In hospitality, a compensation is a gift (discount, credit, refund) given to a guest for bad service. Now, at work, I am creating a compensation model for clients who aren’t satisfied with our program. What’s disappointment worth?

There are ways to calculate disappointment and the value of bad service. It’s cold and removes the humanity from the effort. Is that a bad thing?

If you’re a consumer, you might say “hell yeah that’s a bad thing.” If you’re the service provider, you might think otherwise.

I come to ultimate question: What is the compensation for?

Compensation is for atoning and restoring the relationship to one of productivity and mutual benefit.

It’s hard to quantify it. Instead, show how you’ve changed and demonstrate a commitment to continue changing and adapting.

Your customer will forget about the 10% discount you gave them a year ago. They won’t forget how you showed up to serve them time after time.