The Missing Step

Last month, a cruise ship had a fire on board and, as a result, became disabled in the Pacific Ocean just south of San Diego. You may have heard about the incident. Forty-five hundred people were stranded fifty-five miles from land, and, for four days, they had no running water, no working toilets, no electricity, and no fresh food. Without refrigeration, much of the food on board spoiled, adding an obnoxious odor to their other discomforts.

Carnival immediately addressed the situation by sending tug boats to retrieve the ship and talking to the press. In a statement, CEO Gerry Cahill said, "We know this has been an extremely trying situation for our guests, and we sincerely thank them for their patience. Conditions on board the ship are very challenging, and we sincerely apologize for the discomfort and inconvenience our guests are currently enduring. The safety of our passengers and crew is our top priority, and we are working to get our guests home as quickly as possible."

Later the CEO acknowledged that the situation had ruined many guests’ vacations. However, he wanted to do everything possible to “ease things on board and make the guests whole again.” All passengers received free drinks for the duration of the cruise, prompting several passengers in their interviews upon arriving home to admit a great deal of drunkenness. In addition, they were all refunded their cruise fee in full plus given another free cruise including airfare.

Carnival’s management handled the situation well because they told the truth. They admitted what had happened immediately; they didn’t attempt to hide or disguise it. As quickly as possible, they did everything they could to ease the discomfort of their passengers. They refunded the passengers’ money.

Then, they seized the opportunity to invite the passengers back by giving them a free cruise.

That is the missing step which most businesses do not take. Yes, I know that many do not take the other steps, either, often not admitting the truth, not attempting to make things right, and not refunding money. In fact, I just read this morning that one of the major complaints of customers online is that they are not treated well by Internet sellers when there is a problem. Some customers can’t even get a response from these online merchants. You and I both know that is a very unprofitable way to do business. The measure of a business comes when a problem arises. That’s when the customer discovers what type of service the business truly provides.

If the business handles the situation well, then the business is wise to take the next step and ask for more business from the customer. Survey after survey has shown that customers will not stop doing business because of a problem. How the problem is handled determines customers’ continued patronage. Customers want to be treated kindly and fairly.

When they are, invite them to do business with your firm again.