How would you handle a 1.6 Million Dollar Mistake?
Today I had the fortune of reading this post over at Zappos. (found via techmeme.com)
I feel horrible for them, but loved how they handled it. And stayed true to their “customer first” ways.
I encourage EVERYONE to read this then put on your manager/CEO hat. And when you read it you, and only you will TRULY know what your gut reaction is.
Your company just made a 1.6 million dollar mistake you have a ton of different options, would you pick “take it on the chin?”.
When faced with EXTREME adversity, do you pick your customers first (as was done in this case) or do you pick the bottom line first (ahem Facebook). I for one hope (and believe) that their customers will stick with them b/c when “it” hit the fan Zappos stuck by them.
Agency types, consultants, workerbees, managers – take a good hard look at your company’s client retention numbers and ask yourself, when was the last time your company screwed something up and did 100% what was right, not some compromise, you just took it on the chin, said sorry and kept at it?
Zappos could have easily tried some “oops, we’re going to give you 50% off” or something like that. But they took the full BRUNT of the hit. Thats respectable.
People!!!! If your client retention numbers are in the crapper, you might want to think hard about why – maybe when it comes down to picking revenues or what’s right for your client you pick revenues. And when it comes their turn to refer a partner they pick someone who cares about them OVER YOU!? Leaving you wondering where your next gig is coming from. NEVER waver on doing what is right for your clients, sometimes losing money on a client project when you screwed up is how you build lifelong trust.
In business there will undoubtedly be major screw ups, luckily I have had a chance to share some of them with at this last SXSW in the Panel “We F*cked up” with Greg Hoy, Kevin Hoffman, and Grey Storey of happycog and Tracey Halvorsen of FastSpot.
Here’s my clip of the video on how I handle screw ups here at SEER form SXSW (I’m at 2 minutes 43 seconds in).
Here’s the presentation:
Posted: 05.24.10
Jose Uzcategui:
Woooo… thanks for sharing the love, Wil.
This post actually made me smile, not because I’m glad everyone is screwing up, but because sometimes you can’t help but to think you’re alone dealing with these situations. All these problems sound awfully familiar.
FlyBoy Wakesurf:
Totally agree. I sell high end wakesurf boards and it’s almst exclusively relationship based. If I was selling bulk commodities, perhaps I wouldn’t be overly concerned with managing the relationship well, but when I hope to get referrals or repeat business, I focus on managing that customer relationship well.
Nick Eubanks:
Wil – I’m really glad i came across this post today. I am on the fence whether or not to walk away from a client relationship because i fear we cannot produce the kind of results we like to under the current circumstances with outside contractors.
At the very least i think i will be opening up another discussion with my team before proceeding as planned.
thanks again.
Wil Reynolds:
@jose – thats what its all about, so many companies talk about their successes (as they should) but don’t want to be open enough about teaching with mistakes as much as they teach with success.
@nick – I’m glad you came across this today too :) Glad to know this helped you out in some capacity.
Cody Baird:
I listened to another presentation recently where you shared your mistakes in link building. I really appreciate transparency and ownership, for good or bad. Love that about you. Thanks for sharing so rookies like myself can learn with you.