Customer Recourse
While the goal of a business should be 100% customer satisfaction, problems are inevitable, so it's important to be prepared in advance with a policy for customer recourse.
Overcoming Reluctance
Businesses often are reluctant to be too forthcoming about recourse because they fear that it gives the customer the impression that they offer substandard service - but in truth, an explicit recourse policy conveys confidence that the customer will not need to use it.
Also, businesses are fearful of exploitation: that customer might seek to exploit a recourse policy to short-change the business. In truth, some will, but the impact of parasitism on the bottom line is perceived to be negligible.
In some cases, a customer who has experienced a problem and received a satisfactory solution can be far more loyal, and far more vocal in his support of the company, than one who has never had a problem at all.
Also, a know recourse policy is a safety net for reluctant customers: if a person knows that they can get a refund if they are not satisfied, they are more likely to try a product or service for the first time.
Finally, there is the impact of negative experiences: a customer who feels slighted by a business tells more people about his experience than one who was impressed by the same business. The recourse policy isn't so much an opportunity for the customer, as it is one for the business to rectify the situation before it mushrooms.
Elements of a Good Recourse Policy
The best recourse policy gives the customer as much control as possible in determining whether they deserve compensation, and the form that compensation should take.
A recourse policy that sets conditions, dictating the reasons customers will be allowed to demand a refund or replacement, or limits the nature of the solution (store credit only, no refunds) effectively undermines the purpose of having such a policy at all.
Designing a Good Recourse Policy
A good recourse policy is one that provides a prompt resolution, one which does not require the customer to undertake undue effort to get his problem solved.
A good recourse policy also accepts responsibility for customer dissatisfaction. Specifically, the customer should never be blamed for a bad experience.
A good recourse policy empowers the front-line employee to make amends: the customer should not have the impression that the employee is not empowered to serve him, or that customer satisfaction is only possible by taking a plea to a higher authority.
A good recourse policy should encourage the customer to bring service defects to your attention, even minor ones. In addition to resolving the immediate problem with an individual customer, such knowledge helps you head off problems that may cause dissatisfaction to other customers.
Telling Customers About Your Recourse Policy
To be effective, a recourse policy should be communicated to the customers well in advance of any problem (recall its value as a safety net to reluctant customers), and it must be clearly communicated so that the customers understand it at a glance.
It is especially important to communicate a recourse policy in writing, to instill confidence that it will be followed by the business.
It is advisable to have an attorney review a recourse policy - as such policies have been interpreted by courts of law to be binding as conditions of the purchase agreement, and failure to comply can be a liability risk.
However, put a leash on the dog, such that the policy doesn't become a convoluted tangle of incomprehensible language that prevents customers from seeking satisfaction.