What do you do with an unhappy customer? Refunds are the easy way out. They don’t fix the problem. They just put a band-aid on the situation, without addressing the underlying problem that led your busy customer to take time to call you.
But don’t take my word for it. A report from Beyond Philosophy entitled The Customer Complaints X-Ray uses a survey of 1015 respondents in Europe and the USA to study which made more of a difference in loyalty – the outcome of the complaint, or the way it was handled. (The full report isn’t available without joining, but you can get a summary on their website.) What did they find?
The first question is: what drives a customer’s likelihood to continue doing business with you? Is it the outcome (getting a refund, resolving the problem, etc.) or the way the complaint is handled? Read more