If you run a small business, you’re bound to have an unpleasant experience with a customer eventually. Perhaps they’re unhappy with a product they’ve purchased, left a scathing review, or they simply don’t like the way you do things. These experiences, while confronting or disheartening, can be incredibly valuable to the overall growth of your biz (even if you hope the world opens up and swallows you at the time). We asked a few business owners how they’ve dealt with tricky situations, and what they took away from the experience.

OUR EXPERT PANEL
Cas Thompson – founder of Queensland ceramics brand Paxxy & Flora.
Mimosa Schmidt – founder of Melbourne label SÜK Workwear.
Becca Stern – co-founder and creative director of Newcastle locker brand Mustard Made.Paxxy & Flora's designs

What are your thoughts on the saying, ‘the customer is always right’? Cas: It’s never been a phrase I’ve agreed with and I think it has become more outdated over time. However, it is a great reminder to always put your customers’ thoughts and feedback first, and to really listen to what they say. While they may not be ‘right’, it might benefit you to approach the situation as if they are.

Mimosa: Everyone can be wrong, and we count ourselves in that, too. When you realise that everyone is a human doing their best, you take everything less personally, including disgruntled customers and critical feedback. Being less reactive leaves space for creativity. At SÜK, we operate less in an ‘us and them’ mentality and focus more on building a community with our customers. They help shape so much of what we do, so having an open dialogue is a wonderful part of how we work.

Becca: When we first started Mustard Made, Jess and I wore all the hats within the business, including customer engagement. Working directly with customers helped me see that the philosophy of ‘the customer is always right’ is not always the most helpful approach. If we subscribed to that idea, it would stop us from asking the right questions and working out the best way to help them. I guess it’s not about the customer being right – it’s about the customer being happy, and doing whatever it takes to achieve that outcome. Perhaps ‘the customer is always important’ is a more useful way of thinking about this concept.

What’s your approach to dealing with difficult customers? Mimosa: Generally speaking, we find that a lot of unhappy people just want to be heard. If they are properly acknowledged, the whole tone of the conversation can dramatically change – though there is a bit of an art to doing this when someone’s emotions are heightened. It requires you to have zero defensiveness.

However, there are some people who may just be having a bad day, and while their complaints may be well-founded, there’s no amount of listening or generous responses that can help. In which case, we just say, “Thank you for your feedback, I am sorry we can’t do more.” This is easier to do when you know you’re operating with integrity and creating something of value.

Becca: Our brand values at Mustard Made are helpful, honest and kind, and these are the guiding principles we use when it comes to our customer service, as well. When we have a tricky customer, we always prioritise being helpful and ensuring that every communication comes from a place of kindness. 

Yes, there have been times where we’ve dealt with demanding customers and where achieving a positive outcome has meant providing a replacement or a refund. Ultimately, if we have stayed true to our brand values, we can feel confident that we’ve done everything we can to provide the best possible experience under any circumstances.

Cas: I’m very lucky to have a wonderful customer base. But, when things get a bit difficult, I always take a moment to see things from their point of view, to understand if their demands are actually unreasonable or if I’m just taking it personally. I’ll explain the ‘why’s’ and give relevant background information for context; there is so much that happens behind the scenes, and I find that helping them understand the full picture goes a long way. SÜK Workwear's designs

Have you ever experienced aggressive behaviour or negative feedback from a customer? If so, what did you learn from the experience? Mimosa: In the first few weeks of launching the business, I had one aggressive customer who was unhappy with everything myself and SÜK stood for. They tore the business and me apart, through emails, texts and posts on social media. As a shy, young woman launching her first business, this was my absolute worst nightmare. Every instinct I had told me to hide away forever. However, the initial trigger for the customer’s reaction was sizing – they had bought something in their regular size and it was too small for them. The huge emotions that followed really brought home the importance of getting this aspect of the business right. Since then, I have spent a huge amount of time re-doing our size chart and perfecting fits based on customer feedback, and this is now one of the greatest strengths of our business.

I now use a rule when engaging with aggressive feedback: if something feels hard to hear or uncomfortable to engage with, it’s probably because there is something important to learn. You don’t need to engage with the anger, but you can learn from the message.

Cas: My approach has always been honesty! Customers will often mirror your behaviour and if you make things difficult, so will they. Hear them out, don’t make excuses, give a sincere apology and take something from the experience to improve your process or products for the future. 

Becca: Managing any kind of difficult communication or interaction is always a fantastic learning opportunity. We always try to see feedback as a gift, even when it arrives packaged in a way that feels confrontational or negative. By looking for the underlying cause or concern beneath the emotional response, we can learn so much about our customers and their experience with our products.

Our experience has taught us that open, honest communication is the way to go. Talking through tricky customer issues as a team can help us gain perspective and remind us that it’s not personal. We also find that the first email is always the worst; when the customer is met with a personal response from a real person, issues are almost always resolvable. Often the best solutions come when we just pick up the phone and make a real human connection.

For more small-business stories like this, visit frankie.com.au/strictly-business, or sign up to our monthly e-newsletter.