How to Respond to Compensation Demands in Customer Service

A customer is unhappy. She doesn’t want to take time off work to allow her housebuilder to complete essential warranty repairs in her new home. She insists:

“I WANT COMPENSATION FOR LOSS OF EARNINGS!”

Here are three possible ways to respond:

1. “I’m unable to offer you compensation for loss of earnings because…”
2. “We’re unable to offer you compensation for loss of earnings because…”
3. “We won’t offer you compensation for loss of earnings because…”

None of these responses is technically incorrect — but one stands out as the most effective.

“We won’t…” is the strongest option. Here’s why:

• Option 1 (“I’m unable…”) can provoke frustration. It often makes customers feel you’re just the messenger, lacking the authority to make decisions. That’s when they ask to escalate things: “I want to speak to your manager!”
• Option 2 (“We’re unable…”) may sound more official, but it opens the door to a sarcastic comeback: “You made 50 million last year, and you’re telling me you’re ‘unable’ to give me £200, Stop insulting me!"
• Option 3 (“We won’t…”) is direct, confident, and clear. It sets a boundary in a calm, assertive manner — if delivered professionally.

In our Dealing With Difficult Customer Situations training…

Most participants agree that Option 1 is the weakest choice. But many still feel that Option 2 is “softer” and therefore preferable — often because they worry that “we won’t” sounds too harsh.

Our view? “We won’t” only sounds harsh if it’s said with frustration or defensiveness. If you remain composed, empathic, and professional, “we won’t” communicates your message clearly, respectfully, and with authority.

It’s always rewarding to see participants’ confidence grow as they realise they can set boundaries without sounding aggressive — and that staying calm actually gives them more control, not less.

This approach is at the heart of what we teach in Dealing With Difficult Customer Situations.

We start from the belief that most people are doing their best. Their customer conversations are usually fine — but there’s always room to make them better.

That’s why we don’t preach right vs wrong — it just makes people feel like they’ve been “getting it wrong”.

Instead, we focus on better vs worse — because that’s where real growth begins.

Don’t let the final step ruin the entire journey.

Would you like to learn more?

Our Dealing With Difficult Customer Situations course focuses on helping you be the best you can be in situations where every word matters.