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The dogs at the door: How to say “no” to your customer
6/20/2013 7:59:00 AM
Do you have a watchdog at the door of your business? I am not talking about a literal watchdog that snarls and barks at any stranger who would dare try to come in your front door. I am talking about an unseen presence that makes your customers feel like intruders instead of guests in your business.

Managing customer relationships is one of the hardest parts of any business. Without customers, you are simply out of business. However, those who work directly with them will tell you that customer expectations will inevitably lead to a time when the customer crosses a line with those expectations. How do you tactfully say "no?” How you manage that conversation will ultimately determine whether they think of you as the guard dog of your business or someone who is a smart businessperson. If you are constantly giving in to the customer who crosses the line, you are risking the profits that keep your company in business. Be too forceful with your "no” and you will bite the hand that feeds you.

John Galbraith was a leading economist that served as a confidant to several U.S. presidents. There is a story that is told about the day President Lyndon Johnson called Galbraith’s house while he was taking a nap. Galbraith’s housekeeper, Emily, answered the phone and told the president that Galbraith had given strict orders not to wake him during the nap. "Well, I’m the President. Wake him up,” Johnson said. "I’m sorry, Mr. President,” replied Emily, "but I work for Mr. Galbraith, not for you.” Later, when President Johnson and John Galbraith finally spoke to each other, Johnson wanted to know who the lady was that said no to the President of the United States. "I want her working for me,” Johnson quipped.1

Saying no is really a boundary issue. First you have to know where the boundaries lie. How much can you give to your customer without encroaching on those lines? Some of those critical lines are profit margins, capacity to complete the work, and enough time to meet deadlines. Where does marketing come into play here? Managing the boundary lines are a function of sales, and communicating those boundaries are a component of marketing. This is where sales and marketing must cooperate with each other. Sales and marketing are the two business departments that have direct contact with the customer. Marketing is given the task of making your products and services look as good as they can without crossing another line: truth in advertising. Sales is tasked with negotiating the deal without giving away the farm. There is a temptation in both marketing and sales to either over-promise the customer, which leads to trouble on the back side of the deal, or to under-promise and leave potential on the table. Learning where the boundaries lie and communicating that to the customer avoids both of these situations.

How your customer reacts to a "no” is also a respect issue. Getting the customer to respect your "no” to his request depends upon the tact you use. Are you firmly saying "no” or are you wishy-washy in your communication – leaving the door open to the possibility of a "yes” when it should really be closed? The truth goes a long way, even when it is not what the customer really wanted to hear. Rarely are there just two options to a request. Can you find an alternative to the customer’s request that is acceptable to him and profitable for you?  This will take some creativity but may gain you points for going the extra mile. Also, what are the things you can say "yes” to? Surrounding a "no” with several "yes” answers to other things helps the customer feel like they are coming out on the right side of the deal.

Learning to say no is key to managing customer expectations. Defining the critical lines and helping the customer understand where they lie are essential to being able to stay in business and maintaining long relationships with them.

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1. The Art of Saying No, by Travis Bradberry, Forbes.com, March 11, 2013
Photo by Zilli
 

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