Steve Waugh (the world’s most capped Test cricketer and former Australian captain) once said: “When you make a mistake, there are only three things you should ever do about it. 1. Admit it. 2. Learn from it. 3. Don’t repeat it.”
Humans aren’t perfect. Sometimes humans make mistakes. Businesses are made up of humans; therefore, sometimes organisations make mistakes. One measure of a great organisation is the way it fixes mistakes.
Almost anyone can start up a business and provide services or sell products to the public. While everything is going along fine, most organisations look good. When a mistake is made, the true test of an organisation occurs.
If you fix that problem efficiently for a great outcome for the client, that client will be a strong advocate for your business for life. In fact, that customer will be an even stronger advocate than one who has never had a problem. Research shows 96 percent of clients who experienced a problem and had it resolved will use that business again compared to only 89 percent who experienced no problem. As you would expect, the figure drops dramatically (23 percent) for people who experienced a problem without effective resolution.
Early in my business career, I was having my tyres changed at a local business, Robertson’s Tyre Service. While waiting to pay my bill, I overheard the owner of the business having a telephone conversation with a client. The client had some tyre work performed before leaving town. He had driven about 100 kilometres and discovered an issue with the wheel balance work that was done. The owner told the client to go into the nearest tyre place and have the manager telephone him so he could authorise for the error to be rectified and the original work to be redone—all at no expense to the client. This work would have been at significant cost to the business owner.
Over 20 years later, I still have all my tyre work performed at Robertson’s Tyre Service—and I guarantee the client who had the problem does as well.