Business Claims & Proposal

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    Business Claims

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    What is a Claim?

    In business when the customer feels aggravated anddesires a compensation from the service provider for thewrong done, the customer initiates a claim.

    Claim is a routine letter. Non persuasive

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    Layout of a claim letter

    Is the layout as per prescribed standard? Sender(Address) Sendee(Address) Date Salutation Subject Body (Content) Complementary close

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    Content

    Problem Statement Evidence to support the claim Expectations end with clear action statement Friendly conclusion

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    From Mr. Satya Chandrasekhar,56,M.G. RoadBhopal. July21,2011 To Mr. P. PratapManaging DirectorVPL Electronics27,

    J.L.Nehru RoadBhopal.

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    S.Chandrasekhar10/9 Neelgiri ApartmentsAndheriEastMumbai-400012 Dated: The Manager(sales)VPLBandraMumbai-400016

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    From Satya Chandrasekhar1-1-54, SrinagarcolonyHyderabad 500 073 To The Director(Marketing)M/s VPL TV & Electronic ProductsN-35,

    Connaugh

    t Place,New Delh

    i

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    1.1.Dear Sir

    Sub: Claim for a defective VPL TV Set2. Dear Mr. PratapSub : Request full claim of the price of VPL TV set.3. Attention: Mr. Vineet Nagar, VPL TV Set DivisionOur Reference: VPL TV E1345

    Your Reference: VPL TV E 1345/Product Division

    Dear Mr. Nagar

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    roblem Statement1. On 25th January, 2008, I bought a VPL TV set fromome Needs, a store meant for consumer electronic goods. I paid Rs.4,000/- for the set (model number E1345) with bill no. 425638 .The

    arrantee card is numbered VL4442341.2. I bring it to your notice that oth January 2008, I purchased a VPL TV set from one of your authorizedealers, Home Needs, paying the full amount, 14000/- in cash. Uponxamining different television models, E1345 was recommended by onef the sales executives at the store as the future proof model with

    xcellent audio-video output. I regret to report th

    at with

    in 45 days ofnstallation, an audio problem surfaced in the set which led to fading awa

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    3. I bought a VPL TV Set from Home Needs, 50, XYZ Road, NewDelhi on January 16, 2008. I paid Rs.14, 000/-towards the same.The model number indicated that in was the latest version and

    had excellent audio-visual output.The VPL TV Set E1345urchased b me on 13th Januar 2008 has been malfunctionin

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    DirectnessHas claimant come straight to the point? Firmness & Courtesy

    Is he firm about claiming?Is he rude or courteous?

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    vidence to support the claim1. Finally, on March 20, 2008, I spoke

    o the Mr. R. Chengappa, Sales Head of VPL who blithelyuggested that I go in for the newer version of the E1345 anday a tiny difference (his words) of Rs. 1500/- ! When I amlready facing a crisis of credibility in VPL, is it likely that I wouldo in foranotherVPL product? I am sorry to inform you Sir, that

    y opinion of the E1345 is very low and my opinion of the wayour Sales Head and Division treats your customers is evenower. I am now at the end of my tether. Moreover, my family

    embers claim they were against buying VPL in the first placend it was only bought on my insistence! I am sure you will

    nderstand my frustration when I come home everyday to a

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    2.The problem lies with the audio output. The audio outputkept fading away, initially for about one or two minutes butgradually increasing in duration. Several attempts to getyour service team to rectify the problem were in vain. Finallyafter 4 reminders, the problem was fixed, but only

    temporarily. On complaining once again, I was informed bythe technician that the mother board would need to bereplaced but the same was not available as it was beingreplaced by a newer version

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    Accusations/Emotions

    Strong emotions distort communication.

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    3. I will appreciate your endeavor if you could offer me full refundwhich I am sure you will comply with promptly as the TV is stillunder warranty.

    .

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    Action Statement

    Trusting you will expedite my case speedily, I expect a prompt response from you on the above account Could you kindly send me a DD for the amount in favour of Mr. Satya

    Chandrasekhar, address as indicated above within a week. State expectations and actions to be taken in clear terms

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    Conclusion

    I have always had good experience using quite a fewgadgets manufactured by your company. This being anexception, hope, you will empathize with the situation I amin and consider this case. I have full faith in your excellentcustomer relationship reputation.

    Waiting for a positive reply at your convenience.I look forward to hearing from you and to a resolution of theproblem soon. I will wait for the period of 15 days beforeseeking help from the local consumer court for a finalresolution of the problem.

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    The conclusion should be cordial so as to avoid anyresistance/ bitter after taste in the mind of the provider

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    Complementary Close

    Thanking youYours Sincerely Yours truly

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    Restore the confidence: Am I successful in restoring theconfidence by telling him what is being done so there is norecurrence. Have I given further advice or service to strengthenthe customers confidence in the company?

    Pleasant conclusion.: Is it inviting the customers attention

    to new products and service.

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    Acceptance of the claim1. I have read your letter d/25/3/08 and was

    taken aback by your experience. If a part is defective it is an honestmistake, sometimes out of our control. What was inexcusable on ourpart was the treatment meted out to you. On behalf of myorganisation let me apologise for the treatment you got. Of course, wewill honour your claim and return your money. We can also give you

    the option of keeping your TV set while we replace the motherboardfor your E1345 and in addition we would give you two externalspeakers and a stylish pair of earphones free of cost. We do this inthe hope that you will realise that we do have certain standards whichseemed to have failed in your case, which is regrettable.

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    2. Thank you for your letter dated 20th of March. It was indeed veryupsetting to be informed of all the details of the problems faced byyou. I truly feel sorry for all the inconvenience you had to undergo. Ihave spoken to the mechanic who attended to the problem. Sincethe problem has occurred within the warranty period and we alsovalue the sentiments of our customers, we will refund the paid

    amount of Rs.14, 000 to you by cheque within the next fifteendays.Rule: To begin with,address the negative impression of thecustomer Refer to the claim and state that it will be honoured

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    We assure you that we are addressing the quality andservice issues raised by you and look forward to servingyou again. We request you to kindly have a look at the newmodels introduced by our company. I am directing my saleshead to get in touch with you and arrange for a

    demonstration I trust that this will give you full satisfaction. We assure you

    of our best and timely attention at all times and hope toretain the same relationship with you in future

    Rule; Restore confidence by stating what is being done to

    avoid a recurrence of such a situation

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    We once again regret the laps on our part and theinconvenience caused to you on account of it.

    W

    e would like to draw your attention to th

    e latest version ofthe VPL TV with 27 screen now available in 5 styles eachone as sleek and attractive as the other and offeringfuturistic features that no other TV can boast of at thismoment in time. (Kindly refer to attached brochures). To

    offset th

    e inconvenience caused to you we would beh

    appyto offer the same at a discounted price. We can alsoprovide you with a TV cabinet in superlight fibre glass at just50% of the cost.

    We value your patronage and look forward to your continued

    relationship with us.

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    Rule: Conclude pleasantly by not referring to the problem atall. In fact invite attention of customer to newproducts/service.

    Avoid negative statements including apology

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    Refusal

    Objective:Refuse the claim.Retain Goodwill.

    Use inductive approach

    Empathy Do not Passing the Buck Keep Ethics and fair play in mind Neutral, positive beginning Give reasons for refusal in positive

    statementsCompromise: If you wish to. Pleasant ending: .

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    1.We are in receipt of your letter dated March 23, 2008 stating adefect in the audio of a recently purchased VPL TV from our storelocated at XYZ Road on January 16, 2008.

    We would like to state that the product was delivered in goodcondition from our store. I am sure the damage was incurred byinefficient handling of the system. A part of the mother board is

    damaged and needs a replacement.

    The E1345 version is not available hence; a newer version will haveto be installed. This version will cost Rs. 1500/- whichhas to beborne by you.

    I am sure that the above will be acceptable to you.

    Thanking you and assuring you of our best services at all times,

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    Our warranty policy clearly states that the damage caused bypower surge or fluctuation voids the warranty. The customercan be refunded if and only if there is a manufacturingproblem. Unfortunately this was not the type of problem in yourcase. Keeping in mind the company rules and regulations, I

    regret to state that the company is unable to refund you thesum.

    Respecting your sentiments and your loyalty to us, thecompany has decided to offer you a 20% discount on your next

    purchase. The offer lasts for next six months. Furthermore weassure you best of our timely services henceforth. I hope youwould hold on to the long lasting relationship you enjoyed withus.

    Regards,

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    Partial refusal

    Justify reason for refusal.In keeping with our reputation for total customer satisfaction, Iwould have agreed to the refund you have applied for.However, on investigating the case we find that you used theservices of unauthorized technicians to attend to the defect.

    We are sure you appreciate the fact that our warranty does notcover any claims if the item has been attended to byunauthorized persons. (Refer clause number 6 in thewarranty).

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    Partial Refusal

    Compromise and state the conditions clearly.

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    Compromise

    Under the circumstances I can offer you two alternatives. We can replace the defective motherboard within seven days by ordering one especiallyfor your set.The second option is to exchange your E1345 for a brand new VPL EL1257 which is only marginally different from yours in that the screen is 2larger and it does not have surround sound. It costs Rs. 600/- more than the E1345 but we will charge you only Rs. 300/-.

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    What not to say

    1.Yours is a peculiar case and it is the first time we havereceived a complaint of this kind. As far as your request for refund is concerned it is with

    regret that I inform you that refund is not a company policy.If you read the Warranty carefully you will see that we

    promise only to replace parts during the warranty period ofone year.

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    Practical hints

    Answer promptly Address personally to customer Thank the customer for drawing your attention to

    faults,damage,defect or mistake Apologize for the trouble and inconvenience

    If claim is reasonable offer the adjustment graciously Assure for future If claim is unreasonable or unjust,state the reasons of

    refusal or partial acceptance

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    Pitfalls

    Do not express surprise about a complaint Do not try to minimize the fault by saying such thingshappens

    Not suggest that customer is negligent or insincere "noother customerhas complained

    Do not give the impression that though the claim is unjust,you are doing a favour

    Never try to put the blame or mistake on some other party