Why Do You Think There Are Makegoods, Anyway?

by Matt Straz, Monday, July 15, 2013 10:36 AM

I’ve founded three companies, and at each one I needed to apologize to a customer we had disappointed. Early-stage media and technology companies are especially prone to error, a time when you have more vision than code and a team that is still figuring things out.

At my last startup, Pictela, there was a period when we were screwing up so frequently that I renamed our conference room the “I’m Sorry Room” because that’s where I went to apologize to our customers. Fortunately, our product matured and we were able to turn things around.

Founders hate admitting that their company — their pride and joy — did something wrong. We want to believe that our company will make the best product the world has ever seen. Having to admit that something went wrong is hard to do because it conflicts — at least temporarily — with this belief.

But apologizing for mistakes is an essential skill. Here’s why:

Customer service. A good apology, done at the right time, can head off much bigger problems down the road. The worst thing you can do is ignore the issue and hope it goes away. It won’t!

Relationships. It may seem counterintuitive, but when customers blow their stack, it may actually be an opportunity to develop a deeper relationship with them. Great customer relationships can be forged in difficult situations.

Improvement. Nobody is perfect, especially not with the minimum viable products (MVPs) that most tech companies ship today. Sometimes the quickest way to make something better is to put it out there and take your lumps.

Leadership. A well-executed apology shows your team that you have their back and that you care about the business. Being proactive and attentive during a customer crisis also shows your employees how they should act in similar situations.

Humility. Once in awhile you have to apologize for something that isn’t actually your fault. Perhaps a customer made an unreasonable demand that lead to a mistake? Even in these situations it makes sense to suck it up and apologize. Think of an apology as the high ground in a business relationship: if you get there first any reasonable customer will respect you for it.

It happens. The advertising industry screws ups so often that media companies have formal “makegood” policies that provide additional impressions when their customers’ ads run in the wrong place. Everyone makes mistakes.

What have I learned about apologizing? It’s never easy — but always necessary.

2 comments on "Why Do You Think There Are Makegoods, Anyway? ". 

Pete Austin from Triggered Messaging commented on: July 15, 2013 at 11:29 a.m.

+1. Good article. Two other points: (1) Don't lie; we have a neighbor here in Chilworth who kept having problems with their biodigestor causing frequent problems with smell; they apologised each time for these one-off incidents naming a different cause each time - only later, they admitted there was a fundamental problem with a pump and sourcing a replacement took three months, so basically every apology was based on lies. I will never trust them again. (2) If the customer has a problem but doesn't get in touch, you don't get chance to apologize, so make sure there's no barrier to making contact.

Paula Lynn from Who Else Unlimited commented on: July 15, 2013 at 5:29 p.m.

Sometimes makegoods are not good enough. Sometimes it's a no charge. Have taken that hit a number of times no matter who is at fault.

Read more: http://www.mediapost.com/publications/article/204502/why-do-you-think-there-are-makegoods-anyway.html?print#ixzz2Z9grkRaU