This is a guest post by Shirli Kirschner* – mediator, facilitator, trainer and coach – of Resolve Advisors.

In a world of undifferentiated products, there is an easy point of difference that many organisations don’t, won’t or can’t deliver on: fixing mistakes.

Managing mistakes is a way to demonstrate credibility and put some substance behind the hype. It is the equivalent of the friend who is there for the crisis.

A good adviser can assist in ensuring the right questions are asked by management. He or she can also help ensure that systems operate flawlessly to keep the hard earned customer, giving great grist to the gossip mill through valuable feedback the customer will provide to his or her peer group.

An angry consumer is an opportunity not a threat. But the anger needs to be tackled holistically and strategically. Does your organisation, or do your clients, have a reliable and rewarding process (and culture) in place for responding to mistakes and complaints?

Brand divorce – 1#

Recently, a friend of mine from mothers group was telling me about her trek up to a major retailer of electrical equipment in Bondi Junction, two kids, one on each hip, to return a faulty radio. The assistant refused to refund on the grounds that her receipt was five weeks old.

The assistant thought it was reasonable to obtain a refund within a month. My friend argued that she thought five weeks was reasonable. She then told them that as there was room for disagreement, their sign needed to be more explicit.

After calling the manager and with the kids in noise mode, faced with the argument, they then refunded her money.

Her return wasn’t within a month – with two young kids she hadn’t opened the radio’s box within that time.

Hot and bothered, with stressed kids and her refund, she walked out with a story to regale her girlfriends with.

I went to buy a camera the next day and steered clear of that store…

Brand divorce – 2#

I bought blinds from a store in Randwick. Alas, after getting the fabric wrong the hanging was worse. “We will call you back and see what to do…”

Three days later and no-one had even called to discuss how to fix the problem… one week later their technical person came sans appointment, shook his head and said…’ this is a mess and I will need to check when I can get back to you.

No solution just a shake of the head. I will never use them again and neither will any of my friends.

Brand love – more than a one night stand

I fly (in planes…) regularly enough to be a high ranking loyalty member, flying nationally on discount tickets. I am your typical small business consumer… I miss planes, book the wrong days, have my card demagnetise…

The other day I missed a plane – big time. I was still in a meeting when it began to board. I called Virgin and the always happy operator said, “What is your story…” “l was one and a half hours late getting in this morning and I haven’t caught up,” I said.

I expected to have to buy another ticket. I was stressed.

“That’s a bit stressful for you – what flight were you on this morning?”, she asked, without missing a beat. I told her. She checked: “Well, I can’t take the stress out of the day after we were so late but I can apologise, put a note on your file and ensure that you can get on any plane when you get to the airport. Is there anything else I can do for you?”

I went from frazzled to relieved. At that point I would have shouted “I love Virgin” from the rooftops and beyond. After seven years of loyal service to another airline – I moved over and joined the Virgin Lounge and loyalty program. Millions of dollars of advertising could not have impressed me as much as that.

Her interpersonal skills were excellent (great active listening with no sugar coating) and her problem solving skills were on the money. More impressive was the fact that Virgin management had empowered their front line staff to make a decision like that. To me, that is true branding.

I want to belong to an organisation like that. I just need to think through the organisations that I deal with regularly. The ones that I am loyal to are the ones that know how to handle not just the good times – but the bad ones too. There are a few: Sebel Melbourne, Fratelli Fresh in Waterloo and Circulon cookware.

Circulon replaced the glass lid to my pot, honouring a lifetime guarantee when I sent them a photo to show it had shattered (no receipt required). Circulon’s attitude to my shattered lid really sold me on the concept that this is a pot for life. I just bought another two. It feels like good value at the price if I have it that long!

Up, up and away

Companies spend billions on brand awareness because they want consumers to be seduced into buying whatever the illusion is: luxury, love, success… Companies often forget that the consumer relationship is not only about getting the consumer in; it is also about how you manage the inevitable mistakes. Complaint handling is part of the ‘taste’ of the brand, particularly in service industries.

Many companies get public relations people in to manage their disasters. Very few companies think to build a brand around customer complaints or how they address everyday glitches.

They take this approach at their peril. A dissatisfied consumer makes a noise. Sometimes loud, sometimes quietly. But that memory lasts a long time and the word of mouth damage can be devastating.

As for repeat business…fugeddaboutit.

Key strategic questions that need to be answered include:

• How do we want the complaints service to look and feel?
• What is the process for dealing with complaints; is it managed by a discrete department or frontline staff?
• What are the company’s values and service guarantee around that? How will it be fed into the way that bonuses are calculated and staff remunerated? And, for that matter, position descriptions?
• How will it be measured? Will it be transparent – promoted internally and externally, or just quietly delivered?
• How will the value of it be represented in the triple bottom line (financial, management, relationship)?

Do you have similar experiences of organisations treating your complaints poorly? How did it impact on your relationship with the organisation? From a branding and reputation perspective, do you agree with Shirli? What are your thoughts?

[Shirli (right) works with organisations and individuals to effectively manage conflict and build consensus. This includes the mediation of disputes, facilitation of group process, strategic planning and capacity building. Her goal is to do meaningful work with individuals and organisations who understand that good process, seamlessly executed and invisible, is the key to delivering superior outcomes.]

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