How Can Organizations Win Back Customers After Mistakes?

Retailers aren’t perfect. When they screw up, how can they try to win back customers?

In this study, researchers (Goudarzi et al., 2013) investigated customers’ spending after filing a customer service complaint to a grocery retailer. Some customers received a coupon after complaining and some didn’t. Some customers received a quick response from the retailer, while others received a slower response.

Overall, the researchers found that those who received the coupon actually spent less after filing their complaint, and those who received a quick response spent more in the time following. They also found that for customers who received a slower response, the coupon made a big difference; a slow response AND a coupon reduces future spending greatly.

Overall, according to this research, retailers should respond quickly to all customer complaints. However, if they can’t respond fast, giving a coupon may hurt their bottom line even more.

 

Goudarzi, K., Borges, A., & Chebat, J. C. (2013). Should retailers pay to bring customers back? The impact of quick response and coupons on purchase outcomes. Journal of Business Research66(5), 665–669.

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