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Risk Management Bulletin

How to Avoid Customer Disputes

By March 7, 2016No Comments

rr-0316-4Customer disputes are part of doing business. However, you can avoid disputes and retain your important customer base when you try these tips.

  1. Prepare a written agreement before you sell anything. 

    This legal and binding document outlines the products you sell or the services you provide, and it includes pricing details. It also should include all terms and conditions. You don’t want to add terms to the invoice after your customer signs it.

  1. Have professionals proofread the agreement. 

    Your attorney and tax professional will ensure that the document is legal and inclusive.

  1. Be sure all authorized signers read and understand the agreement. 

    As the business owner, you need to understand the contract you’re asking your customers to sign. Any employees who are also authorized to sign the contract should understand it, too.

  1. Identify your customer who is signing the contract. 

    Your client may by a corporation or company, but you need to be sure you’re meeting with an authorized representative of that company. The contact person must have permission to make the deal and sign contracts. Otherwise, the agreement could be void.

  1. Have both parties sign the agreement. 

    Don’t provide goods or services without having both you and the customer sign the contract. This important step can protect you from expensive litigation.

  1. Maintain detailed time sheets if you charge by the hour. 

    You’ll give the customer a reasonable expert before you start working, but keep detailed records of how you spend your time and what you accomplish as you reduce disputes about charges and results.

  1. Remain professional at all times.

    It’s tempting to tell off a customer who complains about a lopsided display or the temperature of the office. Staying professional and keeping a smile on your face can go a long way toward diffusing tension, though. Teach your staff how to remain professional in all situations.

  1. Prepare a procedure for processing complaints. 

    This step includes who deals with problems, how long you spend on resolving the conflict, how to handle an escalating situation and what to do with unresolved complaints. Everyone in the company should understand the chain of command and what to do when a customer is upset.

  1. Admit mistakes. 

    Even though your written agreement includes all the details of the goods and services you offer, you and your staff are human and may make mistakes. Admitting when you mess up is good customer service.

When you avoid customer disputes, you provide a positive experience for your customers and improve employee morale. Try these tips today as you grow your small business.