CUSTOMER COMPLAINTS

From day one you need a policy on complaints. Obviously you need to observe a customer’s statutory rights, but think about what your position is going to be above and beyond that. Even the best trader with the perfect product or service will get the odd complaint and it’s far better to be prepared. That way, you’ll sound confident and on top of the situation and will be able to maintain the initiative. Start waffling and you’ll end up making sweeping concessions that you’ll later regret.

Think about the following points and decide what your own policy is going to be:

• Is the customer always right?
• Would you ever make an exception?
• When?
• Is it better always to give them the benefit of the doubt?
• What are you going to do if a disgruntled customer starts shouting or becomes aggressive?
• How will you cope if it’s in front of other customers or clients?
• What about customers who demand refunds?

As a general rule it is usually better to give customers the benefit of the doubt unless they’re blatantly lying. Either way, let them get their complaint off their chest. Don’t interrupt and listen carefully to what they have to say. When you do finally get to speak, respond to what they said rather than coming back at them with a prepared speech because this is far more likely to resolve things. If your unhappy customer makes a fuss in front of other customers, try to steer them into an office and away from the crowd. If that’s not possible, then listen with patience and sympathy, and at the very least you’ll escape with your dignity.

If the customer has a genuine grievance, then refund them their money with good grace. If the customer is probably wrong but is acting in good faith, then give them the refund anyway because it’s good PR. But if the customer is 100 per cent wrong and even fraudulent (claiming money back on goods you’re confident were shoplifted), then it’s important to stand your ground.

SECURITY AND SHOPLIFTING

This isn’t the inner city: steel shutters, security grilles and panic buttons are not going to be needed. But if you have premises there are still some basic precautions to take.

There are two types of shoplifters: professional thieves who make their living from it and opportunistic amateurs. Professionals target larger shops and concentrate on times when staff numbers are low, at lunchtime or towards the end of the day. They also pick times when staff concentration isn’t going to be at its peak, either at the beginning of the day when people are greeting each other and talking about what was on TV the night before, or just as the store’s closing when everyone’s preparing to go home. Amateurs tend to pick times when the shop is busy and seize their chance.

Thieves and shoplifters look like anybody else, but be wary of anyone:

• wearing a coat or a thick woolie when it’s warm outside
• with a coat or jacket draped over their arm
• with a large bag
• who seems nervous or who doesn’t make eye contact
• who keeps looking around
• who browses without seeming to see
• with a shopping trolley or baby buggy with plenty of concealed shelves and spaces, and doing one of the above.

How to keep shoplifting and fraud to a minimum

• At the design stage of your shop or studio make sure there are no dark or concealed corners.
• Have well-lit large shelves with stock neatly displayed. This doesn’t mean everything has to be in geometric lines, just make sure there is a sense of order so that any gaps are immediately obvious.
• Don’t put small, valuable and easily grabbed items by the door.
• Keep anything exceptionally valuable behind the counter.
• Never turn your back on an open till.
• Keep a minimum of cash in the till.
• Be suspicious of high value notes, especially if they’re used to buy cheap items.
• Be suspicious of any item that seems too cheap. Has someone switched price tags?
• Be suspicious of anyone who tries to distract or hurry you at the till.

Always acknowledge customers: it’s polite and good practice anyway. If you’re suspicious of anyone, then walk past them or make them aware that you’re keeping a discreet eye on them. But always put personal safety first. If you think there may be a confrontation or if you feel threatened, get back behind the counter. Don’t stand between them and the door. If they run off, don’t follow them. Call the police.

Robberies

If you are unfortunate enough to be the victim of a robbery give them what they want. Don’t make sudden movements, don’t stare, try to avoid eye contact and try to stay calm. Remember as much as you can about their appearance and voice.

CCTV

If you decide it’s necessary to install CCTV, then be aware of the provisions of the Data Protection Act. The main point to remember is that the cameras can’t be hidden: customers and any staff must be made aware that cameras are being used.

CHASING UP THE MONEY

Many businesses will be paid at the point of sale, but plenty of others (organic veg box suppliers, contract gardeners, child care providers) send out monthly accounts to customers and so are effectively giving credit.

One or two slow payers or bad debts can bring down a small business, especially if the cashflow is a bit lacking sometimes. The secret is making sure the debts don’t mount up until it’s too late to do anything. Keeping accurate and up-to-date books allows you to spot early on any potential problems or consistently late payers.

Getting paid on time

Many small businesses report that the best way to get late payers to settle is to pursue them gently but persistently. Email, write or phone when you say you will and keep doing it. Don’t let matters drift because your customer will relax and the momentum will be lost.

You’re allowed by law to charge late-payers extra. You can charge interest on the overdue amount once the credit period has passed. Unless terms and conditions state otherwise, it’s usually 30 days. If you try charging interest, it’s usually calculated daily at the Bank of England base rate, plus a percentage. It’s also possible to claim compensation for unpaid debts. Speak to your accountant or business adviser in advance about the best policy for your business.

If you’re squeamish or soft about ruthlessly chasing slow payers, especially if you know they may be in trouble themselves, perhaps because of another unpaid bill, then remind yourself that you in turn will get pursued if you can’t settle your debts on time.

Bad debts

Chasing debts yourself by going to court and filling in the court forms is not that hard: the staff there are generally helpful, particularly if it’s a small claim. But you still need to ask yourself:

• Is the debt worth it?
• What are your chances of winning?
• Even if you do win, does the other side have the money to pay? If they have no cash or assets then the court can’t force them to pay.
• Do you have the spare cash to cover your legal fees and other expenses while making the claim? (You may have insurance cover for this.) If you win you should get back some of your costs, but not necessarily all.

If you’re owed a large sum of money, speak to your solicitor or accountant about the best way forward.