Why Integrity Still Matters

A couple of years ago, my parents bought a new dishwasher from a major electronics chain along with an extended warranty plan offered by the retailer. A few years later, that extra coverage appeared to be a wise move as they started having problems with their dishwasher after it was no longer covered by the manufacturer’s warranty.

However, when my parents called the electronics chain to make their claim through the retailer’s extended warranty plan, the company refused to honour their contract, insisting that the problems my parents were having with their dishwasher were not covered by the extended warranty. After several more phone calls and written letters, the electronics chain grudgingly acquiesced to respecting the terms of the warranty plan they had sold to my parents. Although the problem was ultimately resolved, the fact that my parents had to fight for something they paid for left a lasting impression as to this day, they refuse to buy anything from this major retail chain.

What this story shows is that this company failed to appreciate the importance of integrity in their dealings with their customers. Sure, the retailer had succeeded in

getting my parents to purchase the appliance at their store over their competitors, as well as getting them to drop down additional cash to purchase their extended warranty plan. And yet, by focusing only on that short term gain and not on their post-sales relationship with their clientele, they ended up losing years of repeat business, if not also the loss of additional customers like myself who became wary of purchasing large items from this retailer after hearing this tale.

Presently, with the current economic recession under way and with no clear signs of when the economy will recover, most companies are no doubt putting blinders on, focusing primarily on the bottom line and on measures to keep the bloodletting at a minimal. However, as the story I told above shows, companies should recognize the importance of honouring commitments they made to their customers since this will have a tangible effect on how willing consumers will be to spend in their stores when the current recession comes to an end.

Right now, all companies are either increasing their costs and/or reducing the number of products they offer, so what consumers will remember most from this period is how companies chose to treat and manage their customers. Those who make sure to handle all interactions with integrity and respect will undoubtedly be able to come out of the gate quicker once consumer purchasing power starts to rise again as customers won’t soon forget how they were treated when times were rough.

Of course, the necessity of integrity in human interactions is not only an issue between retailers and their customers; the issue also applies to any relationship, regardless of whether it is based in business dealings or personal affairs. Whenever two individuals or groups work together for an exchange of ideas, products or services, it’s important that all parties know the interactions will have a basis of mutual respect and trust, not only to ensure a successful outcome from the current collaboration, but to also encourage additional engagements in the future.

As is being oft-repeated, times are tough right now. However, it’s important that we remember that this is part of a cycle that will inevitably turn upwards. How we deal with others while riding these stormy seas will have a great impact on how many will still choose to engage us – either in a business capacity or a personal one – once calmer seas prevail.