Service Recovery

Chapter 8
Basharatullah Malik
 Service
Customer Response to Failures Failures

Dissatisfaction/
Negative Emotions

Complaint No
Action Complaint
Action

Complain Negative Third

to Word Party
Provider of Mouth Action

Exit/
Exit/ Stay
Stay Switch
Switch
 Service
Failures

Dissatisfaction/
Negative Emotions

Exit/
Switch
Types of Customers Complaints

 Complaint on the Spot (Voice or Redress

Seekers)
– Chance for Immediate Recovery
– Keep his business in future
– Avoid any Negative Word of Mouth
Types of Customers Complaints

 Complaint Later in Writing or Phone or

email
– Similar benefits as in Complaint on spot
 Word of Mouth
 Complaints to Third Party
Types of Complainers

 Passive
 Voicers
 Irates
 Activists
Customer Recovery Expectations

 Understanding and Accountability

 Fair Treatment
 Outcome fairness
 Procedural Fairness
 Interact ional Fairness
Service Recovery Strategies
 Do it Right the First Time- Fail Safe
– Recovery will not be Required
– Adopt TQM- Zero defects
– Adopt TQM in the Service Context
 Poka Yokes PY are automatic warnings or controls
in place to ensure mistakes are not made, {Quality
control Mechanisms used on assembly lines}
– Tangibles poka yokes
– Employee Behavior PY
– Culture of zero defects-Reliability
Service Recovery Strategies

 Encourage and Track Complaints

 Research in Customer Satisfaction Survey
 Critical Incidents Technique
 Toll Free call Centers
 Develop Soft ware-record, sort, club, take
action, Respond, feed back
 Develop repairs team, equip with tools etc.
Service Recovery Strategies

 Act Quickly
 Take Care of Front Line Problems
 Listen
 Respond preferably through phone
 Empower Employees
 Don’t Delay action, due to delegation
 Encourage employees to predict and solve problems
 Hunger of Children anticipated by Airline crew
 Train Service delivery Employees
 Don’t Punish Employees for taking action leading to problems
 Allow employees to spend if necessary say upto Rs 1000/-
Service Recovery Strategies

 Allow Customers to Solve their own

Problems
 Package Tracking FedEx by Customers
 Provide Adequate Explanations
 Treat Customers fairly
 Cultivate relationships with Customers
 Learn From recovery Experiences
 Learn From Lost Customers