So you've made a mistake? Great.

by Andrew Shedden

Have you ever noticed how there really is the seed of an equivalent or greater benefit in every setback? This thought is as true today as it was when Napoleon Hill articulated it in his great book, Think and Grow Rich. What, you may ask, does this have to do with marketing? Quite a lot as you will soon see.

Many companies perceive the sole role of marketing as the planning and execution of activities primarily designed to generate new customers. This definition is only partially true, a more accurate definition of marketing is "Anything you do to get or keep a customer."

Take particular notice the inclusion of the word "keep" in the preceding definition. Keeping current customers happy is far more cost effective than obtaining new ones. In fact, there are no more expensive marketing activities you can undertake than those of obtaining new customers. Your current customers are your most valuable resource and should be treated with great care and consideration.

How far are you willing to go?

At a very basic level most businesspeople seem to understand the necessity of treating their customers well. This is always easy when things are running smoothly, when there's no sacrifice what could be easier? It's about as hard as saying, "I love the people who love me." But what should you do when a mistake has been made? What do you do when you truly believe that you're not to blame? How far should you go to keep a customer?

My answer is succinct, "In the vast majority of instances, all the way."

We try to never make mistakes in our company. Despite our best efforts to be "practically perfect in every way" mistakes still happen. When mistakes do happen we tend to view them positively. In nearly every instance these mistakes turn out to be a very good thing. In fact, many past mistakes we've made ended up becoming catalysts that ultimately deepened and strengthened customer relationships.

(I must hasten to add that I personally haven't made a single mistake since 1982.)

What should you do?

If you are truly interested in keeping your customers despite a mistake being made simply follow these steps:

Don't pass the buck or try to blame the customer

Take full responsibility for the mistake even if you know you're right

Be willing to redo the job completely at your expense

Redo the job cheerfully

Learn from your mistakes and don't make the same mistake twice

Won't this just put me in the poorhouse?

One complaint I often hear from clients is that this is a fast way to go broke. My response is that I would rather give away five jobs to someone trying to take advantage of me than turn down even one legitimate complaint. In any case, my experience has been that the vast majority of customers are honest.

I also find that most customers are willing to compromise if:

A) Your response isn't defensive.

B) They feel they might have had a hand in the mistake.

Furthermore, every time we've gone the extra mile our company has always gained much more than it has cost.

I believe that your mind set determines your attitude to business challenges such as mistakes. People who operate from a mindset of scarcity invariably blame the customer and become defensive when a mistake has been made. Some act as if it's the last sale they'll ever make. Their intransigent and unreasonable attitude guarantees the very outcome they're trying to avoid.

Remember that success in marketing is really not very different than life. At the end of the day it's all about relationships, you need to have a long term view and be willing to give. When you make a mistake with your customer don't behave like a petulant child. If you really feel that you are diminished as a person by admitting you have made a mistake the help you need can't be found in the marketing department.