Do You Confess to Customers When Something Happens?
Netflix, the DVD-by-mail subscription service, let all customers know that they were experiencing a technology glitch holding up requested DVD shipments. They didn’t wait for customers to notice. They were proactive in admitting the error, apologizing for it, and making up for it.
Because they communicated directly with customers, their decision and actions are fueling their growth. Ninety-three percent of existing subscribers say they “talk up” how great Netflix is to everyone they know.