Would you like 47% more customers choosing your business over the competition? What I’m about to share might surprise you, because it goes against everything we’re taught about running a business. Most entrepreneurs think that hiding their mistakes protects their reputation. But some groundbreaking research from Yale University reveals that being open about your mistakes doesn’t just save your business relationships; it actually makes people more likely to choose you over the competition.

The below shows you exactly how major brands like KFC and Apple have used this contrarian approach to turn potential disasters into massive wins. But here’s the thing: it can all go very wrong unless you use the specific three-step process I’ll give you at the end of this article.

What the Research Discovered

When researchers studied thousands of real customer reviews on major platforms, they found something fascinating. Reviews that mentioned previous mistakes with similar products were consistently rated as more helpful and more trustworthy. But here’s where it gets really interesting: when they tested this with real businesses, the results were remarkable.

• A florist who openly discussed previous arranging mistakes saw a 47.3% increase in bookings.
• An electronic store that acknowledged past product recommendation mistakes saw a 34% boost in headphone sales.
• Even a simple mint company saw a 58.6% increase in purchases when they were transparent about some previous flavor choices being not so great.

Real-World Examples

This isn’t just academic theory. Let’s look at how real companies have put this into practice:

KFC

KFC had a crisis in the UK when they ran out of chicken. Yes, a chicken restaurant without chicken. Instead of trying to hide it, they took out full-page ads with their logo rearranged to spell “FCK” and openly admitted their mistake. The result? Their customer satisfaction actually increased after this crisis.

Apple

Apple faced a battery performance issue a few years back when customers complained about iPhones slowing down. CEO Tim Cook didn’t just issue a vague statement; he publicly explained the exact problem, admitted their mistake, and offered a $29 battery replacement down from $79. This turned a potential PR nightmare into a trust-building opportunity for their existing customers.

Applying This in Your Business

Sarah, an e-commerce store owner who used to panic every time a shipping delay happened, like most businesses, she’d hide the problem and offer refunds, hoping customers wouldn’t leave bad reviews. The result? Angry customers and negative reviews. Then she tried something different:

1. She immediately emailed all the affected customers explaining the exact situation.
2. She shared how she was fixing the problem.
3. She kept everyone updated on daily progress.
4. Most importantly, she acknowledged her mistake in not having better backup systems in place.

The result? Not only did she keep 92% of the orders, but several customers actually posted positive reviews about how well she handled the situation.

Another example is Mike’s restaurant. Instead of having servers hide when food was delayed, he trained them to immediately acknowledge the delay, explain what happened, and share how they were fixing it. The rate of customers returning to his restaurant increased by 23% after implementing this approach.

Your Three-Step Process for Turning Mistakes into Opportunities

Now, here’s your exact three-step process for turning mistakes into opportunities:

Step 1: Immediate Acknowledgement

The moment you realize there’s an issue, own it completely. Do not wait for customers to discover it themselves. Research shows that proactive admission builds 34% more trust than reactive responses.

Step 2: Transparent Communication

Share three specific things: what went wrong, why it happened, and most importantly, how you’re ensuring it won’t happen again. This isn’t just about apologizing; it’s about demonstrating expertise through your understanding of the problem and of the solution.

Step 3: Strategic Documentation

This is where most businesses miss out. Document how you fixed the issue and share it with future customers as proof of your improvement process. This turns your mistake into a trust-building asset.

Being public about your mistakes feels unnatural, and it may feel like you’re failing. But it’s just the opposite, and the research backs it up.

Why wait for a mistake to scale using science? I’ve got hundreds of proven science-backed ways to grow your business. If you want to see how to do that in just a few minutes, check out my Scale with Science Mini-Masterclass for a shortcut to scaling your business, including my step-by-step method for using transparency to build unshakable customer trust.