Customer Service vs Compensation

By : Forum Moderator
Published 17th July 2013 |
Read latest comment - 18th July 2013

I had an interesting week last week, my ISP made a few incredible blunders after I upgraded my account, and in the end I was stuck without an internet connection for a few days () Luckily (touch wood) the problem is sorted out, and I have been compensated for the problem, but it left me thinking.

This is a major company, with loads of employees and stores in just about every town here in SA, how many other customers have had similar problems to mine, and what would that do for a company financially and not to mention their clients trust in them.

I know businesses are different, but it has me thinking, do you put together some sort of "compensation plan" to deal with moments where everything goes wrong, or, would you rather spend that money making sure you have competent employees, and products or services that don't have your clients breathing down your neck because of problems.

Thanks,
Dreamraven
Comments
Big companies/institutions (or at least here in the UK) are normally quick to offer compensation, and to be honest it's a good way to easily pacify disgruntled customers.

Business will always have issues and problems, but if you can nip it in the bud by offering an extra month free, or refund of a set up charge, then I think that's pretty good customer service.

Obviously if a company is having the same repeated problems, and is only offering compensation rather than investing in resolving the problem, then thats a different issue!

Our man Clive has gained countless payments from our bank over the years for different issues, and our hoster has just compensated us after a delay in some new hardware going live. Delays happen, components fail, but instead of grumpy, I'm now a happy punter again

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Dreamraven, most reputable businesses do their best to prevent such situations, but sometimes everything goes out of control. In this case the best strategy is to compensate your clients.

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That much I can understand I mean its Murphy's law in a way I guess. What can go wrong, inevitably will go wrong. I'm just thinking though, where do you draw the line between compensation and stepping up your services/products, or customer service etc.

Thanks,
Dreamraven

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