Don’t give a customer a refund


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Don’t give a customer a refund

When something’s gone wrong, people can so easily rush to the ‘refund’ solution, to solve this. But in 95% of cases this will be a ‘lose/lose’.

The customer didn’t want a refund: they just wanted to feel valued and for you to listen and take some action based on their feedback … for the benefit of everyone. We are intrinsically generous and concerned about the welfare of the pack … not conniving and malicious as many would suggest!

So, if they don’t get this, they won’t have felt connected, they won’t have felt listened to and valued, and they won’t come back to you! They’ve lost confidence, value and a supplier, all for the sake of a bit of change in the pocket!

And you’ve lost a customer, a reputation, and an opportunity to win a valuable customer for life.

When you rush to the ‘refund’ solution, you’ve basically waved this customer ‘goodbye’ … and all their friends … and perhaps your reputation in the age of social media and the empowered customer.

A problem is an opportunity to excel … but only if you see it as one: just in the same way that a ‘complaint’ is in fact a ‘compliment’ in that the customer trusts you enough to tell you what they think you’ve cocked up.

These customers can become the bedrock of on-going improvement and development of your business …. just as long as you treat them as the 95% and not the 5%.

(By the way: what do you need to do with the 5%? Of course you ask them to use a competitor in as pleasant a way as possible!)

Republished with author's permission from original post.

Guy Arnold
Guy is the author of 'Great or Poor' ( ) … a simple and effective system for delivery of consistent and continually improving customer experiences, 'Go the Extra Inch' the effective way to empower your people, and 'Sales through Service' ( ) how to sell more through repeat business, referrals, round sales and reputation (the 4 R's). Guy helps Organisations large and small to systematically make more sales for lower costs, through 4 simple principles.


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