being the manager, he had to say something. "I'm with somebody right now," he said. "If you want to talk to me about this you'll have to wait until I'm free."

This is a great example of the two mistakes - a policy that does not make sense to a customer and the organisation's unwillingness to listen to its customers.

How could the WINZ staff have handled this situation better? Firstly, when the customer said the policy did not make sense to him, the receptionist could have said, "I'm sorry to hear that. Please tell me why." After listening, the receptionist could have asked what would make sense. The manager who was listening to the conversation could have jumped in at that point and said he was interested in what the customer had to say and would like to hear more but he was with another customer right then. He could have added he would be free in a few minutes and would really like to hear what my friend had to say so would he mind waiting?

You have heard me say for years that your customers will tell you everything you need to know to succeed. You just need to listen and ask questions. But that rarely happens because we become defensive and are more concerned about proving we are right and the customer is wrong. This, of course, is a battle you cannot win. In most cases, customers just take their business elsewhere. For government handouts, WINZ is the only game in town so the staff might think they can treat their customers any way they like. But what WINZ now has as a result of their mistakes is a hostage customer who will be difficult to deal with in future and who will tell a lot of other people about his experience. I certainly would not want to be the staff member who has the meeting with my friend when he gets back to Auckland!

Do not make the same mistake. First, review you policies, looking at them from a customer's perspective. Ask yourself, "If I was the customer would this policy make sense to me?"  If the answer is. no. Ask yourself, "How would the policy have to be changed so it did make sense. Policies are made to solve or prevent our business from having a problem. Unfortunately, our solution can cause a problem for the customer. Do not fall into the trap of thinking either your problem will be solved or your customer's problem will be solved. Instead, try to find a way you can solve both problems.

Secondly, teach your staff how to respond when a customer complains about a policy or process.  The key is for them to zip their lips and open their ears. Make sure they understand their role is to gather information about what aspect of the policy the customer does not like and what they would like to see happen instead. Tell them the key to listening is to accept hat the customer is saying. Your staff do not have to understand what they are hearing, agree with it or know what to do about it but they do need to accept this is the customer's point of view.

Take the two steps and you will soon discover that a business that works for its customers is a great place to work and an even better place to own.