The Slow Down Reaches Small Businesses

Ever thought Enron is history? The past 10 days have been shocking in India as the Satyam Fiasco unfolded. The $ 1.5 billion fraud made headlines across the world. (see Satyam: Sanskrit for ‘Enron’). It’s great to see that the Indian government has acted swiftly (see: India Names New Satyam Board).

Satyam episode is not the only thing bothering me. Layoffs in small businesses have been on the rise. (source) The ADP national employment report indicates that layoffs in small businesses have increased 3.5 times in the past 3 months. In Dec 2008 alone, a staggering 281,000 employees have been laid off in small businesses. This follows 197,000 employees in Nov 2008.

Employment Figures ((c)p2w2)
“Sharply falling employment at medium and small-size businesses clearly indicates that the recession has now spread well beyond manufacturing and housing-related activities.”

Historical data indicates that this has been the largest fall in employment in small businesses in the past 8 years since ADP has been collecting the data.  The highest prior to this was in Oct 2001, after the dot

com bubble burst and Sept 11, in which 125,000 employees were laid off.

This is not good news for the small businesses. I do hope that we will get over the financial troubles soon. What is your own assessment? What is happening in your business and other businesses you know of?

Dealing with upset customers

Receiving positive feedback from your satisfied customers is always nice, but the real test of your business acumen lies in dealing with the upset ones. Unfortunately, despite efforts, mistakes happen. When they do, how you tackle them determines your success.

A talking customer is an opportunity

Let’s look at the opportunity. When the client is upset, she is willing to talk. And you have an opportunity to listen what she has got. Most likely, she has a genuine issue. If she had, you have every reason to alleviate the problem and see to it that the client is satisfied. Even assume, the client is being a little unreasonable. She wants a little more than what the implied promise is. That is an opportunity to show your customers that you mean what you say in your marketing materials. 🙂

Fix Your ProcessesUpset customers, client service

There’s another opportunity. An upset client is a symptom. Studies reveal that a small percentage of upset clients actually complain. It means that the clients are just a tip of an iceberg. Most likely, with every such disappointed client, there is a loose end in the process. If you do some soul searching, you will come up with some problem that you can fix and help you have more satisfied clients. I have learnt that it’s better to be prepared to listen to complaints. You never know what you might be missing out on unless you get critical feedback from them.

An upset customer might interact with an employee in person or on the phone. Remember, when a customer is upset, he or she might seem to lash out on you as a person. They can get unruly and sometimes downright obnoxious. Excepting the odd one out, most customers are looking for someone in your company to listen patiently and solve their problem in a reasonable time. Just give them a smile, hear them out and solve the problem they have. That is it! The first lesson is that you must listen to the customer.

Receive the Angst with Pleasure

There is no need to take the diatribe personally, I realised that the customer doesn’t know me as a person and his or her angst is not meant to be directed at me unless it is my fault. Keep your cool throughout the talk, and be professional and considerate when you respond. A lot of such customers might have a genuine problem and even though I agree that their tone might be far from polite, their complaint needs to be heard objectively. A brief heartfelt apology is a good start. An abusive and angry customer generally calms down to a great extent if you approach the issue with an open mind after an apology. If I got defensive I immediately came across as not trying to look at the problem from his or her perspective. Listen carefully without interrupting. Make sure that you register the complaint fully the first time itself, asking a customer to repeat the problem again will portray inattentiveness.

In case this conversation is happening on the phone, I make sure to note down the real problems which might not be obvious if the customer is irate. After taking down all the details, I offer to call the customer back at a time convenient for him or her. This gives you time to calmly resolve the problem while letting the customer cool down and will avoid the problem from exacerbating. I know that I have spent a considerable amount in acquiring the customer, so I need to make an effort to retain him or her.

I found myself empathizing with such customers and deviating from standard company policy in a few cases to help them out. Be ready to do so, dealing with people means that you cannot always follow a rigid set of rules. Give them the attention they deserve as individuals rather than a complaint. A company policy needs to be flexible since my customer takes priority over it.

Followup and Solve

Choose your words wisely. There are ways of replying in an effective manner without upsetting the customer further. Offer them the best you can; if that still doesn’t appease them, transfer the problem to a superior and brief them effectively about the issue. As a final point, always remember to follow up on the problem with the customer once it gets fixed. Satisfactorily dealing with upset customers will go a long way in ensuring the success of your venture.

So, what do you do when a customer calls in with a complaint?

Dealing with upset customers

About the author: Chaitanya Sagar is the Co-Founder and CEO of p2w2, an online marketplace for services like writing, software, graphic design, virtual assistance, business consulting and research. Chaitanya blogs at p2w2 blog

(RSS). He is fascinated by entrepreneurship and the difference technology can make in people’s lives.

Picture credits: Blatch Shermeee

Our Very First Testimonials

We have our very own testimonials – for the first time. Thanks to Emil, Jason and Sanooj.  I would like to share the happy occasion with you. Here they are:

“I am very happy with your services, and have no hesitation in recommending you to other businesses. The quality control and communication you provide makes me want to use p2w2 for all outsourcing.p2w2 testimonial

Emil Pindur

Marketing Results

* * * * *

“I highly recommend p2w2’s service and it’s capability to bring highly skilled global professionals to service small businesses in the US.

I contacted p2w2 for a marketing project to redesign our email newsletter. With a short deadline and an even shorter budget, I was very impressed that the project met all the requirements. The email sent to 30,000 customers worldwide

exceeded performance of the three previous monthly newsletters with a 10% higher click-through rate and driving over 2,000 new visitors.”

p2w2 testimonialJason D’Mellop2w2 testimonial

Marketing Manager

Guitar Salon

* * * * *

“I feel fortunate to work with such a dedicated team. Working with p2w2 helped us improve our project management and soft skills. This in turn helped in offering better deliverables to the client. I could access variety of projects on p2w2 and the website enables customer interaction end to end.”

p2w2 testimonialSanooj P Cp2w2 testimonial

Project Manager

Saparya Infotech

We Have a New Office Now!

p2w2 now has a new office. Till now, we have been working out of my residential apartment. Below are pictures of the old office we have been working out of.

That is Amit (grey shirt) and I (red shirt) working from there. The discussion in the picture was of course made up. 🙂 Ravikiran (picture below) should have been in these old office pictures but for the injury he sustained.

p2w2\'s new office!p2w2\'s old office!p2w2\'s new office!

I would really like to thank Sahiti, my wife, for all the support she gave when we worked out of her home.  We invaded her kitchen and privacy but she was patient through out. She went out of her way and cooked for us and cleaned the place and innumerable times supplied refreshments, so we could focus on the work. Thank you!

I would also like to thank Vidya Sagar who has helped us in a number of ways including designing our logo, designing and printing business cards etc. He is a great advertisements guy and knows how to network! He is now the most punctual guy around. He took all these pictures! Thank you!

Thanks are due to a number of others who have supported us. Pratibha K, Vikas Arya, Koteswara Rao, Krishna Rao (my father), Jayabharathi Devi (my mother), RK Kalluri (Playgroundonline), Devan Rajashekar, Rohit Kundaji, Vinay Kumar, Will Swayne, Emil Pindur, Raghavendra Prabhu, Anita Campbell, Jason D’mello and Sandeep Shroff who have all supported us in different forms.

We opened our office on 2nd December, 2008. We did a puja (a prayer) and occupied the premises.

Below is me (Chaitanya) and Sahiti preparing to start the puja.

p2w2\'s new office!

Puja arrangements

p2w2\'s new office!

Amit, Akhada (Amit’s wife), Chaitanya, and Sahiti busy in the puja. The little girl is Samiksha, Amit’s daughter.

p2w2\'s new office!

Ravi Kiran, p2w2’s Product Lead. Ravi was injured recently. He got his leg fractured and still attended the puja and has been working out of home. Thanks Ravi! It has been great working with you.

p2w2\'s new office!

This is little Samikha. She was uncontrollable during the puja.  🙂

Below are pictures of our friends from Investment Yogi and New Energy Finance who share the office with us. That is Mamtha and Deepika.

p2w2\'s new office!

That’s Madhu, Kiran, Deepika (almost hidden) and Shravan all from Investment Yogi.

p2w2\'s new office!

View of the office from outside
p2w2\'s new office!

View of the office from inside

p2w2\'s new office!

p2w2\'s new office!