APOLOGIES WORK BETTER THAN COMPENSATION

Summary from the TLDR Marketing newsletter

Customers are up to 32% more likely to forgive a mistake when they receive an apology rather than financial compensation. Mistakes like late delivery or a forgotten order are bound to happen. Brands should respond by offering a sincere apology and a polite explanation for why the mistake happened without being defensive. Research finds that this is more effective than compensation alone. An apology helps customers regain self-esteem after feeling disrespected and shows that a company is considerate of their feelings.