What To Do When A Customer Takes Advantage Of You

“Always expect the best of others.” That seems to be the best and most positive approach to life and business. But there are times in any business when a customer tries to take advantage of you. Some examples of this might be:

• A customer ordered a product, used it, and now wants to return it for a full refund.
• A customer requests a refund long after the purchase date.
• A customer makes frivolous complaints in order to get a refund.
• A customer voices their dissatisfaction with a product and asks for bonuses to satisfy their discontent.
• A customer asks for the extension of a coupon or offer that’s no longer available.
• A customer is belligerent and abusive and simply demands a refund.

Types of Customers

From that list of examples, we might reduce the types of customers raising a complaint to just four:

• A discouraged customer
  The discouraged customer probably really wants and needs your product, but for some reason it’s not working for them. Perhaps they haven’t stuck with it long enough.
• An uniformed customer
  This client had every intention of using your product, but they have not followed through properly. Perhaps they have not followed instructions or have failed to use the product as it was designed. Their real problem is not with the product but with user error. This may also describe a customer who purchased a product that does not fit their situation.
• A disgruntled customer
  This person is generally negative no matter what. They excel at finding fault and criticizing everything and everybody including your products.
• An opportunist
  This is the rare individual who simply has evil intent. They purchased your product intending to gain from it and then return it on false pretenses. They want something for nothing.

The Real Danger

The real danger in situations like this is to become cynical and assume that people are out to rip you off. Allowing yourself to cultivate that attitude toward people will bleed into all your marketing and communication. People who truly want to take advantage of you comprise a tiny minority. To view all people guilty till proven innocent is a dangerous approach to business and life.

Akin to that danger is that of placing the value of money above the value of people. When you think someone is trying to take advantage of you, if your chief goal is to hold onto their money no matter what, you’re pursuing a losing proposition. The customer is NOT always right, but the customer is always more valuable than the money they paid you.

I believe there are two fundamental goals we should keep before us in this regard. Our primary goal in delicate situations like this should be to maintain our integrity. Integrity is what gives us a clear conscience and helps us sleep at night. Integrity is crucial to our character and the longevity of our business.

Our secondary goal should be to retain satisfied customers to the extent possible. Some years ago, Carl Sewell  then owner of the Sewell Cadillac dealership in Texas, wrote a book called Customers for Life. In a few short years Carl Sewell had taken his Cadillac dealership from being the worst in the country to the best. His secret was customer retention. Through honesty, fair deals, and stellar customer service he recognized the value of retaining a customer for life. The financial value of keeping a customer for life multiplied the sale of a Cadillac by a factor of nearly 10!

How to Respond

With the goals of integrity and customer retention in mind, here are some suggestions for how to respond to a customer who may be trying to take advantage of you:

1. Talk with them by phone
   Anytime you’re dealing with a dissatisfied customer there is great potential for misunderstanding. An email can be easily misconstrued. But if you speak with the individual on the phone, they can hear your intent in your voice. You can ensure mutual understanding. A phone call is more personal, more caring, and more invested.

2. Be polite
   Resist the temptation to argue. Don’t assume the customer is out to rip you off. Maintain a professional, personable demeanor. Start out by asking, “What can I do for you?” Or, “How can I help you?”
3. Listen intently
   People want to be heard. Just listening to a customer can often diffuse their dissatisfaction. Go into the conversation as a humble learner. It may be that they have a legitimate complaint and can give you valuable feedback.
4. Shift into coaching mode
   As you listen to their issues, ask great open-ended questions in order to genuinely assist them. Ask questions like:

    

   1. “It sounds like you originally purchased my product to solve a problem. What was it that you were trying to solve?”
   2. “I’d really like to hear your suggestions for improving my product. What are some ways I might improve it?”
   3. “What would a product look like that would solve the challenges you’re facing?”
   4. “What can I do for you to help you move forward?”
5. Tell them what you can do
   If there’s no other civil way to proceed with the customer other than a refund, tell them what you can do and make it happen swiftly. If you’re dealing with an opportunistic client, you may need to be firm but polite. Resist the temptation to “win a fight.” You’ll be happier just to get an unpleasant situation behind you.

Prevention

Obviously, the best option is to avoid customer complaints altogether. But as long as there are customers, there will be complaints! Nevertheless, here are some proactive ways you can seek to prevent or minimize complaints and situations in which you feel taken advantage of:

• Offer top quality products and services.
• Don’t exaggerate the benefits of your products and services or make promises you can’t keep.
• Have a clear refund policy well-publicized.
• Collect and publish endorsements by satisfied customers.
• Maintain robust customer retention strategies
  Put practices and procedures in place that involve follow-up emails, group calls, and coaching that help your customers win.

Nobody likes feeling that they’re being taken advantage of. But if we go into such a situation with a humble, teachable attitude we may learn something valuable and keep a customer for life.

Read in my upcoming Blog how I can help you in your personal and business life.

Leave me a comment what you are doing when a customer takes advantage of you.