Fostering Goodwill After a Business Mistake

A while back I wrote about how Netflix and its CEO, Reed Hastings, had handled customer complaints to changes in its services. I felt that Hastings’ willingness to not only accept responsibility but also scrap proposed plans that proved unpopular with Netflix users (in this case, the introduction of the Qwikster service) refreshing. It seems so rare for a CEO to actually listen to customer feedback and implement changes that give the public what they want, even if it means dramatically changing gears.

Now the company is stepping up once again. Over the holidays I received an email from Netflix saying that they would be giving me a bonus DVD to enjoy, free of charge, as a thank you for my business. It was a nice gesture, and no doubt helped build some goodwill after the Qwikster debacle earlier in the year. To me, the company was saying, “We goofed. We admit it. We want to win you back.” I appreciate that approach!

Gap is another brand that listens to its customers. In 2010 the retailer’s iconic logo was redesigned, to much outcry. Rather than defend its modern makeover, Gap reverted to the original logo after just one week and apologized for not getting feedback from its customers before the changes. 

By admitting wrongdoing and setting things right, these companies were able to win back their customers’ confidence. It is better to look a tad foolish and retain customers than to charge ahead on a path that alienates the people who support your business.

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