Netflix, this one’s for you: The art of a good apology

MIKE CASSESE/REUTERS - Netflix CEO Reed Hastings has taken heat from customers for changes to the company’s business model--and the ill-received apology that followed.

The resulting uproar was overwhelming. The attempt at humor came across as insensitive during a time of violence and struggle in Egypt. Within an hour, Cole responded on Twitter, writing “we weren’t intending to make light of a serious situation” and “we understand the sensitivity of this historic moment.” An apology on Facebook went much further, saying that “I’ve dedicated my life to raising awareness about serious social issues, and in hindsight my attempt at humor regarding a nation liberating themselves against oppression was poorly timed and absolutely inappropriate.” While his initial comment may have had bad timing, his response didn’t: The immediate apology showed Cole to be adept at the use of fast-moving social media.

Finally, one of the most effective apologies of the last few years involved Steve Jobs, who was able to combine sincerity and an offer of concession in his “I’m sorry” for an iPhone price change. After launching the iPhone at $599 in 2007, Apple dropped the price by $200 two months later, stinging Apple’s many early adopters.

Since this group included some of the company’s most important customers, Jobs acted quickly with an open letter to them. “We need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price,” he wrote. “Our early customers trusted us, and we must live up to that trust with our actions in moments like these.” Customers who’d bought an iPhone were offered a $100 store credit.

While he gave customers something in return, he also stood his ground by doing what was best for the company. Jobs was believable because of the tone he used and because he also took the time to explain his rationale and offer up something in return. That may not meet Auerbach’s standard. But it’s probably a good step toward meeting his customers’ needs.

Paul A. Argenti is a professor of corporate communication at the Tuck School of Business at Dartmouth College.

Related Articles:

Peter H. Kim: The science behind saying you’re sorry

Christopher Lehane: When apology is a sign of the times

Jena McGregor: Want angry Netflix customers to let up?

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