So, after I hit “Post Comment” I realized… Weather is about rain and sunshine. The correct word is Whether! I’m not that bad of a speller/proof reader! Again, Adam, great article!

There is always an opportunity for unhappy customers. The Ritz is trying to create a culture and process that minimizes unhappiness by allowing employees to resolve issues before they grow into something larger and more challenging.

Great to hear from you Leon! I like to think of the Ritz’s $2,000 Rule as an empowerment limit more than a quantification of the company’s customer commitment. You’re right — money/refunds can’t always make up for a bad experience, but having the budget at the front lines to do what it takes to repair the experience can be very powerful (also, very dangerous if not managed smartly).

Each of us has to find our distinct and unique way to convey our customer commitment
I also think that we need to exercise considerable care in quantifying customer commitment. My experience suggests that customers don’t necessarily”want their money back” when things go “wrong.” I suspect that what they want is what they expected to get in the first place.

If I order a well-done steak that’s what I want. If I’m served a “medium -rare” steak, $2.000 wont make it taste better.

Thanks for stopping by Tim and well said!

That’s one of the things that prompted me to write about the $2k. I read a ton of articles researching it and never saw one that linked the 2k to the lifetime value number. Without that context, the 2k just seems like empowering to excess. The key for all of us is what we can do within the confines of our business model. And often a monetary fix is not needed or appropriate.