Customer Experience Archives | The Small Business Blog for Service Businesses

How to Say No to a Customer

As explained in this post, there are times when it is a good thing to say no to a customer. But knowing what circumstances it’s best to say no is the easy part. The question is, HOW to say no to a customer? No doubt, this can be a challenge. So here are strategies and examples to help handle this.

First, Acknowledgement

Everyone wants to be heard. No one likes to be gaslighted. So the first step in how to say no to customers is to acknowledge them. For example, say:

“Thank you for that suggestion.”

“I understand that is important to you.”

“I can see why you’d ask that.”

Then, Be Direct

Get the point, quickly. Saying no is not easy and so it may be tempting to create a long and winding introduction to it. Don’t waste your time, or theirs. The longer you talk before saying no, the more likely your customer will be annoyed.

Use clear language. And always be polite. For example:

“I’m sorry, but that is not possible at the moment.”

“At this time, we are not able to accommodate that request.”

“I apologize for the inconvenience but we don’t have space in our schedule for that.”

Explain Why

Giving an explanation is not always possible. Or appropriate. And after all, No is a complete sentence. But an explanation can help your customer understand your position. For example, if it’s related to an outside factor like insurance requirements, professional regulations, or technology limitations, then it can take the sting out of the no. And there should be a rationale for saying no which is tied to legitimate operational concerns. Especially around health and safety to protect your staff.

Here are some specific strategies to use:

“We need to follow the rules set by our insurance policy, which protects both of us.”

“Health and Safety regulations prevent us from… ”

“Our policies are in place to provide consistency for all our customers.”

Finally, Offer an Alternative

One key strategy for how to say no to customers is to offer an alternative. Offer your customers a choice, which empowers them.

Essentially, the psychology is that the customer just experienced their request being denied. Rather than let them sit in that unpleasant feeling, focus their attention on by giving them options. Shifting their mind to making a decision that will benefit them will lift them out of the “I was just told no” state. Here are some examples of offering an alternative to your customers:

“Though we can’t do <their request>, we would be happy to <XYZ> or <ABC>. Which do you prefer?”

While we are unable to do <their request>, I suggest you consider <XYZ>.

Though we can’t accommodate <their request> I recommend that you contact <referral partner> who can help you with <XYZ>.”

More Tips for How to Say No to a Customer

Stay positive

Smile, even if you are on the phone and they can’t see you. Any negative vibes may veer things into a combative or tense exchange. Avoid that by staying positive in your language, your tone of voice, your body language, and your facial expressions. searching for solutions.

Empathize

Your customer may be very disappointed to hear no. Validate those feelings and empathetic language. Say things like “I understand this is frustrating and I’m sorry that we can’t accommodate your request.”

Be Firm

You have valid reasons for saying no. So be firm with that decision. Don’t let a customer decide how you run your business. Which means don’t engage in any negotiation. For example, a customer may try to coerce you by saying “I have a few friends who I can refer to you, if you can just do this one thing for me.” The best response to that is a firm “We would appreciate your referrals but our policies are in place for a reason.”

Understand 4 times you should say no to a customer

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What is CX

Books & Resources, Customer Experience

Buzzwords and acronyms come and go in business. So if you’ve seen CX and not known what it means, you are not alone. CX means Customer Experience, and it’s not a trend. It’s a foundation of good business, because it impacts customer purchase decisions. Also, strong CX creates referrals and repeat business. Additionally, it builds revenue because studies show that customers are willing to pay more when they have a positive customer experience. Clearly, it’s important for entrepreneurs to understand what is CX and how to use it strategically.

Understanding CX

First, to explain what is CX. CX describes the overall perception and feelings a customer has when, well – being a customer. From the first interaction to completing a purchase, the customer journey includes many steps and stages. Understandably, this is different for every business. Because for a retail store, an attractive entrance and welcome greeting is the first impression. Meanwhile, for an e-commerce business, the ease of finding product information matters first. Therefore, it’s important that every business considers the journey their own customers experience.

Customer Journey Mapping

And what is customer journey mapping? It’s a visual of the stages, touchpoints, and emotions a customer experiences. It’s looking at your business from the viewpoint of your customer. From awareness to the decision process, then receiving the product or service, and on to the post-sales relationship. The goal is that every customer has a positive experience and is not only a loyal, repeat buyer, but an advocate. Meaning, that they give your business positive reviews online and refers you to family and friends.

CX for the Entrepreneur

Due to the importance of CX on purchase decisions and customer retention, it’s become a separate function for most large corporations. After all, it’s been measured that improving CX by 1 point can mean millions of dollars in revenue for many industries. So a CX department with trained professionals is a worthwhile investment. (Note: I completed the Professional Certificate in Customer Experience course at The CX Academy)

However, the reality is that most small businesses don’t have the resources to hire a dedicated CX professional. Like with many aspects of entrepreneurship, CX is a DIY activity. Rather than getting into a complicated framework of explaining and measuring CX, I’m going to explain the foundations of what is CX for small businesses. Quite simply, understanding customer experience are these 4 elements:

1. Deliver Promises

Be sure that the reality of what your customer experiences matches what is being presented with your brand messaging. If your company is putting itself out there as being professional and informed, then staff shouldn’t be in a torn uniform, or poorly trained. If a 30 minute sales call is booked for Monday at noon, show up and complete it in 30 minutes.

2. Clearly Communicate

Information gaps and errors loses consumer trust – fast. And people talk more about a bad experience than a good one. So clearly communicate – in emails, on the website, and in any customer facing documents. Don’t be vague, as in “respond soon”. Instead, say “respond before the end of the next business day.”

3. Be Consistent

Document processes and monitor KPIs so that standards of service are maintained at all times. Because every customer should have a quality experience, every time, Someone shouldn’t have great service on a Monday and terrible service on Friday.

4. Reduce Effort

Finally, a pillar of good CX is to reduce effort for your customers. Quite simply, make it easy for them to do business with you. This covers alot of ground. For example, automating processes to update their payment information or contact details. Or providing online options to reschedule appointments at their convenience. It may mean reducing the number of clicks required to place an order on your website. Implementing a 1-click checkout transformed Amazon into the ecommerce giant it is today. Essentially, view everything from the perspective of your customer, and brainstorm ways to make interactions easier and faster.

Examples of Good CX

Surprisingly, good CX is often because of what doesn’t happen. As in, there is no frustration, no wrong information, or no long wait. Alternatively, good CX is created from small acts of communication and appreciation that add up to just feeling good about buying from that business. Here are a few examples of good CX:

Clear Communication

A service call is booked for Tuesday at 2pm. An email on Monday morning reminds the customer, and provides a link to reschedule if they require it.
Emailed updates or tracking links so customers can monitor the processing of deliveries and returns.

Appreciation

Tucking a branded notecard with a handwritten thank you when packaging orders.
After renewing a snow removal service for another year, the customer receives an email thanking them for their loyalty. It includes a discount code for a local home decor store. This is a powerful collab! For more examples on how to use collaborations to grow your business, read this article..

Recognition

A customer calling to talk about their lawn cutting service doesn’t have to give their full name and address, because their customer profile pops up on screen by keying in the phone number they are calling from.
Arriving at a salon and being greeted by name, before offering your usual order of black coffee.

Examples of Bad CX

Unfortunately, there are many examples of bad CX. Primarily because companies have not done the work required for understanding customer experience. Remember, CX is as much about perception and emotion than fact. It may only be 5 minutes on hold, but if the customer was expecting to wait 1 minute, this will be a negative experience. Examples include:

Online

After reading the FAQ of a website and needing more help, you click on “Contact Us” which just leads back to a Help Section and the same FAQ page.
An item listed on sale for $19.99 gets added to the cart for $24.99.

In person

Changing rooms are locked and no staff person is around to unlock them.
Items are not tagged with the correct price. Or are missing tags and signage.

Communication Gaps

Sending in an enquiry or question and being informed that a representative will respond shortly. What is shortly? 1 hour? 1 day? Lack of clarity is bad CX.
The sales rep explains the service will take 3 hours and the technician will arrive at 9am. Then the technician arrives at noon and says the work requires 6 hours.

CX and your business

As shown above, CX can positively or negatively impact revenue. Strong CX contributes to customer retention, repeat business, and referrals. However, just one bad CX experience can cost you a customer forever, negative reviews, and word of mouth. Now that you have a solid understanding of what is CX and why it matters to your business, here are some ways to start making improvements. Look at your business from your client’s perspective, and consider:

How easy is it to find contact details?
How long is the wait to connect with a person?
Do customers ask questions that are not covered in the FAQ?
Are there gaps between what is being promised and what actually happens?
Are delays or changes clearly communicated?
What communication do our customers get AFTER to thank them for their business?

Overall, make CX important when making decisions about customer communication, ordering, payment processing, and delivery.

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What is a CRM and why every service business needs one

Books & Resources, Customer Experience, Leadership

If you are an entrepreneur running a service business without a CRM, you are missing out. Truly. A CRM is a Customer Relationship Management software. They can be fairly simple or very sophisticated. In all cases, it’s a powerful tool to manage customer communication and relationships. Read on to understand what is a CRM and why every service business needs one.

CRM explained

Essentially, CRM software is a database. It’s a hub to centralise all available information about customers. Though this includes basics like contact details, it also captures purchase history, preferences, and past communication.

Features of a CRM

Next, let’s look at the key features of a CRM. Understanding its functionality will make it clear the value of using it in a service business.

1. Analytics and Reporting

Because smart business decisions are based on data, tracking KPIs (Key Performance Indicators) is very important. However, without software, this can be tedious and time consuming. Therefore, the reporting capabilities of a CRM is a valuable feature. Furthermore, these can be customised to fit each individual business. And this makes it easy to run reports on measurements that matter to your business.

2. Automating Communication

Since many CRMs have email marketing features, this allows for client communication to be automated. For example, setting up a happy birthday message to send on the right date means less administrative work. Also, this feature can be used to build loyalty and boost sales. See the next session for specific examples to implement in your business. Even if a CRM doesn’t have its own email marketing function, it can connect to MailChimp, FloDesk, or Klaviyo using Zapier.

3. Scheduling and Reminders

Use the scheduling feature of a CRM, and never forget a followup call again. This can be short term, like a post-service call for next Tuesday. Also, it can be long term, like setting a call for when a customer returns from vacation in a few months. Either way, it means centralising customer activity into one software. This is streamlining, which saves time and improves focus. Overall, it is smarter to use a CRM than crowd a calendar with tasks or search through a jumble of notes.

4. Customising and Centralising Data

CRMs offer many ways of tagging and categorising customers. Also, they usually allow for custom labels, so you can personalise for your business. By uploading files, photos, and documents, all information about a customer can be centralised. This cuts down on paper filing, as well as flipping through online folders and email boxes. Keeping all customer data in one place cuts down on administration time, and powers opportunities to build loyalty and drive sales. More importantly, it empowers all staff to have access to the same information.

5 Ways to use a CRM in a service business

Next, here are some real examples of how to use a CRM in a service business. Remember that when selling services to customers, the relationship they have with your company is critical for success. After all, when there are many options for landscaping, or dog walking, or house painting – then it’s their feelings and experience as your customer that determines whether they will buy from your business again. So here are 5 ideas you can use today:

1. Build Customer Relationships

For a service business, consumer relationships have a huge impact on the bottom line. Acquiring a new customer can be costly, so building a base of loyal, repeat customers provides stable revenue. When a business is starting out, it’s easy to keep track of customer details in a notepad online, or on paper. But as the client list grows, it’s impossible to remember it all. So use a CRM to record everything your customers care about. Did someone mention it’s their son’s birthday next week? Add that to their file in your CRM! Because a year from now, when you casually pass along Happy Birthday greetings in an email, their mind will be blown. This is a powerful way to build customer relationships.

2. Build Customer Trust

Consumer trust is another factor that matters in a service business. Trust can be lost so quickly, which is why the data management function of a CRM has so much value. Every opportunity to demonstrate attention to detail builds consumer trust in your business.

Here is an example. In my last business, a customer once called in very upset because she’d been expecting services that day – but no one had shown up. She wasn’t even on the schedule! It looked like a screw up on our side, which would have hurt the relationship.

However, a quick scan of her file in the CRM showed that a month earlier, she had emailed in to cancel service for that day. Which she forgot about. After a gentle reminder of this, the situation immediately turned. Instead of being angry, she became apologetic. Using the CRM to record customer communication transformed the situation and prevented loss of trust.

3. Encourage Repeat Business

Use a CRM to leverage whatever seasonal cycles happen in your business, and craft a communication to encourage repeat business. If spring is a peak time for your window washing business, then use your CRM to filter everyone who booked that service last spring – and send them a message inviting them to book again. Reminder emails like this can be set up to go out at appropriate intervals. Alternatively, it can be automated to be sent a certain number of weeks or months after their last purchase.

4. Close More Leads

No business closes 100% of leads. Whatever the closing rate is, a CRM can be used strategically to increase it. Just connect the CRM with email follow ups to automate and streamline the sales process.

Personalise the messages using the data you have about the lead. For example, the email can be set up with fields for first names, address, service description, and the price quoted. When the potential customer receives that followup, they have all the information they need to make a decision and take action, without having to dig through their own records.

5. Upsell

For businesses offering multiple service lines, use the filtering capabilities of a CRM to upsell customers. For example, a landscaping business can send its lawn cutting customers emails inviting them to book leaf blowing. Or a hair salon sends information about colour treatments to customers who have never booked it. Knowing customers and what services they have used is an opportunity to promote the other services you offer, in a meaningful way.

CRM and Service Businesses

In summary, a CRM is a powerful tool to manage customer information. It centralises data, which streamlines processes and cuts down on administrative time. More importantly, it enables personalised communication which builds customer relationships and loyalty. And finally, it provides a way to generate reports that drive analysis and smart business decisions. For these reasons, every entrepreneur with a service business will benefit from having a CRM.

What is a CRM and why every service business needs one Read More »

Customer Experience