How Do You Protect Your Business?

By MARK RIFFEY for the Flathead Beacon Newspaper

Business owners protect their business by reducing risk, managing cash flow, getting appropriate legal advice and insuring their people and assets properly. The thing is, you can do all those things properly and still leave your business open to damage that’s incredibly difficult, expensive and time consuming to repair. How? By providing out of context customer service.

Specifically, I’m referring to what tends to occur when you’re trying to recover from a mistake. The perfect time to show them you have their back… or to turn your back.

Which do you do?

Every once in a while, you make a mistake. Hopefully you learn from it. If it was caused by a systemic failure, you know by now to put a system (preferably automated) in place to prevent it from happening again and of course, integrate it into the rest of your systems. If it wasn’t caused by a systemic failure, then the problem might have been caused by a customer service flub, a product or service mistake, or a failure to deliver – regardless of the reason.

What happens next is where I see businesses repeatedly making a mistake: How they recoverfor the customer. That’s when context becomes critical.

Recovering FOR your client

Surprised young manWhen approached by a disappointed, angry, concerned, distraught customer, it seems that many businesses have trained their people such that their Customer Service Prime Directiveis to protect the business at all costs.

Guess what. Recovering from your mistakes in a way that preserves the customer relationship IS protecting the business, but only if it’s done right. While protection of the business is essential in these circumstances – your legal paperwork and insurance should have already done that. The third leg of the stool is how the customer feels when the exchange is over.

Consider what happens if a flight attendant accidentally spills a cup of black tea in someone’s lap on a plane. The passenger’s linen skirt is stained (a bit embarrassing for now), but it could impact the skirt wearer’s day severely if they’re being met at the airport by an important new prospect. What if their next direct manager is meeting them at the airport for an interview? What if the flight arrives at midnight and the traveler simply has to grab their bag and drive home alone at midnight.

The subconscious loss of confidence in the client / employment situations could alter the airline client’s entire life. Maybe that’s good, maybe not. How the airline reacts FOR their customer can determine how that customer feels about them for the rest of their lives. People remember how they were treated – particularly in situations like this. The context the client provides (even if you have to extract it from them) is critical to the level of your response.

I’m reminded of a surprise Peter Shankman received in 2011 from Morton’s Steakhouse after he jokingly asked for a steak to be delivered to Newark airport. You might think that was an expensive response resulting only because Peter had a lot of Twitter followers at the time. I think they saw an opportunity to make a lifetime memory for a good customer, even if they knew that he’d blog/tweet about it. Five years later, where do you think he takes clients to dinner more often than not?

How you recover for the client in their current context is everything. If Peter was landing in Missoula (which has no Morton’s), then a clever tweeted response might have sufficed, though they could take if further if they had a connection to a solid steak house in MSO.

In Customer Service, context is everything

Sometime’s a “Sorry” and replacement / discount will suffice. Sometimes, the client’s context makes your $154 mistake a memory that could last for years. Imagine you had a romantic evening out of town planned with your significant other and when you arrived at the hotel, they didn’t have a room – even though you’d paid in advance. What if the town is booked solid because of a local event? There’s “no room at the inn”… ANY inn.

How you protect the business is everything at that point – keeping in mind that the wrong kind of business protection creates customer defection. If you’re going to create a memory, make sure it’s a good one.

Want to learn more about Mark or ask him to write about a strategic, operations or marketing problem? See Mark’s sitecontact him on Twitter, or email him at mriffey@flatheadbeacon.com.

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2014-08-20_0819Want to learn more about Mark or ask him to write about a strategic, operations or marketing problem? See Mark’s sitecontact him on Twitter, or email him atmriffey@flatheadbeacon.com.  Check out the Flathead Beacon archive of all of Mark’s blogs.