The Customer Isn't Always Right: The Art of Diplomacy in Sales
Many sales professionals adhere to the classic adage, 'The customer is always right,' without questioning its applicability in every scenario. However, on many occasions, customers, driven by their personal interpretations of events, believe they are right. How should salespeople navigate such situations to maintain both profit and customer satisfaction? This article explores the art of diplomacy in sales, highlighting the importance of understanding customer beliefs while also presenting factual evidence.
The Voice of the Customer
It's true that customers are not always right, yet they perceive themselves to be correct. This is where the sales professional's role as a negotiator becomes crucial. The key lies in acknowledging their belief while respectfully presenting factual evidence to counter it.
Approaching Disagreements Differently
A more effective approach is to treat the customer's beliefs with respect and provide them with valid reasons why their interpretation might be incorrect. Imagine a scenario where an AP manager is resistant to a price decrease. Instead of arguing, the sales team can say:
"Unfortunately, the current situation necessitates a certain policy. However, what I can do is offer a reduction of X on a new replacement from our range."
This statement acknowledges the customer's viewpoint while gently guiding them towards a more acceptable solution. The flexibility in language—using phrases like "likely" or "likely to" instead of rigid absolutes—can help in maintaining a positive conversation.
Sales Success Over Proof-Winning
The focus should always be on achieving sales success rather than proving who is right and who is wrong. Every business aims for sales figures to drive promotions and growth. Arguing a point, even if you're right, can result in a lost sale and miss an opportunity for future business. So, when faced with a situation where the customer disagrees, the mantra should be: 'Sell, sell, sell!'
Customer Lifetime Value and Wisdom
When a customer is unhappy, their dissatisfaction can lead to more than just a loss of a single sale. An unhappy customer can tell up to 27 people or more about their experience, depending on their social media reach. Not to mention, the customer lifetime value (CLV) of a dissatisfied customer is often lost, necessitating costly marketing efforts to replace them. This highlights the importance of maintaining customer satisfaction and loyalty.
Case Study: Handling Complaints Wisely
For savvy businesses, it's wiser to treat all customers well, even those who might try to take advantage. A poignant example involves a property management business where a customer from Switzerland was unsatisfied with the home in Florida. After two months, it became clear that no solution would satisfy this client. Instead of arguing, the company refunded every penny the client had paid. This tactic not only removed the possibility of further complaints but also preserved the opportunity to maintain a positive relationship with other potential clients.
Another instance involved a client whose car had a flat tire on the first drive back home. The customer blamed the service. While it wasn't the company's fault, it was more beneficial to pay $100 to fix it. The reasoning behind this decision was to keep the customer satisfied, potentially leading to years of additional business and referrals. Arguing would have led to the loss of this ongoing revenue stream and any future referrals.
Smart business owners recognize that by treating every customer with respect and providing satisfactory resolutions, they can build a solid foundation for customer loyalty and enhance their business's long-term success.
Conclusion
In conclusion, while it is important to respect customer beliefs, sales professionals should not adhere strictly to the notion that 'the customer is always right.' By using diplomacy and factual evidence, sales teams can navigate disagreements amicably, ensuring both customer satisfaction and business success.