Compensation for Disruptions?
Veeresh Devireddy
8 replies
How do you compensate users for any inconvenience or losses caused by service disruptions?
What strategies do you use to maintain customer satisfaction and loyalty?
Replies
Nick from FirstHR@nickanisimov
FirstHR
At the early stages of a startup, all means seem suitable because this is essentially one-on-one communication with users. When you are already creating a company with regulations, you need to make different compensation levels. From the point of view of simple mathematics, compensation cannot be greater than the client's LTV.
Share
minimalist phone: creating folders
I think it depends on the disruption, because some things cannot work not because of your fault. E.g. the 3rd party provider can mess something on your side. In that case you apologise but if the fault is on your side, you should have some "crises kit", e.g. offer discount or gift card or so.
Recap
Honestly communication the truth and offering compensation that exceeds user experiences are the most important aspects.
@zhiqi_shi I agree, but how should we decide whether to compensate full or partial amount? Any standard practice or methods?
Recap
@veeresh_devireddy Unfortunately, there's no standard approach for this, but more specific user segmentation is definitely better-for instance, early adopters and core users.
I think offering some compensation is good for fostering customer loyalty, especially if the disruption is your fault. A discount, free month of service, or account credit can go a long way. Apologizing sincerely is key too. But I agree it depends on the specific situation. If it's out of your control, an explanation and apology is probably sufficient. Having a plan in place for different disruption scenarios is smart.
Depends on the severity and frequency of the disruptions. For occasional minor issues outside your control, a sincere apology should suffice. But for major disruptions or repeated problems on your end, offering discounts, credits, or some other goodwill gesture would be wise to maintain customer trust and loyalty. Having a pre-planned 'crisis kit' of make-good offers is smart.
It really depends on the severity of the disruption and the user's value. For minor issues, a sincere apology and maybe a small discount or credit often suffices. For major extended outages, especially for high value customers, more substantial compensation like a month of free service may be warranted to retain them. The key is figuring out the right amount to preserve the relationship without giving away more than their long-term value. Having tiers based on customer spend/LTV can help systematize it.