A regular customer asks for a refund on a transaction from last month. Unfortunately, your organization offers only credit. Your customer wants you to break company policy. But you know your boss won’t allow any exceptions. What do you do?

The last thing your customer wants to hear is “Sorry; that’s our policy.” It doesn’t matter if the customer is a first-time buyer or a loyal customer: Unless you tread carefully, you may lose the customer’s business for good.

You probably weren’t consulted when those policies were created. And you occasionally may find yourself caught between the organization’s overall policy of satisfying customers and more practical policies that require you to stick to the rules. That can put you in a tight spot. Follow these tips:

• Don’t hide behind policy. An upset customer can become an outraged ex-customer faster than you can shrug and say “What can I do? It’s our policy.” Better: If you think the customer is worth sticking up for, do so. But let the customer know that, ultimately, the decision isn’t yours. That way, even if you don’t succeed, you may keep the customer’s loyalty simply by acting as advocate.
• Don’t create an us-vs.-them situation. You don’t have to take sides. Show the customer that you understand and empathize with the customer’s concern. Then explain why you can’t grant the request, helping the customer see that it’s not your decision to make. Example: “I know this is a lot of money, and I truly wish I had the power to give you a refund. Unfortunately, we’re able to offer only store credit after 30 days.”
• Offer alternatives. Ask some smart questions to determine why the customer wants to make the return in the first place. That can help you figure out how to satisfy her without violating any policies. Examples: If the item is damaged, offer to repair it for free and deliver it once it’s fixed. If the customer found a better price elsewhere, try offering a discount on another item to compensate.
• Let your boss take over. Sometimes, your best option is to let someone higher up explain the policy. But do so in a way that doesn’t make you seem powerless to the customer or a nuisance to your boss. Example: “If it were up to me, I’d be glad to. But it’s my understanding that we can’t offer refunds. Because you’re a good customer, I’ll get my boss and let you explain the situation to him. He’s the only one who can make exceptions.” Fill your boss in on the situation and why you think an exception might be appropriate.
• Learn the reason behind the policy. Then share that information with your customer. One of two things will happen: You may help the customer see the reason behind the policy ... even if the customer doesn’t like it. Or you may help your boss see that he’s sticking to an obsolete policy that no longer makes real business sense: one that’s actually driving customers away.