What To Do When You've Blown It

Saturday, April 15, 2006

It's bound to happen sooner or later - yes, even to you and your business. Sometime or other, you will make a blunder that upsets a customer. It may be an employee mistake (honest or intentional), it could be a defective product, it could even be an unreasonable expectation on the part of your customer. The cause really isn't important.What is important is that you have an angry customer on your hands.What, you ask, does this have to do with marketing advice? Everything. Because it costs you eight times as much to get a new customer as it does to keep an old one. Because your angry customer isn't going to stop at avoiding your business - she's going to tell everyone she knows just how sorry you are. Because if you have been getting a steady stream of new customers (at eight times the cost, remember) but your overall numbers aren't growing as fast, you are losing money. Bigtime.Here's an example: Jane is a regular customer of Joe's Bargain Dry Cleaning. Once a week she brings her entire business wardrobe in for cleaning. Since her entire business wardrobe isn't that big, she spends about fifty bucks every time. This week, a stain on her favorite blouse isn't removed, and Jane calls in to complain when she gets home. The employee Jane speaks to claims to be sorry (though she doesn't sound like it) and says that not all stains can be removed by the dry cleaning process. She will, however, give Jane a coupon for a free one-item dry clean.Well, Jane wanted to wear her favorite blouse tonight for her big date with Jim. Now she can't. Since she lives right around the corner, she asks if she can bring the blouse back now and have the stain treated. She is told that Joe's does not accept same-day orders after 10 a.m.Jane hangs up totally disappointed. Forced to wear a less-flattering blouse on her date, she is somewhat lacking in self-confidence (it's hard to feel good about yourself when you think you look bad) and her date does not go well. She vows never to darken the door of Joe's again. And she doesn't. Now, lets crunch the numbers: Jane was spending $50 a week at Joe's. Subtracting two weeks for Jane's vacation time, that means she was spending $2,500 a year at Joe's. Ten Jane's in a year (if Joe is really lucky) and that is Twenty-five thousand dollars Joe will not be putting in his back pocket this year. Ten more next year and Joe is losing $50,000. But if Joe had handled the situation correctly, Jane could have turned into one of his most loyal customers. Here's what he (and you, when it happens) should do next time:1.Own up to the mistake. The sooner the better. It's hard for people, and businesses, to admit mistakes - but do it anyway. In the story above, the employee passed the mistake off to "the dry cleaning process." Never do that. Even if the problem is something completely out of your control, stand up and take responsibility. Yes, it may be hard on your ego. But what's more important: your ego, or your wallet?2.Make it right. Immediately. Don't make them jump through hoops to get a refund or a replacement (or better yet, both.). Jane should have been allowed to come down right then and have her blouse treated while she waited. If the stain still wouldn't come out, she would know Joe's had done their best.3.Make it better. Your customer hasn't just been irritated. She's been inconvenienced. Give her something extra for her trouble. After treating Jane's blouse while she waited, she should have been given an entire weeks dry cleaning for free. Joe would have been out $50 in the short term, but his $25k for the year would have been saved. And Jane would never even consider another dry cleaner as long as she lived.Following these steps will give you rabidly loyal customers. And when you combine that with steady new ones, your business will grow exponentially. Lisa Packer, author of "How To Dramatically Increase Your Business...Without A Blockbuster Budget" is an independant copywriter and marketing consultant. For more helpful articles like this one, visit www.dramatic-copy.com .

business opportunity news CCEDC offers business opportunity (The Andalusia Star-News) The Covington County Economic and Development Commission is looking for potential business owners to be housed in the newly constructed Business Development Center.

Opportunity Now Award winners announced (Business in the Community) UK employers who have demonstrated the most commitment to and innovation in creating workplaces that are inclusive for women were honoured at an awards dinner on Thursday 4 May 2006. The 11th Opportunity Now Awards recognised employers from the private and public sectors who have made equal and inclusiveness work cultures a business imperative.

Interwise Sees Strong Opportunity in Emerging Market for IP-based Conferencing as a Core Enterprise Business Application (CRM Today) Interwise Inc., a provider of unlimited voice, Web and video conferencing for the enterprise, announced it is entering a new phase of company growth driven by sales of IP-based conferencing software as a core business application for enterprises.

Lapels Franchise Opportunities are available in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Maine, Massachusetts, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wyoming

Lapels News and Press Releases

This article has been read 1439 times.

Would you like to own a Lapels Franchise?

For more information about becoming a Lapels Franchise owner, including a franchise overview, start-up costs, fees, training and more, please visit our Lapels Franchise Information page.

Or complete our free franchise advise form for a consultation about Lapels Franchise or any other franchise listed on The Franchise Mall.

Lapels Logo

Lapels
962 Washington St.
Hanover, MA

Phone: (866)695-2735
Fax: (781)829-9546

Lapels Franchise Information

Share This Page!


FREE FRANCHISE ADVICE

First Name:
Last Name:
Address:
City:
State: (US inquiries only please)
Zip:
Phone:
Email:
Capital to Invest

(Min $50k Investment)
Investment Timeframe:

Can I use my 401K or IRA
to buy a business?

Submit your request for a
FREE Franchise Consultation.