L9.
Complaint handling and service recovery
Two main types of service failure
Customer response options to serve failure
Service recovery
Principles of effective service recovery
Outcome failure - What customers actually receive from the service
- The organization does not fulfil the basic service need or perform the core service
Service Failure
- Marketing/Sales making a promise to customers
- Service Delivery delivers the promise to customers
- Service delivery is often very complicated as the one making the promise is not the one delivering it
Process Failure - How they receive the service
- The delivery of the core service is fulfilled but flawed or deficient in some way
- Systematic efforts by a firm to correct a problem following a service failure and to retain customers' goodwill
- Complaints should be seen as a "profit center" rather than a "cost center" as it helps firm to improve
Service recovery paradox
- Describes the phenomenon where customer who experience a service failure that is satisfactorily resolved may be more likely to make future purchases than customers without problems
- if second failure occurs and service paradox disappear, customer would be disappointed as expectation has been raised
- Standard expected to deal with service failure increases
- Severity and recoverability of failure will ability ability to delight customer with recovery efforts ie. wedding photos, ruined holiday
Do the job right the first time
- 1.Effective complaint handling
- = Increase satisfaction and loyalty
- 2.Identify service complaint
- Conduct research, monitor complaints, develop a "complaint as opportunity" culture
- 3.Resolve complaint effectively
- Develop effective system and training in complaints handling
- 4.Learn from the recovery experience
- Conduct a Root-Caused analysis
- Take public action
- Complain to service firm
- Complain to third party
- Take legal action to seek redress
- Take private action
- Switch provider
- Negative word of mouth
- Take no action
Effective service recovery
- Be proactive (do not wait until customer make complaints)
- Employee empowerment
- Plan recovery procedures
- Teach recovery skills to relevant personnel