Incentive Options
Incentive Options
Mistakes do happen. Quickly acknowledging and then correcting issues and mistakes is important, along with a customer apology.
In fact, a direct and sincere apology from someone in your organization is one of the most important actions you can take.
The Harvard Business Review calls this the “Service Recovery Paradox.”
“… a phenomenon in which a customer who experiences a problem with a product or service, but has that problem effectively resolved, is more likely to have a positive impression of the company than a customer who never experienced any problems.”
It’s essential that the customer apology is sincere, effective, and helps to develop the relationship in a more positive direction.
An incentive or gift is often appropriate after an apology as a sign of goodwill and commitment and helps to restore trust and customer satisfaction. An incentive will likely be positively remembered long after the initial problem is forgotten.
Don Porter,
British Airways
When a problem occurs, the first order of business is to acknowledge the problem and the difficulty it is likely causing your customer, then gathering information and putting a plan in place to address and correct the issue.
Don’t be dismissive or confrontational.
When handling customer complaints and issues, a sincere apology can go a long way to maintaining and even improving customer relationships. How your organization handles problems creates an impression that will last far longer than the interaction. Problems do occur, even if it’s a simple misunderstanding.
But, by all means; apologize.
An apology should not only address the problem but also offer a gesture of goodwill to restore trust and customer satisfaction. Here are a few general guidelines on how to craft such an apology:
Acknowledge the Issue:
Express Sincere Apology:
Highlight Customer Value:
Thank them for the Feedback:
Offer a Token of Goodwill:
Commit to Improvement:
Invite Future Engagement:
The short answer is Always!
The reality is that customers will usually communicate with you when an issue arises.
At other times you can be proactive and alert customers to an issue they might not have even discovered.
That’s a great time to reinforce your commitment to serving their needs and to show how responsive your organization is.
Even when a customer makes an obvious mistake, for example configuring something incorrectly in an online application, it may be because they didn’t fully understand the instructions, or they might have missed the training. You can use an opportunity like that to educate, and make sure your instructions and your application are crystal clear.
An apology never hurts, even if the issue is caused by your customer. An acknowledgment of the issue and working through a solution to the issue is what your customer really wants.
An apology conveys empathy, and shows that you understand that a problem occurred. A small token of appreciation and incentive shows how much you value your customer.
No matter what your business or what industry you’re in, you’re going to face customer complaints. Even if your organization doesn’t make a mistake, one of your customers will eventually hit a difficulty that leads them to your customer service team. Take ownership.
Any service disruptions or a mistake or error in the service provided, such as delays, incorrect orders, or poor-quality service.
When a product is defective, damaged, or doesn’t meet the customer’s expectations or specifications.
Any time there is a misunderstanding or lack of clear communication that has led to customer dissatisfaction.
When commitments or promises made to the customer have not been kept, such as delivery times, special offers, or specific service level arrangements.
If your customer feels that they have had a negative interaction with your staff or felt disrespected or undervalued.
If there are errors in billing, overcharges, or problems with payment processing.
Changes in company policies can often affect the customer negatively, especially if these changes were not well-communicated in advance.
When technical issues, such as application malfunctions, or system errors impact the customer’s ability to use your service or product.
Whenever a customer or prospect gives you negative feedback or complains about any aspect of your product or service.
Any interaction with a customer about something that may be causing them stress, or giving them some difficulty. Remember that they are not as “expert” in your product as you are!
Effective apologies are essential in good customer service. They help retain customers, increase trust, and resolve issues.
Effective customer apologies show customers that their concerns are taken seriously.
That can go a long way to increasing the perception that an organization’s customer service is excellent.
A well-delivered apology can prevent a situation from escalating, turning a negative experience into an opportunity to strengthen the customer relationship.
It also leads to higher customer satisfaction, especially when accompanied by corrective actions or compensation.
Effective apologies can reduce customer churn by restoring confidence in the company and reinforcing the importance of the business relationship.
Here are general guidelines for an effective apology message to use as a guide. It includes all the essential elements you need in an apology message.
Sample:
Dear [Customer Name],
I want to sincerely apologize for the recent mistake with your order [or other issue]. We deeply regret the inconvenience and frustration this has caused you. Your experience is extremely important to us, and we are truly sorry for the issue and the difficulty it caused.
Please accept my apology and our organization’s apology. We understand that receiving an incorrect order [or other issue] causes problems with your business and adds extra stress and headaches. We are committed to making things right.
As a small token of our apology, we would like to offer you [specific compensation, such as a discount on your next purchase, a gift card, or a complimentary product]. We hope this gesture will go some way toward compensating for the inconvenience you’ve experienced. [Describe the relief] Additionally, we have arranged for the correct order [or other relief] to be expedited to you at no extra cost.
We understand the problems that occurred and the significant issues they can cause, such as [describe issue(s) that may be caused]. Our apologies for any problems this has caused and want to know that we are taking immediate steps to prevent this from happening again.
Our investigation discovered that the problem was caused by [brief explanation of the cause, such as a system glitch, human error, or supply chain issue]. We take full responsibility for this mistake and are implementing new procedures to ensure that we avoid similar issues in the future. This includes [steps being taken, such as additional staff training, system upgrades, or changes in the order verification process].
Customer feedback and proactive communication with our customers is important to us. We honestly appreciate your feedback. Feedback helps us identify and address issues promptly. Your input plays an important role in our efforts to improve our services.
We deeply regret the error with your order [or other issue] and the inconvenience it has caused. We value your business and are committed to regaining your trust. Please know that we are doing everything possible to ensure that such an issue does not occur again.
Once again, we apologize for the mistake and appreciate your understanding. Please do contact us directly with any further concerns or questions. We are here to help and to make sure that your experience with us going forward is nothing short of exceptional.
Never leave the apology hanging!
Restaurants might offer offer to take something off your bill.
An online commerce site may refund shipping charges.
An online application provider may offer gift cards or merchandize in addition to a temporary reduction in subscription price or a free month of service.
Remember that in a business-to-business situation you are dealing with a person (your company contact), as well as the overall customer organization. Both need a gesture of your support.
What are incentives that your organization can offer?
What can your company do as a way to make the apology more memorable?
Make the incentive appropriate to the apology. Tie the incentive value to the amount of effort a customer may have expended.
Don’t forget the individual you are dealing with. A small gesture, like a gift card for coffee or donuts can go a long way to building good will.
Avoid presenting rewards that may seem excessive or are far too extravagant.
Keep in mind that almost every organization has limits on what is appropriate and ethical for employees to receive.
Plan accordingly with incentives that fall within the guidelines of your target audience.
Unless you are a well-known brand, and your logo is part of your appeal and value, logo branded items may not be the best item to send as part of your apology.
It may seem a bit self-serving for all but consumer-type brands.
If it is an option for you, consider that TruCentive offers custom swag and logo wear items in addition to the thousands of merchandise, gift card and other incentive options.
A wide variety of on-demand options that are always the right size!
Your logo, printed or embroidered, lets employees, customers, or partners share your brand.
Your recipients select the size and color options you choose, and their selection is delivered to their location.
“We all experience problems with suppliers. Things go wrong – that’s just life. As a business, you have to learn to accept that. Of course, it’s how you deal with those problems which sets one business apart from another.”
Admitting fault, making clear efforts to resolve issues, and offering compensation for the inconvenience are common resolutions to customer problems. But had you thought about the impact that your handling of the situation might have on customer satisfaction? It’s likely not just a case of fixing an error – it’s making or breaking the relationship your customer has with your business.”
Source: Customer Thermometer
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