Grace Under Fire

About a month ago I received an email from Reed Hastings, the CEO and co-founder of Netflix. In it he apologized to customers for how the company had announced changes in its service and pricing, which had apparently prompted some to complain that they had been treated with a lack of respect. He immediately owned up to the communication issue and then went on to describe in great detail (with a link to a longer explanation online) the new changes Netflix would then be implementing, i.e. the development of a separate website for DVDs called Qwikster. He ended the note by saying that the company would work hard to regain their customers’ trust.

This week it was announced that, due to negative feedback from customers, Qwikster.com would be scrapped. If only others were so responsive to public opinion! I really admire how the company was not too proud to admit their past wrongdoing, try to reconnect with their customers, and then backtrack when it became evident that their members were not happy with the new changes. The cancellation of Qwikster.com must have cost the company a lot of money and work, but they were willing to sacrifice that in order to give their customers the level of service and efficiency that they expect. I find that refreshing.

How do you or your company respond to customer criticism? Do you shrug it off or make excuses? Or do you listen thoughtfully, accept responsibility, and make adjustments where needed? Do you communicate with your customers in order to earn their trust? Let the Netflix situation be a lesson in how, in the long run, keeping your audience happy is more important than making a big splash with new products.  And, if your company is undergoing a major change, ease your customers into it by being open and honest and guaranteeing that they remain your top priority. That’s the kind of business savvy that builds customer loyalty!

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