How can you incentivize dissatisfied customers?

A good way of finding out what the cause of the dissatisfaction is to discuss this in conversation and identify what they have not liked. Using open ended questions when trying to understand their reasoning is a great approach because it allows them to elaborate on the "why's" whereas, a not so good example is using closed ended options as this doesn't necessarily give the customer an option that reflects their actual reason, in fact, if their reason isn't listed as an option they choose any, you don't get a true reflection of the reasons why they're dissatisfied.

Talking to the customer with honest intent of figuring out why they are feeling the way the are is best. Most of the time customers feel like the business does not care, so when approached genuinely they are often surprised. Of course there are all type of customers and some may react differently. But usually when asking them questions about what the issue is and expressing concern they tend to open up.

A great way of retaining customers is to work on a rescue plan for a list of possible scenarios. Example being "They no longer have enough time on their hand to use a service" so in this case, maybe offering them a monetary discount wouldn't be the best option but instead, offering them a discount by applying "Free Time" to their service may be more beneficial to them as they won't have to worry about not using the service within this time, as it's "Free".

Be honest and deal with them how you would like to be treated. Make it as easy for them as you can without killing your bottom line either. If a product is within return policy and its broken (without malicious intent), then offer a refund/replacement. Don't make the customer argue with you over simple matters. It's a fine line, because you don't want to go over the top either.

Fixing a mistake? Go further... make it unforgettable. When a customer's experience goes south, don't just settle for setting things right. Elevate their experience. Throw in that extra - a handwritten note or a surprise bonus. It says, "We value you beyond this hiccup." Why? It's Personal: A note or bonus isn't just a remedy, it's a recognition. It's Future-Focused: Offer an incentive and they're more likely to return. It's Impactful: In the long run, they'll recall your standout solution, not the hiccup. Best tip? Be genuine. Customers can spot insincerity from a mile away.

Incorporating a bonus or going the extra mile to satisfy a dissatisfied customer is crucial at this juncture to ensure customer retention. This is primarily due to the fact that trust has been compromised in the past. The initial trust the customer had in the organization's ability to provide a satisfactory service or product has been shattered. Therefore, it becomes imperative and urgent for the organization to surpass the customer's typical expectations. By doing so, the organization can actively work towards repairing the previously fractured trust and reaffirming its commitment to meeting customer needs.

The follow up is critical. It shows that the company is willing to establish a long term relationship, not just the “in the moment” solution.

Completely agree, and following up with a customer could take as little as an email, or a two minute phone call. It's also worthy to note that customers are more open to engaging with us when we follow up, and could give us valuable insight into things we would never even think of. Furthermore, I think the practice is that we follow up after a complaint and not after a successful service was rendered, and in my experience I am even happier to engage when I get a follow up call/email to find out how things are going after having received excellent service in the first place. Of course I would want to rave about a company that cares that much.

You can't improve what you don't measure. Measure everything. But focus on improving one number at a time. Complaints are lagging indicators. Gotta improve the leading indicators to fix lagging.

Keeping track of what you've done is crucial as you may offer something as simple as "Free Time" but this may not necessarily be working so you must keep check by reviewing and measuring the process and you will then be able to make improvements based on the data. Quite a powerful way of planning and progressing.

Time is of the essence. Swift response to the customer's complaint shows that their feedback is a top priority for your business. A delayed response can compound their frustration.

I've found that a good understanding of the problem backed by swift action and follow-up is the best way to incentivize dissatisfied customers. In most cases, dissatisfied customers want to be acknowledged. Therefore, an understanding of the problem is essential. Also, customers translate a quick solution as accountable and professional. The first two steps should be finalized with a follow-up. This allows the customer to address additional issues and the company to gain feedback.