Turning Customer Frustration Into Loyalty When You’re Out of Stock

Shep Hyken
Turning Customer Frustration Into Loyalty When You're Out of Stock
Turning Customer Frustration Into Loyalty When You're Out of Stock
When a customer is furious over an out-of-stock item, most businesses see a problem. I see an opportunity. Throughout my career helping companies improve their customer service, I’ve found that these moments of frustration can become powerful loyalty-building experiences.

Let me share something counterintuitive: sometimes the best way to keep a customer is to send them to a competitor. Yes, you read that correctly.

Consider this scenario: A customer wants something you don’t have. Whether it’s temporarily out of stock or something you’ve never carried, their disappointment is real. The natural reaction might be to apologize and hope they come back another time. But that approach misses a golden opportunity to demonstrate your commitment to their needs.

My Five-Step Process for Handling Customer Complaints

Before diving into specific inventory solutions, let me share my proven approach for handling any upset customer:

  1. Apologize for the problem – A sincere apology acknowledges their feelings
  2. Acknowledge what happened – Show you understand their specific issue
  3. Discuss the resolution – Present options and next steps
  4. Accept ownership – Take responsibility even if it wasn’t your fault
  5. Act with urgency – Show them their problem is your priority

The order of the first two steps is flexible, but all five are essential for turning frustration into satisfaction. The resolution step deserves special attention when dealing with inventory issues.

Information Gives Customers Control

When an item is temporarily out of stock, provide specific information. When will it be back? Can you place a special order? Can you deliver it directly to them when it arrives? Giving customers information returns a sense of control they lost when facing disappointment.

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But what if you won’t be restocking the item or never carried it in the first place? This is where most businesses fail their customers – and where you can shine.

Putting Customer Needs Before Sales

One of my favorite examples comes from Ace Hardware. During a particularly cold winter, a customer was upset to find the store had sold out of space heaters. Rather than simply apologizing, the associate called a competitor, confirmed they had space heaters in stock, and asked them to hold one for his customer.

Who do you think that customer loved after that experience? Ace Hardware, of course. The associate sacrificed an immediate sale but gained a loyal customer who would return for future purchases.

This approach works because it demonstrates you value the relationship more than the transaction. You’re proving that you have the customer’s best interests at heart, even when it doesn’t benefit you immediately.

Even if you have to give up the sale to a competitor, ask yourself: “Is what I’m doing right now going to get that customer to come back the next time they need whatever it is we sell?”

Building Trust Through Selfless Service

When you recommend alternatives – even competitors – customers realize you’re more interested in meeting their needs than making a quick sale. This builds the trust that transforms casual shoppers into loyal advocates.

Remember that business fundamentally happens between people who know, like, and trust each other. Every interaction either strengthens or weakens that foundation.

I’ve seen companies transform their customer relationships by embracing this mindset. They recognize that every complaint or disappointment is an opportunity to resolve a problem and turn a moment of misery into a moment of magic.

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For inventory issues specifically, the solution is straightforward: put the customer’s needs first, even if that means sending them elsewhere. When you consistently demonstrate this level of care, customers will return again and again.

The next time a customer is upset about something you don’t have in stock, don’t just apologize – take action that proves you’re on their side. That’s how you turn frustration into loyalty.

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Shep Hyken has been at the forefront of the CS/CX Revolution for decades. His experience runs the gamut from helping notable companies like Disney and FedEx to improve their already outstanding customer service, to helping small and mid-sized organizations transform poor customer experience into a highlight of the organization.