LOSING CUSTOMERS MADE EASY:
Another Case of THAT Bank on the Ring Road Central
By
J. N. Halm

I thank the numerous readers who took time to call us after last week’s article. Although I purposely refrained from mentioning the name of THAT BANK ON THE RING ROAD CENTRAL, many of those who called correctly guessed the name of the bank. I concluded that I was not the only one who had noticed the not-too-pleasant service being offered by the bank. I hope someone does something about this before it is too late.
Interestingly, I narrated the same story at the Business-to-Business Sales Training Seminar held last month where I mentioned the name of the bank in question. I thought my story topped all of the negatives of the bank until a Chief Executive Officer of a high-tech company who was at the seminar told his story. His story incidentally happened at the same bank and same branch where I had witnessed the shouting customer.
This was his story. He had written a cheque on his FOREX account for a client after he had confirmed from the bank that he had enough funds. It was therefore a shock to him when the cheque was returned some time later. He stormed into the bank to lodge a complaint and to find out why his cheque had been ‘bounced’. Upon inquiry, he was told that there had been a change in the cheque books and so the cheque book he had was not valid. Our good friend claimed he had not received any such notice and as far as he was concerned the bank erred in paying the cheque. The front line executive informed him that the bank had sent notices to all customers about the change in cheque book and so the customer was wrong.
The ‘debate’ went on for some time until the customer realised the futility of arguing with the lady and therefore asked for his new cheque book. He sat back waiting for his cheque and had to wait for close to an hour without anyone getting back to him. When he finally had someone to attend to him, he was told that there was no new chequebook in his name and that he had to order a new one. Not being able to contain his anger anymore, he flared up and “gave them a piece of his mind.” In his anger, he told the banking officials that he was closing his account and to his surprise, the lady told him to pick an account closure form from a pile neatly arranged on her table. Wow!

Whilst some banks are going out of their way to win accounts, it seems that lady at that bank on the Ring Road Central was doing her very best to send the customers away. It seemed the bank had so many customers that it could do away with one troublesome customer. A bank that makes it so easy for customers to close, or to put it more generally, a company that makes it so easy for its customers to leave, is a danger to its shareholders.

I am not suggesting that a bank should not close accounts of some customers. I will be the first to admit that some customers cause more pain than bring gain to a company. Such customers can be done way with; but even then, this must be done in the most professional manner possible. When a good customer wants to leave, it is important that you make it ‘difficult’ for the one to leave.
I reproduce here, in verbatim, a letter from the Bank of Scotland website for customers interested in closing their accounts with the bank. I will not edit it since that will take away its essence.


Closing your current account
We're sorry to hear that you wish to close your account.
Have you considered switching to our market leading current accounts, which may better suit your banking needs? Our range includes:
• Ultimate Reward Current Account – offers a superb package of benefits and a great rate of interest on credit balances for a monthly fee
Or you can compare all the current accounts we offer to find the right one for you
If your existing account is not providing you with what you want, we're sure we've got an account better suited to your needs – and it's easy to change your account over - If you would like further information either:
• Call us on 08457 21 31 41. Lines open 8am to 8pm, 7 days a week.
• Visit your local branch
If you would still like to close your account, simply print out the Account Closure form, complete in full and return to the address below (stamp required).
Please don't forget to sign the form, without your signature we can't carry out your request. For joint accounts, you both need to sign.
Bank of Scotland
PO Box 548
Leeds
LS1 1WU
Returned forms will be processed within 3 working days from receipt. In order to ensure all pre-authorised payments (e.g. Cheques and debit card transactions) have been made, it may take up to 21 days for your account to be closed.

Now let’s go into the letter and derive some pointers for That Bank on the Ring Road Central, and for any other company that is gladly ‘sacking’ its valuable customers.

POINT 1: Offer Apology.
One cannot help but admire the way the first line is framed: “We are sorry to hear that…” Contrast this with the lady at THAT Bank ‘happily’ telling the customer where the forms for account closure were. If the apology does not even succeed in softening the stance of the customer, it will not leave a bad taste in the mouth of the departing customer. One rule I learnt early in this industry is never to make it difficult for clients who want to return to do so. Customers might leave and go to a competitor only to find out that your services were better. However, if their departure was acrimonious, the return might not be possible, causing you to lose out on a profitable customer.

POINT 2: Offer Alternatives
Another remarkable thing about the letter is that it offers other, and ‘better’, alternatives to the departing customer. This is intended to make the customer think twice before taking the final decision.
The Bank of Scotland is ensuring that the customer is treated with utmost professionalism all the way. Not so with THAT Bank on the Ring Road Central. They allowed a customer to leave them with such a story to tell. I am pretty sure many of the attendants to the ExSellers International that day will go away with this story to their various companies and the story will keep spreading. That is the extent of the damage an aggrieved customer can cause.

POINT 3: Offer Additional Information
The Bank of Scotland goes ahead to give out additional information regarding their services such as telephone numbers, time the lines will be open and information about all local branches they have. This all serve to entice the departing customer to think twice before leaving. This is so akin to the pleas of a lover who is about to see a loved one leave the relationship.
It is only after all these attempts fail that the Bank of Scotland ‘reluctantly’ gives out the account closure form. It is interesting when one compares their attitude to that of the lady my good friend encountered at THAT Bank on the Ring Road Central. The treatment was enough to send the gentleman out of the Bank to a competitor bank.
After hearing this story, I became very worried for the long-term survival of the bank because a research I came across recently indicates that for every single complaint received, there is an average of 26 other dissatisfied customers who refuse to come over and complain; six of these customers have problems that are considered serious enough to stop doing business with the company.
This finding should be very worrying for any business manager. For every customer like my friend who complains, 26 other customers are not complaining. Imagine a company that receives just four complaints every week. Such a company will have 104 dissatisfied customers who will take their anger away never saying a word. Add this to any finding that indicates that an angry customer with an unresolved complaint will tell nine other people. You do the maths and you will see the number of people who will be carrying a negative story about the business in question. These are not things to be taken lightly by any business that is serious about staying in business.
An interesting thing I noticed about the letter from the Bank of Scotland is that the Bank claims it will take a full three weeks to have an account closed fully. This is how long they intend to ‘drag’ the process before the account is finally closed. They might be of the belief that within the three weeks there is a possibility, however remote, that the customer might change his or her mind. I am sure my friend’s account at THAT Bank was closed that very day he walked out.
Anyway, he was not too bothered. He walked right into another bank two buildings away from the first bank. He opened an account there and has been doing good business with them since then. He claims he is completely satisfied with the new bank and hopes they do not behave like THAT other Bank on the Ring Road Central that makes losing customers so easy.

J. N. HALM is a Sales and Customer Care Coach with Exsellers International.