Greetings Floor Dealers!
Here are some stats:
If your client has a good experience with your store, they’ll tell 10 people.
If they have a bad experience, they’ll tell 20 people.
If something goes wrong, and you “WOW” them by fixing it above and beyond their expectations, they’ll tell 30 people. (Ron Rosenberg wrote a friggin’ article about it and published the name and address of the restaurant!)
The airlines have reputations for terrible customer service, but every now and then they get it right. My sister was booked on a flight (I don’t remember where, or with which airline, but it doesn’t matter), she was out of town, and her flight was overbooked. The solution the airline gave her involved a choice of flights, hundreds of dollars in airline vouchers, and (I believe) a refund. Even the particulars of what she got are not important. What is important is that the airline’s screw-up-control was so good she was actually happy that they screwed up. I’ve heard the same story from other people who have had flights cancelled or been asked to voluntarily switch flights.
These stories inspired me to implement the following screw-up control policy in all my businesses: If we screw-up, we will attempt to overcompensate for our mistake to such a degree that the client will be glad we screwed up!
Here are some examples:
When I owned a carpet cleaning company, we were hired to clean carpets for a new client who had been referred by a friend. She wanted the carpets cleaned for her daughter’s bridal shower. Well, halfway through the job the machine broke down. This meant a 48-hour delay. Oh, and her furniture was completely moved out, so it had to stay out. We booked her as the first job once the repairs were made, and boy-oh-boy if lightning didn’t strike twice. The machine broke down a second time because it hadn’t been properly repaired. Here’s the screw-up control I initiated to not merely rectify the situation, but WOW her and attempt to make her glad for the screw up:
- I told her to move the furniture back in, and that I would move it when I cleaned. That way they wouldn’t have the further inconvenience of no furniture.
- The cleaning was free.
- I added stain protector to all her carpets for free.
- I bought her a dozen Cookie Tree cookies.
Did I overcompensate? Could I have gotten away with less screw-up control? Perhaps. But consider this: She became a lifetime client and had me back many times, right up until I sold the company, and she referred her friends and relatives to me.
Was it worth it? As far as I’m concerned, definitely.
I sometimes even use screw-up control when I didn’t screw up! If the client perceives that I’ve screwed up…well, perception is everything. Here’s an example:
When I was in the mortgage industry, we were required to give our clients a Good Faith Estimate that showed closing costs and their house payment, including taxes and insurance. I gave a client a Good Faith Estimate with a house payment of approximately $1800, including taxes and insurance. Well, his insurance quote came in $50/mo. higher than expected, and I called him and let him know. Problem was, I did not make a note anywhere of that phone call.
After his house closed escrow, he called and complained that his payment was $50 higher than expected. I scoured his file searching for notes of the conversation where I told him about the higher payment long before close of escrow. No luck. He wasn’t steaming mad, but I could tell he suspected that maybe I’d done it on purpose just to close the deal.
I discussed it with my partner, and here’s the solution we came up with: he had a 2-year loan, so we cut him a check for $1200…enough to pay the extra $50 for 24 months. We didn’t have to do it. He signed loan papers agreeing to the higher payment. We were NOT in the wrong. But that didn’t matter. The only thing that mattered was the client’s perception. And he thought we’d cheated him. When I called the client and told him we had a $1200 check waiting for him, he said, “You’d really do that?” He was blown away. He’d heard all the horror stories of lenders ripping people off, and he fully expected us to treat him like Dietech would, or his local bank would.
Another time a member of my Le Tip group had me do an equity line on his home. (Le Tip is a world-wide business networking group with local chapters.) The loan took longer than expected. He wasn’t upset but I knew he had been disappointed. You see, my USP was “You Get The Best Home Loan Service Ever…Or It’s FREE.” (I even had it trademarked.) And I got up and said my USP during every Le Tip meeting. So even though I didn’t “screw-up,” he did not get the top-notch level of service I had bragged about. So I refunded my fee. He was blown away and he bragged about me and referred people to me.
There is a famous story about Nordstrom and their over-the-top willingness to totally satisfy their customers. Some say it’s an urban legend, but Nordstrom does have an outstanding customer service reputation, and they claim it did happen. Here’s the story:
A man brought a set of tires to Nordstrom for a refund. For some reason he was not happy with them. Nordstrom gave him a full refund. But here’s the kicker: Nordstrom does not sell tires! The man had purchased them elsewhere, but mistakenly brought them back to Nordstrom. Rather than embarrass a loyal client, they gave him a refund. The story made national news, and Nordstrom’ reputation for amazing customer service grew more than any advertising campaign could ever accomplish.
For many years—and through several different businesses—I’ve kept a stack of $5 Starbucks cards in my desk. I sent them out with an apology note when my company made minor mistakes. I called it “Screw-up Control.”
For bigger mistakes I’d adjust for the size of the screw-up.
Speaking of Starbucks, they are a master of screw-up control. They even control “little” screw-ups. I’ve lost count of how many times over the years I’ve been given my drink at no charge because I had to wait too long to be acknowledged by the barista. It doesn’t happen often, but when it does, they make you happy it happened. Just the other day I was in a Starbucks drive-through behind a red sports car. They guy sat at the window and talked for 2 or 3 minutes, and I actually said out loud, “Come on..what’s the hold up?” When I got to the window the barista apologized for the wait, said that the man in front of me was their regional manager, and that he bought my drink for me. On top of that, they gave me a second drink for free.
Does Starbucks go too far in screw-up control? Isn’t giving away free drinks just because they didn’t say “Hi” quickly enough a little drastic?
No way. They make it up a thousand times over in customer loyalty. And the proof is that their shops are always packed, and there’s always a line in their drive-throughs. Heck, they’re even getting a free mention in my article!
Final thoughts…
- When it comes to screw-up control…Err on the side of overdoing it rather than under-doing it.
- Keep some screw-up control gifts handy. (Starbucks cards, movie rentals, etc.) But be ready to escalate the control if the situation warrants.
- When possible, get a testimonial when you fix a screw up. Don’t be afraid to use a properly worded screw-up control testimonial.
- Your goal with screw-up control is to make the client HAPPY for the screw up. It’s not always possible or even realistic to actually make them happy that the screw-up occurred, but do it when you can. (And get a testimonial.)
- Screw-up control is always worth it.
- Screw-up control is a marketing strategy. Approach it that way.
- Screw-up control turns screw-ups into opportunities to turn clients into raving cheerleaders for your business!
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!