by Bobbi Kahler

I had just finished speaking at a sales and service conference and a woman approached me. She said: “I’ve made a mistake with one of my best customers and I’m not sure what to do. Until I heard you speak, I was hoping to just sort of sweep it under the rug; now, however, I’m thinking that I have to make it right.” As I explained to this woman: the problem with sweeping problems under the rug is that the customer ends up feeling like they’ve been treated like dirt. You see, we might think we are sweeping the mistake under the rug; the customer, however, feels like we just swept them under the rug. Customers understand that despite our best efforts, we will sometimes make mistakes. What customers don’t understand and don’t appreciate is the business who makes a mistake and then either 1) pretends like it didn’t happen; or 2) defends why it happened. In either case, what the customer really hears is that the business is not taking ownership of the mistake. When I’m the customer, I have a basic philosophy: If you want to take my money, then you have to take responsibility. I’m not saying that a business has to take responsibility for things that are not their fault, but when if you make a mistake, make it right. Whenever I speak to an organization or association on sales and customer retention, I always get audience members who will come up after my presentation and share their stories with me. The stories that I hear fall into two distinct categories: Customer Horror Stories and Customer Love Stories. Here are two recent stories that shared with me by audience members. Customer Horror Story This story was told to me by a man, John, who oldest son was away at college. John paid for a good portion of the tuition and living expenses for his son. One of those expenses was a cell phone. When the statement came in the mail, John paid it, as always, and then forgot about it. He then learned that the cell phone company had been purchased by another cell phone company. He received a notice from the new company saying that his account was past due. John called the new company to explain that he had, in fact, already paid his account; however, since the old company had sent him the invoice, that’s who he had paid. The new company – in an obvious attempt to delight their new customers – said: “Really, sir, that’s your problem. You can’t expect us to keep track of those things. You have to send us the money now.” When John finished his story, I asked him: “When is your contract up with that company?” Without even pausing he said “May 1st of this year.” I then asked him: “So, what are you doing on May 2nd?” He replied: “Switching companies.” Customer Love Story Several years ago, Mark, was taking his wife out for a special weekend for their anniversary. He arranged for a limo to pick them up at their house and drive them to their hotel – The Doubletree Hotel in Chicago. They arrived at the hotel only to find out that the hotel had overbooked due to a convention and there wasn’t a room available. The front desk clerk asked Mark to take a seat and she would try contacting some other nearby hotels to see if they had a room. They didn’t. The manager came out to talk with Mark and his wife. He said that unfortunately many of the other comparable hotels were also fully booked due to the convention; however, they had found accommodations for them. The manager escorted them out the front door to a waiting limo. As Mark and his wife were driven to their new hotel they had no idea what to expect. Then the limo pulled into the Ritz Carlton. A bell-hop was waiting at the curb, collected their luggage and escorted them through the lobby, directly to the elevators and up to their suite with unbelievable views of the city. Shortly thereafter, the Ritz Carlton manager came up to personally check them into the hotel and to apologize once again on behalf of the Doubletree. Not only did the Doubletree hope that these alternative accommodations were acceptable, but, they had also arranged to pay for Mark and his wife’s anniversary dinner that evening at the Ritz. How’s that for making it right? 5 Things they did right (and what you can do to make it right!) Let’s look at a few of the many things that the hotel did right that you can take and apply in your business: They took responsibility for their mistake. They didn’t make excuses. They had a contingency plan. It’s strategic to think about what can possibly go wrong and then plan a) how to avoid it going wrong; and/or b) what to do in the event that it does. The staff were empowered to find a solution and take action. Mark didn’t have to demand to see the manager in order to get a resolution. The desk clerk knew what action to take and when to get the manager involved. How much less satisfied would Mark had been if the desk clerk had been insolent and not helpful? As it happened, the hotel was able to provide an extraordinary solution instead of being forced to provide a solution. Does your staff know what to do should a mistake happen? They made the customer feel special. Notice all the little details: the limo ride to the Ritz-Carlton, the personal attention of the manager once they got there, the special anniversary dinner. The Doubletree didn’t just make it right, they made it WOW. They didn’t try to make it the customer’s fault. Too many times when a business makes a mistake, it tries to blame the customer. Think about when that has happened to you. The hotel didn’t shift blame to Mark by saying: “You arrived too late” or “you should have reconfirmed your reservation.” Ironically, incredible goodwill can be built with our customers when we mistake; if we handle it right. Customers know that mistakes happen, and when we go out of our way to make it right, they appreciate it. Many of the “love stories” that I hear from people are not of perfect businesses; the majority of them are businesses who made a mistake but then recovered and made it right. Bonus challenge: Do you ever make mistakes? What's your Make-It-Right policy? Copyright © 2001-2008 Bobbi Kahler. All Rights Reserved. Read More Articles To read more articles go to the article list. Reprint Permission To request permission to reprint this article, please contact us for a speedy reply. Reader Feedback If you have a comment (or even a criticism) about this article, we'd love to hear it! Send us a message If you have questions or comments, please contact us. 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