6. Managing Escalations: Driving Customer Resolutions

Introduction:

•  Why escalations happen & when to get involved
•  A structured approach to managing escalations
•  Levers CSMs can use to resolve escalations effectively
•  Best practices to ensure resolution while maintaining customer trust
•  Fostering strong internal collaboration
•  How to prevent future escalations

1. Understanding When & Why Escalations Happen

Escalations occur when a customer is dissatisfied with an experience, product issue, or unmet expectation that hasn't been resolved through standard support channels.

1. Common Reasons for Customer Escalations

•  Product Issues – A bug, missing feature, or downtime affects business operations.
•  Support Delays – Customer tickets take too long to resolve or lack clear communication.
•  Misalignment on Expectations – Customer expected a feature, service level, or pricing that differs from reality.
•  Renewal or Contract Disputes – Pricing disagreements, contract misunderstandings, or last-minute renewal concerns.
•  Poor Customer Experience – A negative interaction with support, sales, or another team leads to frustration.

 Action Tip:
 Escalations are opportunities. When handled properly, they can turn unhappy customers into loyal advocates.

2. Structured Approach to Managing Escalations

CSMs should follow a 5-step structured process to handle escalations effectively:

 Step 1: Acknowledge & Understand the Issue (Listen Actively)

• Let the customer express their frustration without interruption.
• Acknowledge their concerns:
  “I completely understand how this issue is impacting your team, and I appreciate you bringing this to my attention.”
• Ask clarifying questions to fully understand the root cause.

1.  “Can you walk me through how this is affecting your workflow?”
2.  “What would an ideal resolution look like for you?”

 Step 2: Investigate the Root Cause

1. Gather all relevant details (support tickets, contract terms, past interactions).
2. Engage internal teams (Support, Product, Sales, Engineering) to understand:

•  What caused the issue?
•  Has this happened before?
• What is the best resolution timeline?

 Action Tip:
 Log every escalation in CRM to track trends and improve resolution strategies.

 Step 3: Communicate Transparently with the Customer

• Provide a clear status update on where things stand.
• Set realistic expectations on resolution timelines.
• Avoid vague responses like “We’re working on it.” Instead, say:
  “Our engineering team has identified the root cause and is actively working on a fix. We expect an update within 24 hours.”

 Action Tip:
 If no immediate fix is available, offer a workaround and ensure frequent updates.

 Step 4: Levers CSMs Can Use to Find a Resolution

As a CSM, you may not always have direct control over a resolution, but there are levers you can pull to navigate constraints and move the customer forward:

1. Offer Additional Value-Added Services:

• Provide something not originally included in their service agreement, such as:
  • A free system audit to optimize their setup.
  • A training session for new users to boost engagement.

2. Leverage Renewal or Pricing Adjustments:

• If the issue involves pricing, contracts, or discounts, explore:
  • Renewal flexibility (extending contract length for a better rate).
  • Discount adjustments (offering a pricing concession to offset dissatisfaction).
  • Payment term modifications (installment options, invoice date adjustments).

 3. Creative Workarounds for Policy-Restricted Issues:
Sometimes, company policies prevent a direct resolution, and escalations won't change the outcome. In these cases, creativity is key.

 Example:
A customer was charged VAT because they didn’t upload their VAT number in time, and company policy prevented modifying issued invoices.

• Instead of saying, “There’s nothing we can do,” the CSM proactively reviewed their upcoming renewal terms.
• The CSM adjusted their renewal discount so the customer recouped the lost amount through a price reduction on their next contract.
• Outcome? The customer paid their outstanding invoice and felt heard, valued, and satisfied with the resolution.

 Step 5: Foster Strong Internal Collaboration

Escalations often require cross-functional teamwork to find the best resolution.

•  Work closely with Support & Product teams – Escalate high-priority issues and advocate for fixes.
•  Align with Sales – Ensure no mis-sold solutions cause escalations later.
•  Keep documentation updated – Prevent repeated escalations on the same issues.

 Example:
"I’ve flagged this with the product team, and they are now tracking it for future updates."

3. Best Practices for Handling Escalations Effectively

 1. Maintain a Calm, Professional Tone

•  Never take escalations personally – remain calm and empathetic.
•  Acknowledge their frustration without over-apologizing.
•  Avoid blaming other teams – focus on solutions.

 Example: Instead of saying “Support should have handled this faster,” say:
"I understand the delay was frustrating. Let’s work together on the best resolution moving forward."

 2. Keep Customers Updated Frequently

•  Provide consistent updates, even if there’s no immediate resolution.
•  Customers feel valued when they’re kept informed, not ignored.
•  Use Slack, Email, or Scheduled Calls for ongoing updates.

 Example:
"I don’t have a final resolution yet, but I wanted to keep you updated. Our engineering team is still working on this, and I will follow up again by [time]."

 3. Loop in Leadership for High-Impact Escalations

•  If a large enterprise account is affected, involve leadership (CS Director).
•  Ensure an executive reaches out personally for VIP customers.
•  Offer compensation, if necessary (service credits, priority support).

 Example:
"I understand this issue impacted your business significantly. Our leadership team is aware, and we’re prioritizing a resolution. We’ll provide a full update tomorrow.”

4. Proactive Escalation Prevention Strategies

Preventing escalations before they happen is a key responsibility of a CSM. By proactively identifying risks and setting clear expectations, CSMs can reduce frustration, improve customer satisfaction, and minimize churn risks.

1. Monitor Early Warning Signs

Escalations rarely happen overnight. There are usually signs that indicate a customer may be heading toward dissatisfaction.

 Key Risk Indicators to Watch For:

•  Low Product Adoption: Customer is not using key features or hasn’t logged in recently.
•  Support Tickets Piling Up: Increased technical issues or repeated complaints.
•  Negative NPS or Customer Sentiment: Poor survey responses or disengagement from meetings.
•  Renewal Concerns: Customer hasn’t engaged in renewal discussions or is asking about alternatives.

 Action Tip:
 Set automated alerts in Gainsight, HubSpot, or Salesforce to flag high-risk customers and take action before escalation occurs.

2. Set Clear Customer Expectations Early

One of the main reasons escalations happen is misalignment between customer expectations and reality.

 How to Prevent Expectation Gaps:

•  Clarify product capabilities upfront – Ensure customers understand what the product can and cannot do.
•  Educate customers on policies – Proactively explain renewal terms, billing cycles, and support SLAs to avoid disputes later.
•  Align on success metrics early – Clearly define KPIs and goals so there is a shared understanding of what success looks like.

 Example:
"Just as a reminder, VAT exemption requires uploading your tax number before invoicing. If you need help, I’d be happy to walk you through the process before your next billing cycle."

Final Takeaways: Mastering Escalation Management

1.  Stay calm, professional, and solution-focused – Customers need confidence, not excuses.
2.  Follow a structured approach – Listen, investigate, communicate, resolve, and follow up.
3.  Leverage creative solutions when policy prevents a direct fix.
4.  Use escalations as learning opportunities – Implement preventative measures.
5.  Turn negative experiences into positive ones – Strong resolution builds trust.