Amity Business School

Amity Business School

MBA Class of 2010, Semester III
Service Recovery
Prof. P K Bansal
 CUSTOMER BEHAVIOUR
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PASSIVE VOICERS IRATES ACTIVISTS

ACTION LEAST LIKELY ACTIVELY NO COMPLAIN TO

COMPLAIN FEEDBACK PROVIDERS,
FRIENDS,
THIRD PARTY

W.O.M NO LESS LIKELY NEGATIVE DAMAGING

PSYCHOLOGY DOUBT LESS SOME WHAT COMPLAINT

EFFECTIVENE ALIENATED ALIENATED FITS THEIR
NOT WORTH FROM ANGRY NORM, MORE
TIME AND SOCIETY, WITH ALIENATED,
EFFORT, COMPLAIN PROVIDERS CASUALLY
PERSONAL HAS SOCIAL CAN BECOME
VALUES BENEFITS 'TERRORISTS'
 SERVICE RECOVERY Amity Business School

Categories of dissatisfied customers

• Annoyed

• Victimised
 1 - APOLOGY.
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– Dissatisfied customers need to hear a

company representative personally
acknowledge the error as soon possible after
it happens.

– When appraised of the problem, the worst

possible thing one can do is ignoring it. 

– The next biggest mistake is to pretend that

nothing is wrong.
 2 - URGENT EFFORT
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– Once the problem has been acknowledged

("I'm sorry" is better than "we regret") and
personally apologized for.

– The customer wants to feel that a company

representative is trying to set things right as
soon as possible. 

– Good intentions count when an error is made,

but action will demonstrate that you have the
customer's interests at heart.
 3 - EMPATHY
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– After your apology and demonstration of action

to fix the error, victimized customers also need
to hear that you understand their situation and
their feelings. 

– You need to communicate, "I know how you

must feel." 

– Remember the difference between empathy

(understanding how the other person feels) and
sympathy (actually feeling the same way). 

– Customers don't expect you to be perfect, but

they do expect you to care.
 4 - COMPENSATION
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– The next step in service recovery is to

make a gesture, even a symbolic one, to
compensate for the mistake. 

– There is no way to totally compensate

customers for their inconvenience, and
you shouldn't try to. 

– You can, however, repay them with a

token of your regret for the mistake.
 5 - FOLLOW-UP
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– Finally, you must follow-up to see

whether the victimized customer has
gotten the treatment you promised, and
how they feel about it. 

– This is a valuable step that lends a

sense of closure. 

– It helps you gather valuable feedback

about what you have done. 
 Amity Business School

– On a secondary level, it helps you feel

good about yourself: "we may have
goofed up, but I made things all right."  

– If a customer makes a suggestions at

this point, sincerely thank them and let
them know that will be implemented.