How to Talk to Customers Who Are Struggling

Customer-facing roles have a unique opportunity to make a difference in the lives of those facing financial hardship. By treating all customers with dignity and compassion, we can play a small part in mitigating the psychological distress that many Australians may be experiencing now.

The cost-of-living crisis

Navigating the challenges of the cost-of-living crisis means recognising the magnitude of the problem. Despite living in a wealthy country, a significant portion of our population is struggling with everyday costs.

According to Food Bank Australia, in 2023, 1 in 5 Australians found themselves in a situation where they ran out of food and were unable to buy more. This statistic highlights the severity of the crisis and the immense burden faced by those affected. These individuals experience not only financial stress but also significant psychological strain. However, due to our cultural mindset of resilience (a ‘she’ll be right, mate’ mentality) and strong sense of pride in meeting financial obligations, many hesitate to seek help. Shame becomes an unwelcome companion for those grappling with financial hardship, and mental health can take a dive on several fronts.

Compassionate responses matter

When interacting with customers who are struggling, active listening is crucial. Take the time to understand their situation fully. Ask open-ended questions and allow them to express their concerns. By actively listening, you demonstrate empathy and create a safe space for them to share their experiences.

What do ‘compassionate responses’ look like?

Acknowledging emotions is powerful. Let customers know that it’s OK to feel overwhelmed, stressed, or anxious. Use phrases like:

• ‘I understand this is a challenging time for you.’

• ‘It’s completely normal to feel this way.’

Validation helps reduce feelings of isolation and shame. When customers feel heard and understood, they are more likely to trust your assistance.

Empathy alone isn’t enough; practical solutions matter. Provide clear steps or options to alleviate their immediate concerns. For example:

• If a customer is struggling to pay bills, explore payment plans or financial assistance programs.

• If they’re facing food insecurity, connect them with local food banks or community resources.

Help customers understand their rights and available resources. Explain government programs, community services, and support networks. Empower them to take action by providing information on where to seek further assistance.

Benefits of compassionate interactions:

1. Customer loyalty: compassionate service builds trust and loyalty. Customers remember how you made them feel during difficult times.

2. Positive reputation: word-of-mouth travels fast. When customers share positive experiences, your organisation gains a reputation for caring and understanding.

3. Reduced escalations: compassionate interactions prevent escalations. Customers are less likely to become frustrated or angry when they feel heard and supported.

4. Employee satisfaction: employees who provide compassionate service feel fulfilled and motivated. It’s rewarding to know you’ve made a difference.

How does this work in practice?

A few years ago, an Australian Utilities Company faced a challenge due to a slowing economy in Western Australia. As more customers struggled financially, phone consultants were ill-prepared to handle the growing number of vulnerable customers unable to pay their bills. To address this, the company worked with GRIST to implement an empathy-focused behavioural change program.

Via face-to-face workshops, infield observations and coaching, GRIST facilitated the client’s understanding of how to display empathy. They learned the two key components to displaying empathy in a practical, constructive way; Acknowledging the customer’s feeling (‘That sounds like a really stressful situation’) and Lifting the customer by taking action (‘To take the pressure off, what we can do is…’).

Throughout the program, customer-facing team members were empowered to service the customer in a more holistic way that leveraged the breadth and scope of the organisation’s expertise. This meant connecting the customer to a specialist team if there were indications that additional support may be needed. When speaking with customers, team members positioned the customer’s request for or acceptance of help as a strength, and acknowledged their effort in dealing with the issue. Instead of communicating a message of ‘poor you’ and it became about saying ‘good on you’, thereby demonstrating compassion and empathy in a way that emboldened and lifted people up.

A range of positive outcomes emerged from this special project, not least a substantial increase in the number of customers reporting they felt supported. Team members also found the project rewarding, with high employee engagement levels for the Financial Care team plus the least amount of unplanned leave recorded at a time when it was expected to be high.

Why empathy matters

A customer service representative’s role has the potential to go beyond transactional interactions. It’s about empathy, understanding, and practical assistance. By actively listening, validating emotions, and offering solutions, we can alleviate the burden faced by those struggling.

Compassionate interactions not only benefit our customers but also contribute to building a positive reputation and employee satisfaction. By flexing that empathy muscle every day, we can set ourselves up to do the right thing by customers who are struggling.