Compensation
Featured in the Complaint handling for positive outcomes training manual
By Nina Lockwood
Category: Customer Service
Credit price: 3 download credits (Single user)
In other words, when we let one of our customers down by not meeting their expectations, we make a withdrawal from their goodwill account. Consequently, it’s important to make a deposit into that account to offset, or at least minimise, the withdrawal. Compensation is a powerful tool when used properly; however, it is often viewed as a ‘last resort’ solution. This training activity points out the benefits to the customer relationship and the impact on the business of being willing to ‘put something back’ when we disappoint. In other words, when we satisfy and even ‘surprise’ a customer with good service — or more than they were expecting — this has an impact on their loyalty to the organisation. If customers are more loyal, they will buy more from us and recommend us to their friends, as well as stay with the organisation for a longer period of time. All of these actions have a positive impact on the bottom line profitability. Another side-effect of delivering excellent service is increased job satisfaction, and therefore staff morale improves within the organisation.
You introduce the training activity by agreeing a definition for compensation. Working in small groups, the participants then go on to identify examples from their own experiences – either as a customer or as a service provider. Back in the main group, participants discuss and agree the benefits of compensation in relation to the business performance and then, working individually, go on to define what they personally can do in their own role to use this tool to increase customer satisfaction and loyalty.
Who is it for: This training resource is intended for use by trainers to help participants examine the issue of compensation from both business and customer viewpoints, suggesting ways to achieve win–win situations, whilst focusing on the bottom line business performance of the organisation.
| Resource Type: | Activity |
| Min Group Size: | 6 |
| Max Group Size: | 12 |
| Typical Duration: | 01:30:00 |
| No of Pages: | 11 |
Resources: View standard resources for Fenman training activities
Purpose: This training resource is intended for use by trainers with all members of staff, both managerial and customer facing. It is appropriate for line managers to attend with their reportees so that the messages are consistent in relation to what processes are to be used and how they will work together to make it happen back at the workplace.
Download the training activity, Compensation as featured in the Fenman training manual; Complaint handling for positive outcomes