Use active listening<\/h3>\n
Active listening will benefit you in several ways. It will demonstrate that the customer has been heard and that their concerns are valid. Often, customers feel that their issues are disregarded, but active listening conveys to them that you are listening and are looking to help them. Part of this involves asking questions and relaying information back to the customer to ensure they are on the same page. Once you have heard what the customer is telling you, you can then figure out a solution.<\/p>\n
Solutions focused<\/h3>\n
If you encounter any legitimate issues with your product or service, you should be able to provide solutions or alternatives to address them. It isn\u2019t enough to offer an apology in some instances; just having an apology will further anger a disgruntled customer.<\/p>\n
Back yourself<\/h3>\n
Ultimately, you need to back yourself and your business. Be confident in the goods and services you provide, and be firm when providing solutions.<\/p>\n
Difficult Customer Interaction Example<\/h2>\n
To illustrate how to use our checklist, let\u2019s look at an example:<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Scenario” _builder_version=”4.27.6″ _module_preset=”default” text_text_color=”#0a004a” background_color=”#eeecff” custom_padding=”30px|30px|30px|30px|false|false” hover_enabled=”0″ border_radii=”on|20px|20px|20px|20px” box_shadow_style=”preset2″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Cafe Scenario:<\/h3>\n
Customer: This coffee is cold again! I\u2019ve told your staff multiple times. Is this going to keep happening?<\/p>\n
Owner (professional\/active listening\/clear communication)<\/strong>: I\u2019m sorry to hear that. Let\u2019s fix this. Just to be clear, you\u2019ve received cold coffee multiple times? Was it always from the same staff member or at a specific time of day?<\/p>\n Customer: Always in the morning, I\u2019m not sure who the staff is, but I come by every Tuesday and Wednesday.<\/p>\n Owner (Solutions-focused)<\/strong>: Thanks for letting me know. I\u2019ll speak with the staff rostered on. Let me get you a coffee on the house.<\/p>\n Customer: Thank you.<\/p>\n Owner (Back yourself)<\/strong>: No problem. We can only get better with feedback. Have a great day!<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n This basic scenario utilises our checklist, showing replies and interactions that use a combination of strategies. While the incident is relatively trivial and the solution is low-cost, what the checklist provides is a standard that would treat any other kind of incident in the same manner.<\/p>\n Professional > Active Listening > Communicate Cleary > Solutions Focused > Back Yourself<\/strong><\/p>\n Conflict can sometimes offer an opportunity to improve your business, and using an incident with a difficult customer is one way to do this. In our scenario, a customer has had an issue multiple times (cold coffee), which has been remedied with a short-term solution (free coffee). What can the business owner do to prevent this issue from occurring again? The business owner can speak with the barista rostered on Tuesdays and Wednesdays, as well as check if the coffee machine is operating correctly. Either way, the issue could be due to staff training, machine malfunction, or, in some cases, user error (customer).<\/p>\n Whatever it is, you can find a way to improve your business, whether it’s training your staff properly, maintaining your machine assets, or having a conversation with your customers. Maybe in this instance, the customer wants their order extra hot but hasn\u2019t communicated that effectively with the barista.<\/p>\n Ultimately, your business can benefit from complaints and bad reviews in several ways, usually by gaining insight on:<\/p>\n [\/et_pb_text][ba_social_share icon_bg=”#03002e” icon_padding=”10px|12px|10px|12px|true|true” layout=”classic” show_text=”off” btn_padding=”0px|0px|0px|0px|false|false” btn_bg_color=”RGBA(255,255,255,0)” _builder_version=”4.23″ _module_preset=”default” custom_margin=”50px||||false|false” custom_padding=”25px||||false|false” custom_css_before=” content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;” border_width_top_main=”1px” border_color_top_main=”#e4e4e4″ border_radii_icon=”on|5px|5px|5px|5px” global_colors_info=”{}” custom_css_before_last_edited=”off|desktop”][ba_social_share_child _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”facebook” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”linkedin” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”email” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Unsure how to handle a difficult customer? Learn our strategies on how to tackle demanding customers for your small business<\/p>\n","protected":false},"author":36,"featured_media":295697,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Getting the most out of your staff while keeping your business profitable is a never-ending challenge. As a leader, you need to manage your employees' expectations, professional development, and well-being all at once.<\/p> This juggling act can make it hard to distinguish the best approach in leadership style. As it is in life, no employer is the same, nor is any employee, and getting it wrong can lead to a hostile work environment or costly staff turnover.<\/p> So let\u2019s dive into why good leadership is essential for your business, and which styles could work for you.<\/p> Good leadership helps businesses flourish. Your employees perform at a higher level, your business can make more profit, and your reputation and brand grow<\/a>.<\/p> Having a motivated workforce should be one of your goals, and for good reason. Gallup, a workplace consultancy firm, researched how positive leadership and management style impact employee engagement<\/a>. Here are just a few of their findings:<\/p> So, how does good management get these results? Good business owners and managers identify what is unique about their employees<\/a> and capitalise on it. By understanding what drives your employees, you can save time by putting them in situations where they can succeed. This will make them more accountable, as they take pride in their success, and strengthen team cohesion by having staff depend on each other's skills.<\/p> Good leaders and managers motivate their employees in ways that are unique to them. This requires constant reviewing and communication, which can be challenging to maintain. Not doing so, however, can pose serious problems to your business.<\/p> The consequences of mismanagement have direct and indirect implications for a business. Your ability to effectively run your operations is severely hampered when you have unmotivated staff and a lack of talent. If the quality of your services diminishes, your reputation will take a hit and more.<\/p> One of the most significant costs involved in poor management is the loss of staff. The time and effort it takes to train staff to contribute adequately is a burden operationally, more so if the staff member leaves before that effort can pay off.<\/p> The average cost of hiring staff is around $5,000 per employee. This can be much more for onboarding senior roles. Now consider the ongoing development of that staff, which averages around $1,200 per year (including established staff). The costs add up. Now factor in staff turnover<\/a>. The turnover cost is estimated to be between 30% and 200% of the annual salary of the employees who have left the business. If you don\u2019t properly take care of your staff, you can find yourself in a cycle of training and replacing and churning through money.<\/p> The indirect consequences of high employee turnover also ripple through a business's operations. When a staff member leaves, you can lose a real asset, and the loss can take time to fully impact your business. These are just a few of the consequences you can face with employee turnover:<\/p> Due to the high costs involved with turnover, staff retention is in a company\u2019s best interest. One of the leading causes of staff turnover is conflict with management. According to the Australian Institute of Management (AIM), 34% of employees left their jobs<\/a> due to their poor relationship with management or leadership.<\/p> Business leaders and managers need to have the right approach according to the needs of their staff.<\/p> Leaders and managers, like their employees, have their own personalities, motivations, and principles that work for them. When a manager tries to find the right lever to motivate their employees, the style and conduct of that manager matter just as much.<\/p> To identify the leadership style of a manager, we can look at the DiSC framework. DiSC stands for: Dominant, Influence, Supportive, and Cautious. The point of DiSC is to help managers discover their strengths and the personality type they most closely identify with to run their team effectively.<\/p> A dominant<\/strong> leader type will be assertive and results-focused; an influential<\/strong> leader will be relationship-focused and enthusiastic; a supportive<\/strong> leader will be collaborative and team-focused; and a cautious<\/strong> leader will be analytical and quality-focused.<\/p> A good manager should identify the style that resonates with them and use it to run their team. Team cohesion works best when expectations are set and the manager has conviction behind their methods.<\/p> To be a good leader, you must set expectations for yourself and your staff. For yourself, you need to acknowledge the privilege of having people work for you, that you will have their best interests at heart, and put your staff in the best position to succeed. You expect your employees<\/a> to perform to the best of their ability, take pride in their work, and buy into your process and procedures.<\/p> In your workplace and business, incorporate the leadership style that comes naturally to you. With DiSC, the idea is that you adapt your personality to best fit the purpose of the team dynamic and the actual industry you're in. Take the dominant leadership style: would this type of management personality work better in a florist or a car dealership? Dominant leadership would work better in a car dealership because it is better suited to the high-stress sales environment.<\/p>Improve your business with difficult customers<\/h2>\n
\n
Why is leadership style important in business<\/h2>
The impact of poor management and leadership on business<\/h2>
Direct cost from employee turnover<\/h3>
Indirect cost from employee turnover<\/h3>
Staff retention<\/h3>
Leadership styles in the workplace<\/h2>
![\"DISC](\"https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/05\/DiSC-Framework.png\")
<\/p>Small business and successful leadership<\/h2>