How should you compensate a customer for a service or product failure?

i. Invite customer to important meeting

ii. Discuss with customers how best services should be improved

iii. Give customers discounted prices on that service/product or other services or product

iv. If tangible goods, ensure to replace goods

Respond being confident of yourself on offered quality products or services which failed, Have Charming Smile and Sympathy to present valuable Parameters Services, that even fails after delivered by customer service, give value to the failure product or services given, let the customer know that he/she is a valued and worth-it to buy a Quality and can buy more goods, make them feel remarkable quality chose, that will ease their mind, So this a best COMPENSATION that they will feel awarded recognition of loss psychologically.

Understanding the level of failure in service or product.

Understanding the customer and his reasons for dissatisfaction. 

Understanding the level of the potential damage the customer can cause due to the failure.

The above are some points. Most important among this is an empathetic mind and the patience to listen to the customer's dissatisfaction. 

Considering this and other situations of the transactions with the customer during the selling, the organization/management needs to compensate so that this situation can be taken as an opportunity to market rather than only closing the complaint.