Respond when a mistake happens
Whether we like it or not, we all make mistakes. Some are large, some are small, but mistakes are a daily part of our lives. How your business deals with these slip-ups can be a big differentiator when dealing with current and future customers. How you deal with these mistakes can determine whether you will gain or lose large amounts of business (and money) in the future.
Acknowledge your mistakes
When a customer brings an error to your attention, do you acknowledge it? That sounds pretty simple, but do you and your employees always respond positively when someone calls to say your product or service is below par?
Does your company have easy ways to diagnose issues? When the radio in our new car was clearly malfunctioning, we brought it back to the dealership. They quickly ran some tests and agreed that there was a problem.
When a customer cares enough to notify you of a potential issue, do your employees treat them with respect? It is easy for front-line employees to view a mistake as an intrusion in their day. This behavior has the potential to alienate current customers, who probably won't hesitate to talk about their bad customer service experience with other people.
I've seen many customers blamed as the cause of the problem. While this may be sometimes true, there is rarely a good ending to this scenario. If your company made a mistake, the best thing to do is acknowledge it. If the error is on the customer's end, you've just been presented with a great opportunity to help them better understand your product or service.
Sometimes it’s an easy fix
Once you and your customer agree that there is a mistake, you have a golden opportunity to right a wrong and earn your customer's trust and appreciation. Go down the wrong path and you can quickly alienate your customer.
In theory, the problem with our new car had an easy fix: Simply slide out the bad radio and replace it with a new one. Unfortunately, the dealership chose a resolution that resulted in months of frustration for everyone involved. Something that could have easily resulted in a satisfied, appreciative customer ended quite badly. Once this happens, it is hard to repair “bad will.”
A simple fix, along with a “thank you for bringing that to our attention,” will go a long way in creating a satisfied customer. Throw in some freebies for the time and effort it took for the customer to work with you to resolve the issue and you have probably turned the situation around.
Resolution pays dividends
While the correct resolution to a mistake might cost you more upfront, it can gain you more business on the back end. It doesn't take a lot of analysis to know that an unhappy customer is much less likely to buy your product or service again. In addition, they are much more likely to spread bad news about your organization. In these days of online reviews, a bad service experience can be seen by thousands of people.
So what does a mistake look like when it is properly corrected? A local flooring company recently forgot to order flooring for a home that was under construction. The error was clearly on their end and it had the potential to delay a long line of contractors who were waiting for the flooring to be installed. The company offered to upgrade the flooring to a higher-priced product that could be installed within the original time-frame. The result? The construction schedule stayed on track, the builder knew he could count on his supplier to find a good resolution to the problem and the new homeowners were thrilled with the upgraded replacement product.
That one error had the potential to derail a construction project, but the business owners made sure the issue was resolved to everyone's satisfaction. The upgraded product probably cost them more, but the financial downside of not responding correctly was enormous.
The real cost is when you don't correct a problem or address an issue. You know that it takes a lot of money and effort to attract new customers. Even if it costs more upfront, treating a mistake as an opportunity to create customer goodwill will save you money and customers in the long run.
Consultant Alison Hinson, owner of Alison Hinson MBA LLC, can be reached at ahinson@midmaine.com.
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