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Tuesday, December 1, 2009

A service-recovered customer tells how many people?

Imagine you screwed up your most important business day of the year by shutting your customers out of your store at the time their demand was at its highest. That’s what Cyber Monday is to retailers, and that’s what outdoor apparel retailer MooseJaw did yesterday, when its “5X Rewards” promotion brought the entire site down.

Effective service recovery acts quickly, admits the mistake and acknowledges the appropriate level of consumer hardship, and presents a fair resolution to fix the problem. Going a step beyond is the company that makes a customer a little more than whole for their troubles.

Here’s MooseJaw CEO Harvey Kanter hitting all three. I didn't shop MooseJaw yesterday, but I'm in their database, and I got the email.

At Moosejaw, we're committed to making shopping as much fun as backpacking the Chilkoot trail or playing red rover. This morning, we didn't live up to that commitment when our site went down due to problems caused by our 5X Rewards Promo and high traffic volume.

Long story short, we've fixed the issue by removing the promo code. Now anyone who checks out WITHOUT entering a promo code will get the 5 Times Rewards Points when we process the order. The deal is still good until midnight PST, so if you missed it earlier today, there's still time.

Love the madness,
Harvey Kanter, CEO

The paradox in service recovery holds that a customer well recovered from a failure is often more loyal than a customer that never had a failure in the first place.

It’s likely that MooseJaw lost a lot of revenue yesterday, but by correcting quickly and removing the requirement of the promo code in order to receive the benefit, hopefully they gained a few more loyal followers.


Gary Wohlfeill said...

Thanks for the well thought out post about our Cyber-Monday experience.

We continue to encourage any customer who had problems placing an order yesterday to contact us through whatever means they desire (Facebook, Twitter, Phone (877.666.7352), Email (service@moosejaw.com, gary@moosejaw.com.)

We only care about using this to get better and making sure we're making it right for every customer.

Love the Madness,

Creative Director


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