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THREE
LETTERS OF ADJUSTMENT

A reputation for handling customer claims quickly and fairly is a powerful public relations tool for any firm.

—L. SUE BAUGH, MARIDELL FRYAR, DAVID THOMAS

Write a letter of adjustment in response to a customer’s letter of complaint (also called a claims letter). Business imperfections—incorrect bills, damaged merchandise, late payments—are not as rare as we’d like. In most instances, adjustments are handled routinely. “Keeping an old customer is just as important as gaining a new one.” (N. H. and S. K. Mager)

An adjustment letter serves to (1) correct errors and make good on company inadequacies; (2) grant reasonable full or partial adjustments in order to maintain good customer relations; or (3) deny unwarranted claims so tactfully that the customer’s goodwill is retained.

In his classic Handbook of Business Letters, L. E. Frailey advises treating a complaint with as much respect as an order, letting customers know you are as eager to serve them as to sell them.

“Every unhappy customer will tell ten others about a bad experience, whereas happy customers may tell three.” (Lillian Vernon)

The only thing worse than customers who complain are customers who don’t complain—and take their business elsewhere. A claims letter gives you the opportunity to win the customer back. You know when you have written a good letter of adjustment because the customer returns.

(To request an adjustment, see COMPLAINTS; this chapter deals only with making them.)

Kinds of Adjustment Letters

• billing/invoice errors

• credit

• damages

• exchanges

• explanations: oversight/error

• newspaper corrections

• refunds/discounts

• refusing to make (see REFUSALS)

• repairing damages

• replacements

• time extensions

How to Say It

• Open with a cordial statement (“Thank you for your letter of June 3”), a thank you for bringing the matter to your attention, or a sentiment such as “We were sorry to hear that...”

• Refer to the error, specifying dates, amounts, invoice numbers.

• If the customer was correct, say so.

• State your regret about the confusion, mix-up, or error.

• Explain your company’s policy of dealing with customer claims, if appropriate.

• Describe how you will resolve the problem or what you’ve already done. Sometimes you give customers the choice of a replacement, a refund, or a credit to their account.

• Mention when you expect the problem to be resolved, even if it is only “immediately,” “at once,” or “as soon as possible.”

• Reassure the customer: this error is rare; you do not expect a repeat occurrence of it; the company works hard to satisfy customers.

• Close by acknowledging the customer’s patience, asking for continued customer loyalty, offering further cooperation, reaffirming the company’s good intentions and the value of its products, or expressing your expectation that the customer will continue to enjoy your services and products for years to come.

What Not to Say

• Don’t use the words “claim” or “complaint” even though that’s how these incoming letters are commonly identified. To customers, the terms sound accusatory and judgmental, and the majority of them honestly believe they are due an adjustment. Instead of “The damage that you claim was due to improper packing” or “Your complaint has been received,” substitute a word like “report” for “claim” and “complaint.”

• Don’t say how surprised you are (“I can’t believe this happened”; “Not once in twenty years have we encountered this problem”) unless it truly is an exceptional occurrence. Customers assume that if the error happened to them, it could happen (and probably has) to anyone. You lose credibility.

• Don’t repeat all the details of a problem or overemphasize it. A passing reference is sufficient. Focus on the solution rather than on the error. You want the latter to quickly become a vague memory for the customer.

• Avoid long explanations. Customers generally don’t care about your difficulties with suppliers, employees, or shippers; they simply want an adjustment. Restrict your explanation, if you wish to include one, to several words (“due to a delayed shipment” or “because of power outages last week”).

• Don’t be excessively apologetic. A simple “We regret the error” is adequate for most slip-ups.

• Don’t blame “computer error.” By now people know that human beings run the computers, not vice versa, and this weak and obviously untrue excuse irritates people. And don’t imply that these things are bound to happen from time to time. Although this may be true, it makes your company look careless.

• Don’t make an adjustment grudgingly, angrily, impatiently, or condescendingly, and don’t imply that you’re doing the customer a big favor. This cancels the positive public relations effect of righting the error. Make your adjustment graciously or at least matter-of-factly even when the customer is angry or rude. Your attitude must be friendly and understanding; the high road leads to goodwill and customer satisfaction.

• Don’t end your letter by mentioning the problem (“Again, we are so sorry that our Great Southwest Hiking Holiday was such an unpleasant experience for you”) because it leaves the problem, not your goodwill and adjustment, uppermost in the reader’s mind.

• Don’t overstate company culpability or indicate in writing that the company was negligent. When negligence is involved, your lawyer can suggest the best approach for your letter.

Tips on Writing

• Respond promptly; this establishes your good intentions.

• Be specific: about the problem, about the steps you are taking, about what the customer can expect in the future. Vagueness leaves customers expecting more than is offered and unhappy when they don’t get it.

• Assume responsibility when appropriate. Use the active voice (“We sent the wrong monitor”) rather than the passive voice (“The wrong monitor was sent to you”).

• When the customer has been inconvenienced, be generous with your sympathy. Sometimes out of fear that the customer will “take advantage” of such openness, businesses fail to give customers their due—and then pay for it in reduced customer satisfaction.

• In some cases, add a goodwill gesture: a discount coupon or gift certificate, or a reduction on the next order.

• Adjustment letters are easier to write when your company has a codified strategy for managing customer complaints. You can then follow and appeal to policy and handle similar situations evenhandedly; you will not have to reinvent the wheel for each claims letter.

• Old but still good advice: “Legalistic quibbles have no place in the answer to a complaint. The customer is rightly or wrongly dissatisfied; business is built only on satisfied customers. Therefore the question is not to prove who is right but to satisfy the customer. This doctrine has its limitations, but it is safer to err in the way of doing too much than in doing too little.” (Mary Owens Crowther, The Book of Letters, 1923)

• An excellent resource for those who write letters of adjustment is Cheryl McLean, Customer Service Letters Ready to Go! MTC Business Books, 1996.

Special Situations

• Some problems are partly or wholly the customer’s fault (failure to read installation instructions, excessive or inappropriate use). If you decide to grant the adjustment (most companies give customers the benefit of the doubt), don’t assign blame to the customer; it undoes the goodwill you are establishing. When neither the company nor the customer is completely at fault, suggest a compromise adjustment or offer several solutions (“Because this item is not manufactured to be fire-resistant, we cannot offer you an exact exchange, but we would be glad to replace the fielder’s glove at our wholesale cost, offer you a 30 percent discount on your next purchase, or repair the fire-damaged nylon mesh back”). “A compromise is the art of dividing a cake in such a way that everyone believes that he or she has got the biggest piece.” (Ludwig Erhard)

• When you deny the requested adjustment (a complete refund, for example), explain why: an investigation of the matter did not support it (include documents or itemize findings); standard company policy does not allow it (and violating the policy in this case is not possible); the item is no longer under warranty; the item was used in a specifically prohibited manner. Be gracious but firm. Express your sympathy for the customer’s point of view, explain that their letter was considered carefully, appeal to their sense of fair play, and close with a positive statement (expressing your appreciation of past business and cooperation, offering a coupon, saying that this was a difficult letter to write but the only response consistent with your values of fairness and responsibility).

• Before mailing a product recall notice, consult with your attorney since the wording is important. Most recalls are announced in a form letter that describes the recalled product, tells what the problem is, and explains how the consumer can receive an adjustment, replacement, or refund.

Format

• Adjustment letters dealing with nonroutine problems are typed on letterhead stationery. For routine adjustment matters, use a half-sheet size memo or form letter with blanks to insert the details.

• Small companies may return a copy of the customer’s letter with a handwritten note: “We apologize for the error. Enclosed is a check for the difference.”

• If you learn of the problem by e-mail or fax, respond that way.

WORDS

PHRASES

SENTENCES

I’m sorry about the error in filling your order—the correct posters are being shipped today.

Thank you for bringing to our attention the missing steel pole in the tether-ball set you ordered from us.

Thank you for giving us the opportunity to correct the erroneous information published in the last issue of Tallboys’ Direct Mail Marketer.

Thank you for your telephone call about the defective laser labels—you will receive replacement labels within two to three business days.

We appreciate the difficulties you have had with your Deemster Steam Iron, but all our appliances carry large-print, bright-colored tags alerting consumers to the safety feature of the polarized plug (one blade is wider than the other and the plug fits into a polarized outlet only one way).

We are pleased to offer you an additional two weeks, interest-free, to complete payment on your formal-wear rental.

We hope to continue to serve your banking needs.

We regret the difficulties you had with your last toner cartridge.

We’re sorry you had to write; this should have been taken care of some time ago.

We were sorry to learn that you are dissatisfied with the performance of your Salten personal paper shredder.

Your business and goodwill are important to us.

You’re right, the self-repairing zippers on your Carradine Brent Luggage should not have seized up after only two months’ use.

You will receive immediate credit for the faulty masonry work, and we will send someone to discuss replacing it.

PARAGRAPHS

Thank you for responding to our recall notices and returning the Small World farm set to us for a refund. Small World has been making quality toys for children since 1976, and we regret the design error that made this set potentially dangerous to young children.

Thank you for calling to our attention the pricing error on our Bluewater automatic pool cleaners. Enclosed is a check for the difference. We look forward to serving you again.

Thank you for your telephone call. You are correct in thinking that you should not have been charged interest this past month. We have credited $2.85 to your account.

After carefully reading your letter of August 4, I consulted our shipping department. It appears that we did comply with the terms of the contract (documents enclosed).

I am sorry that your order was filled incorrectly. Enclosed are the back issues that you ordered. Please keep the others with our apologies.

Thank you for taking the time to let us know of your recent experience with one of our products. We are always interested in hearing from our customers but regret that it was this type of occurrence that prompted your letter.

SAMPLE LETTERS

Dear Mr. Willard:

Thank you for your letter of July 18. We are always happy to hear from our customers and pleased to be of service to them.

We are embarrassed to learn of your unfortunate experience with one of our products. We are always alert to constructive criticism, for we appreciate the enviable reputation our brand names enjoy in the marketplace with consumers the world over.

We would like you to know that as soon as we received your letter we held a special meeting with the resident managers of our Juvenile Puzzle Division, as well as our Quality Control Division. They are now looking into the problem.

In the meantime we are forwarding to you, with our compliments, several of our newest products, which we are certain will bring many hours of pleasant entertainment to your household.

We appreciate your taking the time to write us and hope that you will continue to look for our brand names whenever you purchase “things to do” that are fun for everyone.

Sincerely,

——

Dear Ms. Kenealy,

Enclosed is the Ralph Kello denim dress you ordered six months ago. I can only apologize most sincerely for all the difficulties you have had placing this order.

I am pleased that you are still interested in obtaining the dress. To help compensate you for your troubles I am also enclosing a check for $40—half the amount you sent us six months ago. Thank you for your patience, and I hope we can serve you again soon.

Sincerely,

——

Dear Malcolm Bryant,

We have received your signed copy of the major medical insurance waiver for this school year. The charge of $535 for student health insurance that was included in your fall tuition payment will be credited to your account.

Sincerely,

——

Dear Ms. Jordan,

This will confirm the arrangements made by telephone this morning. We apologize for your conference tables arriving with a center inlay color of Vanilla Illusion rather than the Blackstar Aggregate that you ordered.

The correct order will be delivered on June 7, and the other conference tables will be picked up at that time. As I understand it, only one table of the first shipment was un-boxed. If you can have that one reboxed or protected enough to be returned to us, we will appreciate it.

There will, of course, be no charge and in recognition of the inconvenience to you, we are enclosing a coupon good for $100 off your next order. We have always appreciated your business and look forward to serving you again.

Sincerely,

——

Dear Ms. Carfax,

We are sorry that the flowers you ordered for your holiday office celebration arrived in an unacceptable condition. Thank you for the dated photograph; it was helpful to us in assessing the problem.

It appears that somewhere between our premises and yours, the flowers were exposed to the below-zero temperatures we had that week. This would result in the wilted, browned appearance shown in the photograph. We are following up on this matter with our delivery people.

It is too late to save your holiday celebration, but we would like to make amends by, first, crediting your charge card for the entire amount of the flowers and, second, offering you complimentary flowers of equal value for your next occasion. We appreciate your business and hope to be of service to you again.

Sincerely,

——

Dear Lucy Snowe,

Thank you for your letter requesting a correction of several statements that appeared about you and your company in the most recent issue of Small Business Today . The information we were given was not double-checked; we apologize.

The correction appears on page 4 of this month’s issue.

Sincerely,

——

Dear Eva Steer:

I am sorry that the Irish linens you purchased from us proved to be flawed.

Please return the order to us, complete with packaging. We will replace it at once and also refund your mailing costs.

I notice that you have been a loyal customer for the past eight years, so you know that our quality control people don’t let something like this happen very often. I’m enclosing a discount good for 20 percent off your next order as our way of apologizing for your inconvenience.

Best regards,

——

Dear Gabriel Bagradian,

Thank you for your letter of July 7, appealing the $50 charge for the non-emergency use of the Werfel Community Hospital emergency room.

A review of the records shows that your son Stephan visited the emergency room on March 19 with a collapsed lung, not for treatment of acne. We regret the error that was made in coding the reason for the visit and have made an adjustment to your account.

We appreciate your spotting the error and letting us know about it so courteously.

Sincerely,
T. Haigasun
Billing Department

——

Dear Mrs. Painter,

Thank you for telling us about the infestation in our Wheatley cereal. We are sorry you had this experience and want you to know we share your concern.

Consumer satisfaction is most important to us, and we sincerely regret your recent experience with our product. Our company has strict standards of quality control. We carefully examine each lot of raw materials when it arrives. Sanitarians inspect our manufacturing plant continually and, in addition, make periodic checks of our suppliers’ facilities. Food samples are collected all through the manufacturing process and are analyzed in our laboratories. We enforce these stringent procedures to ensure the production of high-quality, insect-free products.

The information you gave us about our product is being brought to the attention of the appropriate company officials.

Again, thank you for writing.

Yours truly,

——

Dear Mr. Steinmetz,

No, the motor on your vacuum should not have “worn out” six months after you purchased it. We can’t be sure what the problem is, but this is unusual for our top-of-the-line Costello vacuum.

Please take the vacuum to one of our repair shops (see attached list to find the one closest to you). The personnel there will examine the machine and if they can repair it, they will do so and bill us. If they find that the machine is defective, we will arrange to have a replacement shipped to you.

Please accept our apologies for the inconvenience this has caused you.

——

Dear Mr. Ramsdell:

Re: Claim 02018-1134 WB 753

Enclosed is a check in full settlement of your claim.

Because Shipper’s Transit Insurance was not purchased, the carrier’s liability is limited to $1.25 per pound times the weight of the load. This conforms with tariff regulations.

To obtain full reimbursement for damages or loss you must file a claim with your corporation traffic department or its insurance carrier. Please check with them about this.

Thank you for your patience and cooperation during the necessary delays in processing your claim.

Sincerely,

——

Dear Mr. Magnus,

We were unhappy to hear that you felt the installation of your fiber-optical cable was “sloppily done” and the electricians “unprofessional.”

We now have the report of two inspectors, one from our company and one from an independent oversight bureau, who visited your offices on November 11 and 12. Their evaluations indicate that the installation was meticulously done, that code standards were met or exceeded, that site cleanup was faultless, and that, in fact, there was no find-able cause for objection.

Interviews with your staff members who had contact with the electricians turned up no negative information about their behavior.

In the light of these reports, we are unable to offer you the requested deep discount on our services.

——

See also: ACKNOWLEDGMENTS, APOLOGIES, BELATED, COMPLAINTS, CREDIT, REFUSALS, RESPONSES 0qlOsDun68P6viyKwS8Vm/z9d2qYAIkMyDzY3Gt/LpwhegHXTSVAOIzlTtLKqNnq

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