How to Lose a Customer for Life

My sister Tracy loves Olga’s Kitchen. Always has. Specifically, she loves their Three Cheese Olga. She orders lunch from Olga’s Kitchen approximately once a week.

Recently, she placed an order for her beloved Three Cheese Olga (she’s a vegetarian, so there aren’t a whole lot of options for her on their menu), and she left work to pick it up. When she got back to work, she realized they had mistakenly given her an Original Olga which is beef and lamb. Did I mention Tracy is a vegetarian?

Her lunch break now over, she didn’t have time to return and get a replacement. She called the restaurant, and was offered coupons in the mail for a free Olga. Tracy gave her address and waited.

When the coupon arrived, it contained ONE coupon for ONE free Olga. Which, when you think about it, wasn’t really free since she paid for an Olga she never received. And, you know, got one she couldn’t really eat.

The icing on the cake is the form letter she was sent. In the letter, it indicated there were TWO coupons enclosed. But the TWO had been crossed off and ONE had been written in its place. Maybe they wanted to save a few bucks?

How To Do It Right

Making customer satisfaction your top priority might cost you a few bucks up front, but it’ll almost always pay you back more in the long run. Let’s say a customer orders a piece of jewelry from you, and the chain breaks 6 months later. What are your options, and more importantly, what are the consequences of your choice? You could:

  1. Do nothing
    It’s not like she’s a return customer. She’s only ever purchased that one little thing. And with a coupon!
  2. Charge her for the repair
    You don’t guarantee your jewelry beyond 30 days. After 30 days, you can’t be responsible for normal wear and tear that leads to a broken clasp.
  3. Fix it for free
    You’re happy to repair the chain at no cost, but she’ll have to pay for the shipping herself. And she should probably pay the extra money to insure it, just in case.
  4. Send her a new chain
    Okay, so you’re going to lose a few bucks by giving her a new chain, but you’ve set your prices to include profit and overhead, so this won’t really hurt you at all. And besides, you want her to be happy with her purchase, and you want to cement your reputation as someone who cares about her customers.
  5. Bonus!
    You send her a new chain, along with a handwritten note of apology, and a small gift as a token of your appreciation for her patience and understanding. Congratulations! You realize the importance of good customer relations.

Want some real life examples?

So, which will it be? Do you want to save a few bucks and possibly lose a customer for life? Or do you want to be known as the person with the happiest customers?

Have a customer satisfaction story you want to share? Tell me in the comments below.

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