Compensating your Customers

Sometimes your best efforts fall short. No matter how well you handle the situation.


Don’t wait to be asked

Some customers will always take the chance to ask for some form of compensation. It’s in their nature, but when it’s truly deserved this shouldn’t be the case; it should be you who is proactively going out and offering to try and put things right.

In fact, forget about offering to put things right, just do it. Don’t ask customers to apply for a refund, just give it. Don’t ask customers to pick a free gift, just send one. Take control and allow customers to enjoy the element of surprise.



Give back more than what’s fair

Forget about ‘fair’ compensation; if you’re thinking about reimbursing customers you’re way past the point of fairness. It’s about going above and beyond, doing everything and anything possible to set things right.

Your service may have only been down for 1 or 2 days of the month, but forget a pro-rated refund, you need to be giving your customer the entire month for free. It’s time to buy back that trust you threw away.



Don’t do it for the praise

Don’t use issuing compensation as a PR stunt to gain yourself attention. Giving compensation should be like charity; it should be passed out quietly and for the gain of those receiving it, not those giving it.



Can you really afford not to do it?

However much it might sting the bank balance to lose a large chunk of revenue, the pain is short lived. Think about the long term value of customers; not just as individuals, but as your product champions who tell their friends about you.


Take Aways

  • Don't wait to be asked, just do it.
  • Go above and beyond what seems 'fair.'
  • Do it with humility.
  • It's not as expensive as you might think.
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