🌟 Turn mistakes into opportunities
Hello! Adam Thornhill here. ‘The Podcast Guy’ saving you 10 hours a week.
Enjoy the 79th Podup with the best bits from My First Million.
We've all had our fair share of poor customer experiences. Shaan Puri shares an enlightening theory: how a business responds to a mistake can be just as impactful, if not more so, than avoiding mistakes altogether.
The 'Fix It' theory
The restaurant industry has this weird phenomenon:
Provide what's expected = 0 points
Mess up their order = -10 points
Fix the mess quickly = +5 points
If a restaurant delivers the correct order, customers are satisfied, but they don’t think much of it. If an order is messed up, customers get upset. If an issue is rectified quickly with a freebie or a discount, suddenly the customer has a tremendous experience and they tell their friends.
I came up with this 'Fix It' theory of restaurants. Mistakes are going to happen. Instead of focusing on mistake minimization, train your team on how fast and how thoroughly can you fix it. This creates a higher net promoter score.
Shaan Puri
Why it matters
This is applicable to all industries, not just restaurants. Here's why:
The reciprocity principle. We often feel obligated to return the favor when someone does something for us. If you promptly rectify a mistake and go the extra mile to satisfy your customer, they will likely respond with loyalty and positive referrals.
Brand perception. Quick and effective problem-solving often leaves a stronger impression than a flawless experience. You can turn a negative situation into a positive story, enhancing your brand reputation.
Creating opportunities. You can use these 'rescue situations' as opportunities to innovate and improve your product or service. These situations can help identify gaps in operations or staff training and provide valuable insights.
Next steps
To apply the 'Fix It' theory in your company:
Identify areas where mistakes commonly occur. This could be in product delivery, customer service, or any other facet of your business.
Develop efficient strategies for rectifying these issues. This might involve deploying a new feature, quickly fixing a bug, or even offering an upgrade or a discount as an apology.
Empower your team to manage issues effectively. Provide them with the autonomy and resources they need to quickly solve problems.
Want to take this a step further? Intentionally make small, inconsequential mistakes, and have a plan in place to fix them quickly. However, only do this for a limited time and if you have a specific goal, like maximizing Google reviews. Make sure you use this strategy sparingly to avoid breaking customer trust.
Your thoughts?
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Quotes were pulled at different points of the episode. Sentences were left out to make the narrative more concise. Podup is not associated or affiliated with any podcast.