Case of Complaining customer

In an effort to improve service, Presto Cleaner installed a new computer system, designed to cut the customers waiting time and simplify the drop-off and pickup processes. But the system was only a few months old when Mr. J.W. Sewickley, the company president, received an angry letter from Mr. George Shelton, whose laundry had been lost by the new system. Mr. Sheltons letter described his experience with Presto Cleaners complaint-handling operations and demanded compensation and an apology. To respond to the complaint, Mr. Sewickley sent the letter to his customer complaint office, asking for more information. The answer came back from Paul Hoffner. He explained that there were extenuating circumstances and suggested that some customers may not be worth keeping. Is the customer always right? Where should a company draw the line on compensation and service? What is the best way to handle cases of complaining customers?

Answers: 1. Problem aggravated due to attitude of Mr. Hoffner. He could have handled it better. 2. It is very important to retain the Sheltons business. The loss resulting due to this attitude could be enormous (app. 2% of total revenue) 3. It is commendable that Presto tried implementing new computer system but they should have complemented it with training the staff and monitor the progress with the phased rollout. 4. The ideal solution to the problem could be reimbursing the Sheltons all their out-of-pocket costs along with the apology letter and possibly a coupon for next wash. a. This would not result in any business loss on the other might be some gains for the company through viral marketing.