Case study 2 - Retaining customers

Gadgets4U sells electronic goods and has a web site that looks extremely professional and goes into great detail about each product.

A customer purchases a product via the web site, confident that the claims about the functionality of the item are accurate. They turn out not to be accurate and the customer decides to return the item as being advertised incorrectly.

Although Gadgets4U refund the customer, it is done slowly and painfully, with the customer having to spend much time trying to get their money back.

Gadgets4U have not only misled the customer in their purchase but have given them a poor experience in gaining a refund.

It then turns out that the customer, as part of their job, speaks to seminar audiences about marketing issues and they use Gadgets4U as an example of how not to do it and, worse for Gadgets4U, also tell the audience about another company who does business properly. The audience, in turn, make a mental note not to use Gadgets4U (and even maybe, to use the other company), and also impart the speakers story to their own friends.

So, from one unhappy customer, Gadgets4U loses perhaps hundreds of potential customers.

Golden rule: Never underestimate the power of a single customer - you have no idea of their background and the potential damage they can cause your business if they have a bad experience.

You will never know that you've lost customers, you will only know that business is not as good as you hoped it would be.

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