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How to Handle Customer Complaints Like a Pro


so I want to make a prediction the
chances of this video going viral is
this big here’s why because no one cares
to talk about customer complaints but I
promise you I want to challenge you to
listen to this whole thing because it
will save you a lot of sleepless nights
it’ll make you a lot of money it will
save you a lot of money and it’ll just
create a good culture for your company
so let’s get right into it complaint is
a part of business when you decide to
become a business owner you are putting
yourself out there for customers to say
you are not as good as XYZ and it is our
job to hear them out and get better
because this is free counsel that people
are giving you just think about it
there’s companies that do focus groups
that pay seventy five dollars per
participant to just show up and complain
about your product and you’re getting
all of these things for free that’s one
of the things I want you to be keeping
in mind now let’s talk about how I look
at complaints there’s five different
types of complainers when it comes down
to your business and no matter what you
do there’s five different types of
people that complain about what you do
the number one type of complainer is the
valid complaint this is the person
that’s right you did something wrong
your company didn’t do the right thing
the procedures the offers anything that
happened they’re absolutely right with
what took place and I’m going to explain
to you how to handle that but the first
one is the valid complainers whatever
complaint that was made you got to
figure out a way to improve that number
two is the pessimist this is the person
that no matter where you go with them
nothing can ever make them happy nothing
can make them happy so you can do
anything and everything for them they
will never be happy with what you do for
them this is a customer that you have as
well the third type of customer is the
one that they like your product they
disagree with your beliefs
for instance hypothetically imagine the
CEO of Starbucks gets up and he says I
believe that health care should be free
for everybody and there’s someone that
goes to Starbucks and loves the coffee
but they absolutely disagree politically
with what Howard Schultz believes when
it comes down to a national health care
for example imagine if you are the CEO
of Walmart and you
believe in capitalism and they always go
to Walmart and shop but they hate what
the company stands for and they support
certain people politically or a team or
whatever it is so to have a vendetta
towards you I’ll give you a story one
time with a rant complainer that
happened with me this was a this was six
and a half years ago we had just started
our firm and I will never forget what
happened with the story here because I
remember I got this all of a sudden this
person started posting all over our
Facebook Twitter you know every single
website that we had they were just
complaining complaining complaining this
company sucks the CEO is horrible pop up
about all this stuff so finally I call
Mario I said Mario
I need that guy’s number I’m gonna call
him so I get his number I call him up at
night I’ll never forget it 10 o’clock at
night at 8 o’clock his time 10 o’clock
at night at 8 o’clock his time I’m on
the phone with him I said hey this is
Patrick made David giving you called the
CEO of PHP I just wanted to call you it
seems you’re extremely upset I wanted to
call you instead of having somebody else
call you can you tell me what you’re not
happy about and we went on a 45 minute
conversation do you want to know what
this conversation was over let me tell
you what the conversation was over this
conversation was over the fact that he
belonged to the biggest communistic
organization in America and he’s a proud
believer and follower Karl Marx a book
called Communist Manifesto and he found
out that I believe in capitalism and I
followed the teaching of Milton Friedman
and he hates capitalism
he hates capitalism so I’ll never forget
the conversation that we had together
and this became a friendly conversation
so I said why do you hate capitalism and
he said I hate capitalism because all
they care about is they put the people
to work I said okay let’s take
capitalism out where do you work out
right now you said I know where you’re
going with the Saudi workouts I worked
at phn I said I said what happens at phn
goes out of business
he said I’ll go work for another company
I don’t care about PF Changs actually
you’re going to go work for another
capitalist I said what if that capital
goes out of business I’m gonna go get
another job because I will always be
needed I said without the capitalist you
don’t have a job so we had this friendly
debate fast-forward six years ago
literally nine months ago this guy sends
me a message saying you want
member me of course I remember him I
have a pretty decent memory you won’t
remember me but we debated six years ago
when I was a communist and I just want
you to I thought every single value Tama
video and I believe in capitals and
things have changed I’m 29 years old
back then I was 23 years old I was not
okay no problem
but I had to figure out that that person
had no problem with our product they had
a problem with the belief system and
although I can’t change that
I heard them out and fixed it we moved
on from there the fourth type of
complainers that you have that’s become
a very big business as an actual enemy
so what I mean by an enemy or a
competitor this has become a very very
big business let me explain so here’s a
big gorilla big guy big company that’s
been doing a business and you’re
planning on coming and taking a
percentage of their business away from
them right you’re an enemy you’re a
threat they don’t like it you need to go
out of business
ASAP and so we start a company and we’re
trying to take distribution away from
some folks when I mean distribution is
the amount of life insurance that’s
being written so we want to start
writing this business that didn’t make a
lot of people happy that ticked off a
lot of people so all of a sudden we got
a floodgate forget flooded with negative
complaints online and you could tell
there was a lot of things that was being
said that’s inaccurate with details
where you know somebody else was doing
it and eventually we went investigated
it and we realized what’s going on with
that and there’s nothing we could do
about it here’s why there’s nothing we
can do about it because companies like
Yelp as much as I use Yelp as a customer
to go figure out what restaurants are
out there what restaurant to choose
around the world I don’t like what the
up best for small business owners I’ll
say exactly what Yelp does to small
business owners yup will come up to you
and they’ll say if you advertise $6,000
a month $5,000 a month we will give you
shot at you know putting out more your
positive reviews and all this other
stuff when they went public they change
their script I’ve never pretended
because I spoke to one of the reps it
says Patrick yes we used to do that but
we don’t do that anymore because now
we’re public and we have you know so
many different people that I’ve said
that we did that and now we have to
answer to that and so but all this stuff
that he starts telling me and I said so
the reality part of it is after some
employees left the Yelp they started
telling us that this is what they’re
doing and that’s a business nowadays
they take small businesses that are
frightened to go out a bit
and through fear because of a small
restaurant being a 3-star people will
not go to their business drops by 20%
they ask you for six thousand dollars a
month so it’s a legal online mafia type
of thing if you want to call it like
back in the days you know how people
would come and say hey you got to pay me
more taxes if you want to do business
that something like that going out you
got to figure out a way to work around
that the reason for you gotta figure out
a way to work around that is because
eventually when you earn same status
none of that stuff matters in same
status takes about a decade five years
to ten years depending on a business
that you have to earn and once you’re in
same status this means when you’re your
positive experiences are just crushing
the negative comments that no one even
pays attention to the negative comments
anymore you don’t even think about
apples negative comments you know how
many negative comments apples get people
still go to Apple you don’t even care
about Walmart’s negative complaints
anymore you know how many people work at
Walmart 2.3 million people 1.4 million
in America I just got the up because
last week I said 1.5 million 2.2 it’s
1.4 million in America 2.3 million
around the world 900 900 thousand people
around the world work for Walmart and
they keep going there even or they got
more complaints than almost any other
company in the world they also happen to
be the biggest company in the world top
three biggest companies in the world
depending on the time then a fifth one
is a fun one is the trolls nowadays
there’s trolls trolls has become a new
thing because this is a way for someone
to get fame this is a way for someone to
say oh my gosh I’m going to go mess with
this company because I may get publicity
and I may get picked up so it’s become a
business there’s actually you can go to
sites that tell you how to be a
professional troller it’s hilarious we
get some trolls sometimes on valued team
and sometimes when we had this one guy
that told me one time I won’t tell you
what I told them but he trolled me Paul
was already laughing back there because
so this guy comes in he starts troll and
value tainment and then I go to his
Facebook page and on his Facebook page
the most recent post he posts he says
I’m in the mood to go troll some bigger
brands this is on his Facebook play so I
dig the screenshot and I say let’s have
some fun because if you want to have fun
I don’t mind it you know the crap
talking game so I went Adam pretty elite
elite came back we had a fun time with
the patrols
I appreciate trolls because at least
they’re trying to become celebrities so
don’t take trolls too seriously they’re
actually fun to be dealing with so you
got those types of five complaints so
now let’s talk about your business and
how to handle these complaints first of
all depending on the type of a business
you run your volume of sales that come
in will dictate how many opportunities
are for people to complaint with your
product meaning if your volume of sales
is high there’s more likelihood of you
haven’t complained so for example if I
take a thousand shots in a basketball
game versus another guy that comes in
and only gets one shot in basketball
game who has a higher likelihood of
shooting an air ball the guy that shoots
a thousand shots or together shoots
unshot thousand shots i’ma get some air
balls and air balls could be complained
it could be a missed plate it could be
something that happened that you got to
address so you got to understand that
the business you’ve chosen to be a part
of if it’s high-volume you can get more
complaints low volume fewer complaints
and so that simply it’s on the way you
do your business so now how do you
handle complaints when you get them very
simple number one the most important
thing before I tell you how to respond
as the following speed is your game
speed complaint happens Tuesday if you
get back to them by Friday it’s already
too late
complaint happens at Tuesday at three
o’clock in the afternoon if you have a
system where you get back to them within
a day that’s better than Friday but if
you have a way to get back to them
immediately because you get prompted
with a notification that somebody’s not
happening you get back in within an hour
that means it matters to them so speed
is your number one game of handling
complaint number two when it comes down
to handling complaints it’s avoiding
conflict if you avoid conflict I
guarantee you you will constantly be
getting complaints so let me take what
type of brands I am extremely suspicious
of I remember one time I sat down with a
guy and he said hey I turned off all my
negative all my comments on YouTube I
said why he said well you know YouTube
has a way for you to hide your number of
subscribers and hide your number of
comments because no one will know how
many subscribers yet so you can kind of
make it up and say how many you have and
no one will see the bad things people
are saying about you I said first of all
I want to hear the negative comments
because I want to figure out a way for
sound is not good you know how many
things we’ve them
our brand because of how many value
Tanner’s have told us the sound only
comes from one ear you know how many
Paul how many times have we have you
gotten a message we’re just too many
times oh so Paul over here you’ve got
you’ve got to figure that part out or
hey you guys spell entrepreneur wrong we
chose this word called entrepreneur and
every time I interpret play plan or plan
or Paul preneur brand new or right self
hey you misspelled entrepreneur we great
we want to hear this stuff but brands
that are too concerned about hiding all
the negative comments I’m very
suspicious up what are you hiding who
cares about negative comments no one’s
perfect so we don’t have a standard of
perfection I want to hear about it
because I want to see what my audience
is going to say about it so we can be
held accountable and we can improve so
don’t avoid conflicts number three you
can’t win them all that’s for sure you
cannot win them all and then for I like
the phones a lot of times people like to
handle complaints with what do you call
it just an email or respondent that’s
great that’s the way you can be doing it
but I love phones I I can’t tell you how
many issues I’ve resolved in my life by
simply picking up the phone I just call
on the saying what is the problem that
we have going on here just last week I
got an email from a CEO of a 40 billion
dollar company and it was a very strange
email so I responded back and I said hey
this is a strange email you sent me how
about we get on the phone to clean to
clear this thing up he says you know
what out you’re right let’s get on the
call together we got on a call you know
we got on a call together and things got
cleared up because what he thought
happened was somebody said to him that
was absolutely inaccurate we got clarity
he went and investigated he says you’re
right this is exactly what happened
great we moved on I like handling issues
immediately with a phone call now let me
tell you about how to respond when you
get on a phone or you send an email or
you respond whatever it is
number one thank them for taking time
out of their schedule to critique your
product your company you thank them the
most valuable asset anybody has is time
and if they took time to write you and
give you feedback let me tell you that
is more valuable than other people that
are not willing to do that because you
don’t matter to them that much it
matters to them I was at PF Changs dia
de Devon a customer PF Changs i probably
been a PF Changs
400 times in my life one of the reasons
because when I was at Woodland Hills PA
chance was right across and then here I
got a waiter guy named Bryan in Dallas I
really like when I see him in Vegas
right and when I’m in Dallas
I got a waiter that I really like I want
to pH annex the other day yesterday and
I had a bit of a meltdown I’m there with
my wife and kids when I said meltdown
I’m annoyed so we sit down and when we
sit down it took 21 minutes before water
touched our table it took 48 minutes
before appetizer touched our table okay
I call the manager and I saw the manager
talking to another person and they
looked at us and they still didn’t come
to talk to us they’re not that busy
this was one o’clock 1:30 on Sunday
traffic was already gone then our
waitress here kept avoiding us and they
kept going to other people because she
was handling this bill and she keeps
I’ll come back I’ll come back nine
minutes from the moment she said that
she didn’t come back right now let me
tell you this here I am a valid
complaint or two PF Changs because I
want to come back to PF Changs and I
want them to resolve this because I love
service makes sense so I took the time
to give feedback now what the manager
does with that is on them I may not go
back on Sunday because I know the
manager is going to be there on Sunday
so number one is thank them number two
is speak like a human being have you
ever done customer service with people
well they speak to you in a two scripted
well thank you for the complaint that
you have here and I just want you to
know that it means a lot to us and all
this stuff
listen hey John I’m sorry man you know
I’m sorry about this experience tell me
about what happened can you tell me a
little bit more I really want to hear
you out yes you speak to them like a
human being like hey this is what
happened what happened this is what took
place okay number three apologize for
the experience acknowledged be honest
and acknowledge hey we messed up here we
did it sounds like we messed up you mind
if I investigate a little bit more get
back to you sure hey it sounds like it’s
not like we’re at fault here for what we
did and I’m not happy about that let me
see what we can do about it yes oh my
gosh I’m so sorry that you experienced
this
okay so acknowledging number five remain
calm I can tell you many experiences
that I haven’t remained calm
that sometimes and by the way almost
every case that I didn’t remain calm
didn’t work in my favor I just want you
to know this almost every single case
that I didn’t remain calm hasn’t worked
in my favor and I’ve done that many
times and I had to learn to overcome
that now sometimes it may be the fact
that I don’t want that business anymore
and to me it’s a way to say I don’t want
to do business with this person anymore
but that’s still not an excuse to not
handle people well because if you treat
somebody good they tell three people if
you treat somebody bad they took eleven
people people like to spread bad
experiences more than they like to
spread good experiences it’s just it is
what it is this is why media and in CNN
and Fox and MSNBC do so well because all
they do spread bad news and we share it
with everybody and good news there’s not
GNN yet you know what there’s no GNN in
the world good news network because no
one cares about good news people care
about bad news right so there should be
a problem I think one of these guys
changing in from CNN to be in it right
like bad news network instead of CNN
okay remain calm number six here the
mouth don’t be defensive don’t be
defensive here about what they got to
say six is promise seven is promise to
improve so tell them listen hey John
obviously I’m not happy about the fact
that we made this mistake because as the
leader as the CEO as the executive as
the VP of this department as the
whatever this falls on me as the leader
but I’m going to make one commitment to
you we’re going to get better at this
and then it’s offer a solution hey would
you be open if dot dot would you be open
if we did this I understand I’m sorry
this is our mistake but I want to do you
good would you be open if we did pop up
up up ah yes great I don’t want to
pressure but would you be open to this I
would be invite them to return for a
second chance and a follow-up on the
experience and if you do that listen
we’re forgiving I mean it for most
people that have valid complaints we’re
willing to get better we we’re willing
to come back and give you a second
chance
we would like second chances but you got
to do your part and pay attention to
details because there’s two different
things when it comes down to complaints
I’ll give it a short term problem and
I’ll give you the long term a problem
here’s a short-term problem say I handle
this solution and the customer leaves
happy but it was a valid issue if you
don’t go and fix that you have a
long-term problem
yes this customer goes happy my
long-term problem is sitting down my
staff and saying why do we keep making
the same old mistakes
I don’t mind new mistakes as the company
grows you’re going to make new mistakes
which leads to new complaints right like
all of a sudden you come out with a
department that is doing this and some
people are not happy well this is a new
mistake it’s a new complaint we got to
figure out a protocol to make this
better
but same old mistake same old complaints
you know if I go to a restaurant and the
complaint is always this place smells so
bad because the toilet is not cleaned
very well there’s a sushi spot I would
go to his amazing sushi but the battle
was so bad that if you were within four
tables of it I’m like why don’t you guys
clean the bathroom better and use a
different detergent then the smell and I
can’t stand this smell they didn’t do
anything about over here and I want it I
love this place because they would do
great job with sushi that smell alone
got me to leave the place and not come
back so pay attention to it it’s
extremely important it’s by far your
best critics or your customers will give
you so much feedback to improve your
company increase the value the company
if you hear too much so with that being
said but we don’t have a pillow here
once you just throw me a pillow for
money I just want to I’m in the mood for
any kind of a pillow – a pillow Paul’s
gonna throw us we’re out of hotel room
here in in in Caesars Palace you say
let’s see what this pillow looks like
okay hey hey hey we did should we write
something on this pillow should we do
like graffiti and like be charged eighty
bucks we don’t have the marker to do it
if I did I would do it actually know
what let’s see if this pillow is a
little bit more look at this pillow
thank you this pillow this is a very
nice classic pillow from Italy but only
today for calling like my money
I’m good soft pillow they will sell this
for $99 and if you call in the next ten
minutes
I’m not going to implement it with you
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