How to handle emotionally charged customers - auto dealers

You can see them coming from what must be at least a mile away: The angry customer. Often times they're so mad their eyes are scrunched up tight and their faces are fire-engine red. Some employees may swear they can actually see the steam coming out from their ears.

It's all well and good to be able to spot these unhappy campers, but it's much more difficult to decide the best way to deal with the situation that is going unfold in short order.

This scene is much more common in the service area than on the showroom floor, but following some basic, common sense tenets is the key to keeping customers happy and buying cars and trucks from you again and again.

Conflict means opportunity

The purchase of a car or truck is a long-term commitment between the buyer and the dealer. Like any commitment, there may be some times when the relationship will be tested and those times, such as when a customer is upset, is an opportunity for the dealer to solidify that relationship.

"An irate or upset customer offers an enormous opportunity," says Alex Nicholas, president of Applied Concepts, a Florida-based firm that offers sales and service training programs. "If you have an irate customer and you're able to fix the issue, the bond between the customer and the supplier is normally strengthened because it went through a period of adversity."

Jim Seavitt, owner of Village Ford in Dearborn, MI, agrees with Mr. Nicholas. He suggests that giving a little will result in getting a lot in return. This is not always easy with a pushy, rude, or insistent customer... especially if that customer is wrong.

"I tell my guys they've got to do it," Mr. Seavitt says. "Sometimes it's really tough to eat that crow, but if I can get them back into my store, then it's worth it."

Mr. Nicholas reminds that businesses exist as a result of one simple concept: The customer. If you have no customers, you have no businesses so he suggests meeting the needs of customers should be the primary motivator of owners, salespeople and service advisers.

Establishing expectations

Customers most often become upset when a product or service does not live up to their expectations. Not meeting expectations can be as simple as forcing a customer to wait 10 minutes while the final paperwork for the purchase or lease of a new vehicle is being settled or not completing a repair on time or exactly how the customer suggested it should be done.

"In my experience," Mr. Nicholas says, "people become upset when we don't deliver up to expectations. Many times the company sets the expectation. For example, if you tell a customer that a vehicle will be ready on Wednesday at 4 p.m. and it's not ready until 6 p.m., you haven't met the expectation of the customer so the customer is disappointed."

Many times, however, a customer has unrealistic expectations as a result of what they felt they heard rather than what they were told. Additionally, some customers want the moon and the stars and are upset when they find out that is impossible.

"When you look at the whole business of 'irateness,' the business of dissatisfied customers comes more from perception than facts," Mr. Nicholas adds.

What to do with an upset customer

While Mr. Nicholas has a set of dos and don'ts, dealers tend to vary in their approach. Most dealers agree that you have very few angry customers in a showroom. The unhappy customer is most likely going to be in the service department.

"We try identify (employees) who are real good with people," says Bill Heard, owner of Bill Heard Enterprises, which comprises 12 stores in six states. "We get them some training and when something comes up, we steer them to those people to resolve the problem."

Mr. Seavitt says that most often the irate customer is attempting to "put on a show for other people." When there is a conflict, customers usually are taken off the service floor to an office where the matter can be dealt with in a more private setting. He feels this removes some of the angst from the situation for both the adviser and customer.

If the issue cannot be solved there, a floor manager is called in to help mediate. If no satisfaction conclusion is reached, then the service manager is up next. Finally, if worse comes to worse, the customer can speak with Mr. Seavitt himself.

"Customers can really see me at any point along the way," he explains. "I see one or two customers a month. It's important they know they can reach me."

Mr. Nicholas' programs put down a very specific set of guidelines to help employees deal with these situations. First: Be respectful. Second: Listen. Third: Form a plan. Within each of those steps, there are things to remember.

Respect implies sincerity

Showing the customer respect is paramount to diffusing the situation. A customer who feels he or she is being patronized will only become more angry and enraged. Allowing the customer to vent, be angry and explain what the problem is without interruption is a signal to him or her that the issue is being taken seriously. Employees must not take the onslaught personally, the problem is with the vehicle or something related to it, not the employee.

"The customer is entitled to do whatever he or she wants as long as it's not abusive," Mr. Nicholas explains. "Nobody should have to put up with that. Past that, the customer is entitled to be angry."

When the customer is angry, do not interrupt. Let them vent for a number of seconds. The first sign of respect is showing them is that you are willing to listen to what the problem is and understand what they're saying. You don't have to agree with them, you have to understand them.

Listening is an art

It is important that the listener be an active participant in the conversation, in spite of the fact that in the early stages it will be a one-way activity. Body language is pivotal to intimating that you are hearing and understanding what the customer is telling you.

"No defensive postures," advises Mr. Nicholas. "No crossing your arms or rolling your eyes. That just adds fuel to the fire. The employee must look concerned, have a relaxed (posture) and nod. Truly, behaviorally speaking, the employee must remain calm, appear to be calm and listening."

Do not underestimate the power of one simple phrase: "Tell me more." It shows the person you really are empathetic about his or her situation. Plus, it allows you some time to decide what the best course of action will be in the next stage of the process.

Another phrase to remember: "This is the exception to the rule." No customer wants to walk into a service department and hear the adviser say, "You know, you're the third person I've had in here today complaining about this." Whether that's true or not is irrelevant. Customers want quality vehicles and service. Suggesting they may not be getting either one is akin to fanning the flames of discontent.

Plan for resolution

After getting a complete understanding of what the problem is, then you have to fix it. Fixing it does not necessarily mean giving the customer everything he or she demands, especially if the customer isn't right.

"We have this happen once in a while," Mr. Seavitt recounts. "Where we have a car in for service and for one reason or another we damage it. Usually it's a scratch or something. I had one guy who had his car for about a week, brought in for service and we scratched it. We told him and offered to repaint it at no charge. He was aghast. He wanted a completely new car. We're not going to do something like that for him, but he was astonished we wouldn't give him a new car."

He adds that there are other instances when customers claim that vehicles were scratched by dealerships and upon inspection it becomes painfully clear that the company had nothing to do with the damage. That's when it becomes crow-eating time in many instances. Mr. Seavitt's attitude toward making the customer happy plays right into Mr. Nicholas' next thought.

"It is possible the customer is wrong," he says. "We're not here to prove the customer wrong. We're here to improve relationships. The job is not just to solve the problem; it's to improve relationships."

Finally, after working up a plan that satisfies everyone, make sure to update the customer on the progress of that plan. Whether that's through an email or a phone call, it's important to keep everyone informed on the status of progress.

Mr. Heard may offer the most sage advice of all for dealers.

"We try to treat them right when they walk in the door," he says. "I figure if we do that, then we'll avoid a lot of those problems later."

Tips for handing irate customers

Alex Nicholas, president of Applied Concepts, makes the following suggestions for handling emotionally charged customers.

Be respectful. Show that you are truly interested in their problem. Let them vent a little and avoid defensive body language. Nod often to show that you understand.

Form a plan. Roll up your sleeves and get to work, but make sure you include the customer in the process. You must direct the efforts, however, allowing customer input gives a sense of security that their views are being represented.

Listen. Don't just be stiff, be empathetic. Show that you are concerned about the issue that has upset the customer. Don't interrupt. If you are not willing to listen to the customer, they will not be willing to listen to you when you try to suggest solutions to the problem.

Mr. Nicholas says to see the problem as an opportunity to strengthen the bond with the customer. Remember that the issue is not who is wrong or right, nor is the ultimate goal to solve the problem, but to improve the relationship between the dealer and the customer.

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