Presentation By

‡Sahil Makhija ‡Rakesh Mahajan ‡Syed Misbah


A customer service failure, simply defined, is customer service performance that fails to meet an individual¶s expectations.

Primary Failure Type ƒ Failure Subgroups Unavailable Service Unreasonably Slow Service Other Core Service Failure Special Needs Customers Customer Preferences Admitted Customer Error Level of Attention Unusual Action Drunkenness Verbal and Physical Abuse Breaking Company Policies Uncooperative Customers Service Delivery System Failures Customer Needs and Requests ƒ ƒ Unprompted/Unsolicited Employee Actions ƒ Problematic Customers .

ƒ Seller & Service Factors  Expensive. Voice.ƒ Market Factors  Exit. ƒ Consumer Factors  Personal Matters . Complex. Loyalty.

. Consumer satisfaction is directly linked with loyalty and profits.ƒ ƒ ƒ Customer will switch to other brand. Making new customers will be more costly than retaining the existing. which will be costly.


ƒ Service recovery Defined as a process by which the firm attempts to correct a service failure to build good relationships with the customer. .

Rectifies their own process so that the failure doesn¶t reoccur. The service delivery company ideally takes action to ensure that their customer gets their desired outcome anyway. .ƒ ƒ ƒ Service recovery comes into play when something in a service delivery goes wrong.

Outstanding recovery results in loyalty intentions which are more favourable than they would be had no failure occurred. . Failure resolution/correction has a positive effect on loyalty intentions.ƒ ƒ ƒ ƒ Service failure has a negative effect on customer loyalty intentions. Customer satisfaction with the recovery has a positive effect on loyalty intentions.

ƒ ƒ ƒ Strong impact on customer satisfaction. Advertising pull customer once. word of mouth. loyalty. Customers recovered from service failure and ultimately satisfied tend to be more loyal and bring more profits. service recovery pulls customer back to you and is more powerful than advertisement. .

There is no complaint handling. The critical change from Stage 3 to 4 is the move from reactive to proactive solicitation of customers with issues. The solicitous role is accomplished by encouraging customer to voice their complaints through surveys. Specific people have the responsibility to respond to complaints and guidelines are in place for the response. Stage 5: Infused.Re-examination of the process designed . Solicitous.ƒ ƒ ƒ ƒ ƒ Stage 1. Moribund. The reason this is so important is that most customers don't bother to complain. Stage 3: Active Listening. At this stage. Customer complaints are heard. Stage 4. Angry customers are ignored. Stage 2: Reactive. the response to issues voiced by customers is structured. and a response is made.

Impressed. Amazing. Make it Right. Refund.ƒ ƒ ƒ The apology and accountability  I¶m Sorry. The WOW! Factor.  Exchange.  JUST WOW! .  Awesome. Repair.

.ƒ ƒ ƒ ƒ ƒ ƒ Correct the problem Emotional release from frustration Regain some measure of control by spreading negative word-of-mouth Solicit sympathy Test for consensus(decision making) Create an impression of being more intelligent.

ƒ ƒ ƒ ƒ ƒ ƒ Don¶t know who to complain to Don¶t think it will do any good May doubt their own subjective evaluation May accept part of the blame May want to avoid confrontation May lack expertise .

Outcomes V/S Inputs ‡ Distributive justice Outcomes (compensation) ‡ Procedural justice Process (time) ‡ Interactional justice Human content (empathy. friendliness) .

Learn from recovery experience.ƒ ƒ ƒ ƒ ƒ ƒ Do it right the first time. . Act quickly Treat customers fairly. Welcome and encourage complaints. Learn from lost customers.

ƒ ƒ ƒ ƒ ƒ Maintaining Customer loyalty. Customer handling Complaint handling. Creating positive word of mouth. . Removing defects and negative outcomes.

Did you get a quick acknowledgement of the problem. and -perhaps -. speedy resolution of the problem.compensation for your troubles? Imagine if you got a truly sincere apology and not some phony empathy? Weren't you more likely to buy from that company again because of the confidence you now had in their business practices? That's the key value to effective service recovery and complaint handling: customer retention.ƒ ƒ ƒ ƒ ƒ Think about your own experiences with service or product problems. .


We have provided our service and if there¶s any failure from our side then please inform us so that we can rectify it and provide better in the future. .

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