Service Prescription: A service guarantee assures customers that their reasonable expectations will be met or exceeded.

Issuing service guarantees is never an easy task. However, it’s something that your company needs to do if you want to develop a stellar reputation.

How does a company make guarantees? You need to examine closely what your company is capable of giving to your customers fully and completely. Just see to it that these things are within the control of your company, thus you can promise to deliver.

For example, a commercial airline can’t control factors such as the weather or air traffic congestion. So they would be foolish to give you a money-back guarantee that you will arrive on time. In cases like these, passengers understand the limitations. Any business for that matter have limitations. So for airlines, they are usually forgiven for factors beyond their control. What passengers object to are poorly delivered services within the airline’s control: perfunctory service, unappetizing food, mechanical problems, the crew showing up late, or luggage having its own itinerary.

Customers are willing to be fair and reasonable with things beyond the control of an establishment, but will feel the opposite for things within the establishment’s control. Nevertheless, all good service guarantees have several elements in common.

1. The guarantee must be liberal. How many times have you gone to a store to return or exchange a product and been asked for a receipt? Wouldn’t it be nice if no questions were asked, if people took your word for what happened and resolved the situation quickly and painlessly? All it takes is trust and flexibility. The best service guarantee promises customer satisfaction unconditionally, no exceptions. The companies who are said to be offering this kind are L.L. Bean and Nordstrom. They will take anything back at any time!

2. The guarantee must be straightforward. It must be phrased in simple, everyday language that most people can understand, and should get the point across quickly. A clare guarantee tells customers what to expect and tells employees what to do. For example, which is clearer and can be enforced and measured?: “Delivery in 30 minutes.” or “Quick Delivery.”

3. The guarantee must be relevant. Relate your guarantee to your customers’ priorities. You can for example promise 15-minute service (or a free meal) at lunch, when business people are pressed for time. Bennigan’s practices this. Don’t offer this guarantee during dinner hours when fast service is not a priority to most customers, which is usually the case here in Manila.

4. The guarantee must be substantial. An effective guarantee must carry some weight. When a customer perceives the company has nothing to lose, they won’t be impressed with the guarantee. How much weight should a guarantee have? There’s no formula. Money-back pay-outs are often attractive to customers. Some guarantee delivery in 30 minutes and give the product for free or some discount when the time is not met. It depends on your capability really.

5. The guarantee must be delivered quickly. Make it easy for your customers to ask for their money back or exchange their products. Don’t give them the runaround. Also don’t make them feel guilty if they invoke the guarantee. It’s like encouraging complaints from your customers, let them have their say and listen.

6. The guarantee must be collected painlessly. Make collection of payment quick and easy. The ideal pay-out is immediate—cash or credit to an account. Put authorized front-line people to give instant refunds or credit.

Source: The Quest for Quality: Prescriptions for Achieving Service Excellence

My dear customers-consumers out there, you can now check if you are being served a good guarantee or not.

Incidentally, starting next week, I’m going to do a regular feature on this blog, which I’ll call Consumer Watch. I will be featuring a customer’s feedback of a product or service he has availed himself of. Maybe you have been happy or unhappy with a product or a service, you can tell me all about it [ma.merdekah at gmail dot com].